Salient to Investors:

Martin Feldstein at Harvard said:

  • The US economy would still be perilously close to a recession in 2013 even if we don’t go over the fiscal cliff.
  • The end of payroll tax cuts will reduce GDP by 1 percent, and other tax increases and spending cuts may bring over 2 percent of GDP tightening.
  • Congress should not raise tax rates but increase revenue by restricting deductions and credits in the tax code for such things as mortgage interest and investments in renewable energy.
  • The fiscal cliff would be a disaster and would push the economy into a serious recession.

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