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.

Read the full article at http://www.bloomberg.com/news/2012-11-20/feldstein-says-u-s-fixing-cliff-may-not-avoid-recession.html