“Even if the White House and Congress put political differences aside and navigate the economy away from the year-end fiscal cliff, growth could still come in sluggish next year, said Mohamed El-Erian, CEO of fund giant Pimco.
Sweeping tax increases are due to take effect at the end of this year at the same time deep cuts to government spending kick in, a combination known as a fiscal cliff that could tip the country into recession next year.
The White House has insisted fiscal reforms must include tax hikes on those bringing in over $250,000 a year, a proposal that found strong opposition at first among Republicans, though the GOP appears to be warming up to the idea of higher taxes for the wealthy in exchange for spending cuts elsewhere….”
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