Economy could get bumpier if tax cut expires Dec. 31

Economy could get bumpier if tax cut expires Dec. 31

The problem is that 70% of economists’ forecasts anticipate the cut would be extended in 2012, as the economy struggles and unemployment remains stubbornly high, said Randell Moore, editor of the Blue Chip Economic Indicators forecasting newsletter. Throw in the $30 billion at risk if Congress doesn’t agree to continue long-term unemployment compensation, which is also up for renewal, and it amounts to almost 1% of gross domestic product, said Joel Prakken, chairman of Macroeconomic Advisers in St. Louis.

“And it occurs quite quickly at the beginning of the year,” Prakken said. “It’s a meaningful drag.”

Without an extension, nike dunk high custom Mesirow Financial Chief Economist Diane Swonk said that consumer spending growth could slump as much as a third lower than the 1.7% annual rate she projects by mid-2012.

Real after-tax personal incomes would probably shrink instead of growing slightly, she added.

“What’s really disturbing is how little this has been discussed — like, not at all,” Swonk said. “Political analysts think renewal is not a sure thing. And that’s really scary. The timing on this couldn’t be worse, with Christmas coming and Europe in crisis.”

President Obama’s nike dunk high pro sb package, proposed in September, called for extending the tax cut, and for expanding it by giving small businesses a reduction of employers’ 6.2% contribution to payroll taxes. It would also eliminate employer-paid taxes on up to $50 million worth of wages for new hires and money used to give existing workers raises. The full package failed to win enough support in the Senate to be brought up for a final vote.

Payroll taxes will be nike dunk maharam separately in late November or early December, said Brian Fallon, an aide to the Senate Democratic caucus. No date has been set for a vote in the House.Republicans have been skeptical of extending the payroll-tax cut, while not dismissing it.

“It is part of the discussions ongoing about how we resolve this budget issue by the end of the year,” House Majority Leader Eric Cantor said last week at Rice University in Houston. “And we’ll continue to sort of focus on that, with the tenet we don’t think taxes should go up on anybody.”

Retailers want the cut extended, even though they think its impact on retail sales this year has been more modest than nike dunk suede economists suggest, said David French, senior vice president for government relations at the National Retail Federation. Fluctuating energy prices may have had more effect than taxes on this year’s move from weak consumer demand early in 2011 to a more brisk second-half pace, he said.In Portland, Ore., more than 50 people were arrested Sunday night after police officers in riot gear moved in to empty the parks. Portland then closed Lownsdale and Chapman Squares to the public in an attempt to combat safety, health and crime problems, Mayor Sam Adams says.

“It is our duty as police officers to protect people’s right to free speech, and we take that very seriously,” Portland Police Chief Mike Reese says. “But we do have to balance rights.”

Elsewhere:

?In Oakland, nike dunk space jam for sale riot-clad law enforcement officers cleared out the city’s encampment just before dawn Monday, arresting 32 Occupy demonstrators and removing tents from a downtown plaza after issuing several warnings over the weekend, Police Chief Howard Jordan said. Officials stepped up calls to end the city’s encampment after a man was shot and killed Thursday near the camp and issued an order Sunday night telling demonstrators they couldn’t camp in Frank Ogawa Plaza.

?In Eureka, Calif., more than 50 Eureka police officers, Humboldt County sheriff’s deputies and California Highway Patrol officers moved in on Occupy Eureka early Monday, arresting more than 20 protesters. No warning or order for dispersal was given.?In Philadelphia, nike dunk keychain Mayor Michael Nutter has increased the uniformed police patrol near the city’s camp because of safety concerns including combustible structures, lack of an emergency fire lane and growing problems with litter, public urination, defecation and graffiti. “These conditions are intolerable. Occupy Philly is not acting in good faith,” Nutter says.

Oakland Occupier John Murry, nike dunk kahaki 32, says he believes that police are using a recent shooting near the Occupy Oakland camp as an excuse to breach First Amendment rights.”It is an attempt to give the appearance that they aren’t limiting freedom of speech when they really are,” Murry says.”The situation has deteriorated to the point where we are no longer able to address public health and safety concerns,” counters Karen Boyd, communications manager for the city of Oakland.

Attorney J. Robert Linneman, nike dunk high premium who has been working with Occupy protesters in Cincinnati since they first applied for a permit in early October, says government officials should focus on enforcing existing laws and separate individual instances from the movement as a whole.

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