Taxmageddon Holding Hands while Jumping Off the Cliff
The rapid approach of the Thelma & Louise bipartisan plunge into the financial abyss is upon us. It is simply unbelievable, that the prospects of rational tax salvation by the end of the year, measured by every statement coming out of the Washington political cabal, will materialize. Extending the current tax rates from automatic rescission on January 1, 2013, as a stopgap method for an enactment of a lasting political rapprochement, is the best that might occur. The net effect will be a perspicacious downturn in economic activity, a new round of layoffs, rising permanent unemployment and a plunge in consumer confidence. Wall Street will make hay by shorting the market while placing blame on the uncompromising hacks that refuse to cut a deal.
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