What happens to the economy if the Tea Party Tax hike takes effect?

Posted by AzBlueMeanie:

So what happens if the payroll tax cut is allowed to expire on January 1st? According to several economic analysts, it would severely affect economic growth and job creation next year. What Happens To The Economy If The Payroll Tax Cut Expires? | ThinkProgress:

– According to Macroeconomic Advisers, allowing the payroll tax cut to lapse “would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs.”

– Barclay’s estimated that letting the cut expire would knock 1.5 percent off of first quarter growth next year.

Meanwhile:

– Ameriprise Financial Services estimated that extending the cut “is likely to add between 750,000 to 1 million jobs.”

– Susan Wachter, a finance professor at the University of Pennsylvania’s Wharton School, calculated that the payroll tax cut “would add 1 percentage point to economic growth and create 1 million jobs next year.”

– Regional Economic Models Inc. estimated that the cut would pump “$120 billion into U.S. households in 2012.”

The GOP is sabotaging economic growth and job creation for purely partisan political reasons. They should be ashamed.