estimated at $15 trillion—and growing! If we get no agreement, look for S&P to further downgrade our credit rating. You will remember that August’s downgrade form AAA to AA+ roiled the investment markets, doing investors no favors. The next downgrade would most likely be to AA, and you can bet on additional market turmoil, with investors fleeing for the sidelines. As well, a downgrade would require our government to pay more to investors in U.S. instruments, which will just add to our deficit.
xtra money? That’s right—you and I will eventually pay in higher co-pays, increased insurance premiums, and other out-of-pocket expenses.
he tax cut is worth $934—on average—to each of us. And RBC Capital Markets has forecast that expiration of the cuts would reduce GDP in this country by 1% next year.
was enacted in 1969, and the problem was the original law did not take into account inflation. Consequently, middle-class members who were never intended to pay the AMT would pay through the nose, without the Congressional extension of the exemption, which Congress has been d
oing for several years. Don’t expect the exemption if the politicos don’t come to agreement.