With the coming year many tax breaks will becoming to an end without intervention and agreement between the democrats and republicans. The dollar amount is staggering and all stimulus expirations would total about 4% of GDP which would mean that the US economy would immediately enter into a recession.
What about the debt ceiling? You might feel like we just went through that debate but it turns out we will probably be hitting that wall some time in mid September:
The treasury can play some accounting shell shuffle in the few months after we hit the debt ceiling as timmy did in 2011, but this time around we will watch the politicians battle it out over the debt ceiling and all of the expiring tax cuts and stimulus. This could be political brinkmanship at its ugliest.
