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Tax hikes threat hurts US spending

11-27-2012 04:50 BJT

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As the US fiscal cliff looms ahead, US experts say that a sudden increase in taxes for middle-income taxpayers would greatly reduce consumer spending. The effect would especially be felt as the Christmas holiday shopping season approaches.

The reduction is estimated to be nearly 200 billion US dollars in 2013. Experts worry that the slump will significantly slow the US economic recovery. The US President Barack Obama has already held talk with leaders from the congress to avert the fiscal cliff. But some Republicans have opposed Democrat's proposal, which aims to raise taxes on the very wealthy to rein in the US budget deficits.

The potential fiscal cliff would see tax cuts expire in combination with automatic reductions to military and domestic spending for the US.

 

 

Editor:Zheng Limin |Source: CCTV.com

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