August 17, 2011

Standard and Poor's on Bush Tax Cuts

S&P would upgrade the US to "stable" if the Bush tax cuts for the rich were allowed to lapse:

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating.


United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden; Outlook Negative [pdf] Standard and Poor's, Primary Credit Analyst:
Nikola G Swann, CFA, FRM, Toronto, August 5, 2011.


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