Fed study: Tax hikes, not spending cuts, are slowing the recovery
Surprisingly, despite all the attention federal spending cuts and sequestration have received, our calculations suggest they are not the main contributors to this projected drag. The excess fiscal drag on the horizon comes almost entirely from rising taxes. Specifically, we calculate that nine-tenths of that projected 1 percentage point excess fiscal drag comes from tax revenue rising faster than normal as a share of the economy.
Remember, the people in charge now are the same ones that say rising fossil fuels costs that lead to higher energy costs are bad for the economy while pushing for more expensive and intermittent green energy as a way to boost unemployment.