Some investors are unruffled by the approaching "cliff." Even if Republicans and Democrats can't reach a deal, some investors think the effect of the higher taxes and lower government spending would be more like the anti-climactic Y2K scare than a true Armageddon. The impact would be felt only gradually â¿¿ for example, workers might get more taxes withheld from their first couple of paychecks in the new year â¿¿ but then Congress could always retroactively repeal those higher taxes, these investors reason.Others are more concerned. The higher taxes and lower government spending could take more than $600 billion out of the U.S. economy and send it back into recession. Politically, the U.S. would send a message that its lawmakers can't cooperate. And without a deal, investors would have no good read on the country's long-term policy for taxes and spending, or how the government plans to eventually trim its deficit.
Stocks Turn Up On Hints Of 'fiscal Cliff' Deal
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