‘Fiscal cliff’ worth $6b in local losses

From UT San Diego:

San Diego County, along with the rest of the nation, could fall back into recession next year, if scheduled federal tax increases and spending cuts take place.

The Congressional Budget Office said Wednesday the Gross Domestic Product could go negative in the first half of the year and recover only slightly the second half. (See the reportonline.)

And according to the local National University Systems’ Institute for Public Policy, San Diego could see nearly $6 billion in cuts and higher taxes, virtually wiping out next year’s projected increase in gross regional product.

“If I were a betting guy, I’d put the odds at somewhere between 1 in 5 and 1 in 10 that we’ll be going over the fiscal cliff,” said Erik Bruvold, president of the nonprofit institute, who authored the policy brief due for publication Thursday. (Fiscal cliff is the term used to describe the conundrum that the U.S. government will face at the end of 2012 if it doesn’t make a decision about the tax increases and spending cuts.)

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