Welcome to Cyber Monday, but before you spend anything shopping online today, the White House has some news for you: Doom!
The White House released a report Monday arguing that a failure to extend tax cuts for middle class families could have a negative impact on the economy which outweighs the gains from traditional Black Friday and Cyber Monday holiday sales.
According to the report, reverting back to pre-Bush era tax rates would reduce consumer spending some $200 billion — four times the amount holiday shoppers spent on Black Friday weekend in 2011.
“As we approach the holiday season, which accounts for close to one-fifth of industry sales, retailers can’t afford the threat of tax increases on middle-class families,” the White House said in an e-mail Monday.
The new report comes as lawmakers return to Washington this week to begin negotiating a deal to avoid the looming “fiscal cliff.”
The campaign just never ends with these people. Just one problem with their logic: Expiring Bush tax cuts won’t hit your wallet until after Christmas. And besides, we’re told everyone wants to pay more taxes, so what exactly is the strategy here?