The U.S. economy is near a double-dip recession, economist Art Laffer said Monday on CNBC.
“We’re close — the single worst recovery of all time,” he said on “The Kudlow Report.” “If the tax increases go through to 2013, I think we fall off the cliff to be very honest with you.”
Vice President Joe Biden’s former chief economist, Jared Bernstein, had said that keeping the Bush tax cuts only for the middle class would only mean higher taxes for the top 2 percent of earners.
Not true, argued Laffer of Laffer Associates.
“They employ everyone else, invest capital and provide the economic recovery,” he said. “It’s just terrible.”
Bernstein said he supported a tax cut for the vast majority of Americans.
“I started out earlier saying we all agree the bulk of the tax cuts affecting the bottom 98 percent ought to be extended,” he said. “Why don’t we start there tomorrow? You want a tax cut, that’s the one to go with.”
Bernstein cited numbers from the Congressional Budget Office that showed expiring the Bush-era tax cuts for just the top 2 percent would raise an estimated $850 billion over the next decade.