Obama will tax the rich more...still at what Fate Rate?

Higher tax rates for top earners are one of the many fiscal measures that would automatically go into effect in the New Year. The projected economic impact of this fiscal cliff is a direct fiscal contraction of some 4% of GDP. There would also be negative economic and financial multiplier effects as well as inefficiencies arising from the rather blunt composition of the fiscal measures.

In combination, the consequences would be debilitating for our slow-growing economy with high unemployment and limited policy flexibility, on account of policy interest rates that are already floored at zero. And we also should not forget that the U.S. faces headwinds from the European debt crisis, a slowing China and instability in the Middle East.

[link to finance.fortune.cnn.com]