Pethoukoukis brings us Goldman Sachs’s latest official helping of doom. Everything’s awful, but this is the part that jumps out to me:
Our forecast assumes that the payroll tax cut—currently scheduled to expire at the end of 2011—is extended for another year, but if that failed to happen the fiscal drag in early 2012 would increase significantly.
That’s a $112 billion tax break we’re talking about. The supercommittee we’re punting all serious policy to for a few months is required to find $1.5 trillion in savings over ten years. So from Goldman to Washington: Good luck, guys!