Bloomberg View: Two Policies to Keep From the Fiscal Cliff

Illustration by Bloomberg View

Almost lost in the fiscal cliff debate is whether to extend two programs that have helped bolster the economy over the past four years by putting more money in consumers’ pockets. The payroll-tax holiday and extended federal unemployment benefits will end in January absent congressional action. Their expiration would save the U.S. about $145 billion next year—but shave about 1 percentage point off economic growth.

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