Mark Zandi, chief economist with Moody's economy.com, said that if massive tax cuts aren't offset with correspondingly large tax increases or reductions in government spending, the Fed's response could even cause the economy to contract.
The OBR also warned that the public finances are suffering despite the recovery as workers take low-paid jobs so pay correspondingly little tax and corporations offset losses during the crash against current profits.
Many Greeks fear a vicious circle: a death spiral of more austerity measures, further economic contraction and correspondingly lower tax revenues, making it that much harder to make a dent in the debt, pushing the country toward default in spite of the austerity.
But that hasn't stopped some small municipalities across the country from issuing minor "quality of life" violations and traffic fines against low-income populations with correspondingly low tax bases to pay government salaries and pad their budgets.
Correspondingly, the low-tax status of the very rich is also a recent development.
According to Tacitus, grain to feed the troops was levied as a tax; correspondingly more had to be grown before a profit could be made.
If oil output drops below 2m b/d, as many industry-watchers fear, the government would be forced to cut spending by more than 10%—or jack up taxes correspondingly, to avoid an unsustainable budget deficit.
Yet that would mean "an even larger tax cut on high-income individuals, requiring even larger cuts to tax expenditures" – that is, tax breaks like those for mortgage interest – "and correspondingly larger increases in taxes on middle- and/or lower-income taxpayers".
Correspondingly, exempting exports from tax would increase demand for US goods and US dollars.
As they acknowledge, "when living wage laws raise a family's earned income, it means that government support for which such families are eligible correspondingly declines while their tax obligations rise.
Correspondingly, the 16$/ton carbon tax associated with the static protocol costs 42.6% more than the 6$/ton carbon tax associated with the stochastic protocol.
