(Bloomberg) The budget deal struck by the White House and Senate Republican leaders, if it becomes law, probably would slow the U.S. economic recovery without stopping it.
The elimination of a 2 percent payroll tax cut, coupled with higher income taxes on the wealthy, will help reduce growth in the first quarter to 1 percent, from 3.1 percent in 2012s third quarter, the latest data available, according to economists at JPMorgan Chase & Co. and Bank of America Corp. The expansion will strengthen later in the year as the housing market continues to rebound, they forecast.
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