Art Laffer and other Reagan-era economists are saying that the comprehensive, across the board tax rate increases on the nation's employers and investors now scheduled for next year will make a double dip downturn inevitable.
Many economists believe that the crash of the nation's once high-flying housing market and tightening credit, as well as declining consumer confidence, could trigger a recession.
In addition, some economists say that inventory levels are being held artificially low because Fannie Mae, Freddie Mac andthe nation's biggest banks have been slow to list for sale hundreds of thousands of foreclosed homes they currently own.