Senate Democrats

NEW VIDEO — Barclays Analyst: GDP Will Drop 1.5% if GOP Lets Payroll Tax Cut Expire

In an interview with Bloomberg Television, Barclays analyst Michael Pond warned that letting the payroll tax cut expire at the end of this month could cause a drop in GDP of up to 1.5 percent.

Key Excerpt:
Pond: “One of the things that we’re watching is the payroll tax extension and the signals that we’re getting from Washington as to whether we get that extension. Because if we don’t, our growth forecast frankly will probably be dropped down from about 2.5 percent in Q1 down to around 1 percent. It’s that big.”