WASHINGTON — Top White House economic advisor Larry Summers warned Wednesday that if US lawmakers reject a compromise tax deal they risk plunging the US economy back into recession.
Failure from Congress to vote the tax deal brokered by the President Barack Obama in the next two weeks would “significantly increase the risk” of a “double dip” recession,” Summers told reporters.
Obama Tuesday urged his Democratic allies to back the compromise brokered with Republican foes and passionately defended the deal that will see tax breaks extended for all including the wealthiest Americans.
In return, Republicans agreed to a 13-month extension of jobless benefits set to expire on December 31, and which would have seen millions lose their meager incomes as unemployment hovers just below 10 percent.
But the proposal has met with a frosty reception from some Democratic lawmakers, who would have preferred to see any blame for failing to reach a deal fall on Republican intransigence.