Forecasters predict tax increases, but not before the elections

The vast majority of economists in the latest survey forecast the Wall Street Journal expect Congress to raise taxes by 2016. But only a handful of waiting to happen before the presidential election of 2012.

By a margin of 6-to-1, of the respondents expect the United States will have to raise taxes sometime over the next five years in order to deal with fiscal problems and the long-term deficit.

spending cuts alone is not enough to achieve fiscal sustainability, said aneta markowska of soci t g n rale.

But by the same margin 6-to-1, don t expect to hit any increase in the next 18 months. At best, would do a neutral tax code reforms, said companies Diane swonk of Mesirow Financial.

As the presidential election looms, the economists don t wait for Congress to try to pass unpopular tax increases. IT would be political suicide, said Nicholas s. perna of perna Associates.

Two-thirds of respondents expect the President will win another term in 2012.

The economic winds will in the back, said Dana Johnson of Bank, Comerica.

Fix: in an earlier version of this post, a quote from Nicholas s. perna of Perna Associates attributed incorrectly to MF Globals Jim o sullivan.

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