June 21, 2010

As 2010 progresses, the prospect of higher tax rates in 2011 will induce people to accelerate their income recognition in order to realize their income and have it taxed at the lower rate that will expire after the last day of 2010. The prospects of higher tax rates above and beyond the expiration of the Bush tax rate cuts suggests that the economy could very well be in for a false prosperity, and a slow down in 2011 is highly likely. That is why we believe in a double dip.

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