Texas could lose close to 160,000 jobs if current federal budget cuts go into effect Jan. 2.
Texas could lose close to 160,000 jobs if current federal budget cuts go into effect Jan. 2, according to a new study from George Mason University?, released by the Aerospace Industries Association? .
The San Antonio Express-News reports that the study finds that Texas could lose close to 99,000 defense-related jobs and 60,000 nonmilitary-related jobs if the Budget Control Act of 2011 ? which calls for more than $900 million in budget cuts ? goes into effect.
Across the nation, the study predicts that 2.13 million jobs could be lost. Texas would account for 7 percent of those jobs.
If this is true, national unemployment rates could rise by 1.5 percent, and gross domestic product would be reduced by $215 billion.
The San Antonio Express-News reports that Congress could choose to produce a budget plan that includes possible tax increases so the government would not have to cut as many jobs. However, Democrats and Republicans are sparring over whether tax increases would be just as harmful to the economy.
California and Virginia face more jobs cuts than Texas. Both states face more than 200,000 job cuts.
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Molly Ryan covers manufacturing, technology, the Port and logistics.