dr. art laffer, former economic advisor to president reagan.nk you for joining us. >> thank you, sandra. a pleasure to be with you. sandra: do you agree with this? this was a pretty dire forecast from the cbo, this fresh fiscal cliff warning. do you agree? >> yikes! i think he is right. i don't think it is a fiscal cliff. i think it is really a tax cliff. you have a huge tax increases coming on january 1st, 2013 as glenn hubbard just said. i never heard, sandra, never heard of an economy tax understood prosperity. if you tax people who work and give that money to people who don't work you will get a lot of people not working and that date of january 13th, january 1st, 2013 is dead on. i don't know how they can stop people from trying to adjust their income into and out of 2013, to really make a big difference in the forecast. sandra: so what does the future look like then if these tax hikes do go into effect and spending cuts? do we enter a recession? >> well i think the spending cuts are good. i don't think the spending cuts will hurt the econ