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White House: Fiscal cliff could slow holiday sales

(POLITICO) — In a Monday report, the White House warned that failure to resolve the impasse over a tax and deficit deal could undermine consumer confidence this holiday season.

A new report from the National Economic Council and the Council of Economic Advisers timed to the online shopping holiday “cyber Monday” estimated that consumers could spend close to $200 billion less, while GDP growth could slow by 1.4 percentage points in 2013.

The report also warns that the psychological impact of a looming middle class tax hike could put a huge dent in retail sales over the holidays — traditionally the most important retail period of the year.