Yethighertaxeswill also dampen(dampen down British English to make something such as a feeling or activity less strong) consumerspending, sendinggrowthlower still.
Consumer spending wasn't as robust in March, and the longer-term worry is that higher tax rates on business and investment income will dampen economic activity and funding for new enterprises.
"Lending problems in our nation's subprime marketplace are building, which could inhibit future housing activity and further dampen our forecast, " Lereah said in a recent statement.