US deficit cut would trim growth-BlackRock's Fink

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http://uk.reuters.com/article/2011/06/10/blackrock-idUKN1017881120110610

(Reuters) - U.S. economic growth could be trimmed by 1 percentage point a year for the next decade if plans to reduce the deficit by $4 trillion are enacted, BlackRock (BLK.N) Chief Executive Officer Laurence Fink said.

With analysts already predicting modest growth of 2 percent to 3 percent annually, that would leave the country with an economy expanding at only about 1 percent a year, Fink said at the Morningstar investment conference on Friday.

As a result, the government needs to work more closely with the private sector to bolster the economy, said Fink, who heads the world's largest money management firm.

He recommended raising tax rates on dividends so they are above those for capital gains and altering mark-to-market accounting standards that do not apply equally to corporate assets and liabilities.

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