The U.S. economy will get weaker before it gets better, sliding into a "relatively short and mild" recession towards the end of the year, says U.S. Chamber Chief Economist Marty Regalia.

Businesses and consumers will have to "weather a number of storms," before the economy begins to pick up again next year, Regalia said during the Chamber's annual Labor Day briefing at its Washington headquarters on August 28.

Those storms include a weak housing market, beleaguered capital markets, high oil prices, rising unemployment, slow wage growth, and lower disposable income and consumption. "We've been fortunate over the last couple of quarters, in part because of the artificial respiration from the economic stimulus package, but now we're seeing some snap-back," Regalia said.

Regalia warned against resurrecting punitive tax policies–including raising income tax rates on the wealthy and imposing a windfall profits tax on oil and gas companies–in a bid to address growing income inequality. Such "band-aid" policies have failed in the past, Regalia noted.

"Increasing taxes is not a pro-growth policy," he said. "We need policies that keep the economy growing and build the tax base, not penalize growth." To address the long-term issue of income disparities, Regalia went on to say, the United States needs policies that improve education and skill levels.