What Does the Tax Deal Mean for Obama's Presidency?

Is it good for recovery or more problematic for the deficit?

By SHARE

How about that tax deal? A lot of folks in Washington didn’t see it coming. After the Democrats were pounded at the polls, President Obama mouthed the usual platitudes about compromise, but plenty of analysts and most of his own base assumed he would dig in and fight. He most certainly didn’t. The extension of the George Bush tax cuts was only part of a deal he worked out with the GOP that included other business tax cuts and a bold paring of everyone’s payroll tax. Is it a good plan? Is this the medicine the anemic economy needs? Is it a problem that it adds almost $1 trillion to the deficit? And what of the precedent: Is this the first step toward a more pragmatic presidency, or is he just naively giving away the store? I’d like to hear your thoughts. Post them in the comments section below.

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