Obama's Tax Deal: Who Won, Who Lost?

On Monday, Obama announced a deal with the GOP to extend the Bush tax cuts. FF's contributors weigh in on the political winners and losers.

Late on Monday, December 6th, President Obama announced that a deal had been reached with the Republican leadership over how to handle the Bush tax cuts which are set to expire in 2011. The compromise plan will extend the tax cuts for two years while extending unemployment insurance for 13 months and providing a tax cut holiday. FrumForum's contributors weighed in on the winners and losers in the tax deal.  FF contributor Cetulus argues that the deal is a huge loss for the Democrats. Former Carter aide Les Francis however praises the president and notes that compromise is not the same as defeat.  Heartland Institute's Eli Lehrer sees a victory for both parties.  While John Gardner has a clever suggestion to help the president sell his deal to skeptical House Democrats.

One day after the announcement of a tax cut extension, President Obama has his hands full trying to calm his base.

- Henry Clay, Obama's Tax Cut Damage Control Flops

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The tax cut extension is a good sign for the country: it shows Obama can compromise and that House Republicans know how to drive a hard bargain.

- Eli Lehrer, Let's Make a Deal

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It is hard to figure out what Obama was thinking in making this tax deal with Congressional Republicans.  I doubt that he imagined he would grow up to become a President who cuts taxes for the rich. Obama surely did not support the Bush tax cuts back in 2001.  Why the change?

- Cetulus, Obama's Tax Deal: What the Dems Lost

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Generally speaking, experience suggests that legislation that displeases chunks of voters at the polar opposites is probably pretty good public policy; this compromise appears to affirm that principle. While extending cuts for the super rich may be unfair (in the minds of many on the left), that argument does not trump the belief on the part of most people that raising taxes in the middle of a continuing and serious economic slump simply doesn’t make much sense.

- Les Francis, Obama's Tax Cut Win

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The single best thing that should happen right now to ensure passage of the tax cut deal is for unions to inform liberal Democrats in Congress what would happen to their pension funds if the stock market has a sharp correction if the deal falls through.

- John Gardner, How to Sell the Dems on Obama's Tax Plan

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The tax cut extension deal includes a proposal to reinstate the estate tax with a $5 million exemption. But as we force more and more taxes on only a few families, the results seem troubling.

- Hank Adler, The Estate Tax Rises from the Dead

 

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A rule of thumb in negotiations is that when both sides leave the table annoyed, it means that a good compromise was made.  Case it point: the deal hammered out regarding the looming Bush tax cut expiration.

- Brad Schaeffer, A Good Day for Supply-Siders

 

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