The Big Question: Which party got the better deal on the tax-cut compromise?

Frank Askin, professor of law at Rutgers University, said:

I do not know which PARTY got the better deal, but I know the American people got a raw deal because of Republican obstructionism, which left President Obama little choice.


Dean Baker, co-director of the Center for Economic and Policy Research, said:

The biggest risk at this point is that the Social Security tax cut will be made permanent. Given this president's lack of support for the program, and the hostility of many Republicans in Congress, there is a real risk that there will be an effort to make the lower tax rate permanent with an idea of deliberately creating a shortfall in the program. Such a shortfall can then be used as a justification for cutting and/or privatizing the program in the future.

Congress should insist that the Make Work Pay tax cut be extended instead. It can certainly be expanded in size if Congress wants a larger credit.


Gretchen Hamel, executive director of Public Notice, said:

Who cares which party got the better deal. This is about the American people. And while the deal is in a few ways disappointing, Americans will be better off with it than without it. Many economists have pointed out that preventing these tax hikes will encourage expansion and job creation. The one glaring problem with the compromise is that it's temporarily. This means that in two years, we will relive the exact same debate. It also means that for businesses seeking to plan years in advance, the issue of uncertainty remains.