Obama 'Open' to Tax-Cut Compromise

He praises $858B tax cut deal

(NEWSER) - The Bush tax cuts live on. President Barack Obama signed the $858 billion tax bill today, praising the new law as a "substantial victory for middle-class families across the country." Before signing the bill, the president reiterated that "there are some elements of this legislation that I don’t like" but said the tax cut package will give a much-needed holiday-season boost to middle class Americans and spur the ailing economy. He called the deal "real money that's going to make a real difference in people's lives." More»

But it'll only work if consumers will spend the money

(NEWSER) - The tax cut deal President Obama struck with Republicans is likely to give a real jolt to the economy, economists tell the Wall Street Journal , which calls the deal “a second, stealth stimulus package.” While the tax cuts themselves may not boost growth much, the extension of unemployment benefits and payroll tax holiday could have a big impact. (Click here for details on the deal.) Economists at JP Morgan, Goldman Sachs, and Deutsche Bank said the plan would boost GDP growth by 0.5% to 1%. More»

But for the rich, it's a great deal

(NEWSER) - This tax cut deal President Obama struck with Republicans is awesome—as long as you’re among the wealthiest Americans. At least a quarter of the tax savings will go to the top 1%, the New York Times points out, in a piece headlined “Tax Package Will Aid Nearly All.” Oh? Who’s not included in that “nearly all?” Why, the working poor, of course! More»

He wanted more stimulus, and this is the best he could get

(NEWSER) - Barack Obama's decision to extend the Bush tax cuts has got pundits talking and liberals frothing. Here's what they're saying:

• This might look like a “classic Washington giveaway,” but “at the White House, where there is much anxiety about the staggering performance of the economy, this is considered a victory,” says Michael Scherer of Time . Obama gets to essentially “sneak another stimulus bill through Congress, by capitalizing on the Republican habit of refusing to acknowledge the deficit impact of tax cuts.”

Republicans, Obama agree to payroll tax holiday, middle class breaks

(NEWSER) - The tax cut deal President Obama struck with Republicans yesterday is far more sweeping than lawmakers on either side of the aisle were expecting, and aside from extending the Bush tax cuts across the board, here's the lowdown, as per the Washington Post:

• Inheritance tax: After a year's lapse, individual estates worth more than $5 million (twice that for couples) are now subject to a 35% levy.
• Payroll tax holiday: Will extend across all income levels, costing $120 billion. A couple making $70,000 a year will see $1,400 in savings.