Tax Deal Offers GOP 'Hostages' for 2012
Krugman: Democrats will need to make more deals in election year
By Matt Cantor, Newser User
Posted Dec 10, 2010 12:10 PM CST
President Obama speaks before he signs the Claims Resolution Act of 2010 which settles long-standing lawsuits by African American farmers and Native Americans against the US government, Dec. 8, 2010.   (AP Photo/J. Scott Applewhite)

(Newser) – President Obama may have rescued some tax “hostages” from the GOP—the unemployed, for example—but in the process, he set up another hostage situation down the road, writes Paul Krugman in the New York Times. The "not-so-bad stuff” in the tax deal “expires at the end of 2011,” setting up slower growth in 2012. That means that in an election year, there’ll be “pressure on Democrats to offer Republicans something, anything, to improve economic prospects.”

One big example: "Republicans may try using the prospect of a rise in the payroll tax to undermine Social Security finances.” Meanwhile, Obama is railing against the left for being unable to accept a “compromise in the national interest,” Krugman notes. “By seeming angrier at worried supporters than he is at the hostage-takers, Obama is already signaling weakness, giving Republicans every reason to believe that they can extract another ransom."

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Dec 10, 2010 5:41 PM CST
The Democrats are sending a precise message to the GOP in an very complexed way that the GOP themselves wouldn't see the outcome until it hits them. The man is a fox and a very sly one at his craft. To some of us he make look weak, but in the end Obama will be the villain after the GOP takes the country 'hostage' his key word; and a word that will give him success at the polls in 2012.
Dec 10, 2010 2:42 PM CST
I think the Dems don't even want to win. They'd rather play victim and pretend to want change. They have had the highest margin of power in decades and all they really seem good at is making excuses. The only thing Dems have going for them is that the alternative is so much worse.
Dec 10, 2010 2:03 PM CST
For months, Republicans have been accused of being the party of no. Now it is the Democrats who block legislation to prevent massive tax increases. Hypocrites of the first order. Who was it that held Republicans hostage for months--not releasing them until they voted for Obamacrap. This horrible mistake must be repealed or modified extensively, or this nation's economy will be ruined for decades to come. America pays a high price for electing men totally unqualified and unprepared to serve as POTUS. First Carter, now Soetoro. At least Carter wasn't arrogant and an egomaniac.