Tuesday, December 14, 2010

The Tax Cut and Future Prospects for Deficit Reduction

Ross Douthat has an excellent post explaining why the tax deals has created incentives on both side that make any deals on deficit reduction less likely. I think he is basically right. Obama has to worry about his base, while Republicans are unlikely to be in the mood to accept any serious compromises given their perceptions that they caused Obama and Democrats to "cave" with the tax cut deal.

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