Tuesday, December 7, 2010

President Obama and the Republicans...

...reached a deal yesterday to extend the Bush-era tax cuts for two years in return for an extension in unemployment benefits. The result is another stimulus that will add to the deficit:

The package would cost about $900 billion over the next two years, to be financed entirely by adding to the national debt, at a time when both parties are professing a desire to begin addressing long-term fiscal imbalances.
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The size of the compromise package, roughly half of which came from extending all the Bush tax rates for two years, roughly paralleled Mr. Obama’s initial $800 billion package of stimulus spending and tax cuts in early 2009 — only this time with Republicans’ tentative agreement.

So, for the record, Republicans don't really mind stimulus packages or deficits after all.

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