Was Obama right to make tax cut deal?

Tax me to death please Pictures, Images and Photos

On Tuesday, President Obama announced that he has made a deal with the Republicans to extend the Bush tax cuts for the wealthy (and everyone else too) for two more years. Tax cuts for the top 2% of America is one of the Republicans’ main policies. However, the President campaigned very heavily on repealing those exact tax cuts. This means that he has broken a promise that he made as a Presidential candidate. The question is did he make the right choice?

If you look at the numbers then the answer is probably no. The tax cuts for the richest 2% of Americans will contribute $700 billion to the ballooning debt. Furthermore, most economists think that this tax cut will have less impact on the economy than other tax cuts because the rich are more likely than others to just save the money instead of spend it.  Also, if you look at his own Democratic Party, he has just made a bunch of enemies that were his ally up until this decision. Some of them may forgive him, but he certainly angered some on the left.

Although some on the left may be mad, the recent mid-term elections showed politicians that Independents are fed up with the two parties not working together and compromising on issues. In light of that, the President did exactly that. He knows and even said that this is not his first choice but, it is a choice that will allow other important issues to come to the floor and perhaps get passed and signed in to law. It is true that the Republicans have been acting awful since he was elected President and even more so since the mid-term elections. They have refused to compromise on anything even though they did not have a majority of anything for most of that period. Still, someone needs to act like an adult and this time it is the President.

Obama knows that in two years, not only will these tax cuts expire once again, but he will be in the midst of another Presidential election. It also looks like the economy will be much better then which will make it easier to let those tax cuts expire. At the end of the day, he made the right decision in extending the Bush tax cuts. We will see how much the Democrats will go along with this decision.