Taxes, benefits and the deficit: Kicking down the can down the road

The article summarized what happen to the tax cut deal between the president and the Republicans. They reach a further compromise: the Bush tax cut will be extended for two more years. In return, Republicans agreed to further extend the unemployment benefit, payroll tax cut and several other benefits for the poor, students and parents.

Several analyses and reports about the impact of the tax cut are also discussed. But as a matter of fact, the compromise will further deepen the deficit for about $ 300 billion next year, pushing the deficit forecast over a trillion dollars.