President Barack Obama's tax deal with congressional Republican leaders will cost more than $900 billion over two years and reduce unemployment by one-half to a full percentage point over the next year, economists estimate. About $120 billion of the deal covers Republican-desired cuts in the estate tax and taxes on high-end incomes; $360 billion covers the tax-cut extensions desired by both parties; and $450 billion covers the president's list of priorities, including an extension of unemployment benefits and college tax credits, and a reduction in the payroll tax. Despite loud protests from political leaders, the deal has received a positive response from economists and Democratic policy experts.

Related Summaries