Presidential tax cut compromise
President Obama is facing serious backlash from Democrats over the tax cut compromise with republicans. The compromise will extend tax cuts for all Americans and extend jobless benefits. Another little noticed provision of the tax deal is that all workers will get a 2-percentage point reduction (from 6.2 percent to 4.2 percent) in their social security taxes (also called the payroll tax). But will these tax cuts help spur the recovery?
Doctor Tony Cherin, former Professor of Finance at SDSU was on Good Morning San Diego talking about why he believes the tax cut compromise will be important to the recovery.