BUSINESS

Will The Obama-GOP Tax Deal Really Create 3.1 Million Jobs?

12/08/2010 02:54 pm ET | Updated May 25, 2011

The new tax cut compromise between the Obama administration and congressional Republicans, which will add $593 billion to the $1 trillion federal deficit, is now also being touted as a back-door stimulus plan. Some economists have estimated that when you add up the deal's different provisions, it will create 3.1 million new jobs. Unfortunately, the model on which those forecasts are based makes some flawed assumptions that lead to an overestimation of the positive effects.

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