Watch How Much The Deficit Blasts Higher Thanks To The New Tax Deal

The compromise tax plan President Obama thrashed out with Republicans has been heralded as a potential stimulus boom to the U.S. economy by some, but it may have more immediate effects than just letting people keep more of their money.

This chart from Societe Generale shows the deficit is going to blast higher next year, before falling off in 2012 and 2013. The deficit will be a full 3% higher as a per cent of GDP under this plan, than it would be if the tax cuts expired.

From Societe Generale:


Photo: Societe Generale

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.