Sarah Palin: Tax Cut Deal is 'Lousy,' New Congress Should Take up Issue

Dec. 16, 2010— -- In an exclusive interview with "Good Morning America" co-anchor Robin Roberts, Sarah Palin said she doesn't support the "lousy" tax deal brokered by President Obama and Republican lawmakers and instead wants to see a permanent extension of the tax cuts.

"I think it's a lousy deal and we can do better for the American people," Palin said in an interview at her home in Wasilla, Alaska.

The "new Congress is seated the first week of January," she said, "and it is better to wait until they are seated and get a good deal for the American public than to accept what I think is a lousy deal, because it creates a temporary economy with even more uncertainty for businesses and it does increase taxes."

The former Alaska governor, however, praised Obama for "flip flopping" on his original promise not to extend tax cuts for those making more than $250,000 per year.

"I would say that it is a flip flop in his position on taxes because he was so adamant about not allowing the tax cut extension to take place for job creators, and then all of a sudden one day he was fine with it," Palin told Roberts.

"He, you know, can term it compromise. I term it flip flop," she said. "I was thankful that he did but it's still not good enough because our economy is ... at a breaking point and we are on a path towards insolvency if we do not start incentivizing businesses to start producing more in our own country."

Watch Robin Roberts' interview with Sarah Palin on "Good Morning America" Friday, Dec. 17 at 7 a.m. ET and on "Nightline" at 11:35 p.m. ET/PT.

The tax bill, which would extend Bush-era cuts for two years for all Americans, passed with a bipartisan majority in the Senate on Wednesday and is awaiting a final vote in the House, where it has been met with resistance by liberal Democrats.

While Republican lawmakers across the board support the contentious package, Tea Party groups have opposed it, saying it doesn't go far enough and gives too many concessions to Obama.

Echoing discontent by the Tea Party, Palin blasted the estate tax component of the deal. The estate tax, which currently is zero, will be set at 35 percent for two years, with a $5 million floor.

Had the tax cuts expired, the estate tax would have been 53 percent starting next year.

Palin is back in Alaska for the holidays after a whirlwind 10-day, 16-state tour to promote her new book, America by Heart: Reflections on Family, Faith and Flag," which hit bookshelves in November.