Hi Jitterbug,
It's safer for you to go through living social. If you need to get a refund for any reason, with Living Social, you're guaranteed to get it because you're covered by their terms and conditions. If you go directly through the hotel, there's no guarantee they'll give you a refund in the event that your travel plans change. Also, people who go through Living Social get a special low tax rate of 10%. Normally, the hotel's rate is higher.
Thanks for your question.