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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsJared Bernstein: The Cliff Deal in the Offing
The Cliff Deal in the Offing
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But jeez this meets the Rs further on their side of the field than one might have expected given the White Houses (WH) leverage. The wealthy end up facing a considerably smaller tax increase under this dealIm sure the TPC will soon tell us how much smallerthan any other deal that the WH or Ds have offered thus far, including the Boehner-Obama deal under discussion in 2011.
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OKbut what are you gonna do, WH, when Rs say, forget it lets default? Unless the President is willing at that point to tell his Treasury Secretary to go forth and borrow as neededi.e., override the Rsthis plan will fail.
So, heres my first blush response to this deal. The thing that worried me most in the endgame is that the WH would be so intent on a deal that theyd lock in too few revenues with no path back to the revenue well, and that theyd leave the debt ceiling hanging out there. Remember, the ultimate goal of Repubicans here is still to starve the beastto shrink government by hacking away at both sides of its ledgerreceipts and outlays.
Those fears will be realized unless the President really and truly refuses to negotiate on the debt ceiling and is willing to blow past those who would stage a strategic default. If he is not, and if this cliff deal passes, then I fear the WH may have squandered its hard won leverage.
http://jaredbernsteinblog.com/the-cliff-deal-in-the-offing/
<...>
But jeez this meets the Rs further on their side of the field than one might have expected given the White Houses (WH) leverage. The wealthy end up facing a considerably smaller tax increase under this dealIm sure the TPC will soon tell us how much smallerthan any other deal that the WH or Ds have offered thus far, including the Boehner-Obama deal under discussion in 2011.
<...>
OKbut what are you gonna do, WH, when Rs say, forget it lets default? Unless the President is willing at that point to tell his Treasury Secretary to go forth and borrow as neededi.e., override the Rsthis plan will fail.
So, heres my first blush response to this deal. The thing that worried me most in the endgame is that the WH would be so intent on a deal that theyd lock in too few revenues with no path back to the revenue well, and that theyd leave the debt ceiling hanging out there. Remember, the ultimate goal of Repubicans here is still to starve the beastto shrink government by hacking away at both sides of its ledgerreceipts and outlays.
Those fears will be realized unless the President really and truly refuses to negotiate on the debt ceiling and is willing to blow past those who would stage a strategic default. If he is not, and if this cliff deal passes, then I fear the WH may have squandered its hard won leverage.
http://jaredbernsteinblog.com/the-cliff-deal-in-the-offing/
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Jared Bernstein: The Cliff Deal in the Offing (Original Post)
ProSense
Dec 2012
OP
It appears Obama will demand even more revenue if the GOP tries to hold the country hostage again:
Cali_Democrat
Dec 2012
#1
Cali_Democrat
(30,439 posts)1. It appears Obama will demand even more revenue if the GOP tries to hold the country hostage again:
Heres what Republicans really hated about Obamas news conference
Posted by Ezra Klein on December 31, 2012 at 3:48 pm
President Obamas cheerful, mocking statement enraged Republicans. But the bigger problem is he said something Republican leaders have been trying to hide from their members. Obama said, clearly, that if the GOP wants more spending cuts later, theyre going to need to hand over more taxes, too. In fact, he said it repeatedly.
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Obama just moved the goalpost again. Significantly, tweeted Mitch McConnells spokesman.
Thats really why Obamas comments posed a threat to a deal. The GOPs congressional leaders want to tell their members that if they just vote for this modest tax increase now, then they can move onto the debt ceiling, where their enhanced leverage will let them force a deal thats all spending cuts. Obama, in effect, said thats not true. He said if Republicans raise taxes now, hes going to pocket that tax increase and demand tax increases in the next deal, too.
http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/31/heres-what-republicans-really-hated-about-obamas-news-conference/
Posted by Ezra Klein on December 31, 2012 at 3:48 pm
President Obamas cheerful, mocking statement enraged Republicans. But the bigger problem is he said something Republican leaders have been trying to hide from their members. Obama said, clearly, that if the GOP wants more spending cuts later, theyre going to need to hand over more taxes, too. In fact, he said it repeatedly.
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Im willing to reduce our governments Medicare bills by finding new ways to reduce the cost of health care in this country. Thats something that we all should agree on. We want to make sure that Medicare is there for future generations. But the current trajectory of health care costs has gone up so high, weve got to find ways to make sure that its sustainable.
But that kind of reform has to go hand and hand with doing some more work to reform our tax code, so that wealthy individuals, the biggest corporations, cant take advantage of loopholes and deductions that arent available to most of the folks standing up here; arent available to most Americans.
But that kind of reform has to go hand and hand with doing some more work to reform our tax code, so that wealthy individuals, the biggest corporations, cant take advantage of loopholes and deductions that arent available to most of the folks standing up here; arent available to most Americans.
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Obama just moved the goalpost again. Significantly, tweeted Mitch McConnells spokesman.
Thats really why Obamas comments posed a threat to a deal. The GOPs congressional leaders want to tell their members that if they just vote for this modest tax increase now, then they can move onto the debt ceiling, where their enhanced leverage will let them force a deal thats all spending cuts. Obama, in effect, said thats not true. He said if Republicans raise taxes now, hes going to pocket that tax increase and demand tax increases in the next deal, too.
http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/31/heres-what-republicans-really-hated-about-obamas-news-conference/
It seems Obama still might have the upper hand, even in the debt ceiling debate.