GOP Source: Obama "Demanding major, unambiguous tax hikes."

liberalpragmatist

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Sat Jul-09-11 08:30 PM
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GOP Source: Obama "Demanding major, unambiguous tax hikes."

Edited on Sat Jul-09-11 08:31 PM by liberalpragmatist

This is from RW blogger James Pethokoukis, who prior to reporting Boehner pulling out of talks reported inside reports from Republican aides.

Two reasons I'm posting this: One, it's good news that the WH was really pushing for tax hikes on the wealthy. Two, whatever your views on Obama's actions in all this (I think plenty of the criticism is justified, personally), it's always useful to get some perspective. On the left - not just the "professional left" but among mainstream progressive punditry, Obama is being called "weak," and a "capitulator." If you peer into discussion on the other side of the aisle it's exactly the opposite: Obama as an intransigent, stubborn, but nefariously crafty, "insisting" on tax hikes, etc. May not change your views at all, but it's worth a look.

Anyway, here's what Pethokoukis reported:

Will House Speaker John Boehner commit Republicans to raising $1 trillion in taxes as part of President Obama’s last-minute push for as much as a $4 trillion debt reduction deal? Obama and the GOP meet Sunday evening, but things continue to develop quickly:

1) Various news accounts Saturday morning made it sound as if Boehner was flirting with some convoluted deal where some taxes would be raised – including the high-end Bush tax cuts – but lowered later as part of major tax reform, with maybe some of the savings from fewer deduction going to reduce debt.

2) Then on Larry Kudlow’s radio show this afternoon, the WSJ’s Steve Moore said his paper’s reporting was accurate and the GOP were being “tempted” by this offer.

3) Then I got this from a GOP congressional source later in the afternoon:

WH is demanding major, unambiguous tax hikes. To get spending caps & entitlement tweaks, greater economic pain appears to be the WH’s asking price. It is increasingly likely that we aren’t going to see a ‘big’ deal if the WH doesn’t budge. Speaker looks to be holding strong. …

Their fierce insistence on higher taxes is beyond bizarre.

After months of demanding ‘clean’ increase to avert economic calamity (default), WH threatens economic calamity (default) unless they get economic calamity (trillions in tax hikes). (NOTE from me: Yes, of course, it's the Democrats who are risking economic calamity. Right.) No wonder these guys are governing over an economic calamity (9.2% & growth malaise), w an economic calamity on the horizon (debt explosion as mapped out in president’s budget).

Appears that the basic framework for future tax reform could not be resolved.

The bipartisan consensus on tax reform (broader base & lower rates) was championed by President’s fiscal commission, and yet now is being rebuked by the President. Lowering top rates that would help make America more competitive was too large a leap for a true class warrior.

That Team Obama wants higher higher taxes is not news. But the growing GOP allergic reaction is. I think these comments gives good insight into how the GOP perceives the evolving deal. And I hope that second part is true. Tax reform should only be done in the context of lowering marginal tax rates, especially if Democrats aren’t offering entitlement reform that would move things toward a more market-based system such as the one outlined in Rep. Paul Ryan’s bold and visionary Path to Prosperity.