Boehner Walking Away From Debt Deal?
“Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes. I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase.”
That’s Speaker Boehner’s statement after deficit talks with the administration seem to have hit an impasse over tax increases.
It seems there were basically two deals under discussion. The “big” deal was in the neighborhood of $4 trillion and the “small” deal was in the area of $2 trillion. Bascially Boehner and the House GOP weren’t willing to go for the extra $2 billion if a substantial part of it was from increased taxes.
The things that were going to be need for the “bigger’ deal (lower tax rates in exchange for closing “loopholes” and doing something about entitlements) were and are never going to happen with Obama in the White House.
I think raising the debt ceiling with greater offsets in spending is a bankable, though unsatisfying wing. Welcome to divided government.
The question is…are these cuts in the bank? There’s an old saying in DC that “nothing is settled until everything is settled”. Is Obama going to let the GOP walk away from the agreed to spending cuts without giving anything back on revenue?
I doubt it.
I think Boehner’s statement is a pre-emptive strike to make it look like those $2 trillion in cuts are in the bank and make Obama look like he’s the one reneging on a deal.
It’s a clever ploy that would work for a Democrat but the MFM won’t play it that way.
Still, it’ll be a win (again imperfect) for Boehner with the base.
Now we see if Obama will play the 14th Amendment card and just keeping borrowing with no spending cuts.
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.
Leaders, er, reject the recommendations of their own commissions or something.
Now the posturing begins.
Obama is undoubtedly going to come out swinging accusing the GOP of putting the economic health of “corporate jet owners” over the that of the country. Remember when people wondered if Obama would move to the center like Clinton did after the GOP landslide of ’94? I guess this doubling down on class-warfare is his official answer.
I really can’t wait to see how Obama positions himself as the defender of the public fisc when we’d only be sorta screwed without his spending spree but are totally doomed because of it.
If he can pull that it, he’ll really will have done something unprecedented.