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Wednesday, November 28, 2012

How Sweet it Is: Dems Playing Hardball on Cliff

     At this point the GOP really hasn't done much to show they are serious about a deal. Harry Reid has admitted that, unfortunately. due to GOP intransigence little progress has been made. They've played their semantic game about raising taxes on the rich but only by closing loopholes-even though they never mention what loopholes they have in mind. They have seemed sometimes to be singleminded in avoiding increases to the top rates-even raising taxes on those over $400,000 by more by forcing them to pay all their taxes at a 35% rate. So maybe partly they want to save face.

    However, we also saw Boehner refer to the debt ceiling as his "leverage." It's rather astonishing that he can shamelessly admit that he wants to play another round of debt ceiling chicken, that he wants to again dangle default seeing what a hit this was last time to the Republican brand.

    What's great though is the Democrats aren't taking this lying down this time. They recognize the American people are behind them as long as they fight. So as the GOP is not making any progress-there's already a Senate version of a deal-and they are even looking for more games of chicken the Dems are playing a tough game themselves. They now say the debt ceiling should be part of the deal to stop taxes rising on 98% of Americans and that entitlement reform should not be linked to a deal.

   That should be handled later. This is how growing up I only dreamt the Dems would play.

    "Democratic leaders, frustrated by the GOP’s unwillingness to reckon with the need to raise taxes, are publicly airing the hard-bargaining demands they’re bringing to budget negotiations with Republicans."

     "The Senate’s top two Democrats, in separate remarks Tuesday, each said that Congress could avoid looming across-the-board tax increases and spending cuts if House Republicans agree to freeze all the Bush tax rates except those benefiting top earners. If that were accompanied by an increase in the debt limit, and the creation of a separate track for reforming the tax code and social safety net programs in 2013, the near-term austerity problem will be solved, and lawmakers can call it a day.
In other words, Senate Democrats are staking out the position that entitlement reform should not be on the table in fiscal cliff negotiations."

     “If we fail to reach an agreement, the average middle-class family will see their taxes go up by $2,200 a year,” said Senate Majority Leader Harry Reid (D-NV) told reporters at his weekly press availability. “As I’ve indicated, the Senate has already reacted to stop that and the House is one vote away from making that a reality for many millions of Americans who are middle class.”

     "Reid and other leading Democrats have been pressing Republicans to allow the Bush tax cuts for top earners to expire for months. But their push takes on new meaning as they warn that budget negotiations have slowed and the scheduled austerity measures might take effect in full just one month from now."

     "Sen. Dick Durbin (D-IL), the Democratic whip, sang a similar tune in remarks across town Tuesday at the Center for American Progress, a liberal DC think tank. Like Reid, Durbin said that Congress should agree to a framework that includes the expiration of the top end tax cuts, raises the debt limit, and creates a pathway toward tackling bigger issues like overhauling the tax code and reducing spending on entitlement programs next year."

     “Progressives should be willing to talk about ways to ensure the long-term viability of Social Security, Medicare and Medicaid, but those conversations should not be part of a plan to avert the fiscal cliff,” Durbin said in prepared remarks.

      "A Durbin spokesman clarified the broad intent of these remarks. “We’ve cut 1.5 [trillion dollars] and shouldn’t cut further to avoid the cliff. Pass the Senate tax bill, create a framework for long-term deficit reduction talks (i.e. tax reform) and get past the cliff. Then we can and should entertain changes to entitlements that protects beneficiaries, but extends the future of these programs. We can make small changes that pay big dividends over the long term.”

     http://tpmdc.talkingpointsmemo.com/2012/11/democrats-big-budget-ask.php?ref=fpa

     The GOP will cry foul about waiting on entitlements. But Durbin's point is sound. We've already did plenty of budget cuts starting in 2011. It's time to get some revenue done. Interestingly, the GOP hasn't put forward any entitlement cuts either: they've wanted the Dems to go first.

     In any case, the Dems clearly have the stronger position as we now have a GOP Congressman arguing that the GOP should take Obama's tax deal. Even Bill Kristol doesn't get why they won't.

     http://livewire.talkingpointsmemo.com/entry/gop-rep-wants-republicans-to-pass-obamas-tax?ref=fpb

     We also seen many of the outside groups that helped so much in re-electing the President are also fighting now to get the President's priorities through. It's a very good time to be a  Democrat-it's been a long time since you could say that, especially if you like me grew up in the 80s- and I think it will become a better time to be an American again.

    

  

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