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Monday, December 17, 2012

Boehner Finally Starting to Get it on the Fiscal Cliff?

     Boehner and the GOP aren't used to the new President Obama who doesn't negotiate with himself and actually makes demands rather than discusses his concessions. They had hoped that he'd operate the same old way even after wining a mandate November 6. To their unhappy surprise this hasn't happened:

      "To a far greater extent than in previous negotiations with Congress, President Obama has been very explicit about his non-negotiables in fiscal cliff discussions with John Boehner. The biggest two are that marginal tax rates on high earners must rise, and the debt limit must be increased — and ideally removed altogether from the realm of legislative brinksmanship."

      "More recently, he’s made extending emergency unemployment benefits a similar predicate for any deal."

      "That came as a shock to House Republicans, who just weeks ago believed Obama would lose the presidency, and they could begin making headway on a vastly different approach to fiscal and social policy. A deal has seemed so unlikely in the month since the election because Boehner wasn’t really speaking Obama’s language. He wasn’t treating the negotiations as if Obama had the upper hand — or perhaps he was holding out in the hope that Obama would soften his demands as the deadline neared."

     http://talkingpointsmemo.com/archives/2012/12/boehner_turns_the_page_on_tax_rates.php?ref=fpblg

    What we've seen over the last week is the epic moment when Boehner is starting to speak Obama's language. He's now offered to raise tax rates on those making over a million in income. While this is still not enough it's a big move across the Rubicon.

     "But in the past week, Boehner’s come to grips with the new paradigm, and he’s now acceding — in part, not in whole — two of Obama’s three demands."

     "He’s offered to raise tax rates on income over $1 million — well above Obama’s $250,000 threshold — and to make up the revenue difference by limiting tax expenditure benefits for high income earners. A grand total of $1 trillion in revenue. And he’s offered to raise the debt limit by a concomitant amount of deficit reduction (not just spending cuts, but new tax revenues, too) — enough to stave off another potential fight over U.S. credit for about a year."

     "In many ways this second part-the suggestion that he'd be willing to postpone the debt ceiling for a year is particularly earth shattering. That was supposed to be his "leverage." Indeed, while his office has been pushing back on the claim that he's willing to take the debt ceiling off the table it may just be posturing. Recall, that my assumption has been all along that he'd cave on taxes. Although I'm impressed if he caves on the debt ceiling too."

      http://diaryofarepublicanhater.blogspot.com/2012/12/boehner-is-just-running-out-clock.html

      The Club for Growth is not happy:

       "The conservative group Club For Growth attacked House Speaker John Boehner (R-OH) on Monday for offering President Obama concessions on taxes and the debt limit in the so-called fiscal cliff negotiations."

       “First Speaker Boehner offered to raise tax rates after promising not to, and now he’s offering to raise the debt ceiling," Club For Growth President Chris Chocola said in a statement. "Raising tax rates is anti-growth and raising the debt ceiling is pro-government growth – and this is the Republican position?”

        "Over the weekend, Boehner offered to push a fight over an increase in the federal debt limit off for a year, including a proposition to hike tax rates with on those with incomes of $1 million or more annually."

        “Raising the debt ceiling would give away one of the best tools the Republicans have in their arsenal to force real reform," Chocola added.

      http://livewire.talkingpointsmemo.com/entry/club-for-growth-turns-on-boehner

      I don't know about you, but I love hearing about the U.S. credit rating being used as a GOP hostage as "leverage" every few months. This might be why Boehner if folding. He realizes that if he cripples the U.S.'s ability to function to this extent it will be his party that pays very dearly. Debt ceiling chicken really hurt the party's brand in 2011. Surely he can't really want 2.0.

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