Boehner's Plan B: What's His Game?

     Grover Norquist is now going to give Plan B his blessing: effectively accepting a hike in tax rates for those over $1 million dollars.

     "Grover Norquist’s anti-tax advocacy group Americans for Tax Reform is giving House Republicans a pass for voting for House Speaker John Boehner’s so-called “Plan B,” which would lock in the Bush tax cuts for all incomes up to $1 million."

     “The House this week will vote on a tax bill,” reads an ATR statement. “This legislation — popularly known as “Plan B” — permanently prevents a tax increase on families making less than $1 million per year. Republicans supporting this bill are this week affirming to their constituents in writing that this bill—the sole purpose of which is to prevent tax increases — is consistent with the pledge they made to them. In ATR’s analysis, it is extremely difficult — if not impossible — to fault these Republicans’ assertion.”

     http://tpmdc.talkingpointsmemo.com/2012/12/grover-bends-the-pledge-for-boehner.php

     Two interesting points jump out. First of all, it makes "the Pledge" even more arbitrary:

     "By providing its blessing, ATR reveals that it construes the pledge arbitrarily, given political circumstances. It also follows that if Plan B is consistent with the pledge, so is similar legislation, which passed the Senate earlier."

      What's also notable is that ATR is the first major anti-tax group to give Plan B it's' blessing. The Club for Growth says no:

       "The conservative avocacy group Club For Growth urged lawmakers to vote "no" on House Speaker John Boehner's "Plan B" to avert the so-called fiscal cliff on Wednesday, noting it would be scoring the vote on the bill."

     "On the substance, this bill is anti-growth," a statement reads on the group's website. "It increases tax rates for those making over $1 million while also raising taxes on capital gains and dividends. We don't buy into the Washington-speak, suggesting that these are actually tax cuts."

     http://livewire.talkingpointsmemo.com/entry/club-for-growth-urges-no-vote-on-boehners

     The Heritage Club isn't up for it either:

     "Heritage Action, the lobbying arm of the conservative think tank Heritage Foundation, on Wednesday urged lawmakers to vote against House Speaker John Boehner's "Plan B" to avert the so-called fiscal cliff."

     "America’s coming fiscal crisis is a result of overspending, not under-taxing," reads a statement on the group's website. "Allowing a tax increase to hit a certain segment of Americans and small businesses is not a solution; it is a political ploy."

    "Heritage Action added that it will include the vote, scheduled in the House later this week, on its legislative scorecard."

     http://livewire.talkingpointsmemo.com/entry/heritage-action-urges-no-vote-on-boehners-plan

     As for the President, he's indicated that he will veto Plan B that won't get through the Senate in any case. What's going on? As I've suggested in previous posts Boehner knows he's in a week political position. However, he has to please the Tea Party by not giving in too early. On balance Obama and Boehner have moved a lot closer together. The total differences between them in net revenue vs. spending cuts are not so different. Boehner is talking about $1 trillion in new spending cuts and tax revenue. Obama has called for $1.3 trillion in spending cuts and over $1.2 trillion spending cuts-though Boehner says the true number is more like $930 billion as the interest savings don't count.

    I suspect they'll come to agreement. Interestingly Plan B has two bills-one to make the tax cuts permanent for those who make under $1 million and one for just those under $250,000. In theory the latter could pass and make it to the House.