Republicans’ leverage against tax hikes for the rich
Republicans will also be able to point to a long list of news stories quoting Democrats to the effect that going over the cliff, and raising taxes on the middle class, would be fine because it would help them get their way.
Republicans may thus have some leverage after all. House Speaker John Boehner certainly seems to think they do. He has said he is willing to let the federal government raise more revenue from rich people by scaling back tax breaks. He is holding out for two conditions: He doesn’t want tax rates to go up, and he wants to reduce the growth of spending on Social Security and Medicare.
This package, he notes, would be “balanced” in the two senses President Barack Obama has demanded. It would involve both higher revenue and lower spending, and its burdens would mainly fall on the rich. Most proposals for reining in Social Security benefits, for example, concentrate on high earners.
If Republicans have leverage, and if Democrats want to avoid middle-class tax increases and any possibility of getting blamed for them, then there has to be a real deal. This is the third scenario: the “grand bargain” of Beltway hopes. If it happened, it would be Obama’s biggest bipartisan accomplishment. …
The most likely path to a deal involves Obama’s dropping the surtax idea and making some concessions on entitlements. The best bet for what actually happens, though, is gridlock, followed by competitive finger-pointing.
Blowback
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What is the point of having a Republican controlled House? The Democrats didn’t raise taxes when they had total control of everything. At least that is what their ads will say.
If you are a Republican challenger for a House seat 2 years from now, you’ll have to answer the question “did you agree with the Republicans raising taxes?” Republicans better make sure they have an argument to continue their existence in a couple years. They will raise the ante on you.
Buddahpundit on November 21, 2012 at 8:50 PM
Has anyone explained how raising taxes on the rich is supposed to help?
tom daschle concerned on November 21, 2012 at 8:56 PM
grover norquist could sink the party for good. not all Rs have to vote for taxing the rich…those from receptive districts. Do what pelosi does…get smart.
here’s why. ‘the rich’ can afford it. I’d much much rather see this that a carbon tax, vat or wealth tax. Rs need to pull the trigger. Look at the massive list of bundlers for barry. Look at the 500K and above…dozens.
180B just from the bundlers. they got the money, and love giving to barry…call their bluff….raise their taxes
people need to understand the cost of government.
Rs are being played for chumps by the left
r keller on November 21, 2012 at 9:29 PM
Well Bush tax cuts were only for the rich anyway so Democrats HAD to raise taxes on the middle class.
Herb on November 21, 2012 at 9:33 PM
Joke..right?
Mimzey on November 21, 2012 at 9:42 PM
L.i.B. http://www.breitbart.com/Big-Government/2012/11/21/Surprise-PA-College-Slashes-Hours-To-Avoid-Obamacare
davidk on November 21, 2012 at 9:45 PM
Pretty sure we know how Obama will handle this. He’ll throw a tantrum because he can’t get 100% of what he wants and will blame those evil Republicans for failing to compromise.
ButterflyDragon on November 21, 2012 at 10:48 PM
For starters, drop the itemized deduction for state and local income taxes.
It’ll hurt blue staters most.
BuckeyeSam on November 21, 2012 at 11:27 PM
Let it burn.
the botnet on November 21, 2012 at 11:38 PM
Maybe, just maybe, we should agree to higher taxes for the one bracket on the condition that the EPA and other less necessary departments have their budget slashed, and that all”green energy” tax credits go away. Oh, and a substantial cut in the capital gains tax.
The Democrats are playing pure politics with this, purely in the hope of making Republicans betray their constituencies and damage themselves politically.
Two can play that game. Give them the one thing they demagogue about, while taking away all the special gifts the Democrats give to their special interests. Most particularly, make the unions, environmentalists, trial lawyers, and NEA all angry at the Democrats.
The real goal, of course, being to make them balk at the grand deal and decide getting their precious tax hikes is not such a great idea after all.
There Goes The Neighborhood on November 22, 2012 at 3:15 AM