The next step for Republicans in the debt fight

◼ link - Byron York/Washington Examiner

"Everybody talks about how much the Bush tax cuts cost, and we're saying, no, they led to a huge increase in revenue," says the Republican involved in the fight. It's true. According to historical tables published by the Office of Management and Budget, government revenue shot higher after the Bush tax cuts were enacted. Total federal government receipts rose from $1.782 trillion in 2003 to $2.567 trillion in 2007 -- an increase of $785 billion, or 44 percent. In 2007, the federal deficit shrank to $160 billion -- all after tax cuts that Obama and his Democratic allies portray as disastrous.

That recent history is at the heart of the conflict between Republicans and Obama over taxes. "The president's view of tax reform is tax increases," says the Republican. "Republicans view tax reform as setting tax rates to maximize economic activity."

While they continue the message war, Republicans are moving the real war to another level. After weeks of useless negotiations with the White House, they're taking the debt issue into their own hands with the passage of cut, cap and balance, in defiance of Obama's veto threat. Republicans know the president and Senate Democrats can stop it, but they believe it's important to stake out their ground.

"Republicans are laying out a starting point with cut, cap and balance," says the Republican. "They're saying to the president, 'We have actually passed something. It's time for you to come up with your proposal.'

◼ Sen. Coburn says lawmakers can't put off "grand bargain" debt deal until 2013 - Philip Klein/Washington Examiner