◼ House Speaker John Boehner (R-OH) and Republican leaders have done it once again. Their latest fiscal cliff proposal capitulates on core conservative principles, yielding woefully inadequate concessions from President Obama in the process. Will they ever learn? - Rob Bluey/Heritage's Foundry
The latest GOP offer essentially ignores Washington’s real problem — spending — and puts a $1 trillion tax hike on the table. It’s so bad that conservatives are now left with only one unfortunate alternative — passing a temporary measure that avoids a doomsday scenario until the end of March. It’s the best possible outcome with the days dwindling on the remainder of 2012.
In a city where kicking the can has become a routine course of action, it’s hardly the preferable outcome for lawmakers. But it would be better than just going over the fiscal cliff and better than the current $1 trillion tax increase offered by Boehner, which, not surprisingly, was summarily rejected by Obama, who proceeded to counteroffer with an even bigger tax hike and even fewer spending cuts. At this point, no “grand bargain” is going to result in the spending cuts that are needed to reduce the debt.... more at the link.
◼ Fiscal Cliff Solutions: Soar Over the Cliff or Kick the Can - J.D. Foster, Ph.D./Heritage's Foundry
Kicking the can is the least repugnant remaining resolution to the fiscal cliff. The only alternatives appear to be the Republicans’ unconditional surrender on income tax rates (and conceding their principles) or simply going over the cliff.
The story is now a familiar one. Congress and the President conspire to delay every conceivable difficulty until after the election; not just Taxmageddon and the rest of the fiscal cliff, but also the farm bill and much more. With the election in the past, the man-made crisis unfolds on schedule.
The essential lines in the sand in this conflict have not changed for years. The President’s position is simple—a “my way or the highway” approach under which Republicans must capitulate on income tax rate hikes and keep all other serious issues off the table.
Never mind that Obama ◼ already raised taxes on upper-income taxpayers through the 3.8 percent Medicare surtax imposed under Obamacare.
Never mind that tax rate hikes would weaken an economy stumbling so badly the Federal Reserve doubled its risky efforts to keep the economy from recession. Never mind Obama’s approach would likely put the kibosh on any hopes for tax reform. Never mind the resulting revenues would be a small drop in a very big bucket compared to projected budget deficits. Never mind that the only justification for higher taxes is spite and envy to be exercised through the extortive power of the federal government.
In his view, President Obama ran for re-election on, and now has a mandate for, raising income tax rates. In fact, his mandate is solely to continue to press his case. Ours is not a parliamentary system, and Obama is not the prime minister. And so he faces the pesky reality that House Republicans ran opposing higher tax rates and they, too, were returned to Washington in the majority to press their case. Their mandate is no greater, but certainly no less than Obama’s....
Policymakers have put us in this terrible position through the nasty habit of kicking the can—avoiding difficult policy decisions. What is proposed here—another short-term kicking of ye olde can—is akin to the “hair of the dog” prescription for hangovers. It is not a good solution, but sadly, it is better than the only available alternatives. More at the link
