◼ A Democratic source familiar with the talks tells CNN they have hit a “major setback” because Republicans are now insisting that any fiscal cliff deal include “chained CPI," which Democrats consider a “poison pill.” - Dana Bush/CNN
Chained CPI would change the way Social Security benefits are adjusted for inflation, effectively meaning Social Security recipients would receive less money over the years.
This Democratic source did not want to be identified because of the closed nature of the talks, but was clearly giving the information to CNN to make public the Democrats’ point of view and push the Republicans to give in on this high stakes issue.
The source also told CNN that Democrats are currently “going outside their comfort zone” in these talks with regard to tax rates - keeping tax rates in place for higher income households than the president wants. The source also said Democrats are negotiating with Republicans on extending the current lower estate tax rate, a big issue for many Republicans as well as moderate Democrats.
A Senate Republican leadership source responded by pointing to the president’s comments in an interview that aired Sunday suggesting he is willing to look at chained CPI “in pursuit of strengthening Social Security for the long term.”
◼ With no ‘fiscal cliff’ deal in sight, sequestration seems all but certain - Rosalind S. Helderman/Washington Post
◼ The Fiscal Cliff for Fun and Profit - Stephen Green/VodkaPundit/PJM
Laws are made by men, not gods — but you’d never guess that from the talk coming out of (and about) Washington these days.
Democrats behave as though the Clinton tax rates were carved into stone by lightning on Mount Sinai. Republicans want you to believe the same thing about the tax rates enacted just a few years later under President Bush. And the Fiscal Cliff? “Why, that’s a geological formation — an act of God if there ever was one. It’s not our fault if we’re going over it!”
Right. And I’m the Pope of Siam.
Here’s what neither side wants you to remember: No matter what the rates are, our income tax code is a mess. It’s corrupt. And it will never raise enough revenue to pay for all the government we’ve saddled ourselves with.
Those Clinton tax rates the Democrats are so fond of only ever raised about two-thirds of the revenue the Democrats promised us would be collected. And that was during a perfect storm of tax collection....
◼ Obama: GOP's insistence on halting tax hikes for the wealthy is stopping fiscal cliff deal - Carrie Dann/NBC News
◼ When will Obama decide to make a deal? - Jennifer Rubin/Washington Post
The president never quite sounds like a man who wants a deal. He instead invariably sounds like a pol seeking advantage over opponents, which is peculiar given that he faces no future election but will face a GOP House majority for at least two more years. He wants the other side to lose more than he wants a substantial deal to improve our fiscal situation.
