“THE PRESIDENT DOESN’T WANT A DEAL: HE WANTS HIGHER TAXES. ON HIS TERMS.
Business roundtables contrary to what he called “my reputation”—he’s for spending cuts to reduce the deficit and to secure a bipartisan deal to avert the fiscal cliff on January 1. We’re prepared to make some tough decisions when it comes to cutting spending, he insisted. The president plan for a fiscal cliff agreement laughing McConnell is that he’s going to do serious spending cuts, meaningful reforms, even modest restraint—those are missing from the Obama plan?
In his first two years the deficit soared past $1 trillion, federal spending reached 25% of GDP. He has opposed cuts—any cuts—in three continuing resolutions that kept the government operational in 2011. he asked for a “clean” increase in the debt limit—that is, with no spending cuts attached. He acceded to cuts only under extreme duress.
He want to raise taxes by $1.6 trillion, he wants another stimulus of %50 billion. he wants $800 billion in deducted funding for wars in Iraq and Afg., a few years from now—that’s already when there was to be no spending due to the pull outs.
He’s offering $400 billion in reductions sometime down the road, chiefly in what’s paid to providers. What republicans want with entitlements is not cuts but reform. Medicare prescription drug program is already means tested to favor the less affluent.
Pelosi is against shaving any funding from Medicare with one exception, in 2010 she supported a cut of $716 billion with the money shifted to Obamacare to make it appear fiscally sound and thus able to win congressional approval.
Erskine Bowles the head of Obama’s deficit reduction commission is in favor of entitlement reform. But Obama may be so puffed up by winning reelection that he won’t consider a major concession to Republicans or he may be just too much of a reactionary to all tinkering with a sainted liberal program.
Bu dismissing GOP offers, he’s pursuing a risky strategy, the press trumpets the White House line that the only impediment to a fiscal cliff deal is republicans refusal to accept income tax rate hikes for the wealthy. House speaker Boehner can’t agree to a deal without real spending cuts or reforms. Giethner claims the president is willing to go over the fiscal cliff absent higher tax rates for the top 2% of earners. That would mean everyone’s taxes would go up and deep cuts in defense and domestic spending would be imposed.
And there’s something bigger at stake to which Obama often seems oblivious. Presidents are expected to lead. Roundtable, Obama indulged in more lip service. He’s for bipartisanship. We’re not insisting on higher rates just out of spite of any kind of partisan bickering.
Source—weekly standard, fred barnes