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With Deal Announced, The White House Makes It’s Case

So the final deal has been announced, pending approval by the House, and one of the key new pieces of the compromise is that the Congressional committee tasked with coming up with a second round of spending cuts in exchange for the later debt ceiling hike would be forced to act by the new “trigger.” In the event that the committee deadlocks, that trigger would force an even division of non-defense and defense cuts, and since the latter is anathema to Republicans, they would not have any incentive to deliberately sabotage the committee in order to force the deep entitlements cuts they want.

The White House’s argument is that even if the deal is far short of what liberals hoped for, Republicans have effectively surrendered the amount of leverage they were expected to have over entitlements cuts. Now that the committee — which is half Republicans and Democrats — will all but certainly advance a package of cuts in exchange for the later debt ceiling hike, the argument is that Democrats can live to fight it out another day on entitlements.

The White House is also arguing that the deal sets the stage for a re-litigation of the tax cut fight, and it’s now distributing talking points to outside allies that are heavily devoted to making that case on entitlement and taxes, an argument that seems designed to quiet angst and criticism among liberals:

* Expedited Process for Balanced Deficit Reduction: Puts in place a longer term process for additional $1.5 trillion in deficit reduction through a committee structure that will put everything on the table, including tax and entitlement reform. To prevent either side from using procedural tricks to prevent Congress from acting, the committee’s recommendations will receive fast track authority, which means they can’t be amended or filibustered.

* Sets the Stage for a Balanced Package Including Revenues: The American people and a growing number of Republicans agree that any deficit reduction package must be balanced and included revenue.

* Even Speaker Boehner was open to a deal with $800 billion in revenues, and nearly 20 GOP senators were supportive of the Gang of 6 framework, which had more than $2 trillion in revenue.

* If the Committee does not succeed in meaningful balanced deficit reduction with revenue-raising tax reform on the most well-off by the end of 2012, the President can use his veto pen to raise nearly $1 trillion from the most well-off by vetoing any extension of the Bush high income tax cuts.

By;: Greg Sargent, Washington Post-The Plum Line, July 31, 2011

August 1, 2011 Posted by | Budget, Class Warfare, Congress, Conservatives, Debt Ceiling, Debt Crisis, Deficits, Democracy, Democrats, Economy, GOP, Government, Ideologues, Ideology, Lawmakers, Middle Class, Politics, President Obama, Public, Republicans, Right Wing, Senate, Taxes, Teaparty | , , , , , , , , , , , , , | Leave a comment

The GOP’s Problem: There’s No Bridging The Gap Between Tea Party And Reality

Why do the Tea Party and the right adamantly oppose Mitch McConnell’s proposal to transfer control of the debt ceiling to the president as a way out of an impasse that many think is badly damaging the GOP?

The answer, paradoxically, lies in the beauty of the McConnell plan: It was crafted to allow Republicans to repeatedly vote against raising the debt ceiling without actually stopping it from being raised.

McConnell and other GOP leaders know full well the debt ceiling must be hiked. But they also know full well that this is entirely unacceptable to large swaths of the base who now see this as their number one ideological cause celebre, on a par with the now-forgotten drive to repeal Obamacare. So his plan tries to solve both these problems at once. It provides for Republicans to vote to “disapprove” of each debt ceiling hike the President pursues. But since they need a veto proof majority to block each debt limit hike, those “disapproval” votes won’t actually stop the hikes from happening — keeping the business community happy and averting economic and political disaster.

The problem for GOP leaders, however, is that the Tea Party and the right are dead serious about this stopping-the-debt-ceiling-hike thing — reality and the consequences be damned. Solid majorities of Republican voters and Tea Partyers don’t even think failure to raise it will be a problem. Symbolic votes to “disapprove” of debt ceiling hikes aren’t enough. Anything short of stopping the debt ceiling from going up is unacceptable. The McConnell plan would surrender the GOP’s ability to do this. Therefore it’s a total cave-in.

Business leaders and sane GOP leaders want the debt ceiling raised and understand that failure will be catastrophic. The Tea Party wants a hike blocked at all costs. The problem in a nutshell is that there’s no putting that ideological genie back in the bottle. One party is going to have to walk out of this situation not getting what it wants. Hint: That party’s name begins with the letter “T.”

By: Greg Sargent, The Washington Post  Plum Line, July 19, 2011

July 20, 2011 Posted by | Budget, Businesses, Congress, Conservatives, Debt Ceiling, Deficits, Democracy, Economic Recovery, Economy, GOP, Government, Government Shut Down, Ideologues, Ideology, Lawmakers, Politics, Republicans, Right Wing, Teaparty | , , , | Leave a comment

   

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