Romney Campaign Boxes Itself In On Outsourcing, Offshoring Debate
Tuesday, June 26, 2012
Obama offered to make Bush'sTaxCutsForTheRich permanent.
Here's EzraKlein talking about it:
What Obama offered Boehner was an opportunity to take the BushTaxCuts off the table. So though $800 billion in revenue sounds sizable, it’s only half as much in total revenue as the WhiteHouse’s April proposal, two-fifths as much as SimpsonBowles wanted, and one-fifth what we’d get if the BushTaxCuts expire next year.
Republicans erred in rejecting the deal big time:
In rejecting that deal, which liberals would've loathed, JohnBoehner might've inadvertently saved Obama from facing a primary challenge. More to the point, he might've locked in higher taxes down the road. Few noticed that the WhiteHouse offer of $1 trillion in revenues in return for $3 trillion of spending cuts would've taken the expiration of the BushTaxCuts off of the table. That'd mean the tax debate concluded this year, a time when the debt ceiling gives the GOP leverage, rather than next year, when the BushTaxCuts are set to expire and the WhiteHouse has most of the leverage.
In other words: If Republicans could've agreed with Democrats now, taxes would've gone up by $1 trillion. If they can’t agree with Democrats next year, they’ll go up by more than $4 trillion. And Republicans had a better hand this year than next year. I expect they’ll come to wish they’d played it.
As Klein suggests, "Liberals should thank EricCantor for killing the deal":
The $4 trillion deal Obama offered the Republicans: A two-year increase in the Medicare eligibility age. Chained-CPI, which amounts to a $200Billion cut to SocialSecurity benefits. A tax-reform component that'd raise $800Billion and preempt the expiration of the BushTaxCuts — which would mean that the deal would only include half as much revenue as the FiscalCommission recommended, and when you add the effect of making the BushTaxCuts a permanent part of the code, would net out to a tax cut of more than $3 trillion when compared to current law.
Read the Article at HuffingtonPost Read more...