Democratic Leadership Narrowing Down List Of Super Committee Members
Monday, August 8, 2011
Here's one EzraKlein article talking about Obama's recent offer to make the Bush Tax Cuts permanent:
What Obama offered Boehner was an opportunity to take the BushTaxCut s 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 SimpsonBow les wanted, and one-fifth what we’d get if the BushTaxCut s expire next year.
Republican
In rejecting that deal, which liberals would've loathed, JohnBoehner might've inadverten tly 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 BushTaxCut s off of the table. That would mean the tax debate concluded this year, a time when the debt ceiling gives the GOP leverage, rather than next year, when the BushTaxCut s 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 Republican s 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":
Here’s what appears to have been in the $4 trillion deal they offered the Republicans: A two-year increase in the Medicare eligibilit y age. Chained-CP I, which amounts to a $200 billion cut to SocialSecu rity benefits. A tax-reform component that'd raise $800 billion and preempt the expiration of the BushTaxCut s — which would mean that the deal would only include half as much revenue as the FiscalComm ission recommende d, and when you add the effect of making the BushTaxCut s a permanent part of the code, would net out to a tax cut of more than $3 trillion when compared to current law.
About Deficit
Read the Article at HuffingtonPost
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