This morning Drudge linked to an explanation of what Speaker Boehner (R-OH) is (or isn’t) trying to do with the debt limit negotiations (without a budget). The coming deal is now known as the “Grand Bargain.” The “Grand Bargain” is taking some in Congress by surprise, and there are those serving with Boehner who prefer a “middle” bargain over a “big” bargain.
[The Grand Bargain] the “big” deal on increasing the U.S. debt limit — a package that is likely to include more than $4 trillion in spending cuts over 10 years, including changes to popular entitlement programs like Medicare and Social Security…
The article originates at Politico, but is published at Hampton Roads: the writers say “such a grand bargain” will be a major victory for Boehner and House Republicans…”
But there’s a catch — Boehner would have to agree to revenue boosts through tax-code reform, including closure of loopholes then coupled with lower corporate tax rates, all of which is designed to spur economic growth. The new revenue could reach up to $1 trillion over a ten-year period, funds that could be used for deficit reduction. Boehner and his top aides insist there will be “no tax increases.”
Republicans have long wanted tax reform. The question is, what can kind of tax reform can Obama promise a Conservative that we could stomach? What promise from Obama will we believe? Why would we believe it? We need debt ceiling cuts that DO NOT DEPEND on future promises, unless those promises become reality through a vote of Congress – assumed to soon be a Republican-controlled Congress.
The article also includes some House dynamics. House Majority Leader Eric Cantor (R-VA) believes a “big” bargain will not pass the House, and had no knowledge that Boehner was going to ‘go for gold’ until Thursday morning:
He and Senate Minority Whip Jon Kyl (R-Ariz.) are both pushing for a “middle” package that includes $2.4 trillion in spending cuts and no new tax revenues. Boehner’s Senate GOP counterpart, Minority Leader Mitch McConnell (Ky) is thus far non-committal to what he will support.
House TEA Party freshmen, The Gang of 87, don’t believe anything Obama says. They think he may not stick with a deal once he has agreed to it. Amen.
POINTS NOT MADE:
1) The article indicates that Republicans are “loathe” to touch entitlement programs, but don’t forget that Obama has cut $500 BILLION from Medicare through ObamaCare.
2) The article says we are quickly “hurtling” toward “default,” but if you are paying attention, you know that is not true. If a deal is not reached, we CAN AND WILL pay our debts. We have the revenue. We will not default, UNLESS Obama plans to use taxpayer monies for some of his grand ideas, rather than interest payments on our debt. In general, we know only Congress can spend money, so Obama’s desires should not be the first order, but we also know this Congress, and specifically, this Senate, abdicates their powers routinely. Disgraceful and unconstitutional. Via Drudge Report