How the GOP can turn Obama’s ‘I won’ attitude against him
So far, President Obama and Speaker John Boehner aren’t negotiating a way to rein in budget deficits in private this time. They’re negotiating in the press, and Obama is taking the hardest line.
While Boehner has signaled a willingness to increase tax revenue by limiting and eliminating deductions rather than by raising tax rates, Obama says his idea of compromise is to do both. He wants $1.6 trillion in new revenues over the next decade, which is double what he and Boehner nearly agreed to do during the 2011 debt-ceiling talks.
Virtually all of this new revenue would come from high earners: individuals making more than $200,000 or couples making more than $250,000. Raising their tax rates and capping their itemized deductions is estimated to bring in more than $1.43 trillion. The “Buffett Rule” would tack on another $47 billion, bringing the tab to $1.48 trillion for those at the top of what’s already the most progressive tax system in the industrialized world.
Obama is so committed to his position that his spokesman says the president will veto any tax bill that leaves rates intact for the top two income-tax brackets (currently 33 percent and 35 percent). The rates for these brackets are scheduled to expire Jan. 1 and rise to 36 percent and 39.6 percent, respectively. Problem is, the current rates for everyone else are also scheduled to expire Jan. 1.
You gotta love Obama and the Democrats. They care so much about the middle class that they will let middle-class tax rates rise, if that’s what it takes to stick it to “the rich.” Somehow, though, Obama succeeded in making a majority of the electorate believe it’s the GOP that is holding the middle class hostage by insisting on keeping all rates the same next year.
It is ludicrous to claim Republicans are playing tax-rate chicken more than the president. In fact, it’s closer to the opposite, because Boehner is saying he’s willing to raise revenues, just not in the same way as the president. Obama is not only insisting on his end but his means — and saying everyone will feel the pain if he doesn’t get both.
It’s ludicrous, but . . .
It’s also brilliant politics. Obama knows voters gave him the benefit of the doubt and that he’s got limited time to take advantage of that (as all second-term presidents do, particularly those whose party doesn’t control Congress). However, he may be able to turn it into a longer-term advantage with this little two-step:
1. Force House Republicans to accept higher taxes on “the rich” before Jan. 1 on high earners to stave off tax hikes on everyone else, for which he knows Republicans know they would be blamed; and then
2. When the GOP comes back next year seeking spending cuts and structural changes to entitlements as their part of the “balanced” “compromise” Obama keeps insisting he wants, he can either tell them to take a hike or make a deal that puts all the onus for unpopular cuts on Republicans. (I’m sorry, my fellow Americans, but just to get the rich to pay their Fair Share, those evil Republicans insisted on ending Medicare as we know it…)
Some of you will say I’m making the president out to be unserious about our fiscal challenges. To you I say: No, his two campaigns and first term revealed him to be that way.
After all, that’s the only way to explain a proposal that raises an average of $160 billion more per year — when the deficit last month alone rose to $120 billion — while double-counting spending cuts such as those for ending the Iraq and Afghanistan wars (decisions that were already made and thus don’t represent new savings) and seeking to increase expand spending (er, “investments”) in certain favored areas.
What we’re really seeing here
So, to Obama, this clearly is more about good politics than good policy. The House GOP should respond in kind.
It should pass the “Buffett Rule” bill that failed to pass the Senate in April, amended to include an extension of all current tax rates through 2013, as a down payment. While the Buffett Rule is projected to raise $47 billion during the next decade if the current tax rates for high earners are not extended, I’ve seen projections of more than $160 billion in 10 years if rates don’t rise. That’s an increase of approximately $16 billion next year, and it comes from real millionaires — not Obama’s “millionaire” couples who earn $250,00 a year.
Given the support for Obama in America’s wealthiest counties, not to mention Hollywood, I’d chalk this up to a paraphrase of Mencken: It appears the truly rich know what they want, and they deserve to get it good and hard.
At the same time, House Republicans should introduce a bill outlining the deductions-cutting approach for which Boehner has expressed support. Many deductions represent subsidies that are merely located in the tax code rather than an appropriations bill, and this approach allows Republicans to talk about the importance of getting government out of private decision-making without reducing incentives to work, save and invest (by increasing marginal tax rates). I’d go ahead and include a corresponding reduction in tax rates but make clear that’s negotiable, depending on what happens on the spending side.
What might this look like? Capping deductions at $50,000 a year would, according to an analysis by the Tax Policy Center, raise almost $750 billion over 10 years, with about 80 percent of that money coming from the top 1 percent of earners. The change in the average tax payment for the three lowest income quintiles would range from zero to $12 a year. Again, this approach does not leave taxes on “the rich” intact.
Your turn, Democrats
For now, that’s it. Dare Senate Democrats not to pass, and president to veto, a bill that includes their cherished Buffett Rule, just because it also keeps all tax rates in place for one more year while the two sides negotiate further. Further call their bluff with that second bill to raise even more revenue, almost all of it from the very highest earners, in the most economically sound way. Then, explain you’re looking forward to tackling the country’s real fiscal problems next year, and adjourn.
And leave it to Harry Reid and President Obama to explain to 99 percent of tax filers why their taxes are going up so that taxes can rise even more on the top 1 percent.
– By Kyle Wingfield
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
542 comments Add your comment
iggy
November 15th, 2012
11:59 am
John Q
November 15th, 2012
11:35 am
Just cant stand it can ya…
Thulsa Doom
November 15th, 2012
12:00 pm
Independent thinker,
If Romney has “secret” millions in profits from the auto bailout via delphi than how are these millions “secret” if you know all about them. Sometimes you say things that are just jaw dropping dumb. This comment is but one of many foolish statements that you’ve made.
Rush
November 15th, 2012
12:01 pm
What exactly is internets, John Q? Libs once again proving their mettle…….quick to pop off their mouth without thinking or reviewing their own lies.
Nunna Yobinnes
November 15th, 2012
12:01 pm
iggy – Doesn’t it make you want to go out and thank a democrat for raising your taxes by $4,000 in the current economic environment?
independent thinker
November 15th, 2012
12:07 pm
Loser cons- Kyle, Rove, Grover and Governor Robme still think the voters were too dumb to realize that Romney was the better candidate. The businessman had nothing to do wuitha failed ground game, incompetent polling data and a failed ORCA system designed to get out the vote. But a community organizer had none of those problems. Why?
They would prefer a liar, hypocrite, manipulator of government bailout money for personal gain, outsourcer in chief, vulture capitalist.draft dodger con artist and champion of the rich and bigot to someone who is trying to rescue the economy and fight three active wars successfully. LOSERS
Lets go off the cliff and let everyone’s tax cuts expire. After all the deficit is the most important issue-right cons???
Kyle Wingfield
November 15th, 2012
12:09 pm
John Q @ 10:33: Perhaps you didn’t see the comments LeftInTheSouth made before I removed them, but they were of the same vulgar nature for which I have banned other commenters. When people resort to that kind of talk, I give zero thought to their political leanings before banning them.
cc
November 15th, 2012
12:12 pm
“independent thinker”
You are neither . . .
mike
November 15th, 2012
12:14 pm
independent thinker: “They would prefer a liar, hypocrite, manipulator of government bailout money for personal gain, outsourcer in chief, vulture capitalist.draft dodger con artist and champion of the rich and bigot.”
Man, that’s GOOD! Mind if I save a copy?
As usual when you confront the cons on this blog with the truth they run and hide. I’m sure this will be no different. As The Con Squirms.
Finn McCool (The System isn't Broken; It's Fixed)
November 15th, 2012
12:15 pm
Romney’s upset that Obama gets to give his voters things and that he doesn’t get to give his rich pals increased tax breaks.
whaaaaaaa. whaaaaaaa
SBinF
November 15th, 2012
12:16 pm
No Leverage? You do realize in which “House of Conference” appropriations bills originate, right? Do you actually realize which party controls that chamber? I suppose that it petty analysis whereas your nuanced thinking will carry the day? LOL
—————————–
If they do nothing, the cuts are put into place and the revenue increases happen automatically. Boehner and the GOP have no leverage in the matter. Appropriations begin in the Congress….if my elementary school civics serves me correctly, anything from Congress must be signed by the president to be enacted.
So yeah….no leverage. I’m sure the sequester seemed like a good idea at the time to Republicans, but now that it is looming, the appearance that they have options is almost laughable.
SBinF
November 15th, 2012
12:24 pm
And by God, the only reason the GOP even has the House is because of gerrymandered district. Lest we forget, Dem House votes outnumber GOP house votes nationally.
Nunna Yobinnes
November 15th, 2012
12:31 pm
SBinF – That only counts when we officially become the Union of Soviet Socialist American Republics.
cc
November 15th, 2012
12:32 pm
SBinF:
We all know the dims have NEVER gerrymandered any districts, son’t we?
cc
November 15th, 2012
12:35 pm
SBinF:
We all know the dims have NEVER gerrymandered any districts, don’t we?
Nunna Yobinnes
November 15th, 2012
12:35 pm
Aren’t you all just looking forward to sending in your additional $4,000 in taxes? Woo hoo.
SBinF
November 15th, 2012
12:35 pm
Maybe, maybe not. But right now we’re talking about districts redrawn by GOP legislatures after the 2010 elections. Try to stay on topic.
TBone
November 15th, 2012
12:35 pm
Independent thinker is an oxymoron,.
iggy
November 15th, 2012
12:36 pm
Jay Bookman
November 15th, 2012
12:17 pm
LMAO!!
JDW
November 15th, 2012
12:39 pm
@Rafe….”No, they stayed in school, developed excellent skills, took risks, and achieved their status.”
With status comes responsibility…it is now theirs to pay a more equitable tax rate on their earnings over $250K and capital gains. The thing I find staggering is that most of the folks that are in this group have no issue with that responsibility…it is the wannabes that keep up the yelling.
Bye Bye Cheesy Grits
November 15th, 2012
12:42 pm
When people resort to that kind of talk, I give zero thought to their political leanings before banning them.
Oh I think you give some thought to it.
For example you were very very quick to reprimand anyone mentioning that Mitt Romney was indeed a Mormon.
But for years here Obama was referred to as a Muslim without a word being spoken.
JDW
November 15th, 2012
12:45 pm
@Tiberius…”I am not trying to change anything. I realize the better man (and this country) lost. But I am not going to sit by and allow the winners to once again create a false impression (one they specialized in during the election) to inflate his victory into epic proportions, when none exist.”
Whatever helps you keep your grandiose self image intact.
As for this…”The President can TRY to move forward to implement his proposals, but the Constitutionally-elected checks and balances of Congress will blunt his impulses of excess this time.”
We shall see, I think a good number of House Republicans have gotten the message and I expect some movement on immigration and other issues. If not good luck in 2014. As for the issue of the moment…to get my desired result Congress simply has to do nothing. Something the Republicans have exceled at over the last two years.
Kyle Wingfield
November 15th, 2012
12:46 pm
Cheesy: The comments I am talking about are of an entirely different nature. And in any case, did I ever ban you for your bigoted comments about Romney and the Mormon church?
Tiberius - pulling the tail of the left AND right
November 15th, 2012
12:48 pm
Sbinf, how do you think those districts got gerrymandered? Because the GOP has taken over state legislatures despite your contention that the party is in demise.
Bye Bye Cheesy Grits
November 15th, 2012
12:48 pm
All you need to know about the spin and this past election is …
Nate Silver and THE NEW YORK TIMES.
Totally nailed it 100 percent accurate.
Fox News, Dick Morris, Karl Rove, Kyles gut, and the Republican leaning polls Rasmussen and Gallup…. all way way off.
Very telling isn’t it.
And trust me its this way on most every issue. Its just on those we dont have a vote to tell you your wrong. So you just keep watching Fox not realizing it.
Del
November 15th, 2012
12:48 pm
Man the libs are giddy to the point of psychosis over the election outcome. I wonder how they’ll feel when the country can no longer borrow because of our debt to GDP ratio and reduced credit rating down to third world status. When austerity has to be implemented provoking riots just like in Spain, Portugal, Italy and Greece with more European countries to come along since the E.U. is back in deep recession. Helluva time for total war to break out in the M.E. Anybody willing to give odds for a successful Obama second term? The libs will still sing praise to their dear leader even after they hear the lemming call and begin their final march to the cliff.
Bye Bye Cheesy Grits
November 15th, 2012
12:49 pm
Cheesy: The comments I am talking about are of an entirely different nature. And in any case, did I ever ban you for your bigoted comments about Romney and the Mormon church?
No you did not.
Tiberius - pulling the tail of the left AND right
November 15th, 2012
12:51 pm
Excellent point Kyle.
If attacking Romney for being a Mormon was a cause for banning, Cheesy Grits would have been banned long ago. He’s full of phoney poutrage.
Linda
November 15th, 2012
12:51 pm
independent thinker@ 12:07, Obama is trying to rescue the economy? That’s a new one. Did he start this morning?
Seems to me that he’s done everything in his power (& outside his power) to sabotage it.
Del
November 15th, 2012
12:55 pm
Cheesy’s comments can get pretty cheesy.
Hillbilly D
November 15th, 2012
12:57 pm
If attacking Romney for being a Mormon
Nobody ever attacked Harry Reid for the same thing. Imagine that.
iggy
November 15th, 2012
12:58 pm
Once the economy fails the liberals will be treated to a constant diet of Govt Cheesey Grits. Yummy!!!
cc
November 15th, 2012
1:04 pm
Del:
“I wonder how they’ll feel when the country can no longer borrow because of our debt to GDP ratio and reduced credit rating down to third world status. When austerity has to be implemented provoking riots just like in Spain, Portugal, Italy and Greece with more European countries to come along since the E.U. is back in deep recession.”
You know the answer to that question without having to ask? I assume your posing of the question was only rhetorical?
The answer is, of course that they will “blame Bush”.
cc
November 15th, 2012
1:11 pm
“Nobody ever attacked Harry Reid for the same thing. Imagine that.”
Of course you’ve not heard or read it. Republicans don’t stoop that low and dimocrats view Reid as an “enlightened Mormon”, meaning one who will swallow the party line – hook, line and stinker.
Lil' Barry Bailout - OBAMAPHONE!!!
November 15th, 2012
1:13 pm
A leader who did something about 37,000 Syrians killed by their government would be a deserving Nobel Peace prize winner.
Linda
November 15th, 2012
1:14 pm
Liberals think austerity is a program, rather than the result of programs. Guess they think homelessness is a lifestyle.
Nate Silver
November 15th, 2012
1:17 pm
And the whining continued……….
Lil' Barry Bailout - OBAMAPHONE!!!
November 15th, 2012
1:20 pm
Cheesy’s comments are from today forward to be known as “Cheese Whiz”.
Del
November 15th, 2012
1:28 pm
“The answer is, of course that they will “blame Bush”.
cc, I think that excuse wore off awhile back and wasn’t the reason Obama won reelection. I hate to say that I agree with those who think the left has finally succeeded after many years of working at it to get half the country reliant on some form of government assistance. They exceeded the vote control threshold during Obama’s first term. Add to that a well planned and executed ground game in the swing states and we have Obama once again in for a second term. I think,however, the day of reckoning for the Democrats is close at hand as the country begins to longer afford providing financial assistance to a growing number of Americans who are becoming dependent. Politics could change back to the right when that begins to visibly occur or there could be a revolution.
cc
November 15th, 2012
1:47 pm
Del, to the point of your original post, they must blame someone other than themselves. They, like Obama, will accept responsibility for NOTHING!
Morning Reads for Friday, November 16, 2012 — Peach Pundit
November 16th, 2012
7:12 am
[...] There: – United Airlines computer problems strand thousands of travelers for the third time since June. – Sirens wail in Tel Aviv. – The United State Postal Service lost $15.9 billion. Yes, that’s billions with a B. Your government at work. – Ohio and Pennsylvania post highest jobless claims the week after the election. How inconvenient. – Zipper problems? Go work for the CIA, but wait a couple of months. – More Washington budget drama. [...]
» Morning Reads for Friday, November 16, 2012 Marvin Arrington Jr.
November 16th, 2012
10:42 am
[...] – Zipper problems? Go work for the CIA, but wait a couple of months. – More Washington budget drama. – BREAKING: Hostess Brands Inc. is going out of business and laying off most of its 18,500 [...]
"All in"
November 18th, 2012
6:09 am
Kyle, I love you man… I personally have declared war on the Obamaites… I have decided to employ their tactics against them. But first, why would I do this? First, I never agreed, nor signed any contract to engage in any agreement wherein the Obamaites can agree by 51% of the popular vote to take my freedoms away, to agree to collectively put their hands in my pockets, and I never agreed to spring for lunch for all of them either. So here’s the deal: 1) I quit working (this should really get your jealousy going) because I can; 2) spend my intellectual capital joining those taking advantage of government benefits and giveaways (it’s not that hard, because liberals aren’t that smart anyway); 3) then just take a front row seat to watch the amazing crash and fireball. I am “all in” Go Obama! Crash the country… Go liberals, cheer him on! By the way, how will you collect nothing from nothing?