For those who believe that avoidance of the “fiscal cliff” boils down to a test of will between the White House and House Speaker John Boehner, this Associated Press piece matters:
WASHINGTON — The first cracks are developing among Republicans over whether to accept a quick deal with President Barack Obama on allowing the top two income tax rates to expire.
Conservative Oklahoma GOP Rep. Tom Cole told GOP colleagues in a private meeting on Tuesday that it’s better to make sure that tax cuts for the 98 percent of taxpayers who make less than $200,000 or $250,000 a year are extended than to battle it out with Obama and risk increasing taxes on everyone.
Cole’s remarks are noteworthy because he’s a longtime GOP loyalist and a confidant of House Speaker John Boehner, R-Ohio. They were made in a meeting of the House GOP Republican whip team, which is a sounding board for GOP leaders.
“If we don’t believe taxes should go up on anybody, why can’t we accept a deal that takes 98 percent out and still leaves us free to fight on the other grounds,” Cole said in an interview on Wednesday. “I’m not for using the American people for leverage or as a hostage.”
Other Republicans have worried that the GOP would lose a bargaining advantage by separating tax cuts for the highest earners from everyone else, but Cole said he believes the reverse is true.
“I think we have the winning argument,” he said. “Most Americans intuitively understand that raising taxes on small business is costing them jobs.”
Cole’s comments drew a rebuke from Boehner, who is standing firm against Obama’s demand that tax rates go up for top earners.
“He’s a wonderful friend of mine and a great supporter of mine, but raising taxes on the so-called top 2 percent — half of those taxpayers are small business owners,” Boehner said. “You’re not going to grow the economy if you raise the top two rates. It’ll hurt small business. It’ll hurt our economy.”
Reaction was mixed to his idea at a Wednesday morning meeting of House Republicans, Cole said. Conservative Rep. Raul Labrador, R-Idaho, who said he opposed Cole’s idea, said he believed a majority of House Republicans also opposed it.
Cole said he expects to support whatever deficit-cutting deal Boehner is eventually able to negotiate with the White House as the two sides wrangle over how to avoid the “fiscal cliff” mix of tax increases and spending cuts that will occur automatically in January unless lawmakers avert them.
“This is a tactical argument, this is not a theological argument,” Cole said. “We don’t disagree on what we’re trying to do.”
Cole’s comments were first reported by Politico.
Meantime, Obama said Wednesday he still believes that members of both parties can reach a framework on a debt-cutting deal before Christmas.
Obama made a public statement, joined by about a dozen middle-class Americans who have raised concerns about their taxes going up at the end of the year. He said lawmakers face important deadlines in the coming weeks but the voices of the American people need to be a part of the debate.
The president said that officials need to “approach this problem with the middle-class in mind.”
Obama could be in position to blame Republicans if an impasse results in the government going over the so-called fiscal cliff, an economy-rattling set of automatic spending cuts and tax increases from the expiration of longstanding tax cuts made in 2001 and 2003 during the Bush administration.
Democrats already are portraying GOP lawmakers as hostage-takers willing to let tax rates rise on everyone if lower Bush-era tax rates are not extended for the top 2 percent to 3 percent of earners — those with incomes above $200,000 for individuals and $250,000 for joint filers.
- By Jim Galloway, Political Insider