It’s nothing but a power play
WASHINGTON — Let’s understand President Obama’s strategy in the “fiscal cliff” negotiations. It has nothing to do with economics or real fiscal reform. This is entirely about politics. It’s Phase 2 of the 2012 campaign. The election returned him to office. The fiscal cliff negotiations are designed to break the Republican opposition and grant him political supremacy, something he thinks he earned with his landslide 2.8-point victory margin on Election Day.
This is why he sent Treasury Secretary Tim Geithner to the Republicans to convey not a negotiating offer but a demand for unconditional surrender. House Speaker John Boehner had made a peace offering of $800 billion in new revenues. Geithner pocketed Boehner’s $800 billion, doubled it to $1.6 trillion, offered risible cuts that in 2013 would actually be exceeded by new stimulus spending, and then demanded that Congress turn over to the president all power over the debt ceiling.
Boehner was stunned. Mitch McConnell laughed out loud. In nobler days, they’d have offered Geithner a pistol and an early-morning appointment at Weehawken. Alas, Boehner gave again, coming back a week later with spending-cut suggestions—as demanded by Geithner—only to have them dismissed with a wave of the hand.
What’s going on here? Having taken Boehner’s sword, and then his shirt, Obama sent Geithner to demand Boehner’s trousers. Perhaps this is what Obama means by a balanced approach.
He pretends that Boehner’s offer to raise revenues by eliminating deductions rather than by raising rates is fiscally impossible. But on July 22, 2011, Obama had said that “$1.2 trillion in additional revenues … could be accomplished without hiking tax rates, but could simply be accomplished by eliminating loopholes, eliminating some deductions and engaging in a tax reform process.” Which is exactly what the Republicans are offering today.
As for the alleged curative effect on debt of Obama’s tax-rate demand—the full rate hike on the “rich” would have reduced the 2012 deficit from $1.10 trillion to $1.02 trillion.
That’s a joke, a rounding error.
Such nonsense abounds because Obama’s objective in these negotiations is not economic but political: not to solve the debt crisis but to fracture the Republican majority in the House. Get Boehner to cave, pass the tax hike with Democratic votes provided by Minority Leader Nancy Pelosi, and let the Republican civil war begin.
It doesn’t even matter whether Boehner gets deposed as speaker. Either way, the Republican House would be neutered, giving Obama a free hand to dominate Washington and fashion the entitlement state of his liking.
This is partisan zero-sum politics. Nothing more. Obama has never shown interest in genuine debt reduction. He does nothing for two years, then spends the next two ignoring his own debt-reduction commission. In less than four years, he has increased U.S. public debt by a staggering 83 percent. As a percentage of GDP, the real marker of national solvency, it has spiked from 45 percent to 70 percent.
Obama has never once publicly suggested a structural cut in entitlements. On the contrary, he created an entirely new entitlement—Obamacare—that, according to the CBO, will increase spending by $1.7 trillion.
What’s he thinking? Doesn’t Obama see looming ahead the real economic cliff—a European-like collapse under the burden of unsustainable debt? Perhaps, but he wants to complete his avowedly transformational social-democratic agenda first and let his successors—likely Republican—act as tax collectors on the middle class (where the real money is) and takers of subsidies from the mouths of babes.
Or possibly Obama will get fiscal religion and undertake tax and entitlement reform in his second term—but only after having destroyed the Republican opposition so that he can carry out the reformation on his own ideological terms.
What should Republicans do? Stop giving stuff away. If Obama remains intransigent, let him be the one to take us over the cliff. And then let the new House, which is sworn in weeks before the president, immediately introduce and pass a full across-the-board restoration of the Bush tax cuts.
Obama will counter with the usual all-but-the-rich tax cut—as the markets gyrate and the economy begins to wobble under his feet.
Result? We’re back to square one, but with a more level playing field. The risk to Obama will be rising and the debt ceiling will be looming. Most important of all, however, Republicans will still be in possession of their unity, their self-respect—and their trousers.
Charles Krauthammer is a columnist for the Washington Post. His email address is letters@charleskrauthammer.com.
Jan 2, 2013 at 11:13 a.m.
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JJBrown, No matter your income no American should be paying for government mistakes and waste. You seem to think it is alright to do so.
Dec 13, 2012 at 11:31 a.m.
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Let me paraphrase RAF's claim:
1 + 1 = 0
Oh you poor poor lost little silly person.
Even two allegedly clueless opinions equal a SUM of 2 opinions when they are added together.
Dec 13, 2012 at 7:14 a.m.
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"You know it, I know it"
-
Two clueless opinions added together equal the sum of ZERO.
Dec 13, 2012 at 3:40 a.m.
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Not taxing the rich is one reason we went bankrupt in the first place.......
30 years of tax cuts for the "job creators" and do we get more jobs? nooooo - we go over a cliff and the richest get richer......... Enough already. Republicans want to go back to the 50's. Let's go back to those tax rates too, or at least back to the rates we had before "trickle on" economics became so popular in certain circles.
Dec 12, 2012 at 1:26 p.m.
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RAF,
Your ideology is clearly in line with the Republican party. I don't expect you to but if you want you could provide the names of the presidential candidates you have voted for over the years. People that believe they are politically independent most often are not at all. 99.9% of people clearly lean one way or the other. I am, in fact, a Socialist. However, knowing that the various parties that claim to embody Socialist beliefs will not be running a viable candidate in the foreseeable future, I vote almost exclusively Democratic because it is that party that most closely lines up with my views. I don't mince words about it and try to pretend that I'm something I'm not like you do. When it comes to electoral politics I do vote in line with the Dems. I don't let them dictate my views. I'm not saying you let the Republican party dictate your views, but you do vote in line with that party I would wager.
Dec 12, 2012 at 1:47 a.m.
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Walter before you step out over your skies, once again, please provide any statement I provided that stated a person or party I support. Then try again to reconcile your views. I have always supported my views, not theirs. I have always stated I vote for the least objectionable choice to my views, based on the faulty two party system. I fully support disbanding the two-party system and fixing the failures these parties have caused. I even support having your political party, socialist party usa, on the ballot.
Dec 11, 2012 at 12:27 p.m.
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We need spending CUTS and reform.
75 Percent of Obama's Proposed Tax Hikes to Go Toward New Spending
http://www.weeklystandard.com/blogs/75-p...
Dec 11, 2012 at 10:55 a.m.
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frusion,
No. I don't think it would be good for the existing economy. More from the middle class must start working again before we can eliminate the Bush/Obama tax cuts on the lower 98% of earners. It must happen at some point though if we're serious about paying down our debt.
Dec 11, 2012 at 10:53 a.m.
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Hey, RAF, if you think that the Republican party in its current state is going to see anything but diminishing success without major structural changes, more power to you. Keep fighting the good fight. I hope that party's leadership is thinking exactly the same thing.
Dec 11, 2012 at 10:50 a.m.
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RAF: "...I dont follow a political party..."
Look who's got jokes now. You such a comedian, RAF.
Dec 11, 2012 at 10:01 a.m.
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Walter, do you believe it is going to be good for our existing economy for similar or greater tax increases than Clinton pushed? In Wisconsin the average family will be facing a $3,000 to $4,000/yr tax increase. This increase is based on a family of 4 with an income of $90,000. This is Obama working for the middle class?
.
I would like anyone on this blog to tell me how this is a good thing and how it is going to benefit a person that has put in time to educate themselves and work hard to make a living. Yes, I know how the increases will benefit people that chose to coast in school and not seek out an education or a trade but how will it benefit the average hard working American? I'm not talking about disabled Americans or single parents that are trying and struggling--they do need assistance.
Dec 11, 2012 at 8:37 a.m.
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Walter unlike you I dont follow a political party or an elected politician, I know they work for me and all other taxpayers. The pundits are as useless than the sheep on the left, only echoing what they heard regardless of facts.
Dec 11, 2012 at 8:13 a.m.
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RAF,
I guess it's good that you don't care what Newt says. You must be coming around. It was Newt, after all that declared the economy would completely fall apart under the Clinton tax hikes when in fact the economy flourished.
Dec 11, 2012 at 7:58 a.m.
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"And the conservative movement—a bulwark of American strength for the last several decades—is in deep disarray. Reading about some conservative organizations and Republican campaigns these days, one is reminded of Eric Hoffer’s remark, 'Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket.' It may be that major parts of American conservatism have become such a racket that a kind of refounding of the movement as a cause is necessary."
-William Kristol in The Weekly Standard
http://www.weeklystandard.com/articles/f...
Dec 11, 2012 at 7:51 a.m.
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RAF,
Actually it makes me quite happy. The longer the Republican party base keeps their head in the sand the longer and louder Newt's words will ring true in the end.
Dec 10, 2012 at 7:52 p.m.
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Walter it must really bother you to know I don't care what newt says.
Dec 10, 2012 at 12:17 p.m.
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mteg, You are mean and heartless for not wanting to share your stuff. (and, do you mind if I change your word "deserve" to "entitled"? It just sounds better to me)
Dec 10, 2012 at 11:54 a.m.
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Keep tryin' RAF. Those sour grapes are really keeping you off your game. We haven't even hit inauguration day yet. It must have really hurt when Newt Gingrich went on Meet the Press and stated that, "The Repuplican Party, right now, is incapable of competing at that level", when asked about the prospect of a Hilary Clinton run in 2016. The GOP's got a lot of cleaning up to do in the next few short years if they want to avoid not only an electoral college landslide defeat but a debilitating popular vote landslide defeat as well.
I truly do hope that the GOP attempts to use your tactic, though. The good 'ol reverse racism card. That one has always worked, hasn't it?
Dec 10, 2012 at 11:27 a.m.
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Sounds so similar to Mr. Bunker saying he has no problem with those people either.
Dec 10, 2012 at 11:23 a.m.
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Walter, you are stating America is trending downward, RAF and I know this also.
Dec 10, 2012 at 11:12 a.m.
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RAF,
That not a racist comment. I love old white people. I'm merely stating the facts about voting trends. The stats are all out there. I'm sure you've seen them. The Republican base is aging, and thus it is also shrinking. At the same time, the Democratic party based on voting trends of minorities and the young has a base that is holding strong, perhaps even growing. I know you want to lump me in with good 'ol BB (may he rest in peace) but I'm dealing in facts not stereotypes.
Dec 10, 2012 at 10:58 a.m.
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Obama=Because everyone else deserves what you've worked hard for!
Dec 10, 2012 at 1:08 a.m.
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Kraut is correct that it's all a huge political power play by Obama. The sad thing is, is that the dummies in the GOP will almost certainly FOLD, when the reality is they hold the cards! There is very little doubt that this will be settled right near the cliff date. The GOP will give in on some tax hikes, some small cuts will be made, and NOTHING of deficit reduction will be accomplished.
>Keep kicking the can down the road, keep raising the debt ceiling, keep printing more $$$'s to pay for it all. That is the certain path that we will CONTINUE on till it finally all implodes!
Dec 9, 2012 at 10:51 p.m.
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More intolerant racism, sexism, and agism from the left fringe, "the party of old white people, mostly old white men".
Hmmmmmm and these are the same people that claim others are intolerant. Just more of the same from the party of do as I say not as I do.
Dec 9, 2012 at 8:59 p.m.
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Interesting that the people Obama claims that he wants to protect are going to be the ones hurt the most if we go over the "cliff". Unemployment benefits, higher tax rates, lower credit rating for the U.S., billions in entitlements and not raising the debt ceiling will bury many low - middle income families. A lot of speculation on who will be blamed for taking the country closer to a depression, but will that really matter to the families that have lost everything? When people are hungry, have no place live, no job and little hope for the future, they will hold accountable both parties on allowing this to happen. The parties will blame each other as they always do, but they will have to explain why they didn't compromise with the other party. Makes you wonder if we are not moving closer to a modern day "Civil War" where people will resort to violence in order to change the direction our country is heading. Sure hope this not the case, but we seem to be on a path where neither side will negotiate with the other.
Dec 9, 2012 at 7:18 p.m.
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Lets return the top tax rate to the Eisenhower rates then watch the wealthy scream but look how much better off average people were and the rich were still rich. The wealthy today are not only wealthy but greedy.
Dec 9, 2012 at 4:24 p.m.
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WalterReuther, key word for today is "tribalism", learn it, know it, love it.
Dec 9, 2012 at 3:30 p.m.
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WOW! It's like he never existed. He went full Keyser Soze. Well, I think we all know what Baudelaire said about the greatest trick the Devil ever pulled.
Dec 9, 2012 at 12:12 p.m.
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And now the racist generalizations about African Americans are coming from Bengahzi Bob!
"...promote violence against women while they wear saggy pants."
MORE! MORE! MORE! MORE! MORE!
You are a treasure trove, the absolute epitome of why the GOP feels the need to rebrand. I'm just hoping that people like you, clearly an example of how the Republican base really thinks, will keep them from that noble goal. Do you even realize it's people reading and hearing the kinds of things you post here on this website is what makes it easier and easier for Democrats to win elections?
Hey, all that being said, I wish you the very best of luck with your next hate crime during this holiday season. Cheers!
Dec 9, 2012 at 11:25 a.m.
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"Gotta laugh at the leftist fringe logic"
Please laugh. Laugh all day and all night. And continue to hyperbolize at length about "the fringe" and "freeloaders" and "moochers" and on and on and on. While you're doing that, the Republicans are losing elections. Just remember that the GOP is the party of old white people, mostly old white men. The first baby boomers turned 65 on 1/1/11. 10,000 have turned and will turn 65 everyday since then for the next 2 decades. Look at the demographics of the party. It's dying now and will start dying ever more rapidly unless the party does something to change the way it approaches people who are struggling. However, it appears that the primary process will continue to dictate how Republican candidates will form their stances initially. Then when they go to tone down the harshness of their tone in the general election, they'll just get slapped across the face with their own words over and over and over again. This was going on before the GOP recent redrawing of Congressional district lines, but now it's like they've pumped steroids into the whole process. Republican candidates have to be hardcore conservatives to make it out of a primary and then there's just no way to detach themselves from that person whether it is real or created. I'm sure they've got it all figured out though. They've got 4 more years of Obama and then 8 years of President Hilary Clinton to get their party back on track.
Dec 9, 2012 at 12:31 a.m.
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Hey lookie here, dont be surprised though, another example the lefts hypocrisy on taxes. Remember good ole Warren Buffett claiming he didn't pay enough taxes? Yeah, me too. Turns out his company, Berkshire Hathaway, is the largest shareholder in the Washington Post...big irony there. Anyway. The Washington Post has announced they are going to pay their dividend payments early, you know to beat the new tax increases coming the first of the year. No worry though I am sure Warren has morals and conviction and will freely step up to the plate to pay the NEW FULL RATE on his ~17 million dollar dividend payment from this single media company....yeah right, sure he will; hypocrite.
http://www.washingtonpost.com/business/w...
Dec 9, 2012 at 12:10 a.m.
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Fleebaggers = heros
People wanting govt spending brought under control, spending only what we have, and not taking everyone's money = hardline
Gotta laugh at the leftist fringe logic
Dec 8, 2012 at 10:59 p.m.
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You too, Benghazi Bob. Keep all that insulting talk coming. It's music to Democrats' ears. Apparently you haven't heard Republican leaders discouraging that kind of characterization of the less fortunate. Lindsey Graham, Bobby Jindal, Kelly Ayotte, Marco Rubion and even Scott Walker have all expressed their desire to change the tone that was heard from the GOP during the last election. But, hey, let me tell ya. You shouldn't listen to those guys one bit. You stick to your guns and keep harping on those same points. Not only that, but if the politicians that represent you start going soft, you make sure those people face nasty primary challenges. It's the only way to be sure you have true hardline conservatives in office.
Dec 8, 2012 at 9:51 p.m.
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Here we go with the fringe comparing Nazi Germany to everything they don't like again.
Dec 8, 2012 at 6:50 p.m.
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This move for 'political supremacy' by obama is similar to the current movement by President Mohammed Morsi in Egypt - and that's not going over too well. We also saw a move like this by Adolf Hitler becoming Führer und Reichskanzler in Nazi Germany.
Dec 8, 2012 at 6:23 p.m.
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Yep. Gotta Go Bob, I'll be back later. Have a good evening..
Dec 8, 2012 at 6:07 p.m.
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It's great!!!
Dec 8, 2012 at 5:46 p.m.
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Bengaz, left you a comment on "Walker not planning for country going over cliff".
Dec 8, 2012 at 5:43 p.m.
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WalterReuther, Your ideology is against the founding father's intent. You will learn in the future. Our founding father's intent was not a welfare state and to violate our constitution (religious freedoms) which are under attack as they never have been before.
Dec 8, 2012 at 5:02 p.m.
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Hammer,
"Uneducated masses", huh? You sound a lot like Mitt Romney in that video. What's funny is that it was Romney that ended up with 47%. The more I read comments like yours the happier I am because I know that a rapidly increasing number of Americans vote against candidates that believe in your hateful version of America. Conservatives have redrawn Congressional district lines to wall themselves into gerrymandered fortresses of white American extremist Conservatism. From within those walls they sit around and convince themselves and each other that they can insult and oppress the rest of America into going along with their backwards version of economics and government. So I beg you please keep talking about other Americans as if they are inferior to you simply because they voted for a different candidate. It's those kinds of ugly words that are driving people from the Republican party in droves. Well, anyways I think it's about time you get back to the Conservative media bubble trough. Rupert Murdoch and Rush Limbaugh are ringing the bell. It's feeding time.
Dec 8, 2012 at 11:17 a.m.
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Hey Kraut, the election margin was 24% (332-206). More republican math = fail.
Dec 8, 2012 at 11:15 a.m.
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BenghaziBob...time for your meds and another nappy.
Dec 8, 2012 at 9:42 a.m.
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WalterReuther, Obama won because the uneducated masses want a Santa Clause figure to guide them through life with a massive government in place. I want small government and NO intrusion in my life. Pursuit of happiness without government control.
Dec 8, 2012 at 9:19 a.m.
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Keep drinking from the Conservative media bubble trough. It sure worked out well for the GOP in the last election, didn't it? The more you guys listen to people like Krauthammer, the easier it is for the Democrats to win elections.
Dec 8, 2012 at 6:35 a.m.
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Again, the hypocrisy of the left. Haranging about Krauthammer but loving old Eyster and his left wing drivel.
Dec 7, 2012 at 9:49 p.m.
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Charles knows his stuff....couldn't agree more.
Dec 7, 2012 at 8:35 p.m.
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Someone let me know how this is going to come out?
When I am out of money I can not borrow anymore. I can't get anyone to loan me money. How can we keep going and spending and still borrow more?
In first grade math I learned that 2- 2 is 0. We have zero and borrowing more?
Dec 7, 2012 at 4:04 p.m.
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Kraut is nothing but a hack. Can't believe anybody publishes his what-passes-for-a-column.
Dec 7, 2012 at 11:40 a.m.
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Krauthammer writes as though members of Congress would go completely without blame if the country goes over the cliff. Given that President Obama was just reelected and the Congress's approval rating is consistently in the toilet with the GOP members of Congress the primary target of America's disdain, how does Krauthammer figure that this will immediately get pinned to President Obama? The angry voters will be looking to take it out on whoever will be running in the next election. President Obama will never be part of that club again. Most likely he'll avoid a lot of the blame because all he's trying to do is drum up support for policy that he campaigned on. Meanwhile, the Republicans just look like the obstructionists that they've been for the past 2 years, not to mention that they're in the middle of a struggle to determine whether or not they should rebrand their entire party. Voters are seriously questioning where the GOP's priorities are right now.
Dec 7, 2012 at 10:31 a.m.
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Krauthammer went over the cliff a long time ago. Partisan Hack
Dec 7, 2012 at 10:15 a.m.
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Obama's approval rating is high. The American publis just re-elected him. Jobless is at a 4 year low. Here is my question, why won't the Rebuplicans give him a chance with his ideas? It is clear the Republican policies before him did not work, you remember the almost depression. Let his ideas be enacted and see how it goes. Do you know why the country did so good under Clinton? The Republicans were to concerned about a sex scandel and trying to pin it on him than they were in hurting the country with obstuctionist blocks. Obama is playing hardball. Who will say after that the Republican party blocked his ideas, nobody, it will be remembered as an Obama failure. Let the tax cuts expire.
Dec 7, 2012 at 9:40 a.m.
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American people are buying into Obama as Santa Clause and new poll numbers are indicating they are embracing socialism.
Dec 7, 2012 at 9:08 a.m.
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I measure Obama's failing by the numbers I see on the debtclock.org screen.
Dec 7, 2012 at 8:50 a.m.
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Gee, I wonder what political party Krauthammer endorses?
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