Republicans’ Strategic Retreat

Republicans’ Strategic Retreat
Fiscal Cliff
Larry Kudlow

By:  Larry Kudlow

Republicans are divided. President Obama won’t budge. And more and more, it looks like the fiscal cliff deadline of Dec. 31 will be missed.

It’s now clear that Team Obama wants higher tax rates and revenue-raising tax-deduction caps to meet their $1.6 trillion revenue target. Spending cuts and entitlement reforms are vague to nonexistent. In fact, it could be that Obama not only rejects the across-the-board budget sequester, but that he actively seeks to raise spending, not cut it.

I guess it stands to reason that if you puff up his $800 billion revenue increase from last year, and double it to $1.6 trillion this year, the money will be spent. The government will grow larger.

All this should be unacceptable to the GOP.

Sen. Rand Paul, who may have the best idea, told me in an interview this week that he’s prepared to pin the tail on Obama’s tax-and-spend donkey. “In the Senate,” Paul said, “I’m happy not to filibuster it, and I will announce tonight on your show that I will work with Harry Reid to let him pass his big old tax hike, with a simple majority, if that’s what Harry Reid wants, because then they will become the party of high taxes, and they can own it.”

Other conservatives in the Senate and House agree with Paul. And some House members are talking about a “doomsday” scenario, or what might be called a strategic retreat. Just vote present on the Democrats’ tax bill to extend middle-class tax cuts and raise tax rates on income and investment.

A couple dozen other Republicans have signed a bipartisan letter suggesting flexibility on tax rates in return for some kind of entitlement reform — perhaps moving the top rate from 36 percent to 37 or 38 percent, less than the 39.6 percent Clinton rate, and possibly raising the so-called rich people’s threshold to $500,000 or $700,000 from $250,000. But with a vague and un-budging Team Obama, this sounds like a triumph of hope over experience.

The most valiant guy in this process is Speaker John Boehner. He’s still trying to cut a deal that would extend all marginal tax rates, including for the upper brackets (he is absolutely determined to prevent an increase in top marginal tax rates, which would really damage the economy), in return for a cap on tax deductions. That would raise roughly $800 billion in revenues, hitting upper-end taxpayers but leaving the middle class alone.

To Continue Reading:

[amazon_image id=”0985625511″ link=”true” target=”_blank” size=”medium” ]The Fiscal Cliff: How America Can Avoid a Fall And Stay On Top[/amazon_image]


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One Response to "Republicans’ Strategic Retreat"

  1. We The Elite People of culture of corruption in Washington DC, political pundits, parasites, “hangers-ons” and Lobbyists have three things in common…greed, power and corruption.

    Cultural-relativisim is this New Left Progressive elite’s stock-in-trade. If the butter is spread on a better side, they will do everyting in their power to “partake-of-the-benefits.”

    “Opportunistic” is a word best describing these Washington DC Elites “stock-in-trade,” coupled with their “cultural-relativism,” is a sure fire formula for trashing everything American for anything relative to any particular moment AND advances their personal (hidden) agendas (remember Congress’s Okaying their trading on “insider-information?”).

    Fox guarding the chicken-coop type of Washington DC Elites, still living in the 1960’s(Kennedy-LBJ)tax and spend era (recall: The Great Society?).

    Speaking of which, seems the GOP/RNC is lining-up a bevvey of these New Left Progressive activists for upcoming 2014 elections. Don’t forget, “center-left” is where most of We The Elite People of culture of Corruption in Washington DC “hang-their-hats.” And GOP/RNC is joining these New Left Progressive activists with more of the same??? Where are all of GOP/RNC Center-Right candidates???HUH??? We The (GOP/RNC) Elite People want more “greed, power and corruption.” What a choice! Pray. Amen. Center-right is the path to success!!!!


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