One effect of absolutism Tea Party Republicans so far, not one penny of new taxes, keep this! That is, while it may be useful to members of the line maintenance, it muddies the results of big policy fights in a way that the public perception warps. The budget now, Republicans usually insist that the opposition to surrender completely to their every need, and will be counted as a loss anything that falls short benchmark.A excellent example of bidding to avoid fiscal cliff. The tax rate is scheduled to return to their Clinton-era levels on Jan. 1. This is the law. Is President Obama to end a coma and did not sign the legislation to prevent the plateau, the level is still going up, raising U.S. $ 4 trillion in new revenue over a decade. Republicans are powerless to stop it. However, most still refuse to consider the deal that raised rates.Obama wound repair for the package to raise interest rates just over 1 percent of the recipient's family to bring $ 450,000 a year or more.
It makes $ 600 billion revenue, far less than the $ 830 billion from the preferred limit of $ 250,000. But because it covers all the new tax revenue at all, Republicans generally sad and following even though they have suffered heavy losses, while Obama acts as a success. This perception uphold media.But wrong perception, because I thought at the time ("In Fiscal Cliff, Republic Is Blowing A Great Deal": "A Republican Fiscal Cliff Marriage Must Learn to Deal with Love") and continued to argue after facts ("Why Obama If You Have Lost During Fiscal Cliff"). My basis for the claim that Republicans got the better end of the deal are as follows: "By any objective historical action, the deal is a good one for Republicans: locked in nearly all Bush-time income tax cut, set liberal- to-the-rich inheritance tax, and continue to get low capital and dividend tax. It also raised a lot more disturbing than $ 600 billion, Democrats gained by going over the cliff for good ($ 4 trillion) or reset the income tax threshold to $ 250,000 ($ 830 billion), as Obama has vowed to do. "In addition, the Republicans held two biggest points of leverage, confiscate (delayed 60 days, but paid for) and the debt ceiling. White House response to this line of reasoning is to make sure all they have done to increase revenue. They assume they get another bite of the apple and is expected to raise more than 600 billion dollars from the hole in the capture of a substitute tax package, and possibly rewrite the tax code. Apparently they think the Republicans will decline further gains taxes and stick with sequester.
That exactly what happened. Democrats who never thought they got the better of fiscal cliff Republicans are now questioning the White House and was wondering if they would make a bad deal. "Think like to have a second bite of the apple is a real mistake," said Robert Reischauer, former director of the Congressional Budget Office, the New York Times in the weeks Sunday.In cause seizures, the White House tries to push Republicans to return to the negotiating table making apocalyptic warnings about the return of letting it fall to apply. But it did not work. (I have more to say about why in a future post.) This is still a possible new approach to courting Republican lunch and private dinner Obama will surprise everyone and produce a "grand bargain" that includes additional U.S. $ 600 billion benefits he was seeking. It is also possible that the budget introduced this week in the House and Senate will make a profit. But I doubt it. At this point, it sure looks like Obama blowing the budget negotiations.