NYT: Democrats Gain the Upper Hand

[babylonsister]

http://www.nytimes.com/2012/07/20/opinion/democrats-gain-the-upper-hand-in-tax-fight.html?ref=opinion

Democrats Gain the Upper Hand
Published: July 19, 2012


It’s only been a year since Congressional Republicans, bent on cutting spending, manufactured a financial crisis by threatening not to raise the debt ceiling. Now, apparently thinking the public has forgotten that debacle, they’re furious that Democrats have figured out a way to turn the tables.

Senator Patty Murray of Washington, a member of the Democratic leadership, said Monday that her party was prepared to let all the Bush-era tax cuts expire on Jan. 1 if Republicans refuse to raise taxes on the wealthy. The same holds true, she said, for the $1.2 trillion in automatic spending cuts that begin at the same time, which Republicans demanded in the debt crisis but now oppose after realizing that the cuts affect more than social welfare programs.

Republican leaders quickly voiced horror at these tactics. “Has it come to this?” said Speaker John Boehner, accusing Democrats of holding the economy hostage for the sake of high-end tax increases. Senator Mitch McConnell, the minority leader, called it “an entirely avoidable high-stakes game of chicken with the single-minded goal of taking more money from those who earn it.”

snip//

It could also be prevented from happening altogether, as early as January, and Senator Murray has the right plan to do so. By letting all the tax cuts expire on schedule, Republicans can then join Democrats in restoring the cuts only for income up to $250,000. No vote need be taken on raising taxes for the rich, and thus Republicans won’t have to remove their no-tax-increase straitjacket.

She is right in refusing Republican demands to end the half of the sequester that cuts $500 billion from defense over a decade, the only leverage Democrats have in preventing much bigger and more painful domestic cuts. If Republicans want to limit the recessionary impact of the sequester they initiated and supported, they will have to reduce it in a balanced way, now that Democrats have learned a painful lesson from Republican power games.

[mattclearing]

1. Dems gained the upper hand when Boehner agreed to this deal.

Still for the life of me don't understand how the Republicans managed to give away the store on the debt limit fight.

I get the feeling Obama wisely said, "Really? They'll lock in the Bush tax cut expiration or hack the defense budget? Quick, take it before they realize what they're agreeing to."

[alcibiades_mystery]

2. Obama outsmarted them...took the temporary hit for the long-game advantage

It was unclear to even many here, who never whined and moaned so much as when Obama forged this deal. Yes, let Cantor and Boehner come out smiling. They're going to have to pay the piper when the sequester comes through.

Now they are in a bind, because they only have two choices: deal on top bracket tax cuts, or allow the sequester to cut Pentagon largesse to their top donors.

This bind was implicit in the deal, as many of us said at the time, but we weren't near as popular as the End is Neigh folks who predicted that Obama had just traded away Social Security and Medicare. Obama doesn't look so dumb now, huh?

Long game, people, especially since Obama quite rightly analyzed the GOPers as focused only on short game.

[BumRushDaShow]

4. This is why they hauled Darth out of his medical chamber this week

because they finally realized they were screwed.

[DCKit]

3. Go Patty! That's exactly what you need to do.

And don't sweat it. The ball's in their court now. You don't have to do anything.

Either the Republics come around, or everyone's taxes go up. Sure it'll be a pain in the ass for everyone making less than an obscene amount of money, but the 1%ers will lose their damn minds.

[cilla4progress]

5. Yay!

That's my senator. I just sent her an email of support!

[Gothmog]

6. Off the Cliff

The Democrats need to be prepared to jump off the Cliff to win this fight. It appears that the Democrats know this and are going to fight. I am very happy to see some backbone