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Right Change:  Obama’s Fiscal Cliff Plan is Truly “Nothing But a Power Play”


Congress and President Obama have made, “no progress” on the fiscal cliff negotiations. We wonder why? There’s a logical explanation to that and it starts with the word compromise. In order to dodge one of the biggest tax increases in our history, Washington has to come up with compromise. Democrats control the Senate and Executive Branch and Republicans control the House. President Obama and the Democrats proposed a plan: $1.6 trillion in tax hikes with no spending cut guarantees. House Republicans proposed their plan worth $2.2 trillion: $800 billion in tax revenue, $600 billion in health savings, and $600 billion in other cuts split evenly between mandatory and non-mandatory spending. That was as of Monday, December 3rd, 2012. A lot has happened since then to explain the lack of progress.

Obama’s Treasury Secretary, Timothy Geithner (who’s no stranger to tax trouble) told Republicans there would be no deal at all without tax hikes. Boehner and McConnell were in disbelief with what they were hearing. In 2011, Obama said:

“What we said was give us $1.2 trillion in additional revenues, which could be accomplished without hiking tax rates. It could simply be accomplished by eliminating loopholes, eliminating some deductions and engaging in a tax reform process that could lower rates generally while broadening the base.”

Despite that fact, Senate Minority Leader Mitch McConnell all but begged the Democratic leader of the Senate to take Obama’s plan up for a vote. Reid refused and objected the vote. This explains Obama’s entire strategy. If Obama’s sole strategy was to get the Democratic Senate to pass his plan, why, someone please explain why Reid would refuse to bring it up to a vote. The answer is simple and Charles Krauthammer could not have put it better:

“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 gross domestic product, 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 Congressional Budget Office, will increase spending by $1.7 trillion over 11 years.

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 George W. 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.”

Republicans ought to heed this warning: stand firm and let President Obama own the fiscal cliff. Do not allow him to divide the Grand Old Party so that he may implement his ultimate Liberal agenda. The future of our party depends on it.

#1. Posted by Ken on December 16, 2012

Unfortunately, Republicans have no chance in the national battle of public opinion as long as liberals have such complete control of the mainstream media and academia. As the percentage of the country which is ignorant of the true history of this nation and of economics continues to grow, public opinion will continue to be swayed by all the “cool” people who have succumbed to the easy lie of liberalism.

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