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December 05, 2012

Are Republicans Ready to Fold?

The New York Times reports that Republicans are considering extending the Bush-era tax cuts for the middle class -- but resuming the larger fight over the budget and spending when it's time to raise the debt ceiling.

Which, of course, is why President Obama is trying to eliminate the debt limit entirely.

First Read: "The good news here: If you don't want to go off the cliff, then it's clear Republicans won't dig in; they are talking about a way out. The bad news: Such a move only postpones the real fight. If Republicans do pursue this path, they'll have a stronger hand to play politically than they currently do now (because the middle-class tax cuts would be off the table). But the White House would also still have some cards to play (over the eventual tax rates in any kind of tax reform, the estate tax, and a willingness to budge on entitlements). Remember, the debt ceiling standoff in July 2011 was bad of the president, but it was worse for the GOP's brand."

Wonk Wire: Don't mind the fiscal cliff posturing.


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