First Read notes that “if everyone gets a break and if the sequester cuts do have impact in the next few months, count us as ones who are a bit optimistic that a Grand Bargain on the budget could be reached in September.”
“Yes, we know that a Grand Bargain has been harder to find than the Loch Ness Monster. But here’s how it could happen: After some breathing room, after both parties let their budget processes play out, and after evidence that the U.S. economy has been negatively impacted by the sequester, both sides could determine that a Grand Bargain is in their interest — Republicans decide they really, really want entitlement reforms and are willing to put up some additional revenue; Democrats decide they really, really want additional revenue and are willing to put up additional entitlement reform. And in September, the president and Democrats will have this response when Boehner and Republicans say, ‘The president got his tax increases.’ They’ll be able to say, ‘The Republicans got their spending cuts.'”
