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How Republicans Became the Anti-Tax Party

December 23, 2012 at 7:51 am EST By Taegan Goddard Leave a Comment

The New York Times notes the last time any Congressional Republican voted for a tax increase was for the budget deal crafted in 1990.

“The conservative revolt against that 1990 legislation — and against President George Bush, who violated his own ‘Read my lips’ vow not to increase taxes — was a seminal moment for Republicans. The party of balanced budgets became the party that opposed tax increases.”

“Republicans continue to embrace the no-new-taxes stand as a centerpiece of the party’s identity, even in the face of public opinion that strongly supports tax increases on high incomes. And some Republicans fear that the party’s commitment to prevent tax increases more and more is coming at the expense of those other, older kinds of fiscal responsibility.”

Filed Under: Budget & Taxes

Two Republican Debacles in 12 Hours

December 22, 2012 at 4:03 pm EST By Taegan Goddard Leave a Comment

John Dickerson notes Republicans had two major setbacks in rapid succession: Speaker John Boehner’s failed “Plan B” to avert the fiscal cliff and the NRA’s embarrassing press conference.

“The Republican Party is in a rebuilding mode after its 2012 election loss. These two events–a defiant NRA and an incompetent leadership–cannot be the face of confrontation the GOP wants to show the public on high-profile issues. Tea Party activists and gun owners are a key part of the party base. But these public acts are out of sync with the moment and completely at odds with party’s need to widen its membership.”

Joe Conason: What Americans should learn from the “Republican apocalypse.”

Filed Under: Budget & Taxes

How the Fiscal Cliff Talks Stalled

December 22, 2012 at 9:33 am EST By Taegan Goddard Leave a Comment

The Wall Street Journal has a great behind-the-scenes look at how the fiscal cliff negotiations faltered.

“Mr. Obama repeatedly lost patience with the speaker as negotiations faltered. In an Oval Office meeting last week, he told Mr. Boehner that if the sides didn’t reach agreement, he would use his inaugural address and his State of the Union speech to tell the country the Republicans were at fault.”

At one point, Boehner told the president, “I put $800 billion [in tax revenue] on the table. What do I get for that?”

Replied Obama: “You get nothing. I get that for free.”

Filed Under: Budget & Taxes


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Tax Fight Sends GOP Into Chaos

December 22, 2012 at 9:28 am EST By Taegan Goddard Leave a Comment

Karen Tumulty: “Disarray is a word much overused in politics. But it barely begins to
describe the current state of chaos and incoherence as Republicans come
to terms with electoral defeat and try to regroup against a year-end
deadline to avert a fiscal crisis.”

“Whether and how the party can resolve the issue has implications going forward. It could determine Boehner’s viability — even his survival– as leader of the only part of the federal government controlled by the Republicans. It also could set the terms of engagement for the battles that lie ahead, including such contentious ones as immigration and the fiscal 2013 spending bills, which are funded for only half the year and which expire March 31.”

“As things stand now, some worry that nothing short of a catastrophe could force a resolution.”

Andrew Sullivan: “The Republican slide
into total epistemic closure and political marginalization has now
become a free-fall. This party, not to mince words, is unfit for
government.”

Filed Under: Budget & Taxes

Revenge of the Purged

December 21, 2012 at 7:38 pm EST By Taegan Goddard Leave a Comment

Politico: “Reps. David Schweikert (R-AZ), Justin Amash (R-MI) and Tim Huelskamp (R-KS), all stripped of prized committee assignments earlier this month because of perceived sins against the party, did a three-amigos end zone dance as GOP leaders struggled and failed to get the votes for a tax-cut bill designed to empower Speaker John Boehner in negotiating the so-called fiscal cliff.”

“The whole episode gave Boehner the feel of a substitute teacher who
is accountable for what happens in the classroom but isn’t really in
control of the kids. He’s already used the tools at his disposal to
bring Huelskamp, Amash and Schweikert into line — and that didn’t work.”

Filed Under: Budget & Taxes

How Should Obama Deal with the Republicans?

December 21, 2012 at 6:33 pm EST By Taegan Goddard Leave a Comment

Jonathan Chait notes President Obama seems to have realized he’s not going to get a “grand bargain” to deal with the nation’s debt.

“You can see in the Democratic side a persistent good-government
impulse, one that finds the GOP’s inability to even advance its own
interests rationally as a troublesome failure of government for which
they themselves ultimately share responsibility. It’s true that a
smarter, better organized Republican party would be easier to deal with.
But the GOP remains dysfunctional and apparently bent on
self-immolation. The only question for Obama is whether he wants to
allow Republicans to turn this fact to their advantage, or whether he is
willing to disengage and let them burn out on their own rage.”

The Week: Does President Obama know what he wants?

Filed Under: Budget & Taxes

Bonus Quote of the Day

December 21, 2012 at 3:22 pm EST By Taegan Goddard Leave a Comment

“God only knows.”

— House Speaker John Boehner (R-OH), quoted by ABC News, on how Congress will avoid the fiscal cliff.

Filed Under: Budget & Taxes

Few Options Left for Boehner

December 21, 2012 at 7:03 am EST By Taegan Goddard Leave a Comment

Now that House Speaker John Boehner’s “Plan B” for addressing the fiscal cliff “has crashed and burned, the top U.S. Republican appears to have two remaining options — wash his hands of the entire matter or negotiate a compromise with Democrats that could abandon scores of his fellow Republicans,” Reuters reports.

“The Republican rank and file and Democrats may face an equally stark choice: work together for a change, or plunge together off the cliff.”

Washington Post: “Following the latest breakdown in negotiations, Democrats said Boehner
should return to the bargaining table with Obama — or just let House
Democrats and 25 or so Republicans vote for a Senate-approved plan to
extend tax cuts for the middle class. But Republicans said the well has
been so poisoned that restarting bipartisan talks would be more
difficult than ever.”

Wonk Wire: Low expectations for a fiscal cliff deal.

Filed Under: Budget & Taxes

House Cancels Fiscal Cliff Vote

December 20, 2012 at 9:24 pm EST By Taegan Goddard Leave a Comment

House Republicans “scuttled a vote on a backup plan they had pushed as a way to partially avert steep tax increases and spending cuts next year, sending lawmakers home for Christmas as Washington lurched toward the fiscal cliff,” the Wall Street Journal reports.

“The sudden turn of events left efforts to avoid the so-called fiscal cliff in disarray with no clear path forward.”

Politico: “After a full day of heavy arm-twisting, House Republican leaders were unable to cobble together enough support from 217 of their 241 members for Boehner’s (R-OH) ‘Plan B’ proposal, even after Majority Leader Eric Cantor (R-Va.) assured its passage. Democrats vowed not to support the measure.”

New York Times: “The decision was a major setback for the speaker, who was pushing his
so-called Plan B to prevent lower tax rates from expiring on most
Americans. It came after the House had narrowly approved a plan to
suspend planned Pentagon cuts.”

Filed Under: Budget & Taxes

Extra Bonus Quote of the Day

December 19, 2012 at 5:23 pm EST By Taegan Goddard Leave a Comment

“All they have to do is vote for a tax cut below a certain number, and they are not voting for taxes to go up. If you don’t vote for tax increases, you didn’t vote for a tax increase.”

— Newt Gingrich, in an interview with the Huffington Post, explaining how Republicans can stay true to their anti-tax pledge.

Filed Under: Budget & Taxes

Why We’re Going Over the Fiscal Cliff

December 19, 2012 at 1:42 pm EST By Taegan Goddard Leave a Comment

Jonathan Chait: “Everybody knows what happens in January. Both sides ought to be able to anticipate it and make the deal they could make then now. Business types have therefore assumed a December deal would happen. If this was a business deal between two rational people, that’s what would happen.”

“But we are not dealing with rational people here. We are dealing with House Republicans. As Republican Tom Cole gently put it, by way of describing his colleagues’ implacable hatred of taxes, ‘It’s who they are. It’s the air they breathe. It’s what the Republican electorate produces.'”

“If Boehner strikes a deal before January, Republicans will suspect he gave away revenue he could have fought for. But if he refuses, the House Republicans will see for themselves what happens. The revenue will go away on its own, over Boehner’s objections. All Obama has to do is continue to make clear he will not under any circumstances extend any tax cuts on income over $250,000 a year. Then he has nearly all the revenue he needs, and he can offer Republicans a deal they would never walk away from. They might try to get that deal in December, but January remains the best bet.”

Filed Under: Budget & Taxes

Norquist Says Vote for “Plan B” Won’t Violate Pledge

December 19, 2012 at 1:18 pm EST By Taegan Goddard Leave a Comment

The Washington Post reports that Grover Norquist says his group would not consider a vote for Speaker John Boehner’s “Plan B” a violation of the anti-tax pledge many Republican members of Congress have signed — even though it effectively raises taxes on households with an income of more than $1 million.

Filed Under: Budget & Taxes

What is Boehner Doing with Plan B?

December 19, 2012 at 10:35 am EST By Taegan Goddard Leave a Comment

House Speaker John Boehner unveiled his “Plan B” to avoid the fiscal cliff — legislation that would raise tax rates on those earning more than $1 million but keep rates the same for everyone else — and scheduled a vote for tomorrow.

First Read: “There are three reasons why Plan B — if it’s a serious effort — seems so puzzling. One… the two sides are thisclose in getting a deal done… Two, if we go over the fiscal cliff (and time is running out, folks), Republicans might not realize the extent to which President Obama will own the bully pulpit in January. After all, there’s a certain inaugural address on Jan. 21, as well as the State of the Union. And three, are enough House Republicans really going to cast a tough vote — raising taxes — without getting any spending cuts or resolution on the sequester in return? And are they going to cast a vote for legislation that breaks a longstanding pledge on taxes that has zero chance of becoming law simply to give Boehner leverage? If Boehner and leadership do pull this off and convince their rank-and-file to vote on legislation that is designed just to give Boehner leverage, it would be quite the political feat.”

Rick Klein: “Boehner’s gambit is either a brilliant technique aimed at strengthening
his negotiating position, or a foolhardy scheme that will demonstrate
divisions in his own caucus. He’s putting his members on record (or, at
least, trying to) in favor of tax rates going up for high-income earners
— precisely the kind of vote almost every Republican came to Congress
to try to avoid. If he gets it, he shows his caucus’ resolve in the face
of pressure from the White House. If he doesn’t, Plan A options will be
scrambled, perhaps too late to leave time for Plan C.”

Wonk Wire: Nearing the fiscal cliff end game.

Filed Under: Budget & Taxes

House Republicans Call a Tax Increase a Tax Cut

December 19, 2012 at 7:05 am EST By Taegan Goddard Leave a Comment

In a press release, BuzzFeed notes House Speaker John Boehner’s office said his “plan B” to extend most tax cuts would “not raise taxes. It is a net tax cut that prevents a $4.6 trillion tax hike on Jan. 1.”

However, taxes would actually stay the same for most people under the proposal, and go up on people earning more than $1 million.

Filed Under: Budget & Taxes

Extra Bonus Quote of the Day

December 18, 2012 at 1:26 pm EST By Taegan Goddard Leave a Comment

“We’re not close to a deal.”

— Sen. Bob Corker (R-TN), in an interview on CNBC, saying he’s surprised about reports suggesting progress has been made in fiscal cliff negotiations.

Filed Under: Budget & Taxes

Closer to a Fiscal Cliff Deal

December 18, 2012 at 5:20 am EST By Taegan Goddard Leave a Comment

President Obama delivered to House Speaker John Boehner a new offer on to resolve the pending fiscal crisis, “a deal that would raise revenues by $1.2 trillion over the next decade but keep in place the Bush-era tax rates for any household with earnings below $400,000,” the New York Times reports.

“The offer is close to a plan proposed by the speaker on Friday, and both sides expressed confidence that they were closing in on a major deficit-reduction plan that could be passed well before January… The two sides are now dickering over price, not philosophical differences, and the numbers are very close.”

Wall Street Journal: “After weeks of public sniping, negotiations have intensified in recent days, with both sides making significant concessions. Obstacles still remain, especially the reaction of lawmakers on both extremes, but the movement suggests negotiators could reach a compromise and pass by the end of the year a deal to avert a series of spending cuts and tax increases set to take effect in January.”

Politico: “The president’s proposal is not a final offer, but the White House views it as something that should get the two sides close to a deal because they have met Republicans more than halfway on spending and halfway on revenues.”

Filed Under: Budget & Taxes

Fiscal Cliff Talks Center on $2 Trillion Proposal

December 17, 2012 at 12:57 pm EST By Taegan Goddard Leave a Comment

President Obama and House Speaker Boehner “are discussing a $2 trillion framework on a deal to avert the fiscal cliff, that would include roughly a trillion in tax increases and roughly a trillion in savings from entitlement programs,” CNN reports.

“Boehner and the president met in person on Monday, but sources familiar with the talks indicate that the framework under discussion is what Republicans are pushing to get to agreement, but it’s unclear whether the make up of the $2 trillion framework could get support from Democrats.”

Wall Street Journal: “While the White House objected to major parts of the proposal, senior Democrats described it as a tipping point that moves talks away from deadlock. Instead, it cleared the way for both sides to engage in nitty-gritty haggling over exactly where the new income threshold might be set and what should comprise the spending cuts.”

Meanwhile, a new USA Today/Gallup Poll finds 66% said both sides should compromise “on their principles and beliefs on tax increases and spending cuts.”

Filed Under: Budget & Taxes

Boehner Offers to Lift Debt Limit for One Year

December 16, 2012 at 8:36 pm EST By Taegan Goddard Leave a Comment

House Speaker John Boehner “has offered to push any fight over the federal debt limit off for a year, a concession that would deprive Republicans of leverage in the budget battle but is breathing new life into stalled talks over the year-end fiscal cliff,” the Washington Post reports.

“Boehner’s offer signals that he expects a big deal with sufficient savings to meet his demand that any debt limit increase be paired dollar-for-dollar with spending cuts. That would permit him to keep a key vow to his party — and head off a potentially nasty debt-limit fight — at least until the end of next year.”

Filed Under: Budget & Taxes

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About Political Wire

goddard-bw-snapshotTaegan Goddard is the founder of Political Wire, one of the earliest and most influential political web sites. He also runs Political Job Hunt, Electoral Vote Map and the Political Dictionary.

Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.

Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.

Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.

Goddard is the owner of Goddard Media LLC.

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