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2012/12/14: Quick Post: Fiscal Cliff impasse deepens as Republicans leave town

December 14, 2012 Leave a comment

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Is it really that bad? It seems the problem is what we outlined in earlier analyses on the Republican position. While they are being pressed to provide revenue increases or even actual top bracket income tax hikes (an anathema to many members of their party), the Democrats are also pushing them to specify which spending cuts they would approve. That seems a bit much, as the Democrats are the party with members who are running around asserting that no spending cuts at all may even be necessary.

One must admire the Democrats for attempting a political ploy where Republicans are reviled by some members of their own party for capitulating on either revenues or tax rate increases, and also get to be painted with the brush of the “Mean Old Republicans” who are demanding specific spending cuts.

That is how we reached the impasse yesterday where House Speaker John Boehner bemoaned the lack of any serious proposal from the Democrats, noting that the “slow walk” the Democrats were choosing to use as a negotiating tactic would end up plunging the US off the Fiscal Cliff.

And we know he’s really not bluffing…

Read more…

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