Thursday, January 21, 2010

Budget Deficit Commission

The President now, wisely, seeks to pivot towards fiscal responsibility. His strategy is proposing a bipartisan budget deficit commission.

Republicans are rightly skeptical of being used as political cover for tax raises to pay for the Democratic spending binge (relatedly: Rove contrasts the profit the taxpayer made on W bailouts vs the steep losses being incurred by O).

Their politically deaf response, however, creates headlines portraying Obama as deficit-concerned and Republicans as partisan obstructionists. Their stance -- requiring a mandated up/down Congressional vote -- is undermined by the reality that such a mandate could pass was there unified Republican support. If such a mandate does pass, Republicans will be faced with the no-win situation of voting for meaningful increase in taxes (presumably including a VAT) or deficits.

Congressional Republicans have two savvier strategies:

They can demand true bi-partisanship. The Obama proposal is stacked 10D - 8R. An effective response would ridicule Obama for proposing to appoint 25% of the panel's Republicans himself (!)

Even better, they could insist that a minority recommendation issued by the commission also be guaranteed an up/down vote should the majority's be voted down. This would, at least, allow Republicans to clearly present their position that we should cut spending more and raise taxes less.

No comments:

Post a Comment