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.
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