Maybe there’s no reason to worry. Maybe congressional Republicans are just really tough negotiators.
Maybe, beneath their uncompromising exterior, they have no intention of holding to the no-increase-in-tax-revenues line they’ve assumed in negotiations over raising the federal debt ceiling.
Maybe they’re just holding out for the most they can get in spending cuts from Democrats.
It would seem a smart strategy. Hold a gun to the nation’s head and make the other side think you’re just crazy enough to pull the trigger. You’ll get their attention.
Government and independent e
conomists warn that if the debt ceiling isn’t raised soon, perhaps in the next two weeks but certainly by early August, the United States will do the unthinkable — default on its debts. The outcome, beyond the blow to our nation’s honor, could sink the economy into a severe spiral.
Responsible Republicans, leaders like House Speaker John Boehner, House Majority Leader Eric Cantor and Senate Minority Leader Mitch McConnell, would never let that happen, would they?
Trouble is, nearly all of their GOP colleagues in Congress have signed Grover Norquist’s Taxpayer Protection Pledge, vowing to “oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses.” That makes increasing taxes, even on just, say, the top 1 percent of earners — a group that has done quite well during this period of high unemployment and wage stagnation — a very tough prospect, no matter how great the national need.
But there’s even more to the pledge, which anti-tax crusader Norquist has managed to convince most GOP candidates is essential to getting elected. Those who’ve signed it have also agreed to oppose closing tax loopholes or repealing any tax credits, “unless matched dollar for dollar by further reducing tax rates.” Republican Sen. Tom Coburn of Oklahoma has led a courageous internal fight against such nonsense, but it remains to be seen whether he has enough followers — particularly in the GOP-controlled House — to carry the day.
House Republicans walked out of debt-ceiling negotiations two weeks ago. Taxes needed to be taken off the table, they said. In the meantime, Democrats reportedly have agreed to move more on spending cuts — $3 trillion or more over a decade — if increased tax revenues are part of the deal.
It’s time for Republicans to respond sensibly. Tax revenues are at a 60-year low as a share of total output. Measured increases in revenues clearly must be part of the budget solution, both short-term and long-term.
Denying that, and refusing to compromise even as Democrats are giving in to your demands for spending cuts, risking a national default, really will make you look crazy.
Yeah, there’s probably no reason to worry.
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