Sunday, July 10, 2011

Bouquet to: Obama and Boehner for the (so far) failed "historic, grand deal" on debt and taxes

The $4 trillion Obama/Boehner debt-reduction deal, including increased marginal tax rates for high-income US citizens and reduction in Medicare benefits, may lay on the cutting room floor today, but the basis for agreement remains.

Specific elimination of tax loopholes - not accompanied by any increase in marginal tax rates - paired with spending cuts of the exact same amount may be a way to achieve net spending savings in excess of  the roughly $2 trillion needed to offset the increase necessary in the debt authorization.  Oxes from both parties would be gored - but Republicans would not have relented on what seems to be a non-negotiable point; specifically, any increase in marginal tax rates.

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