GOP Strategy and the Fiscal Cliff

Both Speaker John Boehner and media analysts have been spun into a state of confusion by the fiscal cliff issue and President Obama's reelection. The fiscal cliff exists because the president and the GOP Congress could not decide in 2011 on a permanent general policy toward the budget. And now the president has added another factor: he is determined to usurp the Congressional authority to raise the debt ceiling. If the budget goes over the cliff, two things will happen: tax rates on everyone will rise, and across the board spending cuts will be made. The strategy of Speaker Boehner seems to be to agree to some increases in taxes for the highest wage earners only, in exchange for palliating the president. Apparently, Speaker Boehner is afraid of being blamed for not cooperating with the president enough to avoid the dreaded fiscal cliff. While they ponder their approach, GOP leaders need to keep several facts in mind. The most important fact is that President Obama is the...(Read Full Article)