No Budget deal? Blame Obama
President Obama pushed for more than $2 trillion in tax increases and Republicans said, flatly,: no. James Pethokoukis breaks down the broken down debt ceiling talks.
President Barack Obama could have done two things that might have saved his Mother of All Budget Deals.
First, he could have embraced market-centered, consumer -focused reforms to Medicare. That was about as likely as him accepting an Obamacare rollback. Second, he could have agreed — as House Speaker John Boehner and Republicans suggested — to sharply reduce tax rates in return for fewer special tax deductions/breaks/loopholes/subsidies. Recall that is what his own debt commission recommended.
Instead, he apparently offered to keep top individual rates where they are, at 35 percent, in exchange for tax reform. Now that’s a big tax hike. But it’s also revealing. As a GOP source on the Hill put it:
Their fierce insistence on higher taxes is beyond bizarre. … The bipartisan consensus on tax reform (broader base & lower rates) was championed by President’s fiscal commission, and yet now is being rebuked by the President. Lowering top rates that would help make America more competitive was too large a leap for a true class warrior.