NYAPRS Note: In the wake of the Obama electoral victory, House Republicans may be more willing to accept the expiration of the Bush tax cuts (which would raise taxes on the wealthy back to the 39.6% rate during the Clinton years) in return for spending cuts, a big focus may be in the areas of Medicaid and Medicare. This may be a topic of the President’s remarks later today...
John Boehner Offers Obama A "Grand Bargain" Over the Fiscal Cliff
Forbes November 7, 2012
John Boehner,(R-Ohio), Speaker of the House, gave President Obama his first November Surprise before he was even finished celebrating his electoral college victory for another term in the White House.
Just as the cable television newsmen were bemoaning the unwillingness of the Republicans to compromise, Boehner came forward to suggest strongly that the Grand Bargain was a very real possibility since his Republicans in Congress would now be willing to accept some tax increases to produce revenues to balance off the reductions in spending on entitlement programs like Social Security and Medicare.
“In order to garner Republican support for new revenues,” Boehner said, “the President must be willing to reduce spending and shore up the entitlement programs that are the primary drivers of our debt.” Indeed, Boehner hinted that “We’re closer than anyone thinks to the critical mass needed legislatively to get tax reform done.”
This drastic change of heart must very well be the result of the Romney loss and the realization that if the Republicans want to be a positive factor in governing they must be realistic and give up their fervent opposition to any taxes at all. It is the result of Elizabeth Warren winning big in Massachusetts- and tellingly the approval of Proposition 30 in California, which raises maximum state tax on income over $250,000 to 12.3% from 9.3%.