President Barack Obama and House Speaker John Boehner seemed to be on the verge of a fiscal compromise at several points this summer. Obama signaled he might be willing to accept more cuts, and Boehner signaled “revenues” might be negotiable (although he later denied such an unorthodox position).
As of last week, Obama said unequivocally (no more Mr. Nice Guy) that he wouldn’t sign any legislation that didn’t raise taxes on the wealthiest Americans. Boehner, of course, has clearly instructed the Republicans on the “super committee” to ignore such crazy talk and work only on cutting spending.
Truthfully, we can’t know whether or not the super committee will add revenues to the legislation or call Obama’s bluff and pass a simple spending bill. But, thanks to the bizarre debt-ceiling compromise this summer, we are sure to have at least $1.2 trillion in spending cuts either way. Read