The fiscal cliff talks: Can a doomsday plan save the GOP?
If the GOP can't beat President Obama on tax hikes for the rich, their sneakiest move might be to surrender
President Obama is pretty insistent that come Jan. 1, the wealthy pay higher marginal tax rates on any income above $250,000 a year, and he has a trump card: If nothing else happens, they will. Republicans are pretty insistent that the Bush-era tax rates stay in place for everybody, including the wealthy, but what to do about their weak hand? Fold, says Jonathan Karl at ABC News. "Republicans are seriously considering a Doomsday Plan if fiscal cliff talks collapse entirely": Give Obama his tax hike on the rich, at least for now, and "nothing more." Then, the president has no leverage, but Republicans do: The debt ceiling needs to be raised not long after the New Year.
Republicans are right — the "doomsday plan" may well be their "best way out of a bad situation," says Sahil Kapur at Talking Points Memo. Here's how it would work: GOP leaders in the House bring up a bill, already passed in the Senate, to keep tax rates low for everyone but the wealthy, then send it to Obama with House Democrats voting yes and Republicans voting "present" to "register their disapproval with letting the top marginal rates go up." House GOP aides deny the report, with one calling the idea "stupid," but it actually sounds pretty clever. The Bush tax cuts are Obama's "critical leverage" — "take that away and suddenly Republicans are in control," letting them call the shots when the president comes asking for more revenue, dealing with the looming steep budget cuts, and extending unemployment benefits, among other parts of his agenda.
The only way to explain this bizarre idea is that Republicans are "preoccupied with avoiding the atmosphere of surrender," says Jonathan Chait at New York. Sure, Obama wants more than just higher tax rates for the rich, but that's his main goal, and Republicans want some things, too, like avoiding $500 billion in defense cuts. Republicans can threaten to send the U.S. into default by not raising the debt ceiling, but Obama gets some extra time because he'll be starting the year "with a trillion in higher revenue in his pocket (through expiration of the Bush tax cuts on the rich)." And besides, "it's not clear that Obama is going to submit to another blackmailing" on the debt limit. So, how exactly does this "Doomsday Plan differ from just going along with what President Obama has been asking?" I guess it "sounds more badass than Capitulation Plan."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Is the plan perfect? No, says Ed Morrissey at Hot Air. But it allows Republicans to "extricate themselves politically from a collapse of the fiscal-cliff talks." If Democrats thwart the plan — House Democrats vote no, or the Senate refuses to pass the bill with some amendments to fix the alternative minimum tax, or Obama declines to sign it — then they become the ones "holding the middle class hostage."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Is Cop29 a 'waste of time'?
Today's Big Question World leaders stay away as spectre of Donald Trump haunts flagship UN climate summit
By The Week UK Published
-
The rise of the celebrity chef tour
The Week Recommends Chefs and food writers are hosting sell-out live events around the world
By Irenie Forshaw, The Week UK Published
-
'Thank you for your service'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
US election: who the billionaires are backing
The Explainer More have endorsed Kamala Harris than Donald Trump, but among the 'ultra-rich' the split is more even
By Harriet Marsden, The Week UK Published
-
US election: where things stand with one week to go
The Explainer Harris' lead in the polls has been narrowing in Trump's favour, but her campaign remains 'cautiously optimistic'
By Harriet Marsden, The Week UK Published
-
Is Trump okay?
Today's Big Question Former president's mental fitness and alleged cognitive decline firmly back in the spotlight after 'bizarre' town hall event
By Harriet Marsden, The Week UK Published
-
The life and times of Kamala Harris
The Explainer The vice-president is narrowly leading the race to become the next US president. How did she get to where she is now?
By The Week UK Published
-
Will 'weirdly civil' VP debate move dial in US election?
Today's Big Question 'Diametrically opposed' candidates showed 'a lot of commonality' on some issues, but offered competing visions for America's future and democracy
By Harriet Marsden, The Week UK Published
-
1 of 6 'Trump Train' drivers liable in Biden bus blockade
Speed Read Only one of the accused was found liable in the case concerning the deliberate slowing of a 2020 Biden campaign bus
By Peter Weber, The Week US Published
-
How could J.D. Vance impact the special relationship?
Today's Big Question Trump's hawkish pick for VP said UK is the first 'truly Islamist country' with a nuclear weapon
By Harriet Marsden, The Week UK Published
-
Biden, Trump urge calm after assassination attempt
Speed Reads A 20-year-old gunman grazed Trump's ear and fatally shot a rally attendee on Saturday
By Peter Weber, The Week US Published