I couldn’t think of a more fitting story on my last day of blogging to symbolize the nature of our government than the aborting of Plan B, wherein House Republicans couldn’t even pass a messaging bill with no chance of advancing. Sometimes we’ve seen Speaker Boehner miscount the votes – the most notable time I can think of was an initial vote reauthorizing the Patriot Act, when some civil libertarians revolted – but not on a pure messaging bill.
In the aftermath, nobody can help but try to analyze the strategy going forward. The White House’s statement basically gave up on everything in the fiscal slope but the tax rates, saying “The President’s main priority is to ensure that taxes don’t go up on 98 percent of Americans and 97 percent of small businesses in just a few short days.” Harry Reid’s spokesman said that ”
“It is now clear that to protect the middle class from the fiscal cliff, Speaker Boehner must allow a bill to pass with a combination of Democratic and Republican votes.”
Surely, that’s the conventional wisdom. If Republicans can’t even get a bill done where they get everything they want out of the deal (including cutting Meals on Wheels, food stamps, all kinds of anti-poverty programs, and holding the military and Wall Street harmless) but raising tax rates on not even 0.5% of the population, what compromise measure could get more than token support?
But Boehner, following the Iron Law of Institutions, probably cares more about his position as Speaker than forging a deal for the country. Which means he cannot possibly put forward legislation that would get 190 Democratic votes and 20 Republican ones until he gets re-elected Speaker January 3, and maybe not even then. There’s also the question of whether a rump caucus even exists among House Republicans, especially… after January 3. Sure, there are a few lame ducks now who would commit to raising tax rates above $250,000 and going home – Steve LaTourette, Mary Bono Mack, just to name a couple. But they’re both headed home after 2012. I know that bipartisan bills occasionally get through the House – it’s how TARP got done, and the 2011 debt limit deal – but none of them raised taxes.
Then there’s the question of what’s still operative. I agree with Dan Burton (shudder) that Republicans may consent to a bill purely cutting taxes on the first $250,000 in income, after the Bush tax cuts sunset. But would the leadership say that, since the President offered the concession to raise the dividing line to $400,000, they won’t go any further than that? The only way to square this is for President Obama to publicly take his last offer off the table, saying that, given the demise of negotiations, he’s returning to his initial position and won’t sign any legislation that extends tax cuts for rates above $250,000. This is what Damon Silvers of the AFL-CIO counseled yesterday. The Press Secretary’s statement, in referencing 98% of individuals and 97% of small businesses, actually alludes to the $250,000 dividing line.
But the President is still hunting a deal, and might want his options open for something that splits the Republican caucus. But again, you get to the dead end of there not being enough House Republicans, even if you find something that House Democrats grudgingly accept, to pass a bill that raises tax rates in 2012. I just don’t see it. Nothing shows you more about how ideologically aligned against taxes that caucus is than last night. And the White House desperately needs that fig leaf of a tax rate hike to accomplish a deal, purely for public relations purposes if nothing else. Republican intransigence stopped the grand bargain again.
So these strategic considerations are I think a non-starter. So is wondering about the Obama offer, with its chained CPI and the rest. There’s no negotiating partner on the other side, and Democrats can’t pass something by themselves. That’s why I’m fairly resigned to going over the slope. Preferences are really out the window at this point; it’s what will happen.
UPDATE: Matt Yglesias offers a slatepitch that’s the complete opposite view. I really don’t see it. The bill last night represented a maximalist, Republicans-get-everything-they-want view of something with tax increases in it. Anything less than that – i.e. something that could get wide Democratic support – would be rejected wholesale by the Republican rank and file, because a) Obama wants it and b) they wouldn’t get everything they want, making the tax lift harder. There’s also a difference between sticking with leadership on a messaging vote and sticking with them on something that could pass into law.
Photo from Speaker Boehner under Creative Commons license.





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Thanks DDay. Will really miss you. Will continue to follow you on Twitter.
It’s fun to listen to the MSM bashing wingnuts for not raising taxes on the 1%. After January 3, it will not be as pleasant to watch the House
ProgressiveRegressive caucus under that glare for chaining the CPI. I found Pelosi’s “chaining the CPI would strengthen Social Security,” devastating.OT, if Obama really wanted the “Grand Bargain,” legalizing pot made a lot of sense. In and of itself, it would not have bridged the gap, but it would have sent the right signal to a growing majority of younger voters. Evidently, the elites are heavily invested in Big Pharma.
It’s all Kabuki theatre. Best to understand the whole system as how public policy is merely a means to transfer wealth to the owners.
The wealthy accumulate wealth by appropriating the wealth created by those who sell their wealth creating power to the wealthy. Everyone who receives a paycheck enhances the wealth of the wealthy by being paid less than the amount of wealth they produce. If you do not produce excess wealth for the wealthy, or otherwise contribute to the profit of the wealthy, your employment will be terminated.
The wealthy distribute that which they appropriate in a manner that in their judgment best insures their continued accumulation of wealth. Those who best serve the wealthy are best compensated for their successful efforts at accumulation of wealth from the producers of wealth for appropriation by the wealthy.
People commonly understand the wealthy as creators of wealth rather than appropriators of wealth. People desire to serve those whom they see as the the source of wealth for a share of the wealth, misunderstanding that in serving the wealthy they are serving the distributors of wealth, those who are also the appropriators of wealth, but not the producers of wealth.
Wealth production, appropriation, and distribution: this is the means by which the people are incentivized to serve the boards of directors, whether of capitalist enterprises or capitalist governments.
Peoples movements will always be secondary when the first choice available is to serve the wealthy masters. The masters have the power to distribute wealth to those who serve them best; and those who do not sufficiently demonstrate loyalty to the wealthy are cast out of the system and exposed to risks and insecurity of poverty.
I guess it’s accepted wisdom that they have to appear to be trying to avert going ‘over the cliff.’ To my mind the faster we go over the cliff the better. Markets will adjust. Once that myth has been debunked and taxes raised, Republicans will be free to vote for a tax break on the middle class without the cuts to SS and/or medicare. I hope this is what happens, but with Democrats like Obama and Durbin and others, you never really know when they are going to stab you in the back.
I’ll say it again, David: I sure will miss your fine work here at FDL. But for cripe’s sake, stop calling them the “Bush tax cuts”! George Bush was in no position to cut taxes in 2010, holding no elected office of any kind.
This is, indeed, an appropriate story to begin a last day of blogging: Our idiot politicians failing to head off an outcome they created themselves relating to an issue that isn’t even close to one of our country’s most serious current problems, while real problems like unemployment and climate change go utterly ignored.
Matt Yglesias’s scenario is frightening but I am almost 100% sure it is the scenario Obama will bank on. He needs to walk back his offer now, but with cheerleaders out there telling him his chances at a deal are even better, I doubt he’ll do that. And, Dems will be asked to swallow these god awful concessions to pick up a handful of Republican votes. Really the progressive caucus now holds a lot of cards and they need to tell leadership hell no to an SS cut. But they’ve never managed to use their numbers to block anything ever, so it is hard to see that happening here.
Thank you again, David, for your enormous production and prodigious efforts on our behalf. Very best to you after today, really have appreciated your great work here.
Fuck the beltway.
It is a mess. Their real clients are not the ones who will be hurt if there is no deal or even if there is a deal. It sucks to be a 99%er and to have to watch everyone being taken for a ride by these con men.
This is from the Times:
I came to the opposite conclusion: Obama does not have to make any offers of any spending cuts. Obama need only wait until they agree to get rid of the tax cuts. The whole crisis is phoney.
Good luck Dave, I’ve really enjoyed your writing all these yrs. I’ll follow you on Twitter from here on.
David, I want to second all of the above comments about missing your posts and insight. i truly wish that you were not leaving. Thank you again.
Speaker Boehner and Eric Cantor were just on C-Span giving a post-mortem on last night and it is all the Democrats fault, they never presented their bill for consideration to the House, it is still sitting in the Senate while the House passed a bill in August and one last night to stop the sequester, and on and on.
Trying to put the best spin on it and I am looking forward to what the blogs “take” in this presser is as the day progresses.
Good. No deal was always the best deal that was going to happen. Boner doesn’t have control of his caucus. Good. Passing anything in the House that Boner and Obama could agree on will require the surrender of the pwogwessives along with a few Republicans signing their own primary election death warrants. OK. Maybe the pwoggies will, for once, refuse to just take anything on offer just because it comes from Obama. So, we will have austerity – for which the Village wisdom yearns – but which includes DoD cuts which the common wisdom abhors. It will be interesting watching Obama try to snatch defeat from the jaws of victory again, as I imagine he will. But this does look like the best possible outcome.
Thank you Mr. Dayen for all of your *excellent* reporting and for be a for-real journalist. You will be sorely missed here at FDL, but I know we can catch you elsewhere. Good luck with all you do.
More Kabuki Show for the masses. I opened the Internet to shrieking headlines about the Fiscal Cliff… like as if it’s real. Bogus. Go over the Cliff, already, and get back to reality. It’s all bullshit and hype meant to bamboozle the serfs into bend over further and getting shafted even more. ptoui.
Where’s that WAR, Inc on Xmas when you need it?? Oh yeah: inside the Beltway where the Villagers point, laugh & fiddle as the rest of us get screwed. Bastards!
Jimbo, I think that your analysis is generally correct, but I think it’s important to note something. The degree to which us wage earners (vs. wage appropriators) acquiesce to the situation is based upon our perception of just how fairly we are being appropriated. Years ago, when unions were strong and high-income taxes were confiscatory, the ability to extract wealth from workers was greatly diminished. In those times, roughly between the end of WWII and Reagan, workers saw their standards of living increase while the amount of profiteering off their labor seemed fair and equitable.
So, basically we’ll submit to the raping so long as we get the reach around. Now, our masters have dispensed with the reach around and so it’s no longer a mutually beneficial situation. Sorry for the ugly metaphor, but it’s an ugly situation.
Thank you, dday, your analysis and insight has been invaluable. I will miss my daily fix, but I wish you the best of luck in future endeavors. Keep fighting the good fight.
Godspeed David, your illustrations of the devolution of the Republic have been invaluable, its encouraging to know that there are still real journalists out there.
Will miss you especially cuz I don’t Twitter. This is another example of why you are smarter than most and your insightful analysis is much needed. Here is some advice from my favorite Canadian for when you start up again…
Be master of your petty annoyances and conserve your energies for the big, worthwhile things. It isn’t the mountain ahead that wears you out – it’s the grain of sand in your shoe.
Robert Service
Canadian poet (1874 – 1958)
The voters voted for benefit cuts, and Obama offered a compromise on the benefit cuts the voters voted for.
But the Republicans rejected compromise, and we get gridlock.
Just like the voters voted for.
Anyone who did not know that Republicans were campaigning on cutting benefits across the board and going gridlock and dysfunction rather than compromise has been in a coma or dead for the past two years when Boehner held dozens of symbolic votes to make the Republican determination cut benefits without compromise absolutely clear.
Obama has been trying to find a compromise that will get Republican votes, but the Republicans are committed to their campaign message of benefit cuts without compromise.
To imagine going into January with a new Congress of Republicans who to every member campaigned on benefit cuts without compromise and at this point are looking forward to running for reelection based on benefit cuts with no compromise is going to get better, when at least some Republicans in the current House and Senate will never run again, and where compromise would increase their lobbying opportunities, is illogical.
What were voters thinking??
Yet everyone is expecting Obama to resolve the problem the voters created by not compromising as he campaigned on doing for over six years?
The reason Obama is attacked as divisive is he has failed to be the uncompromising radical leftist the Republicans need to him to be for them to seem reasonable, and uncompromising so he forces Republicans to break every campaign promise they made, as if that is possible. Fortunately, Democrats are accustomed to being divided and thus accustomed to compromising – even Bernie Sanders knows to “cave” to make progress.
But it all comes back to the voters.
What were they thinking in November when they voted Republican?
Ha Ha! About that “progressive caucus”: On this very blog, none other than the kabuki monster himself, Alan Grayson, held forth how he is “opposed to” chained CPI. Omitting to state, of course, that he would never vote for it….
Your progressive caucus in action for you right there. So when it happens, turn round and at least you’ll see the knife coming (with Alan’s hand on the handle).
Agree with both of you.
It’s like people who state: well the Unions DID *some* good at one time, but we don’t need Unions anymore bc “everything” is in place now for workers & they don’t need “protection.”
Oh yeah? Is that so? Why hoooow nice for the workers, who’ve witnessed their wages stagnating for decades, plus loosing benefits & now get to face cuts to Soc Sec & Medicare on top of it all.
Talk to my pals who worked in various non-Unionized private sector companies where folks like Bainful Mitt RMoney deliberately ran their companies into the ground – go talk to the good workers at Hostess – and walked away with all the money… leaving the workers with squat, including losing their 401(k) money to rich shits like RMoney.
I could go on. We all get the picture here. We’re screwed bc too many citizens buy into the notion that we MUST all bow, scrape & kowtow to our corporatist overlords in order to fight over the paltry crumbs and bones that may sometimes choose to toss in our general direction.
Wash DC = Kabuki Show. No more, no less.
Interesting you think going over the cliff is a victory as your taxes go up, or your benefits get cut, or both, because Obama was unable to help Boehner get a compromise between the opposing demands from voters to cut and not cut, to not compromise and to compromise.
The AMT for 2012 is set to the limits of 1993 which when adjusted for inflation defined half the middle class as tax dodging rich who need to be taxed.
Unemployment benefits get cut back to 26 weeks max. Welfare programs get cut.
Taxes go up on the working poor, as even the Bush tax cuts for the working poor go away.
Obama will not be able to layout the terms on January 3 any better than today, in fact possibly worse because every Republican in the House is faced with being primaried while today dozens never face another election.
If Republicans in the House can’t be forced to break their campaign promises in large numbers so they can’t be primaried without the Republican Party becoming a minority party, the only hope is voters will defeat Republicans by the hundreds to make 2010 look like a Democratic victory.
Big Business B.S. You’re so right about citizens being confused. They don’t know the differences in corporations and being incorporated, like a LLC. They also don’t understand that the stock market is up because Fortune 500 Corp.s are cutting jobs and wages, etc ( labor is not an asset ); not creating them. Quit rewarding the Non- Job Creators for their union-busting, etc and put the small business people in charge. They’re easier to organize, interact with, etc. as well. Thanks David. You do yeoman’s work.
You bring glad tidings, David. Here’s to a New Year that brings no New New Deal!
On the other topic of the day — you will be so sorely missed, David. If I may, I would just like to point out one of your virtues that doesn’t get praised nearly enough. Your expository writing style is clean and clear and you always provide an understandable context for the story you are reporting. Consequently, one scarcely notices the ease of your prose. It is a style to be much admired.
Good luck!
Speaker Boehner,
Here’s a thought and a solution.
Instead of having a “Republican” solution, why not work with the Democrats and come up with a bi-partisan solution. You know. One that tells the tea party to kiss off.
Oh that’s right. If you did that, you wouldn’t get elected Speaker in January.
How foolish of me.
I just wanted to echo that sentiment.
interesting how the writer continues to say “republicans are against higher taxes”.
the reality is these people are only concerned about protecting the rich.
so how does a deal get done?
easy when you have obama in your corner.
the deal IS DONE, like i have said all along.
that deal will allow for tax rates to rise for the top 1% but will give them back when the tax code is revamped along with massive corporate tax cuts.
THAT is what will happen.
ALL THE CUTS you see in plan B or very close to it..will be in the final “deal” already done!@
The latter is unlikely thanks to the gerrymandering that took place after GOP statehouse wins in 2010 and in any case is at least 2 years away. In the meantime we get all that you indicate or Obama and the Dems capitulate. Which would make throwing out the crazies in 2014 even more unlikely IMHO. Either way – via the “cliff” or capitulation, some Euro-style “austerity” seems headed our way. The VSPs have decided that “something” must be done about the deficit and the shiftless shirkers – aka not them – must take it in the shorts. So that’s the way it’s going to be.
Agreed, nothing has been introduced by the 99% in this scenario to stop or stem the further collection of wealth into the 1% that has been increasing since Reaganomics and the neo con takeover of the MSM.
right you are.
and is anyone foolish enough these days to listen to the propaganda that comes out of the NYT?
OF COURSE THIS IS TRUE AND IS EXACTLY WHY you see the talking heads on fox news always in step telling the loons that watch them how “taxing the wealth creators the job creators will harm the country WILL harm THEM.”>
Fare thee well, David; fare thee well. We shall all go “nowhere” together, and I hope it is a far better place.
Happy Solstice.
the end game is now obvious, and the next two years in the House are prescribed.
total gridlock is achieved by the plutocrats. no news is good news for the plutocrats. so they have to go back to Clinton tax rates. well, they did pretty well during the Clinton years, no sweat there.
the middle class will be impoverished futher, making them more pliable, and more willing to work for even less money.
no new laws suits the plutocrats fine, they are currently on a tremendous glide path to accumulate ALL the wealth of the country, so keep that glide path intact.
The Dems and Obama really have only one thing they can do. That is to try to combat the coming austerity with as many middle class tax cuts as possible. the first one is coming in Jan., the rethugs will vote “yes” on it, for obvious 2014 campaign reasons. But if the Dems are smart they will introduce yet another tax cut for the middle class and dare the rethugs to oppose it. That’s all they really have.
Is their a chance the rethugs will allow votes in the House that don’t have majority rethug caucus support ? Yes, but not likely in that any speaker elected requires a MAJORITY of votes, nut a plurality. Thus, the tea partiers hold veto power over any new speaker elected.
The big money totally controls the House for the next two years, maybe forever.
Welcome to austerity, welcome to the next great depression. Pete Peterson and Fix the Debt wanted to cut the defecit. Well they did succeed at doing that, but they really didn’t want their stock options to tank. Free investment advice: buy bonds, the dollar will soar, sell stocks.
David,
I’ve never commented on FDL before but I did not want to miss an opportunity to THANK YOU THANK YOU THANK YOU for your great reporting and thoughtful review of the news. Wish you the best in whatever your future plans may be!
“The only way to square this is for President Obama to publicly take his last offer off the table, saying that, given the demise of negotiations, he’s returning to his initial position and won’t sign any legislation that extends tax cuts for rates above $250,000″
As former State/Tsy Secrtary James Baker liked to say, “nothing’s decided until everything’s decided” (which reminds me, I knew we were doomed in 2009 when James Bakers came out to the left of Obama on bank nationalization).
David, I’ve enjoyed reading your work and I’m sorry to see you go. I’m sure you’re going to ace whatever you do next in life.
“…my last day of blogging…”
*#&$*(*%&(*(!!!
Thanks, David, for:
Not flacking for any “agenda” but the truth…
Getting to the core of issues and making your case with clarity…
And for NOT being intoxicated with the exuberance of your own verbosity…
You will be missed. Come on back; anytime. Very best, tb.
David, you have been heroic, and we will miss your intelligence, energy, wit, and insights greatly. You have made us more aware and vigilant. Thank you for your passion and devotion to the progressive community. Good luck on your future work. Visit from time to time, please.
David, it has been a real pleasure to read your posts here at FDL, you are one of the best writers at the Lake, and certainly one of the most informative. I will sincerely miss you and your writing. Thank you so much, and Best of Luck to you! Please keep in touch and let us know what you are doing. And Merry Merry to you and yours!
How will I be able to start my analysis on issues without your writing, David? Good luck in the future.
David you’re really leavng?? I missed that announcement. I, too, will really miss your posts. Some of the best news and information around, anymore. crap. But good luck to you!
And David. You go out on the highest note possible. Leaving us with an extra daily column from the T-bogger? Yikes. That’s not a good deal. But really, you have been fantastic throughout. Your columns were the highlight of this place for me. Good luck and best wishes.
Farewell and good luck!!