LinkIf Republicans are going to agree to a deficit reduction bill containing a big tax increase, then obviously they're going to want large domestic spending cuts. And if we want the basic operations of the federal government to continue, large domestic spending cuts need to contain meaningful reductions in entitlement spending. But while Democrats have been out there banging the table for their preferred tax increases, it's not at all clear what Republicans negotiating objectives on the entitlement side are.
Link“Republicans want the president to own the whole offer upfront, on both the entitlement and the revenue side, and that’s not going to happen because the president is not going to negotiate with himself,” the official said. “There’s a standoff, and the staff hasn’t gotten anywhere. Rob Nabors [the White House negotiator], has been saying: ‘This is what we want on revenues on the down payment. What’s you guys’ ask on the entitlement side?’ And they keep looking back at us and saying: ‘We want you to come up with that and pitch us.’ That’s not going to happen.”
LinkThe problem with this is that while the Democrats' position is quite clear—the Bush tax cuts should expire for income over $250,000—the Republicans' position is extremely vague, on both the tax side and the entitlement side. Let's take taxes first. [Rate increases? Deduction caps? Or what?]....Then we get to the price Republicans are going to want to exact for any agreement to stop the Austerity Trap, and this is where they're vague. They want "reform" of entitlements. And what is "reform," you ask? Well, nobody ever says.