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Morning Bell: GOP Leaders Capitulate on Core Conservative Principles
Posted By Rob Bluey On December 18, 2012 @ 8:57 am In Economics | Comments Disabled
House Speaker John Boehner (R-OH) and Republican leaders have done it once again. Their latest fiscal cliff proposal  capitulates on core conservative principles, yielding woefully inadequate concessions from President Obama in the process. Will they ever learn?
The latest GOP offer essentially ignores Washington’s real problem — spending — and puts a $1 trillion tax hike on the table. It’s so bad that conservatives are now left with only one unfortunate alternative — passing a temporary measure that avoids a doomsday scenario  until the end of March. It’s the best possible outcome with the days dwindling on the remainder of 2012.
In a city where kicking the can has become a routine course of action, it’s hardly the preferable outcome for lawmakers. But it would be better than just going over the fiscal cliff and better than the current $1 trillion tax increase offered by Boehner, which, not surprisingly, was summarily rejected by Obama , who proceeded to counteroffer with an even bigger tax hike and even fewer spending cuts. At this point, no “grand bargain” is going to result in the spending cuts that are needed to reduce the debt.
Yesterday, Heritage’s Alison Acosta Fraser outlined a few reasons  why Boehner’s latest proposal is just plain bad policy:
These factors make it clear that any deal this year will be a disaster. That’s why Fraser recommends kicking the can until the end of March . This alternative is hardly ideal, but given the situation created by lawmakers, it’s the best possible outcome for Americans.
So why March 31? Heritage’s J.D. Foster, the Norman B. Ture Senior Fellow in the Economics of Fiscal Policy, said it will give conservatives an opportunity to “live to fight another day ” with better leverage at the negotiating table.
Here’s how the temporary plan would play out, according to Foster:
Let’s be clear: Kicking the can is not the preferable outcome. But, sadly, it is better than the only available alternatives.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2012/12/18/morning-bell-gop-leaders-capitulate-on-core-conservative-principles/
URLs in this post:
 latest fiscal cliff proposal: http://blog.heritage.org/2012/12/17/too-eager-for-a-fiscal-cliff-deal-republican-leaderships-1-trillion-tax-hike/
 passing a temporary measure that avoids a doomsday scenario: http://blog.heritage.org/2012/12/17/fiscal-cliff-solutions-soar-over-the-cliff-or-kick-the-can/
 summarily rejected by Obama: http://dailycaller.com/2012/12/17/white-house-rejects-boehners-offer-to-boost-millionaires-tax-rate-in-exchange-for-spending-cuts/
 next senator from South Carolina: http://www.washingtonpost.com/blogs/the-fix/wp/2012/12/17/nikki-haley-to-appoint-rep-tim-scott-to-senate/
 escaped from their captors: http://hosted.ap.org/dynamic/stories/M/ML_SYRIA_NBC_ENGEL?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-18-06-24-24
 top three election-related search queries: http://www.google.com/zeitgeist/2012/#united-states/news/election-issues
 driving the government deeper in debt: http://blog.heritage.org/2012/12/17/hurricane-sandy-relief-bill-more-spending-than-disaster-aid/
 best-selling football jersey: http://espn.go.com/nfl/story/_/id/8755742/jerseys-robert-griffin-iii-washington-redskins-quarterback-breaks-record-most-sales-single-season
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