Skip to comments.Peter Orszag: Yeah, the White House has less leverage in the spending fight now
Posted on 01/03/2013 12:19:28 PM PST by SeekAndFind
As I wrote earlier this week, the fiscal-cliff deal was mostly a win for Barack Obama, but only a temporary victory fought on one issue. By delinking the tax debate from the spending debate and keeping the debt limit out of the fiscal-cliff deal, Republicans at least allowed themselves the chance to fight another day for spending cuts and entitlement reform. Whether they can successfully negotiate real reform is another question, of course, but even Obama's former OMB director acknowledges that the White House now has significantly less leverage to prevent budget reform now that taxes are off the table. Peter Orszag tells CNBC's Andrew Ross Sorkin that Obama may have won the week but lost the quarter by agreeing to that split (via the RNC):
SORKIN: But you know the president. The president said that he will not negotiate for example on the debt ceiling. This is a nonstarter. Is that a nonstarter or is that the beginning of a negotiation?
ORSZAG: Well I dont know that that statement actually frankly matters that much. Because theyre going to have to negotiate over replacing the you know the sequester was only delayed by two months. So youre going to have to negotiate over that. Youre going to have to negotiate over the appropriations bill for the funding the daily operations of the government. So if youre negotiating over those things, and the debt limits kind of thrown in, you can say youre not negotiating over the debt limit but there will be negotiations in February and March.
SORKIN: Whos got the leverage in all this? I mean when you look back at what just happened over the past three days do you say the Democrats won? Do you say the Republicans won?
ORSZAG: I think my own perspective at least is I think the White House in this second best world won that round, but they, by not insisting that the debt limit be tied that to the package, its entirely possible theyre going to win the week and lose the quarter. And well see, you cant you dont know yet until you see how February and March plays out, and I think theres no doubt that they have somewhat less leverage than they did in the round just completed.
This is why liberals were not entirely happy with the outcome of the fiscal cliff deal, either. While Democrats had the political advantage on the “fairness” issue on taxes, Republicans almost certainly have an advantage when it comes to federal spending, at least in principle. And now that the Republicans gave way on taxes, there will be more political pressure for Democrats to demonstrate moderation by agreeing to some meaningful reforms on spending. That doesn’t mean that Harry Reid will accommodate that in the Senate, but it gives Republicans an advantage if and when it comes down to a government shutdown over the debt limit and spending approvals — especially since Reid and his Democratic majority in the Senate hasn’t passed a normal budget in almost four years.
I doubt it. I think the WH will leverage spending cuts with amnesty for illegals. I think that is obvious, and the GOP will agree to do that.
Say Obama somehow took a hit in all this is like saying a big guy beating the crap out of you can’t hit you as hard anymore because his fists are hurting.
Same as last time. They caved twice last time, and they’ll do the same thing now.
Both SPENDING parties are stuck on stupid. Starve the beast and make their lives as miserable as possible. F them before they F you.
So how exactly did Reid escape examination all this time when he hasn't been doing a thing?
Democrats, for example, were always against the Bush tax cuts. Well, they just passed them permanently for a majority of the public (only one tax rate exempt).
And Obama is increasingly unable to escape the spending issue. We came that close to him going for some SS reform in the last fight. The onus is swinging more and more toward him (and the Democrat sacred cows) each time.
hey its the bald dude with all the wives and girlfriends.
Boehner is good at doing nothing. That is all that's necessary.