Under regular order, House Republicans had little leverage when the fiscal cliff loomed on New Year’s Day. Taxes were to go up by $4.5 trillion if the House didn’t act. So Republicans accepted higher rates on those earning more than $400,000.
Now, Republicans have the leverage. The budget sequester to automatically take effect March 1 would cut spending by $1 trillion. Republicans don’t like the $500 billion defense spending cuts, but they can stomach them.
Obama took to the teleprompter yesterday afternoon to call for short-term spending cuts and revenue increases through elimination of deductions. Boehner was willing to consider the latter as part of a grand bargain that included tax rate cuts and entitlement reform.
But if the net effect is revenue increases, Republicans aren’t interested. For them, this would be “laughable — they have zero reason to do it,” as my Washington Examiner colleague Philip Klein has written.
You may have noticed that everything in this column so far is Washington talk — fiscal cliff, sequester, regular order. It’s not language you hear ordinary Americans speaking in everyday life.
Which leads to the House Republicans’ outside game, advanced by House Majority Leader Eric Cantor in a speech Tuesday afternoon at the American Enterprise Institute, where I’m a resident fellow.