Republican Splits, Fiscal Opportunity

[Jefferson23]

By Simon Johnson

An informative and potentially productive political debate has broken out over fiscal policy. Ironically, this is not between Democrats and Republicans – the leadership on both sides of the aisle is trying hard to agree that a moderate stimulus is worth increasing the national debt by nearly $900 billion. And the new debate is not particularly due to the Bowles-Simpson bipartisan commission or other serious efforts to put the real math on the table; those technical discussions have so far been brushed aside.

Rather the intensifying and illuminating debate is within the Republican Party – particularly between people who are reasonably presumed interested in running for the presidency in 2012.
On the one hand, there are those such as Newt Gingrich and Mike Huckabee, who are in favor of the tax deal currently on the table. This seems to be where most of the Republican mainstream is. On the other hand, Sarah Palin and Mitt Romney have come out strongly against the proposal.

On the one hand, there are those such as Newt Gingrich and Mike Huckabee, who are in favor of the tax deal currently on the table. This seems to be where most of the Republican mainstream is. On the other hand, Sarah Palin and Mitt Romney have come out strongly against the proposal.


Snip* But the White House can still get ahead of events by setting up a Tax Commission, to be directed by Alice Rivlin. This should not be another attempt to build bipartisan consensus – as we can see from recent events, there is no way this would lead in a responsible direction. Rather Rivlin, a former Congressional Budget Office director who is immensely sensible and respected across the political spectrum, should be empowered to come up with sweeping tax code changes that would reduce rates, lower complexity, and – here’s the point – raise revenue.

in full: http://baselinescenario.com/2010/12/16/republican-splits-fiscal-opportunity/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BaselineScenario+%28The+Baseline+Scenario%29

[OHdem10]

1. The Republicans will set the agenda and draw up the plan, Ifear.

Rivlin will agree to what they say.

[Jefferson23]

2. Well, the opportunity is there, let's see what Obama and the Dems do with it. n/t