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Will Republicans Give In on Tax Increases?

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  • Description

    WSJ Editorial Page deputy editor Dan Henninger on the politics of taxes.

  • Duration 4:02
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After that -- sell off the big one yesterday how can President Obama meet congressional Republicans in the middle talking about the fiscal cliff with debt had to hear from the Wall Street Journal says there's a lot set.

Overcome.

Dan has is here to tell us what he thinks about.

Middle ground in this country Dan is there any middle ground with the Republicans give -- on these tax increases thing.

Well John Boehner said yesterday was willing to raise some revenue as he put it then maybe on the top earners so I don't think has Connell suggested he's going to define a top -- somebody who makes 200000 dollars a year or family -- makes 250000.

Dollars a year.

-- brother raise the level up to 500 or even a million in return mr.

Boehner said he would like to restructure the tax code make it simpler.

Knock out some of the loopholes and reduce the rates.

I don't think the President Obama is going to sign up for any such deal.

I continue to think that what for President Obama and Nancy Pelosi and Harry Reid want to do.

Is put the Republican leadership in such a difficult position.

That they sign up to tax increases only -- four -- a lot of the Tea Party Hulk of the Republican Party and -- weakening the Republican party for the next four years well it'll be it'll be political in other words all while the other surprise them that we had some practice at this right they went through this whole thing.

And and didn't really get to where they wanted to that's why the fiscal -- is -- right now what was learned anything from the last time around and in what has changed do you think politically this time around.

I'm not sure that the republic I think the Republican leadership Connell would tell you they didn't look what they learned -- -- -- are suggesting is that the president's attitude.

Before the election was totally political and geared towards the reelection.

I mean if you remember in April 2011 when they thought they have -- Republicans proposed a compromise on the deficit went to George Washington University.

To listen to the president give his counter proposal for a policy she's vilified -- demagogue don't eat chips right and Davida.

The marshlands GAAP and never stop doing that for the next year and a half up through the election so the big question as well we heard from.

Speaker Boehner yesterday what exactly is going to be the president's opening bid.

On the on the fiscal Clough four years out what do you expect to say in terms of -- security Medicare tax -- I think it's going to be very difficult I think if the Republicans.

Manage to do some outreach to public opinion.

And you know in the election.

They did have some Romney did have support for his positions on Medicare that was not repudiated I think the public does realize at this point that they need to reform.

Those two entitlement so I think they have a basis at least.

For making that argument with President Obama and the Democrats but it's it's going to be difficult question talk about the smartest second with our next -- that you worked at the markets at all after we saw yesterday and you have the leading up to the to -- so uncertain about this whole.

Fiscal -- deal and not getting anything done last time and worried about it again.

Connell economic growth in the last several quarters has been under 2% effectively what the private sector has done during the last two years of the Obama presidency -- go on a capital strike.

And that I think was reflected in the sell -- in the markets yesterday the private sector is still on a capital strike.

And it Barack Obama wants stronger growth -- US economy he's going to have to extend his hand.

To the private interest that he bill -- so much over the last two years to get re elect.

They're spending does he think that that's -- pushing for -- -- -- got a Federal Reserve was sitting ready and weight of the president I want to borrow money and spend it.

Federal spending for the last 25 years has been about 20% of GDP Barack Obama wants it to be at least 23%.

If not 24% of GDP at the only way he can afford to do that is at the extracts a lot of revenue.

Out of the private sector by -- taxes there's a real dilemma at the center of what Barack Obama wants to do.

And that's -- I think we're gonna be looking at gridlocked for a little while.

Cadet -- great to save -- has always been well.

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