With room for maneuver slipping away, top US Republican Representative John Boehner is in a bind over how to avoid going over the “fiscal cliff”: Embrace higher taxes and earn conservatives’ ire or scupper a deal and incur Americans’ wrath.
Another option, one that few non-partisans see as very viable, is for US President Barack Obama to cave in and agree to Republican demands not to raise taxes, even for the wealthiest people in the US.
A likelier resolution is a compromise with the White House that avoids the shock next month of automatic spending cuts coupled with tax hikes on nearly all people in the US, while laying out enough deficit reduction that eases concern about the country’s financial well-being.
In the game of political chicken to see whether Democrats or Republicans blink first, perhaps the trickiest role of all rests with Speaker of the House Boehner, who along with Obama is the principal in the negotiations.
Boehner’s guidance of the Republican position in coming days and weeks could signal much about party direction in the wake of an election that saw flag bearer Mitt Romney — who advocated slashing tax rates across the board — defeated by Obama.
“To say Boehner is between a rock and a hard place is minimizing the problem he faces,” Boston University professor and longtime political consultant Tobe Berkovitz told reporters.
“Boehner is trying to keep public opinion about Republicans from totally cratering, and at the same time keep the Tea Party hardcore conservatives from totally abandoning the party,” he said.
Conservative Republican Representative Trent Franks agrees that “our speaker is in an enormously difficult position.”
“And I think he’s doing the best he can,” the congressman told National Public Radio. “That doesn’t mean that what he finally arrives at will be something that I can support or it won’t. You know, I don’t know.”
Few people other than Boehner and Obama know the true state of negotiations in what appears as a well-choreographed campaign to thrash out a last-minute deal.
Discussions appear to have stalled, though, and Boehner has accused Obama of having “wasted another week” by not pushing talks forward.
Over the weekend Boehner “will be waiting for the White House to respond to our serious offer about averting the fiscal cliff,” his spokesman Michael Steel told reporters.
Obama has proposed US$1.6 trillion in new taxes over the next decade from higher rates on the wealthiest 2 percent of people in the US.
Republicans countered with a plan for US$800 billion in tax revenue raised by closing loopholes and ending some deductions. Both plans were rejected.
A Democratic official said on Saturday that “nothing has changed since yesterday.”
Polls show most people in the US want to see taxes rise on the wealthy.
With Obama winning re-election on Nov. 6, and his Democrats gaining seats in both the House of Representatives and Senate, Republicans concede privately — and some publicly — that the Democrats have the upper hand.
“President Obama pretty well holds all the cards in this negotiation,” Republican Senator Ron Johnson told Fox News. “If he wants to have tax increases or tax rates go up, I don’t see how Republicans can stop him.”
Public trust is not in Boehner’s favor. A Washington Post/Pew poll last week showed 53 percent of people in the US would blame Republicans should the economy dive off the cliff; 27 percent would blame Democrats.