Friday, June 24, 2011
Their Temper Tantrum
Congressional Republicans, who played a major role in piling up the government’s unsustainable debt in the first place, have thrown a tantrum and walked out of the debt limit talks. This bit of grandstanding has brought the nation closer to the financial crisis that Republicans have been threatening for weeks. But, at least now, their real goals are in sharp focus.
The two Republicans in the talks, Representative Eric Cantor, the House majority leader, and Senator Jon Kyl, the minority whip, had no intention of actually negotiating. Negotiations require listening to those on the other side and giving them something they want in exchange for some of your goals.
It has been obvious all along that cutting government services alone is not a solution to either the budget deficit or the mounting national debt. The Democrats, at least, acknowledged that reality at the bargaining table by saying that along with the cuts the Republicans cherish, there would have to be increases in revenue — an end to unnecessary tax loopholes for corporations or the rich.
Those demands were modest — too modest — and Vice President Joseph Biden Jr., who is leading the talks, said they were making progress. But any compromise at all proved too much for the Republicans.
Mr. Cantor said that because he and the House would not support a tax increase, he was walking out of the talks until President Obama “resolved” the tax issue himself with House Speaker John Boehner. In other words, Mr. Cantor and Mr. Kyl preferred striking a Tea Party pose to the hard work of reaching a deal.
The negotiators say they have essentially agreed on about $2 trillion in spending cuts over the next 10 years, which could be acceptable if they are phased in gradually and exempt the nation’s most vulnerable. But Democrats in the talks say that in exchange for agreeing to those cuts, they asked for some balancing increases in revenues. Their proposals were not to raise tax rates, but rather to end credits like those for oil and gas companies. One Democratic negotiator, Representative Chris Van Hollen of Maryland, said they also want to curb tax deductions for the very rich.
It was inevitable that Mr. Obama, Mr. Boehner and Senate leaders would have to write the final chapter of these talks, and Republicans were at least correct in asking for a more public role from the president, who has shied away from leadership here. Mr. Boehner has, so far, limited his opposition to tax rate increases, and he may prove more willing to accept reality and the need for revenue than Mr. Cantor.
But at least 11 hard-line Senate Republicans have already said they will oppose any deal that does not include a balanced-budget amendment — a nonstarter for Democrats — and Mitch McConnell, the Senate Republican leader, said this week that all revenue increases are the same as raising taxes and are unacceptable.
The deadline for raising the debt limit or facing a default is Aug. 2. Republicans cannot walk away from their responsibility to pay the bills and keep the economy out of further crisis.
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