(1) Dems get permanent higher taxes, but only over $450k, a higher threshold than they wanted; and
(2) expense reductions get put off until the debt ceiling negotiation in two or three months.
So the Reps preserve their leverage, on expenses, but hand over a partial win to the Dems now on taxes.
The problem with this is that the Dems can demagogue this all Winter, backed by the media, weakening the Reps prior to the debt ceiling battle.
It is probably better to go back to the Clinton rates and suffer two years until a new Congress might be able to override Obama. That would take courage, sacrifice and a different Speaker to take the battle to the Dems.
This will come down to whether the Tea Party caucus can stymie this deal or whether the House Dems and Rino Reps can form an unholy alliance to pass the deal. If the latter occurs, then look forward to a Speaker Pelosi in 2014.
An unholy alliance between Rats and Rinos.
so, just to be clear, this deal has no impact on raising the debt ceiling, and that will be whole nother separate issue in a couple months?
What leverage? They promised us $100 billion in spending cuts 16 months ago in exchange for printing up $2.5 trillion in new money to fund Obama's election slush fund. I'm still waiting for them to deliver what we were promised last time around. The only leverage the Republicans can claim here is that they have both elbows and both knees on the ground.
It’s actually over 200k and 450k. There’s also a marriage penalty which will destroy society.