Richard Cowan
By Richard Cowan & David Lawder
President Barack Obama and his Republican opponents in Congress enter a crucial week in the “fiscal cliff” impasse with more than just differences over taxes to bridge: Also in the way is pervasive mistrust among members of Congress that discourages big concessions for fear the other side won’t reciprocate.
That distrust is fuelling doubts among Republicans and Democrats about relying on the other side to live up to any bargains struck now on deficit reduction in the future, Capitol Hill aides say.
Because resolution of the immediate cliff issues depends in part on commitments by both sides to a framework for overhauling the tax code and entitlement programmes over the next year, an atmosphere of disbelief could impede any agreement on the cliff.
Nearly everyone — from Obama to most of the 535 members of the House of Representatives and Senate — say they want to avoid the cliff’s $600bn in harmful tax hikes and spending cuts set to kick in automatically in the new year, and replace them with more reasoned savings.
Obama wants the tax cuts that originated during the administration of President George W Bush extended for middle class taxpayers only, while Republicans want them extended for all, including the wealthiest.
But widespread credibility issues could cause problems for Democrat Obama and Republican House Speaker John Boehner if and when they have to sell any agreement they forge to their parties in Congress.
The task for Boehner, who met on Sunday with Obama, may be greater because many Republicans distrust each other as well as the Democrats.
The distrust between the parties is nothing new, having been built up over years of partisan recrimination. But it’s now become a regular feature of debate on the cliff, on and off the floors of the House and Senate.
Some Democrats have spoken darkly of a hidden Republican agenda to gut, not just cut, social safety net programmes.
Republicans, said Oregon’s Peter DeFazio in a December 5 House floor speech, are acting under the “guise of deficit reduction,” to “somehow kill Social Security, which they’ve never supported.”
Republicans, for their part, say they don’t believe Democrats will follow through on promises to make spending cuts.
“The reason we haven’t heard Democrat ideas for entitlement reform may be because they have no plans to cut or to reform entitlement spending at all,” Republican Representative John Fleming of Louisiana declared on the House floor last week.
“This is just another game from their play book — raise taxes and increase spending, as always,” said Fleming.
And some see behind the firm Democratic stance a desire to go over the cliff in order to discredit Republicans, who several recent polls have indicated will bear the lion’s share of the blame.
REUTERS
By Richard Cowan & David Lawder
President Barack Obama and his Republican opponents in Congress enter a crucial week in the “fiscal cliff” impasse with more than just differences over taxes to bridge: Also in the way is pervasive mistrust among members of Congress that discourages big concessions for fear the other side won’t reciprocate.
That distrust is fuelling doubts among Republicans and Democrats about relying on the other side to live up to any bargains struck now on deficit reduction in the future, Capitol Hill aides say.
Because resolution of the immediate cliff issues depends in part on commitments by both sides to a framework for overhauling the tax code and entitlement programmes over the next year, an atmosphere of disbelief could impede any agreement on the cliff.
Nearly everyone — from Obama to most of the 535 members of the House of Representatives and Senate — say they want to avoid the cliff’s $600bn in harmful tax hikes and spending cuts set to kick in automatically in the new year, and replace them with more reasoned savings.
Obama wants the tax cuts that originated during the administration of President George W Bush extended for middle class taxpayers only, while Republicans want them extended for all, including the wealthiest.
But widespread credibility issues could cause problems for Democrat Obama and Republican House Speaker John Boehner if and when they have to sell any agreement they forge to their parties in Congress.
The task for Boehner, who met on Sunday with Obama, may be greater because many Republicans distrust each other as well as the Democrats.
The distrust between the parties is nothing new, having been built up over years of partisan recrimination. But it’s now become a regular feature of debate on the cliff, on and off the floors of the House and Senate.
Some Democrats have spoken darkly of a hidden Republican agenda to gut, not just cut, social safety net programmes.
Republicans, said Oregon’s Peter DeFazio in a December 5 House floor speech, are acting under the “guise of deficit reduction,” to “somehow kill Social Security, which they’ve never supported.”
Republicans, for their part, say they don’t believe Democrats will follow through on promises to make spending cuts.
“The reason we haven’t heard Democrat ideas for entitlement reform may be because they have no plans to cut or to reform entitlement spending at all,” Republican Representative John Fleming of Louisiana declared on the House floor last week.
“This is just another game from their play book — raise taxes and increase spending, as always,” said Fleming.
And some see behind the firm Democratic stance a desire to go over the cliff in order to discredit Republicans, who several recent polls have indicated will bear the lion’s share of the blame.
REUTERS
