Obama's latest concession in fiscal kabuki "negotations"

[No Elephants]

First, let's remember that Democrats have the leverage in these negotiations. If January 1 comes with no deal, there will be big cuts to defense spending and the Obama tax cuts of 2010 will expire, causing taxes to increase on everyone. Then, it will be up to ?Republicans to work back from that.

So, what does our President do?

1. Commit silence on defense spending, meaning the whole "Grand Bargain" now seems to be about taxes and slashing safety nets.

2. In the media, negotiating with, apparently, himself, Obama announced he would take something less than Clinton era tax rates.

3. Breaking a specific campaign promise that he made in both the 2008 and 2012 Presidential campaigns, he now offered Boehner leaving taxes the same for everyone earning less than $400,000 a year (which the Republicans immediately said was not good enough).

So, what is left of the "Grand" (snicker) "Bargain?" (snicker) that is still meaningful, as a practical matter?

Yep, you guessed it.

[No Elephants]

1. Also, Obama indicated willingness to lower cost of living increases for Old Age, Survivors and

Disability Insurance, aka, OASDI, aka, Social Security.

As it is, the increase does not include the price of food, which is considered too volatile, but does include things that people surviving on OASDI alone can't think of buying, like new cars, airline tickets, etc.

For two or three years since Obama took office, there was no increase at all. The increase for 2013 will be all of -- wait for it -- 1.7% http://www.ssa.gov/pressoffice/pr/2013cola-pr.html

How much in revenue, after all the deductions, is a small percentage increases on the taxes of people making over $$400K a year going to bring into the Treasury, realistically--as opposed to "in a perfect world"? And, mind you, the increase is not on all their income, just on that portion that exceeds $400K.

I guess that the Republican response of "not good enough" means that the President will come back soon with more concessions. After all, God forbid that we go over that non-existent cliff on January 1.

[Enthusiast]

2. It was entirely predictable.

As a matter of fact I predicted it. We shall see the final outcome. I am not encouraged. :-)

[No Elephants]

3. Yes, it was. Doesn't make it any easier to take, though, especially for those who

have only Social Security to fall back on. Not to mention that while Social Security has been almost at a standstill since Obama took office, Medicare costs have increased, which is effectively a decrease in Social Security.


Plus, the proposal has a cumulative effect over time that I understand, but would be hard pressed to explain.

I have no doubt that the death rate will increase for the elderly and disabled people who have no income other than Social Security. This is the real death panel.

Shameful, shameful, shameful.