On Friday I asked readers what sort of fiscal deal, if any, they think will emerge and, with the tanking economy, whether the talks will conclude successfully sooner than anticipated. Right Turn readers were generally glum.
Dr. Berkeley writes: “The deal will NOT get done quicker than expected; negotiations will take till [Treasury Secretary Timothy] Geithner’s August deadline. There will be some cuts, not as much as we need. There will also be some revenue increases — not tax increases but tightening or elimination of certain deductions.”
Rodomontade explains what the problem is: “As in the never ending peace process in the Middle East, the recent progress is more apparent than real. At the end of the day, the fundamental outlook of the two parties cannot be reconciled without a collapse of will on one side or the other. Democrats will continue to push for new taxes and Republicans will continue push for spending cuts.”
However on this one, I will go with the more optimistic take of micoz1, who argues: “Democrats are running out of running room, as the ratings of federal debt head down because of extraordinary, out of control spending. The longer they wait, the worse the cuts will have to be, especially for unfunded entitlements. They better make a deal now!” Indeed, the House simply won’t pass a tax hike and the debt ceiling will get raised one way or another. At the last moment the White House may have to strike a deal with the Republicans and more conservative Democrats; after all, Obama is going to have to convince voter next November he is a competent steward of the economy.