Krauthammer: Obama Wants To "Break" Republicans, "Create A Civil War In The House"
CHARLES KRAUTHAMMER: Look, I love the way the president says what we need is a conceptual breakthrough, meaning the Republicans have to accept a hike in rates. What he means is a political surrender. Because there is no economic reason why you cannot raise the money he wants raised by doing it through eliminating deductions, inclusions and credits. Number one, as we saw, he himself said so a year-and-a-half ago. Secondly, the same debt reduction commission he appointed, and then of course ignored, spoke about raising much more through eliminating deductions, and loopholes, and credits. Broadening the base. And at the same time, lowering the rates. That's the economic ideal.
Everybody understands -- it's what happened in '86 in the tax reform, it's what was recommended in the debt reduction commission. In their three scenarios in one of them, they eliminate so many deductions that they would lower upper rates to 23% and still come out revenue neutral. So, of course it can be done. The breakthrough the president is talking about is to break the Republicans. To create a civil war in the House by insisting that they go back on the idea of not raising rates, which is economically a correct idea that encourages economic growth if you lower rates, or at least you keep them the same. This is all about politics; nothing about economics.