Ralph Benko @ Forbes:
The House, under the leadership of Speaker John Boehner, has precipitated a postponement in the debt ceiling fight until May. This represents a strategic choice by Boehner to make the Sequester fight, not the debt ceiling fight, the next major engagement. Much of the mainstream media now is accusing Congress of “kicking the can down the road.” They are missing the strategic implications.
In retrospect, at the Battle at Fiscal Cliff, Boehner took President Obama to the cleaners. He did it suavely, without histrionics. While Obama churlishly, and in a politically amateurish manner, publicly strutted about having forced the Republicans to raise tax rates on “the wealthiest Americans” Boehner, quietly, was pocketing his winnings.
Dazzled by Obama’s Ozymandias-scale sneer most liberals failed to notice that Boehner quietly made 99% of the Bush tax cuts permanent. As Boehner himself dryly observed, in an interview with TheWall Street Journal’s editorial board member Steve Moore, “”Who would have ever guessed that we could make 99% of the Bush tax cuts permanent? When we had a Republican House and Senate and a Republican in the White House, we couldn’t get that. And so, not bad.’”“Not bad” is a resounding understatement. Dealt a weak hand, Boehner managed to 99% outfox, on tax policy, a president who had the massive apparatus of the executive branch, the Senate majority, and a left-leaning national elite media whooping it up for a whopping tax increase. Even more impressively, Boehner pulled it off with steady nerves while under heavy pressure from the anti-spending hawks in his own caucus.
Boehner, deftly, also dramatically raised the threshold, on which Obama had campaigned, at which the modest 3.6% rate increase kicked in. Yet his biggest win may have been in making the Alternative Minimum Tax patch permanent. This changes the baseline with profoundly positive implications for future tax reform and economic growth.
Boehner thereby won a triple jackpot, a bonanza for conservatives and supply-siders … while Obama, giving up all that for a trivial symbolic victory, lost his Progressive shirt. The mainstream media, with a few exceptions such as Howard Kurtz at the Daily Beast, was too deep in the tank to report that the Emperor has no clothes.
But Obama ended up, at least, shirtless. Next … off come the pants. Here come the real spending cuts. As reported by Moore, Boehner privately told Obama “’Mr. President, we have a very serious spending problem.’ He repeated this message so often, he says, that toward the end of the negotiations, the president became irritated and said: ‘I’m getting tired of hearing you say that.’”
Boehner, last week, again bested Obama by pushing the debt ceiling fight back to May. This is a double whammy by Boehner. According to specialists, by structuring the law to allow new borrowing only to the extent of obligations “outstanding on May 19, 2013, exceeds the face amount of such obligations outstanding on the date of the enactment of this Act” Boehner effectively instituted a spending freeze. This, in the face of Obama’s relentless demand for even more spending, is a victory for anti-profligacy hawks.