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The Fiscal Cliff: What Does Obama Really Want?

Taxes hikes are a distraction. It is all about spending.

Barack Obama is a master magician. The great ones keep your attention focused on their right hand while they pick your pocket with their left. For a lawyer who voluntarily surrendered his law license, Barack Obama has proven an exceptional ability to frame the public debate.

When presenting the administration’s “fiscal cliff” proposal to Congress, Treasury Secretary Geithner asked for three things; taxes, spending and executive authority to unilaterally raise the debt limit. In reply, House GOP “Leadership” acquiesced agreeing to cap deductions including the mortgage interest deduction effectively raising taxes. Barack Obama proposes to raise taxes to cover eight days of government spending. The Republicans countered with four. Both parties claim to be raising “revenue” and not levying taxes.

House “Leadership” claims to promote fiscal restraint while removing fiscal hawks from key leadership positions. The Democrat Senate does not pass a budget for three years while quietly incorporating the 2009 Obama “stimulus” into the spending baseline thereby enacting a permanent stimulus. By claiming that “it’s time to rip the Band-Aid off and reach a deal” or “it won’t kill the country if we raise taxes a little bit on millionaires,” Republicans are validating the virtue of these new spending levels and relinquishing their mantle as the party of low taxes and limited government.

While some have suggested Obama’s objective is to "kill” the Republican Party by forcing it to relinquish its core principles, the “tell” to Obama’s principal goal is Treasury Secretary Geithner’s proposal to “lift the debt limit to infinity.” Obama understands the only leverage fiscal conservatives have at forcing any measure of spending restraint or entitlement reform is through debt limit negotiations. Obama has not presented any spending cuts during "fiscal cliff" "negotiations" because they are not in his political interest. If Republicans agree to raise taxes, Obama forces them to go back on their pledge and achieves a political “win”. If Republicans hold firm on their principles, Obama gets massive tax hikes on everyone to pay for increased spending. Obama is buying ad time to try and force the Republicans’ hands, something conservative talk show host Mark Levin suggested Republicans do to explain the virtue of cutting spending and not raising taxes.

The only way Republicans regain the upper hand is to hold firm to their principals, articulate their position and exert their leverage at the upcoming debt limit negotiations. Capitulation will hurt the country as Obama has demonstrated an unwillingness to cut spending and proposed tax hikes will cover little current spending. Moreover, members who capitulate will pay a heavy political price as they will force conservatives into open revolt.

Todd Werelius

Time for the conservatives to break away from the party before they are tainted with the stench of the RINO's madness. Call the new party something like "Progress to Prosperity"

Then use Obama's vote buying tactics to chip away at his base, we will already have the conservatives with us, don't care about the social deviants on the left they are irrelevant.

Don't bother with social issues, defunding them is a better deterrent than arguing with zombies at this point.

For instance disband the IRS and establish a flat tax (est. current system cost 450 billion per year)

Then issue an "Economic Progress" payment to anyone making 40K or less per year based on the savings for up to four years (that's about 70 million potential votes according to the census)

To qualify you have to be registered to vote (and prove it) before the bill is passed, and take a budgeting and civics class to get your payment.

Get the payment up to around 10K per family by cutting 500 billion in spending (heck go for even more) in other words fund the handouts by selling off segments of the federal government.

The hand out crowd is too stupid not to go for it, especially if it's put forward by a new party that does not have the negative R brand behind it, once they get that first payment you can do away with whatever you want.

This would drive the dim's absolutely mad. Not enough votes to pass such a bill, not until 2014 anyway, but that's the point, you get the knuckle heads to vote for you and you could have a landslide type event the is veto proof and maybe even constitutional convention worthy

Probably a pipe dream but it would work, heck it did for Obama and he didn't offer even half of what we could if we cut the government by 50%

Joline Tate

No matter what happens, Obama wins.


No... its not because of "Media spin". As we all know conservative media is very well established and highly profitable. People choose to believe what they want to hear and conservative media fills the void for people who tend to think... conservative. As far as a shift in demographics, all one has to do is look up who voted for Obama.... then ask WHY those groups aren't voting for Republicans. Solve that answer and the GOP might actually get somewhere/

Anthony Elmer

I think democrats are slowly digging their own grave and fairly hypocritical, especially Harry Reid. I hope that republicans hold firm to their principles and do not allow wavering and waffling. I am afraid that if the democrats get their way we are going to be in a world of hurt.

We can not sustain deficits of any level, we are beyond extended and unless we drastically change the way we do business we will be bankrupt. I wish everyone would read the budget and look at revenues and spending then look at the lack of a balance budget through 2022. The budget shows us ending in 2022 with a 800B dollar deficit, meaning we will be 24T dollars in debt by 2022. If you really want to give our kids and our grandkids this amount of debt so be it but its very wrong. We need to draw the line in the sand and stop it now not tomorrow, but now. We need to stand strong!

Citizen100's picture

Obama only wins because of the media spin.....caving from conservative principles is NOT the answer. Demographics changes must mean that more of our nation wants bigger government and less FREEDOM. The GOP lost the election because they did not unite and did not have a non-working army of supporters on the dole. When consevatives...and that means Latinos, and republicans unite to reduce government then liberal morons will be defeated.

If Obama continues to spend everyone's savings, paycheck, stocks and anything if the form of a DOLLAR will be useless. Our military will take a back seat to communist China. If you think I am wrong then just hide and watch because you are a fool. OBAMA is the great destroyer of freedom. He thinks he is a king and we are his subjects, he is wrong.


The reason the GOP lost the election is because they refuse to change and fail to recognize the demographic shift happening in this country. As long as they continue to keep right on with business as usual, they will lose. Plain and simple.

The answer is NOT to become even more conservative or "hold on to their principles". The country has moved on. Time for the GOP to do the same.

chas new

I think we should hold firm to our principals? Is this piece about school choice? Or should be hold firm to our PRINCIPLES? Gotta get it right - mistakes like this kill your credibility...