Deficit battle shaping up as GOP victory
Regardless of any tax concessions President Obama achieves, the end result would favor Republican goals of cutting spending and government services.
By Lisa Mascaro and Christi Parsons, Washington Bureau
July 1, 2011, 5:50 p.m.
Even as the political battle mounts over federal spending, the end result for federal policy is already visible — and clearly favors Republican goals of deep spending cuts and drastically fewer government services.
President Obama entered the fray last week to insist that federal deficits can’t be reduced through spending reductions alone. Federal tax revenue also must rise as part of whatever deficit reduction package Congress approves this summer, he said. Obama has been pushing to end a series of what he calls tax loopholes and tax breaks for the rich.
But even if Obama were to gain all the tax-law changes he wants, new revenue would make up only about 15 cents of each dollar in deficit reduction in the package. An agreement by theRepublicans to accept new revenue would be a political victory for Obama because “no new taxes” has been such an article of faith for the GOP.