The Economist is not impressed with John Boehner’s plan to increase revenues with magic:
Meanwhile, Mr Boehner’s proposal would raise revenues by $800m over ten years by closing loopholes rather than raising rates, and cut $1.2 trillion in spending. Some $600 billion would be cut out of Medicare, Medicaid and Obamacare; $300 billion would come from mandatory spending, and $300 billion from discretionary spending. Seems like there’s room for negotiation there! But of course the devil’s in the details. So, as for Mr Boehner’s specific tax increase proposals…
Under the Republican offer, tax revenue would rise by $800 billion over 10 years, through closing loopholes and ending or curtailing deductions and tax credits. Mr. Boehner did not specify on Monday which tax breaks would be curtailed.
Right. Never mind. Check this space again when Mr Boehner explains how he expects to get $800 billion in deduction limits over ten years without creating tax humps, and then makes it clear to the American people that what he wants is to slash the charitable giving and home-mortgage interest deductions. That will at least be an interesting political spectacle.
Republicans aren’t going to negotiate in good faith on this, just like with the debt ceiling. Obama needs to wait until after January 1 to deal with these people, when we’ll have a new revenue baseline and the only debate will be over how much to cut taxes.