The American Spectator : The Spectacle Blog : Ganging Up

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James Capretta is not a fan of the Gang of Six. He argues that their plan would include a 10-year, $2.3 trillion tax hike, and that "the Gang of Six has essentially offered a plan in which Republicans would hand over control of the budget process to Democratic senators and hope for the best. Enough said."

Capretta also thinks that, at this point, the Republicans should be aiming for a smaller-scale deal to raise the ceiling long enough to buy time for extracting bigger spending cuts:

What conservatives should be doing is seizing the initiative in the House. They should move immediately to pass a small debt-limit increase, on the order of $500 billion, coupled with a reasonable set of spending cuts, including caps on discretionary spending. They should then send that to the Senate as the starting point for discussions. Doing this now would increase Speaker Boehner's leverage immensely, as he would become the only person in the room who had shown by his actions that he doesn't want a default. Moreover, at this late stage, there's a very real chance it would become the vehicle for getting past August 2.

If Republicans can't find their way to make such a move (for whatever reason), then they have little choice but to work with Senator McConnell on his version of Plan B. But they should make it absolutely clear that no version of the Gang of Six plan will be acceptable.

The problem being that time is now against a deal -- at some point, it will be too late to draft new legislation in order to get it through the House and Senate and to Obama's desk before August 2, if it's not already too late. Now would be a great time to have a plausible bill favorable to Republicans in legislative form and introduced in Congress, so that Democrats and Obama would feel pressure to go along with it before the Treasury ran out of extraordinary measures to use. Instead, the Gang of Six is introducing something unacceptable.

View all comments (18) | Leave a comment

Jack von Bauer| 7.20.11 @ 2:07PM

"If Republicans can't find their way to make such a move (for whatever reason)..."

I would love to know why. Anybody have any clue why this hasn't been done already? Anyone got a serious explanation?

Is Boehner too busy arranging his next bromance golf-date with his buddy prez?

martin j smith| 7.20.11 @ 2:20PM

Hey von bauer where is Obama's plan ? If you are for raising taxes during a recession good luck von bauer but we are in different universes.

Bob Grant| 7.20.11 @ 3:56PM

I agree with Lawler's assessment. It should have been the plan all along considering these other, more ambitious, plans presented by republicans don't afford the time to whip enough opposition party votes, nor spun correctly to media outlets.

Why DID they wait so long considering the "ramifications" of allowing a default?...This all seems suspicious to me. All of it.

Half a trillion cap increase/cut with a few meaningless loopholes and be done with it. Make Obama, Reid, and Biden sweat it out!

Oldefarte| 7.20.11 @ 4:03PM

I don't favor the Gang of Six, since it appears to include REVENUE elements [which is favorable to Obama/Democrats' insistence upon same]. The only option [considering the Senate D's defeat of the CCB plan] is McConnell's, and then to plan of electing a R-majority in the Senate and a R-president in November of next year!!!!

Bob Grant| 7.20.11 @ 4:15PM

There would be no political advantage to the McConnell plan, PLUS, it will accelerate our debt. The only advantage would be to expose to the public what Obama's priorities would be. We know this already but many don't.

However, when things go to heck and a handbasket, Obama will claim republicans were complicit by giving him a blank check.

He boasts he will veto a temporary debt hike. Let's call his bluff.

Dixie Pixie| 7.20.11 @ 5:39PM

You are both nuts.
The McConnell plan is a total abdication of budgetary authority to the President in bold defiance of the Constitution.
Only God and Harry Reid knows what is in the “Gang of 6 Plan” but it can't be any good for the nation.
The CC+B Plan will not solve the nations financial problems and will not get by the Democrats.

And since when is Obama's projected catastrophes worse than the cure.
Obama has a consistent track record of his “ political cures” being worse than the disasters they are to prevent.
For example, the “Stimulus Bill” was to jump start the economy thus keeping the unemployment rate from reaching 8%.
It in fact did the opposite and kept the unemployment rate above 9% and worse for other categories.
The same for his Libyan Plan and on and on.

All the Republicans have to do is hold firm on the debit ceiling and prove they are not as useless as the MSM and Democrats want the Republicans to look.
The Republican position can't be any worse position than to be found ineffective in upholding Republican Principals, letting the Democrats spend money without restraint on themselves and force the Republican Base pay for it all through tax hikes.

Obama's "Cures" are 10 times worse than the problems they were supposed to fix.
Call Obama's Bluff Now.

Michael L. Hauschild| 7.20.11 @ 6:16PM

Be still my heart.

Bob Grant| 7.20.11 @ 6:29PM

I agree basically with what you say but standing firm on Cut Cap and Balance and going into default because of it would be a disaster politically for the republicans.

It's not necessary anyway. Just make Obama sign a short-term debt extension until, hopefully, he's booted out on his skinny a*s next year.

Dixie Pixie| 7.20.11 @ 8:14PM

Let me repeat myself.
What Freaking Disaster?

Obama, the Democrats and the MSM has consistently lied about every “Impending Catastrophe” and each time the Republicans give the Obama / Democrats what they want, they just spend the money on themselves and greatly magnify the economic problems.
The Democrats then generate another “Impending Catastrophe” that must be solved “Immediately” or “Utter Devastation' will befall us.

It is way past time to pull the plug on this nonsense.

The Republicans only claim to TEA Party loyalty is their ability to stop the Democrats runaway spending.
This is a do or die moment for the Republicans, if they can not nor will not hold the line on Democrat spending then what good is the Republican Party to the TEA Party or anyone?

Bob Grant| 7.20.11 @ 8:35PM

I have no idea what would happen if we went past Aug 2 without a deal. It seems certain interest rates would skyrocket which would kill growth if not already dead.

I'm just saying instead of agreeing to a Gang of... or McConnell dead, ala TARP style where we hand over a gigantic blank check and kiss whatever is spent goodbye, we have a choice of a short term deal where spending wont increase and there wouldn't be any substantial tax increases. Obama can either choose to go along with this reasonable bill or allow the US to default. His choice. Seems like a winner for us.

Dixie Pixie| 7.20.11 @ 9:14PM

Bob …. What would happen if the Aug 2 deadline was broken, the same thing the last deadline was broken, NOTHING.

Let us go over it again for those newcomers to TAS Online.
To Simplify::::
The Federal Reserve loans money to the banks at a Federal Reserve set loan rate of 0%
The banks sells that money to the Federal Treasury at rates ranging from .9% to 3% depending on maturity date.
The Treasury then adds that money to the other Federal income streams to pay the Federal bills.

If the Federal Debit Limit is reached then the Treasury can no longer buy money until some of the National Debt is payed off and as a result Federal spending is reduced to match the smaller income stream.

In short, Nothing happens upon reaching the debit limit unless you consider that Obama and the Democrats will have less money to spend on themselves a disaster.

martin j smith| 7.20.11 @ 4:55PM

Hey Bob, the soccer goalie President Obama will just kick out any plan other than his--the Grand Bargain of Increase spending and taxes In fact I just heard Obama would reject a short term plan. So what I think Boehner should do is: 1) Stick with cut,cap and balance 2) as a "fall back" offer only a short term deal and if Obama refuses these let them them stew.

But I would go public and tell the American people that The socialists and Obama will refuse any plan that will maintain our credit rating but insist on policies that will further destroy it.
Point out the political nature of the arguments and state that to be fair a short term deal could carry us thru to the elections and then let the people decide who they want as their leader. Then Grand Bargains can be made. Go out there and make your case Boehner and McConnell. That would be my position.

Bob Grant| 7.20.11 @ 6:26PM

I'd agree because it's close enough to my plan. The important thing is to put the onus on Obama and the Dems, not for republicans to compromise just because.

A "reasonable" short term debt increase on his desk would finally force him to make a tough decision.

Oldefarte| 7.20.11 @ 5:01PM

Bob, I'm with you HEART & SOUL but for the fact that CALLING HIS BLUFF risks a investment rating agency downgrade, a possible default by these governmental domestic terrorists, a huge explosion in interest rates [mortgage, auto, credit card etc], a collapse of several states [possible all] from devaluation of their issued bonds, a possible collapse of the world's economy from dependence upon this country,etc. The costs/expense to this fragile economy are too great. The capitualtion to Obama/Democrats that you rightfully note is unavoidable at present, and can be only/totally avoided by voting into office enough Republicans next year to politically gain the advantage of having a true majority, at which time what you, I and may here can become achievable from established budget reductions and debt eliminations. That is sadly THE ONLY SOLUTION!!!!!!!!!!!!

Bob Grant| 7.20.11 @ 6:30PM

Have to disagree. A total capitulation if this occurs. You'd see a third party split.

Dixie Pixie| 7.20.11 @ 8:43PM

Oldefarte you have simply got it wrong.

Moodys Investment Service stated it was the RAISING of the debt limit which would cause a downgrading of AAA status because that would show the Federal Government could not control its spending thus not pay its bondholders.
Obama, MSM and the Democrats are systemically lying to grab as much of the public treasury as possible in preparation for the next election cycle.

It is way past time to pull the plug on Obama's out-of-control spending.