Cliff Notes: The Outsiders

After taking Thanksgiving week off, Washington is facing pressure from liberal groups to ignore entitlements as part of a deficit reduction strategy even though the president acknowledges they are the main drivers of our deficits. Meanwhile, some members of Congress appear ready to go off the fiscal cliff over taxes to prove a political point, and no real progress is being made despite all the bloviating. Still missing is a plan to cut spending and reform entitlements. It’s no surprise that most Americans think our leaders in Washington will act like “spoiled children” during the fiscal cliff negotiations.

PARTISAN PRESSURE TO IGNORE ENTITLEMENTS DEFIES REALITY

Liberal Groups Pressure Washington To Ignore The Entitlement Problem:

Unions Want Washington To Disregard Entitlements In Deficit-Reduction Strategy. “Several major labor unions joined together to release an ad campaign this week pushing members of Congress to raise tax rates on the wealthiest Americans and protect entitlement programs from major cuts as a solution to the looming fiscal cliff, the groups announced Tuesday.”

• Groups Are Targeting Democrats With A Six Figure Ad Buy. “The American Federation of State, County and Municipal Employees (AFSCME), the Service Employees International Union (SEIU) and the National Education Association say they’re spending $300,000 on an initial TV and radio buy for the ad campaign, according to a high ranking labor official. … In the upcoming week, the labor unions’ commercials will appear in states with Democratic senators considered by some on the left as potentially more willing to support some major spending cuts that the unions would oppose.”

AARP Is Running TV Ads With The Same Message. “The new ads come as the American Association of Retired Persons (AARP) has also run television ads, educating viewers on the fiscal cliff issue and arguing to keep ‘Medicare and Social Security strong for generations to come.’”

Obama And His Treasury Secretary Acknowledge That Entitlements Are Driving The Debt:

Obama: “I Believe That We Have To Continue To Take A Serious Look At How We Reform Our Entitlements, Because Health Care Costs Continue To Be The Biggest Driver Of Our Deficits.” (President Barack Obama, Remarks By The President At A News Conference, The White House, 11/14/12)

“[Treasury Secretary Timothy] Geithner Targeted Entitlement Programs As The Key To Reducing The National Debt While Insisting That Social Security Benefits Remain Protected.” (“Geithner: Entitlement Programs Key To Cutting Deficit,” ABCNews.com, 2/15/11)

Major Papers Call For Entitlement Reform:

The Washington Post: “Entitlement Reform Must Be On The Table” (Editorial, “Entitlement Reform Must Be On The Table,” The Washington Post, 11/14/12)

USA Today: “Cut Entitlements To Control Debt” (Editorial, “Cut Entitlements To Control Debt,” USA Today, 11/14/12)

CONGRESS CONTINUES TO FOCUS ON TAXES INSTEAD OF SPENDING

Focus On Taxes Continues With Some Willing To Go Off The Fiscal Cliff Over Tax Rates:

Focus Of Debate Continues To Be Taxes. “Congress returns to Capitol Hill next week to begin, in earnest, the partisan fight over the ‘fiscal cliff.’ But for all the drama and developments of the 112th Congress, the fiercest dispute of the 2012 lame duck is shaping up to be the same divisive question that dogged the post-election debate of 2010: whether to hike income tax rates on the wealthiest Americans.” (Mike Lillis, “Washington Has Déjà Vu, Not Just Vertigo, At Edge Of ‘Fiscal Cliff,’” The Hill, 11/24/12)

“A Growing Bloc Of Emboldened Liberals Say They’re Not Afraid To Watch Defense Spending Get Gouged And Taxes Go Up On Every American If A Budget Deal Doesn’t Satisfy Their Priorities.” (Seung Min Kim, “Fiscal Cliff: Will They Jump?” POLITICO, 11/25/12)

• Rep. Peter Welch (D-Vt.): “I favor an agreement before Jan. 1, but I’m skeptical that our leadership may be able to reach one. If it’s necessary to wait to get a good deal, let’s do that.” (Seung Min Kim, “Fiscal Cliff: Will They Jump?” POLITICO, 11/25/12)

• Sen. Parry Murray (D-Wash.): “If the Republicans will not agree with that, we will reach a point at the end of this year where all the tax cuts expire, and we’ll start over next year.” (Seung Min Kim, “Fiscal Cliff: Will They Jump?” POLITICO, 11/25/12)

LEADERS LIVING UP TO LOW EXPECATATIONS

Minimal Progress Being Made In Negotiations:

Negotiations Have “Barely Progressed.” “Congressional leaders return to Washington this week facing the prospect that talks with the White House over the country’s budget impasse have barely progressed, a reminder of the philosophical divisions that remain despite both sides’ early professions of optimism.” (Janet Hook & Damien Paletta, “Talks Over Fiscal Cliff Stay Stuck In Low Gear,” The Wall Street Journal, 11/26/12)

The President And Congressional Leaders Aren’t Meeting This Week. “In a sign of the slow pace, a senior administration official said President Barack Obama and congressional leaders aren’t expected to reconvene this week, in order to give their staff more time to work through differences.” (Janet Hook & Damien Paletta, “Talks Over Fiscal Cliff Stay Stuck In Low Gear,” The Wall Street Journal, 11/26/12)

• FLASHBACK: At Their Last Meeting, The President And Congressional Leaders Agreed To Meet This Week “When Mr. Obama and congressional leaders last met Nov. 16, they agreed to meet the week following Thanksgiving to gauge progress. No follow-up meeting has yet been scheduled, and financial markets have remained jittery, worried that brinkmanship will take hold.” (Janet Hook & Damien Paletta, “Talks Over Fiscal Cliff Stay Stuck In Low Gear,” The Wall Street Journal, 11/26/12)

Real Progress Could Still Be Weeks Away. “One veteran Democratic aide said he wasn’t surprised major concessions hadn’t been made, given that real deal making usually happens at the last minute, which the aide put at ‘two weeks away.’” (Janet Hook & Damien Paletta, “Talks Over Fiscal Cliff Stay Stuck In Low Gear,” The Wall Street Journal, 11/26/12)

POLL: Two-Thirds Of Americans Expect Leaders In Washington To Act Like “Spoiled Children.” “The poll also indicates that more than seven in ten Americans call for compromise on this issue, but they are pessimistic about that actually happening, with two-thirds predicting that Washington officials will act like ‘spoiled children,’ not ‘responsible adults,’ in the upcoming negotiations.” (“CNN Poll: Two-Thirds Say Fiscal Cliff Poses Major Problem,” CNN.com, 11/26/12)

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