The Obama proposal today shows how unserious they are about this, and how they want to go over this cliff.

Obama probably wants two things:

1) A tax increase on the upper two brackets, while extending all the other Bush tax cuts.

He’ll settle for less than half of what is scheduled, but he wants something.

2) Only one complex negotiation. (that means the debt ceiling has to be wrapped up into it)

Here is my suggestion, for what it’s worth. The Repubs signal they will go for Obama’s plan of “getting rid of the Bush tax cuts” for the top 1%, 2%, or whatever, then say they want to make an announcement to the press.
With the assembled press present, they say they will give President Obama what he wants. Then, with everyone watching and going wild over Obama’s victory, the Repubs will give a graphic display of what the problem is and how what Obama just won is…he’s got nuthin’.

This might make sense, as once he gets his tax raise, he’ll be more amenable to make deals.

Right now I don’t think he wants any deal that doesn’t also take care of the debt limit – for the rest of presidency if possible. The debt limit ius coming up around mMarch.

They could do alittle better tahn this:

Maybe:

1) Separate the sequester from the tax raise and kick the can down the road three to six months.

2) Extend all the below $250,000 cuts indefinitely, and also all the other coming tax changes – AMT. capital gains and dividends, payroll tax cuts, exclusion for debt forgiveness on a mortgage, as long as possible, with the proviso, they’ll be renegotiated.

3) Make the Bush tax cuts permanent, but put instead a surtax. A surtax of 5% would gove Obama everything he wants, but a surtax is more repealable. The question becomes should it expire or not.

So maybe 4) The surtax expires if the military budget is cut below a certain percentage of GDP, or perhaps if Medicare is cut.

carlitos – Good times. Wear your pink underwear!

Mel: Wow, JJJ just resigned from congress? What? Did I win the lottery?