Does anyone reading this have the slightest confidence that Republicans will be able to negotiate a reasonable deal with Democrats to avoid the fiscal cliff?  I didn’t think so.  The problem is that President Obama has drawn a line in the sand and doesn’t see a need to negotiate.  He thinks he has the winning hand and if Republicans negotiate like they have in the past, he will be right.

Republicans need to make much better arguments.  They are now trying to win the public debate by saying they don’t want to raise taxes on the rich because they don’t want to increase taxes on anyone.  Then, to double down on disaster, they are demanding that the President agree to cutting Medicare and Social Security.  This is exactly the position the Democrats want them to take because it fits beautifully with the Democratic playbook.

Insanity is doing the same thing over and over again and expecting different results.  This strategy is not working, it has never worked and it never will work.

Republicans should propose a return to the “CLINTON TAX RATES” for everyone.  They should argue that since the economy was so great during the Clinton years and since the Bush tax cuts caused all our problems, let’s just let the Bush tax cuts expire.

Let me be clear.  Raising taxes on anyone is a bad idea, particularly in this economy.  Raising taxes just encourages more spending by the government.  But taxes are going up, that is clearly inevitable.  They will either go up because the Republicans cut a stupid deal or they will go up because the Bush tax cuts expire.  The absolute worst thing Republican can do is this silly plan to pretend not to raise taxes by keeping rates the same but just reduce or eliminate deductions for things like charitable contributions and mortgage interest.

The worst case scenario, for everyone but Democrats and President Obama, is to just raise taxes on higher incomes.  It won’t raise nearly enough money to balance the budget.  It has the potential to push us into a recession or even a depression and Democrats will continue to play the class warfare card.  If taxes have to go up, letting the Bush tax cuts expire is a better alternative than just increasing taxes on high wage earners.  One of the biggest problems we have today is that nearly half of wage earners don’t pay any income tax at all.  It is impossible to get people excited about out of control spending by the federal government if they aren’t contributing to the cost. 

Repealing the Bush tax cuts would be an enormous hit to the pocket book of low wage earners and the middle class, but perhaps that is the only way to ever generate the political will to cut spending.  Letting the Bush tax cuts will be painful, but not as painful as it will be to fix this problem further down the path to destruction.

So, call President Obama’s bluff and start recommending a return to Clinton Economics.  That starts with the CLINTON TAX RATES;  ALL THE CLINTON TAX RATES.  Keep repeating the CLINTON TAX RATES about every 30 seconds.  When ever anyone says that this will be a huge tax incresae on the lower wage earners and the middle class, look puzzled.  Ask how this is possible, when everyone did so well when the same tax rates were in effect during the Clinton administration.  “Didn’t the Bush tax cuts give the majority of the tax cuts to high wage earners?  Agree that the rich need to pay more, but wouldn’t fairness demand that everyone should pay something?  Remind everyone that this is just a return to the CLINTON TAX RATES.  Take the term Bush tax cuts out of our vocabulary and replace it with the CLINTON TAX RATES.

In addition, point out that raising taxes on the rich does not generate encough income.  It is Obama who insists that increased revenue is the only path to economic prosperity.  Agree with President Obama about increasing revenue, just point out that just raising taxes on the rich is not enough.

Instead of proposing cuts to Medicare and Social Security, point out that Obama has already done that.  He cut $716 billion from Medicare to fund Obamacare and under President Obama there was no cost of living increase for Social Security recipients in 2009 and 2010, the first time since 1975.  Point out that it is President Obama who is cutting benefits for current participants and it is Republicans who are trying to save Medicare and Social Security for current recipients.  We need to let seniors know that Obamacare is a devastating assault on Medicare for current seniors.

Republicans can easily win this argument.  The facts are there.  The following article, from Time magazine designed to prove that Obama didn’t  cut Medicare actually makes the case for Republicans:

http://swampland.time.com/2012/08/16/fact-check-obamacares-medicare-cuts/

This article admits that Obama already cut Medicare by eliminating the subsidy for medicare advantage plans.  It is important to note that 1/3 of seniors currently have a medicare advantage plan.  Republicans need to point out that if nothing is changed, medicare advantage plans will disappear and ALL SENIORS WILL NEED TO RELY ON HEALTH CARE PROVIDERS WHO ACCEPT MEDICARE. 

This article also admits that these cuts to Medicare are reducing reimbursements to health care providers and that some health care providers will stop providing services.  So, when your medicare advantage plan disappears good luck in finding a doctor willing to take on new patients.  If seniors understand what Obamacare is actually going to do to them they will be outraged!

Also point out that Obama’s plan calls for even further cuts to medicare reimbursement.  This is explained very well in the same article:

The “Independent Payment Advisory Board, created by the ACA, could cut provider payments even more to keep the growth in Medicare spending under a benchmark. If Medicare per capita spending grows faster than a rate pegged to inflation and later GDP, IPAB will be empowered to recommend provider payment cuts.”

Let me translate if (when) Medicare costs go up, Obama already plans to cut reimbursements to Medicare providers.  We will all get free medicare treatment, there just won’t be any health care providers available to provide it.  Obamacare trades free annual exams for people who aren’t actually sick by severely cutting benefits for those who desperately need treatment.  If you don’t believe me, take a look at what is happening in the Great Britain today.

Republicans can win this argument by pointing out the truth.  Obama has already cut Medicare for current seniors and Obamacare provisions will cut them even more.  Republicans must pont out the need to reform Medicare and Social Security to “SAVE SENIORS FROM THE DEVASTATING CUTS ALREADY MADE BY OBAMA.”

If Republicans cannot figure this out, the next best option would be to have them do absolutely nothing.  The worst scenario is a bad deal.  No deal is better than a bad deal.

TDM