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Some Republicans are feeling smug that they are going to win the war on cutting earned benefits for the middle class, by losing the battle on tax cuts.

The rumored strategy is they will concede that taxes should be extended for the middle class (which is to say everyone, since all taxpayers get a tax break on the first $250,000) and use that concession as a bargaining chip next year to get everything they want by tying budget negotiations to increasing the debt ceiling.

The President, speaking at a business roundtable, has made it very clear, that he is not going to go along with that in any way, shape or form.

There have been reports--and these are not necessarily confirmed--and maybe some of you have more insight than I do on this, that the Republicans go ahead and let the middle class tax cuts get extended, the upper income tax cuts go up, otherwise we don't get a deal and next year we come back and the thinking is the Republicans will have more leverage because there will be another vote on the debt ceiling and we will try to extract more concessions with a stronger hand on the debt ceiling.

I have to just tell you, that is a bad strategy for America. It's a bad strategy for your businesses it's not a game that I will play.

Most of you were involved in discussions and watched the catastrophe that happened in August of 2011.

Everybody here is concerned about uncertainty. There's no uncertainty like the prospect of  the United States of America, the largest economy, that holds the world's reserve currency, potentially defaults on its debts.

So I want to send a very clear message to people here: We are not going to play that game next year.

If Congress in any way suggests that they're going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation--which by the way we have never done in our history until we did it last year--I will not play that game. We've got to break that habit before it starts.

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Comment Preferences

  •  Tip Jar (12+ / 0-)

    The choice of our lifetime: Mitt Romney, It Takes A Pillage or President Barack Obama, Forward Together.

    by FiredUpInCA on Wed Dec 05, 2012 at 11:20:41 AM PST

  •  I woke up worried about this (0+ / 0-)

    For some reason, I was thinking about it at 5:30 am and couldn't get back to sleep. I am glad to see the president being proactive about this. It is tough to make a public case for raising the debt ceiling, especially since he voted against it in 2006 and made a floor statement about how it was irresponsible. Of course, you and I know the difference between a member of the minority party voting against it and members of the majority using it for extortion, but I don't know if most Americans will understand the difference.

    I think the president's outreach to the business community on this is smart. Another debt ceiling fight is not in their interest, and they probably have more clout with Congressional Republicans than anyone.

  •  Fine and dandy but (0+ / 0-)

    This is what he should have said last time.  He's already let them get away with it once, it just emboldens them to try again.  The only way to stop it is to refuse even to talk to them until they extend the debt ceiling.

    And if they don't, the thirty trillion dollar coin strategy should put an end to this for once and for all; in fact, it would remove all fiscal pressure and allow Obama to wipe out the national debt/deficit, thus depriving the Republicans of their only remaining weapon.  

    "[W]e shall see the reign of witches pass over . . . and the people, recovering their true spirit, restore their government to its true principles." Jefferson

    by RenMin on Wed Dec 05, 2012 at 12:29:54 PM PST

  •  As GW Bush said about fooling him once or twice (0+ / 0-)
    There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again." —Nashville, Tenn., Sept. 17, 2002
    Pres Obama tried and was burned during his first term - he learnt the hard way - now he will play hard ball with these MFs

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