Nancy Pelosi And Obama Budget Deal To Avoid Fiscal Cliff

Nancy Pelosi And Obama Budget Deal To Avoid Fiscal Cliff [Op-Ed]

Commentary | Nancy Pelosi is attempting to work with Obama on a budget deal to avoid the fiscal cliff coming January when the Bush era tax cuts are set to expire. As part of that budget deal Nancy Pelosi claims that tax rate increases for the rich are necessary, specifically the tax bracket for those making more than $250,000.

“Just to close loopholes is far too little money,” Pelosi said in an interview with ABC. “If it’s going to bring in revenue, the president has been very clear that the higher-income people have to pay their fair share.”

Unfortunately, who is considered “rich” is a moving target in regards to these budget deals. House Majority Whip Kevin McCarthy (R-CA) said on Fox News today that Nancy Pelosi “keeps changing the game plan” with regards to the fiscal cliff:

“Nancy [Pelosi] said last May that it had to be a tax increase on those a million and more. So she keeps changing the game plan. That can’t be the case…Let’s sit down and find a bipartisan way that we can solve this problem, not go to a fiscal cliff while at the same time have a pro-growth agenda where we grow jobs.”

Note that Congress, both the House and Senate, is primarily responsible for the budget although Presidents can suggest a budget or help work out agreements. Unfortunately, the fiscal cliff cannot be avoided by merely focusing on partisan issues, which is what Nancy Pelosi is doing. The cuts will have to be across the board. After all, federal deficit is just a fancy way of saying that they are spending more than they take in with revenue.

The hard part is that neither party wants to be blamed by the public for reducing spending on military, medicare, and social security, which, if combined, account for approximately 75 percent of the annual federal budget.