Debt deal: Winners and losers

by Ken Feltman

During these contentious negotiations, a re-orientation of the starting point for developing future federal budgets seems to have occurred. Instead of an emphasis on appropriations and earmarks, with ever-growing federal programs, Congressional budgets may now begin with program cuts.

President Obama did not break the tea parties by forcing the Republicans to accept new tax revenues but the president did get a deal that pushes the deficit ceiling beyond the 2012 election.

Now, if Obama can line up a few Democratic votes in the House to replace unhappy tea party Republicans, he will sign the deal into law. House Minority Whip Steny Hoyer, as good a vote counter as anyone in Washington, predicts that more than 60 Democrats will buck Minority Leader Pelosi and back the deal.

Senate Minority Leader McConnell can take credit for drawing the White House into negotiations at the critical point. Speaker Boehner can take credit for navigating his plan through the House, which forced the president to abandon his attempts to jam new taxes into the final agreement. Senate Majority Leader Reid will take a share of the credit even if it appears that the GOP negotiated directly with the White House throughout Saturday and Sunday, with Vice President Biden a bigger part of the negotiations than anyone realized or anticipated.

And the president, with his bully pulpit, will take and get credit.

Grover Norquist will get credit for setting the agenda: No new taxes. His importance in budget issues will grow. The tea parties will be emboldened but at the risk of continued defections among independent voters who have been turned off by the inflexibility of many tea party-backed House members.

Perhaps only the liberals in the House Democratic leadership will not be able to crow.

Oh, we the people can’t crow. We have seem our retirement accounts drop and we may still see a downgraded debt rating resulting in higher interest rates. We the people need to keep Washington on a shorter lead.

(Taken from an article in Politico, July 31, 2011)

About Radnor Reports

Ken Feltman is past-president of the International Association of Political Consultants and the American League of Lobbyists. He is retired chairman of Radnor Inc., an international political consulting and government relations firm in Washington, D.C. Know as a coalition builder, he has participated in election campaigns and legislative efforts in the United States and several other countries.
This entry was posted in Balanced Budget amendment, Congress, Federal budget, Ken Feltman, Ken Feltman at Politico, National debt, Politics, President Obama and tagged , , , . Bookmark the permalink.

5 Responses to Debt deal: Winners and losers

  1. j gordon says:

    I will never vote for a democrat again . NO REVENUE – NO VOTE.

  2. Al Raymond says:

    Got to admit it. You were right here and in the other things you publish. When you wrote that China and others wouldn’t dump the dollar because they had no where else to go, I was a skeptic. But today I see the interest rate on US debt has been going down and down. The US is still the best place to go.

  3. I M A Debt Wiz says:

    When you have the far left liberals squawking and the right wing nuts screaming, it must be a good deal for all of the rest of us.

  4. Biloxi Boy says:

    You snuck in that last line about our debt being downgraded. Republicans used that like the sword over our head. But it did not work. The Republicans are pathetic.

  5. Big D for Democrat says:

    You are wrong to suggest a downgrade. Even with the hostage taking Republican Tea Party, Obama got the ceiling raised. Ha! That’s all it will take. Another loss for the Republican Tea Party bunch. Wait till next yerar when you are all voted out.

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