Was the Fiscal Cliff Deal a Republican Capitulation?
National Review's Avik Roy and Ramesh Ponnuru debate the topic.
- On January 3, I published a piece at Forbes.com arguing that Republican passage of the fiscal cliff deal—the American Taxpayer Relief Act—would be "the first of many Republican capitulations in 2013."
- On Twitter, National Review senior editor Ramesh Ponnuru—who has supported fiscal-cliff compromises that raised taxes on high earners—thought my piece was "a bit rich."
- — Ramesh Ponnuru (@RameshPonnuru)Thu, Jan 03 2013 10:35:40@aviksaroy This is a bit rich given that you wanted to let bigger tax hikes take effect w/ no spending cuts. http://www.forbes.com/sites/aroy/2013/01/03/fiscal-cliff-deal-will-be-the-first-of-many-republican-capitulations-in-2013/ …m/sites/aroy/2013/01/03/fiscal-cliff-deal-will-be-the-first-of-many-republican-capitulations-in-2013/
- — Ramesh Ponnuru (@RameshPonnuru)Thu, Jan 03 2013 11:02:06More @QuinHillyer: Federal tax policy today is "better . . . than anything the Gingrich Congress achieved." http://cfif.org/v/index.php/commentary/43-taxes-and-economy/1699-fiscal-cliff-fight-ended-in-a-draw …dex.php/commentary/43-taxes-and-economy/1699-fiscal-cliff-fight-ended-in-a-draw
- I responded by explaining my theory about the fiscal cliff, which is that allowing the tax code to get more progressive will make it politically harder in the future to achieve spending cuts, because proportionally fewer people will be paying for the cost of big government.
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:10:18@RameshPonnuru How so? I want lower deficits, lower spending, and less progressive tax code. Fiscal cliff goes there; ATRA doesn't.
- — Ramesh Ponnuru (@RameshPonnuru)Thu, Jan 03 2013 11:30:22@aviksaroy 1) You complain that taxes are going up when you wanted higher taxes. 2) You use the ridiculous 41-1 figure.
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:38:131) @RameshPonnuru My POV is perhaps unconventional. I believe more progressivity leads to bigger govt. Hence less progressivity more impt...
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:39:172) @RameshPonnuru ...than overall tax revs going up or down. ATRA ups progressivity which weakens political case for future spending cuts.
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:40:45
- — Ramesh Ponnuru (@RameshPonnuru)Thu, Jan 03 2013 11:44:28@aviksaroy Saying Rs have "capitulated" by forcing taxes down from where you wanted, w/o raising spending, is indeed "unconventional."
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:47:421) @RameshPonnuru It's a strategic capitulation because it creates a political environment that is more hostile to spending cuts. But I...
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:48:432) @RameshPonnuru ...do like the permanent fixes to AMT, income tax rates, and CG/div because it ends the short-term accounting gimmickry.
- — Ramesh Ponnuru (@RameshPonnuru)Thu, Jan 03 2013 11:46:53
- — Ramesh Ponnuru (@RameshPonnuru)Thu, Jan 03 2013 11:47:47@aviksaroy My objections would be fixed though w/ no 41:1 and a different headline. Maybe "Rs will keep not following my quirky theory"
- — Avik S. A. Roy (@aviksaroy)Thu, Jan 03 2013 11:50:57@RameshPonnuru Do you believe debt-ceiling gives GOP leverage? That is really the thrust of the piece (that I disagree with that).
- — Quin Hillyer (@QuinHillyer)Thu, Jan 03 2013 11:52:37
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