Republicans to Cave?

Rush Limbaugh reported at about 2:00 PM that the New York Times and Politico were claiming republicans were going to cave on the debt ceiling. Boehner, Rush said, tweeted "No deal". Later, he (Rush) said that a principal Congressional assistant confirmed Boehner had called a meeting of the entire republican caucus at 9:00 AM on Thursday, July 22. Later another staffer confirmed that. Still later, Chris van Hollen, a Maryland democrat (what a surprise!) said that yes, a deal was in the offing.

At 2:51 I heard Boehner on the radio. He'd called Limbaugh to say that he was afraid of the consequences if the debt ceiling were not raised. In other words, he blinked. Was he wrong? I think so. He didn't.

Details of the deal are (according to unconfirmed sources) there are $3 trillion in spending cuts over the next ten years and "insignificant" tax increases. One presumes that means the increases are "insignificant". No? I guess we'll see the details (such as they are) tomorrow morning...

Shep Smith was reporting just before 8pm both Obama and Boehner deny there is a deal.
I suspect they're lying.

Of course they're lying. The GOP will cave faster then a cheap suit and Obama will carry the momentum into next years election.

Sometimes I think the Republicans want to fail.

Here's an interesting read on the future of the GOP. I can see this happening as the the rift between moderates and conservatives is growing it seems on a daily basis. The leadership of the party is trying to appease two entities and sooner or later, it's all going to come crashing down around them and while in the long run, I see this as good for America, in the short term, it gives control to the Democrats. The only question is if Republicans can maintain control of the House and off-set some of that Democratic power.

I'm curious Jimmy, do you think Republicans should acquiesce on tax increases, whether it be by raising some taxes or allowing current tax rates to expire?

He's out of town, Aaron.

I think they HAVE acquiesced on taxes. First, Obamacare will raise taxes significantly. If you'll go to WhiteHouse.gov you'll find Obama crowing that rather than the no tax increase factor the republicans are bragging about, Obama says it means the end of the "Bush" tax cuts which would entail, I think you'd agree, a tax hike. The CBO has used the stimulus as the baseline to calculate savings and figures the end of the tax cuts in January, 2013 as the date that revenue increases thus according the savings (i.e., tax cuts equal "negative revenue"). Part of the debt ceiling deal says that if the tax cuts are extended then there is an automatic and equal revenue enhancement. Or as Obama might term it, "a kinetic revenue advantage". Or, as you and I might term it: a commensurate tax increase.

As to your original question, Aaron, even democrats are arguing against the continuation of ethanol subsidies which are a tax loophole that benefits a very narrow slice of the country. Further, it causes upward price mobility in our foodstocks. It is bad policy and, yes, this and OTHER loopholes should be abolished. The tax code should be simplified and applied universally.