To clarify, not only did Obama win with a 53 percent margin and over 300 electoral votes, but the Democrats also gained two more seats in the Senate. Democratic House candidates received more votes than Republican candidates did, but gerrymandering by Republican state legislatures left them with fewer seats overall.
Accordingly, Democrats must not waver nor fear the so-called “fiscal cliff.” “Fiscal Cliff” is a term used to describe the tax increases and sequestration that will go into effect on Jan. 1. The Congressional Budget Office (CBO) estimates this could plunge the U.S. back into a recession if the scenario is not reversed. However, this is only true if the spending cuts and tax increases go up for the entire year. Two weeks will not cause a recession, but it will vastly increase the bargaining power of Democrats.
Prior to Jan. 1, Congress can choose to extend all the tax cuts, but once the new year arrives, Democrats’ leverage significantly increases. Instead of passing tax cuts for everyone, they can target it toward the poor and the middle class. Republicans might balk at this because the rich are excluded, but being seen holding middle-class tax cuts hostage for the rich would bring them negative publicity.
Even the most moderate of Republicans have said they are willing to limit tax deductions and close loopholes, but are unwilling to raise tax rates for the wealthiest Americans to the rates set during the Clinton boom years. They cling to the anti-tax pledge signed at the beginning of their tenure and refuse to budge or compromise. However, according to a CNN survey, two-thirds of Americans support both spending cuts and tax increases to reduce the deficit. Only one-third support the Republican policy of only spending cuts.
Despite the Democratic victory and the realities of polls, some like House Speaker John Boehner have the gall to say that ObamaCare should be on the table in regards to deficit talks. Never mind that the CBO estimates that ObamaCare will reduce the debt over a decade, the Republicans simply did not win the presidency! The signature piece of the Obama administration’s first term should not be dismantled to placate the losing party. Republicans must stop acting like they have a mandate for their policies. They thoroughly lost this past election, and marginal tax rates for the top 2 percent of Americans must rise 4 percent. Some on the Right may call this socialism, but the American people have another word for this: fairness.
