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Harry Reid Is Right – I Don’t See How Democrats Won the Fiscal Cliff Fight

Jan. 2, 2013 3:07pm

Will Cain is an analyst for TheBlaze and a contributor to CNN. In his role for The Blaze, he provides commentary and analysis on the 2012 presidential election […]

Will Cain is an analyst for TheBlaze and a contributor to CNN. In his role for The Blaze, he provides commentary and analysis on the 2012 presidential election and other major political events. Cain frequently contributes to a wide range of CNN shows and has also been an analyst for National Review where he hosted the video interview series “Off the Page.” He has interviewed guests such as Sen. Jon Kyl, and UN Ambassador John Bolton, and moderated debates between National Review and The Nation. Prior to hosting and producing, Cain financed, bought and sold two digital and print media companies. Quince Media was a Hispanic media company that garnered Cain the accolade of 40 Most Influential People in the Magazine Industry (Folio 2007). Cain Communications was a community newspaper group in Texas sold to Stephens Media. Cain is a licensed attorney in Texas.

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As we contemplate the winners and losers among the fiscal cliff dealmakers, I’d like to make the case for Harry Reid and the Democrats.

Reid is clearly not the most popular man in Washington. Look no further than the exchange he had with House Speaker John Boehner outside the Oval Office last Friday.

As Politico reported:

It was only a few days before the nation would go over the fiscal cliff, no bipartisan agreement was in sight, and Reid had just publicly accused Boehner of running a “dictatorship” in the House and caring more about holding onto his gavel than striking a deal.

“Go f— yourself,” Boehner sniped as he pointed his finger at Reid, according to multiple sources present.

Reid, a bit startled, replied: “What are you talking about?”

Boehner repeated: “Go f— yourself.”

While Reid was undoubtedly pantomiming Boehner’s proposal, he was being cut out of the fiscal cliff negotiations. The National Journal reported that Mitch McConnell snuck off to the Senate cloakroom to call Joe Biden, saying – in essence – that he was surrounded by fools.

McConnell had just very publicly announced his intention to try to end-run Reid and work directly with the White House. But would it work? After all, Biden had been sidelined by Obama. There had been no contact between the two men for months, despite their history of cutting high-stakes legislative deals. With time running out, McConnell gambled that the White House might let their closer out of the bullpen.

Shortly after his speech, McConnell got a message. The vice president was on the phone for him. He walked off the floor during a rare weekend vote and sat down in a phone booth in the Senate cloakroom.

McConnell voiced his frustration with the stalled talks. He wanted a dance partner, but didn’t have one in Reid. He needed Biden to step in. “There doesn’t appear to be the level of understanding that you have about these negotiations,” McConnell told the vice president. “It’s a lack of experience. Smart people, but they don’t have a good sense of the trip wires.”

Biden and the White House accepted McConnell’s invitation – doing an end-run around Reid – and negotiated a deal with Republicans. One version of the deal, according to Politico, Reid loved so much he “crumpled up the document and tossed it into the burning fireplace of his Capitol office.” Reid described it as a bad deal that would increase Republican leverage in future budget fights.

I think Reid was right.

Many conservatives are going to look at the fiscal cliff deal and see an agreement to raise taxes with no commitment to reduce spending. But I can’t see how that sentence adds up to a win for Democrats.

For years, in every debate about spending cuts – whether centered around the debt ceiling, a government shutdown, or an election – Democrats have responded to demands for spending cuts with calls for raising taxes on the “rich.”

But that tactic is now gone. The Democrats mustered all the political capital and power they had and spent it on raising taxes on 1 percent of the population. Consider that chip, leverage, rhetorical trick spent.

So now, what will Democrats do, what will Democrats say, when Republicans demand spending cuts? In the next two months there will be big fights over the debt ceiling (I’m opposed to using it as leverage – I’ll write more about that later), over a government shutdown, and over the delayed sequester. I’m sure the Democrats will say we need to cut some tax loopholes on the rich and they will focus on defense spending, but none of it has the political power of raising rates on the “rich”.

So how will they run from spending cuts now? Harry Reid may not be popular, but he was right, and I don’t see how Democrats won this fight.

(Front page photo credit: Getty Images)

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Comments (51)

rick20033
Posted on January 3, 2013 at 1:57am
The flaw in this writer’s argument is that it presumes the Democrats will not ask for even HIGHER taxes on the rich in the future. They will. It’s what they do. And as long as the rich ARE rich, the Democrat base and the media (I repeat myself) will say they aren’t paying their fair share. And Boehner (or Cantor, if he replaces him) will pee a little and cave again.

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- Paulhgreenbay
  Posted on January 3, 2013 at 5:17am
  Exactly….The left aren’t cutting anything while King O is in office. Barack is in full on pimp mode now! Obama will rationalize taxing the middle class more because the rich are paying more. Heck, he will probably raise the rich taxes even more. O and the dems aren’t eating us all in one bite.
  
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- zorro
  Posted on January 3, 2013 at 10:43am
  This debt is going to explode in the next few years – this much is clear. And if the Republicans are lucky enough to win the Presidency next election, they’ll be forced to raise taxed on the middle class causing catastrophic political results. Republicans should have let the country fall and Democrats with it. Instead, they’ve given them the green light to keep racking up debt.
  
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- miamisammy
  Posted on January 3, 2013 at 11:57am
  The main flaw in his argument is the he forgets how….
  Obama completely ignored his own bi-partisan debt commission recommendations and paid NO political price for it.
  Obama REFUSED to submit any reasonable budget proposal that HIS OWN PARTY would even vote for, and he paid NO political price for it.
  Obama REFUSED to say whether he approved or denied real-time military action to save our ambassador in Benghazi and paid NO political price for it.
  Obama REFUSED to get behind national gay marriage legislation or the “dream act” for hispanics (while he had super-majorities in congress his first two years) and he paid NO political price for it.
  I could go on and on and on.
  
  Report this comment
- pdw
  Posted on January 3, 2013 at 2:40pm
  O has already said he is going after more tax dollars as he did not get enough. Our spend president, to the tone of over 4 billion in vacations only knows how to spend money, not make money.
  
  Report this comment
Alexandra Stormwing
Posted on January 2, 2013 at 10:31pm
Democrats will win because:

A) Republicans are just “Democrat Light”, and
B) Republicans are spineless, and will cave

I have no faith in those guys. I used to kind of hope they would maybe sort of stand up for the small government thing, hopefully, someday, possibly… But these days? Pfffft. Especially after last night.

At least the Democrats are honest about their erotic fascination with Stalin and Mao. I can respect that, even if I disagree with it.

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- dumpdabums
  Posted on January 3, 2013 at 4:33am
  excellant post >
  
  Report this comment
- kiwi1
  Posted on January 3, 2013 at 7:49am
  Since when are the Democrats honest about anything. If they were honest they would outwardly say what they are….Communists. It’s time for them to take the mask off and admit that. Then we can have the real conversation that needs to be had for the United States. Communism = Slavery vs Capitalism = Freedom.
  
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- dwf1
  Posted on January 3, 2013 at 12:21pm
  We only have “We The People” to blame. For anything to improve we must find a person who we can believe in and support them. Call their office email is not very effective. The elected official most likely won’t answer the phone but be polite so the aide answering the phone will listen. If your Representative is not representing you don’t vote for them next time. Know the issues and support the person not the party. People continue to say we need term limits, they are wrong. We must be informed voters and keep good Representatives in office and get rid of those that think we work for them. But no voters keep returning the same people to Washington. Turn off the computer and idiot box and inform you neighbors. Look at how low the last voter turn out was. If each of us spent one hour a week or even a month informing someone with facts or contacting their Representatives we can make a difference. You don’t need an Ivy League education to be smart just the truth good or bad. People are lazy and it’s hard work but we must work to keep our country. I challenge everyone to give some of their time and or support perusing a greater United States of America.
  
  PS – I have been guilty of ignorance in the past. I started informing myself 12 years ago and the more I learn the deeper the hole seems to be. This last election cycle I volunteered for Ted Cruz. I only gave a few hours but I think it made a difference. I pray and hope he stays conservative and doesn’t fall to the estab
  
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Netsurfer2
Posted on January 2, 2013 at 9:47pm
The whole idea is to sell our nation right out under us! It’s about BO’s anti-colonialism and making sure we will never be strong again! The more debt, the more promise it holds that we will never be even able to protect our selves regardless! Doesn’t anyone see the truth behind the shade that he has put over everyone’s heads? Nothing was gained by this! As the debt becomes more and more you can bet socialism will reign high in our society all the while we lose our freedoms! Spend, spend, spend, tax, tax, tax and all the while not paying down any of the deficit!

You know the drill, now get ready for his revenge to come around and nip you on the behind! I will keep laughing because you voted this way! Your consumer days are coming to an end with nothing to spare!

I predict that many of the well educated will leave America for a better future! With so many less educated on welfare and sucking the government dry, there will be no choice but to abandon ship sooner or later! There is a more valid free society where capitalism holds values! A new poll said that our young here in America is even more rude than ever before! I don’t doubt that!

Our government is pushing us in a direction that will ultimately destroy our country from the inside out! The statistics are easy to see, just read the writing on the wall America!

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TRILO
Posted on January 2, 2013 at 9:32pm
The democrats will not say anything. They have not lost any political capital because the republicans will cave on spending cuts just like they did on the “fiscal cliff” and on everything else. The republicans must think we are complete idiots to believe they will stand for anything. They just played class warfare and INCREASED spending.

The republicans do not have the b@lls not to pass an increase in the debt ceiling and shut down the government. The last time they caved we got the mess we just had to live through. Welcome to the new GOP; a party filled with Liars, Wimps & Losers.

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freeberty
Posted on January 2, 2013 at 9:30pm
Oh, I get it, so if the republicans actually pass everything the democrats want, they are actually out smarting them.

Aren’t they cunning cuns

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MasterJoshua7
Posted on January 2, 2013 at 9:18pm
Hmm, maybe Will’s right but it seems to easy to me. His arguement makes logical sense but the Dems don’t use logical arguements and neither do the people who support them.

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Nemuritoare
Posted on January 2, 2013 at 8:46pm
don’t think for a minute that they’re done coming after more taxes. Obama has already said that any deal on the debt ceiling must “balance” cuts with increased revenue. and we saw his idea of balanced… $1 in cuts for $41 in taxes.

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Ghandi was a Republican
Posted on January 2, 2013 at 7:43pm
How is raising taxes on the “Rich” going to take leverage away from these fools. They will just clamor to tax the rich more in the interest of MORE FAIRNESS.
As far as cutting Obam’s 1.3 Trillion OVERspending, the Democrats will just call it an attack on Grandma and he Grandkids. And the media will repeat anything obama tells them.
Obama ‘won’ 2 elections on spending cuts. Scalpel etc. blah blah bloh. CSPAN CSPAN
Time to call him out. America knows he lied. Call him out and remind them.

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- Chet Hempstead
  Posted on January 3, 2013 at 4:41am
  That’s not how you spell Gandhi.
  
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Nemo13
Posted on January 2, 2013 at 7:39pm
As stated: THE PEOPLE LOSE. I am not interested in the Dem – Rep chess game. I, and I am sure the rest of the intelligent population of the USA want CONSERVATIVES WHO REPRESENT THE PEOPLE NOT THE CHESS GAME! We are going to have to FINALLY understand that bi-partisan DOES NOT EXIST. It is US and the CONSTITUTION against THEM.

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KnightTemplar
Posted on January 2, 2013 at 7:22pm
Will, I see what your saying about the Democrats. So I hope you can see what I’m saying.

My Taxes just went up!!! The Democrats just got more of my money that I work for.

How did they lose again???

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- jimf01
  Posted on January 2, 2013 at 7:46pm
  And the next time around, they have the guaranteed support of their willing accomplices in the media, who will trot out the ‘victims’ of ‘government cuts’, and tell their horrifying stories of how they will suffer. Seniors, if anyone wants to reform entitlements, children, if anyone wants to touch education, etc, etc.
  
  Report this comment
nzkiwi
Posted on January 2, 2013 at 7:15pm
That was a very illuminating analysis, Mr Cain. Thanks very much for that.

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GuruMeditation
Posted on January 2, 2013 at 6:09pm
The people lose.

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TJexcite
Posted on January 2, 2013 at 5:53pm
As always when you have an enemy to blame you never what to beat that enemy and have them go away. Well on that line they got the taxes and that trump card is gone and off the table never to be used again. They can not go back and say tax the rich as they just taxes the rich. It will help in the long game as they say you can’t cut your way to prosperity well they can’t tax to it either they just go that and it did not help in the next 2 months.

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- Nemuritoare
  Posted on January 2, 2013 at 8:33pm
  the problem is Obama will just say, those republicans obstructed, and didn’t let us tax the rich enough. I said everyone above 250000 but they wouldn’t give me that, so he’ll just go back to we need the rich to pay more of their “fair share”. it’s total b.s. but the media will sell it, and the ignorant masses will buy it.
  
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BehindBlueEyes
Posted on January 2, 2013 at 5:39pm
I don’t know who won the fiscal cliff fiasco but I can tell you the American people lost. The government has become a useless money pit that’s morphing into a black hole.

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tommytruck
Posted on January 2, 2013 at 5:29pm
Honestly, you missed it. For all you want to call something a tax “holiday,” we just received an email from HR saying that we are going back up an additional 2% for our SS payroll tax. I don’t care what you call it – that’s a tax increase. But hey, for those struggling to make ends meet – I suppose that extra 50 dollars a week or so weren’t really needed. Hey – they already take the first two hours of my workday – why not take a little more, right? Top 1% my back-end.

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- bumpkin
  Posted on January 2, 2013 at 6:23pm
  If it comes out of a politicians mouth, its a lie.
  
  Report this comment
RabidPatriot
Posted on January 2, 2013 at 5:29pm
All the kings horses and all the kings men couldn’t put America back together again. America has terminal cancer and it’s too late to start a bucket list.

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jfreak13713
Posted on January 2, 2013 at 5:10pm
Its how great empires and nations fail. From within! Everybody believes their was is right but saddly they believe it so much that little gets done except a divided nation with no real media between to help sort through the details. Our country was we once knew or what it once was no loger lives. Nothing will change because its US, the people who are the true problem. We send leaders to Washington. We vote or don’t vote. Most of us has an agenda of some kind that we don’t mind bending the Constitution over to get what we desire or need. Its a lost cause at this point better to gather what you can into the store houses because winter is coming.

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schroeder123
Posted on January 2, 2013 at 5:09pm
Harry Reid has to be the best Perfect annal opening. No hemorrhoids. One of the most untruth telling and lack of integrity individuals I have ever seen. The thought of this slime faced piece of feces representing the human mentally handicapped is a disgrace to all of us.

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- BODYBAG
  Posted on January 2, 2013 at 6:09pm
  Hey did you know there was once an assassination attempt on him?
  http://en.wikipedia.org/wiki/Harry_Reid
  
  “When Jack Gordon, LaToya Jackson’s future agent and husband, offered Reid a $12,000 bribe to approve new games for casinos, Reid brought in the FBI to tape Gordon’s bribery attempt and arrest him. After FBI agents interrupted the transaction, as prearranged, Reid lost his temper and began choking Gordon, saying “You son of a bitch, you tried to bribe me!” Gordon was convicted in 1979 and sentenced to six months in prison. In 1981, Reid’s wife found a bomb attached to the family station wagon; Reid suspected it was placed by Gordon..”
  
  I hate amateurs. Friggin car bomb misfire. The Jackson family cant do anything right.
  
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Canada_Goose
Posted on January 2, 2013 at 5:05pm
Mr. Cain is not much of political analyst, and he doesn’t appear to be very bright either.

First of all if Mr. Reid though it was such a bad deal why did he vote for it. There was more than enough cover for him to vote No on principle.

Second, in future budget negotiations Democrats still have the “elimination of tax deductions” card to play. Which is actually very strong since both Mr. Boehner and Mr. Ryan (and Mr. Romney) have supported this in the past.

In fact the current deal actually sets a precedent for a balanced deficit cutting approach which does not necessarily have to involve an increase to tax rates, there is more than one way to skin an elephant.

C’mon Mr. Cain you can do better than that.

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- Chuck Stein
  Posted on January 2, 2013 at 10:33pm
  “There was more than enough cover for him to vote No on principle.”
  A combined reference to Harry Reid and “principle” is a formula for an oxymoron.
  
  Report this comment
- Canada_Goose
  Posted on January 2, 2013 at 10:58pm
  That maybe true, but the notion that Mr. Reid didn’t think that this was a huge win for the white house and the Democrats is just pure naiveté on the part of Politico & Mr. Cain.
  
  Anytime you can get the Republicans to vote for a tax increase is a huge effing deal.
  
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Silversmith
Posted on January 2, 2013 at 4:53pm
Will you talk about this like the game isn’t rigged, and all the votes get counted. I’m done buying fairy tales. There is no left and right, just the nobility and the peasantry with a lot of empty flowery lip service about freedom.

Can’t swallow this anymore.

Wishing there was a New World, the way America used to be.

Silversmith

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alinskythis
Posted on January 2, 2013 at 4:45pm
Actually, the “F” word is looking better and better, when you think of the entire, utter lack of an iota of compromise on both spending AND tax poaching.

THAT MAN got his wretched trillions, which will be used immediately post-inauguration to “stimulate” his army of unwashed meat puppets.

Just like the ’08 election, those who “helped” by pooping on this country’s Constitution will receive $1,000 checks, government funding for new “charities” and “businesses,” all the best jobs, government or otherwise, and any other kind of “reward” imaginable.

Your taxpayer bucks, “folks.”

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- BODYBAG
  Posted on January 2, 2013 at 6:10pm
  @ALINSKYTHIS
  Posted on January 2, 2013 at 4:45pm
  —- which will be used immediately post-inauguration to “stimulate” his army of unwashed meat puppets.
  —————————–
  LOL
  
  Report this comment
ZAP
Posted on January 2, 2013 at 4:23pm
Republicans are developing a crease from folding so much

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TERM-LIMITS
Posted on January 2, 2013 at 4:19pm
They all need to be limited to no more than 2 terms…. Other than themselves, the only thing they serve are the corporate entities and specialty groups that donate to their campaigns and causes.

PLEASE SIGN AND SHARE THIS PETITION –

http://wh.gov/U5rY

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- CONTUMACY
  Posted on January 2, 2013 at 5:02pm
  Solution
  
  1.Flat tax 10%, no deductions, loopholes, etc. on all income earned.
  2.CUT annual government spending 10% [mandatory], every year until national debt is zero and pass a law requiring a balanced budget from then on.
  3.Coporate tax rate of 15%, also a flat tax rate.
  4.Post troops on our border, giving them a job when they return from abroad, and arm them sufficiently.
  5.Aggressive tariffs on imports to level playing field for US workers.
  6.Eliminate NAFTA.
  7.Deport all know illegal aliens immediately.
  8.Require photo ID to vote.
  9.Remove all EPA regulations on energy production for the next 10 years to allow economy to recover, re-evaluate EPA’s need for existence at the end of those 10 years.
  10.Welfare, food stamps, housing subsidies, Obama phones, gone. New program that requires people to work a 40hr week producing food to feed the hungry in this country first, then the world in order to earn a living until they can support themselves.
  11. Audit the FED.
  12.Return to gold standard.
  13.Get out of UN.
  14.Term limits for the house and senate- 2 terms, no retirement program.
  15.Get morality back into OUR COUNTRY.
  
  Report this comment
- Unix
  Posted on January 2, 2013 at 6:04pm
  Dear Contumacy,
  
  I can get behind that 1000%, your words are shall we say, priceless! This looks like 10 good planks to me. We can add more too!!!
  
  Report this comment
- Nemuritoare
  Posted on January 2, 2013 at 8:41pm
  contumacy… only thing I’d do different is a sales tax instead of an income tax… that would generate revenue from the hidden unreported and illegal income… prostitutes, drug dealers, politicians… they allbuy stuff, they couldn’t hide from the tax…. so taxes could be less… lower rate, broader base.
  
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Nof
Posted on January 2, 2013 at 4:15pm
Have had a lot of respect for Will Cain….till now. He is very naive to believe democrats and the press will allow Republicans any leverage. This was a fiasco….big time, in fact, I can no longer call myself a Republican. They are weak and powerless.

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- jawgee
  Posted on January 2, 2013 at 5:40pm
  I agree. Just because this fiscal cliff deal increase taxes for the “rich”, that doesn’t mean the rich can’t be taxed again at a higher rate. The Dems won’t lose their “chip, leverage, rhetorical trick” until the rich are taxed at 100%. Even then, the Dems might try to have them pay in more by selling off their assets.
  
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Glennda
Posted on January 2, 2013 at 3:24pm
Yea, yeah . . . just wait till next time! Then you’ll REALLY see what we’re made of.
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- 00100111
  Posted on January 2, 2013 at 4:59pm
  Derp derp derp derp derp. Poor little Wango.
  
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