So the bidding has begun.
According to the Wall Street Journal (which got the information from GOP leaders), the President’s opening bid to Republicans is:
— $1.6 trillion in additional tax revenues over the next decade, from limiting tax deductions on the wealthy and raising tax rates on incomes over $250,000 (although those rates don’t have to rise as high as the top marginal rates under Bill Clinton)
— $50 billion in added economic stimulus next year
— A one-year postponement of pending spending cuts in defense and domestic programs
— $400 billion in savings over the decade from Medicare and other entitlement programs (the same number contained in the President’s 2013 budget proposal, submitted before the election).
— Authority to raise the debt limit without congressional approval.
The $50 billion in added stimulus is welcome. We need more spending in the short term in order to keep the recovery going, particularly in light of economic contractions in Europe and Japan, and slowdowns in China and India.