Democrats’ insistence on ramming Obamacare through Congress is a key ingredient of the dire long-term fiscal outlook. The supposed 10-year “savings” from Obamacare are phony — a matter of timing and “cuts” that will never happen.
Therefore, if I were at the negotiating table, I would insist on rescinding the O-bomanation or taking the equivalent in cuts to Medicare, Medicaid, and/or Social Security. My argument would run like this: Obamacare cost Democrats the House and it has yet to kick in, except in small ways. So, if you Democrats agree to rescind Obamacare — or, to save face, agree to cuts of equal magnitude in Medicare, Medicaid, and Social Security — we Republicans will allow you to take credit for averting a default while undoing a politically poisonous act.
With that out of the way, we can talk about the rest of the deficit-reduction package. I am open to changes in the tax code (e.g. elimination of certain deductions and loopholes), as long as long as total tax revenues do not exceed 19 percent of GDP. You Democrats can choose ways to meet that target with cuts in addition to those I’ve already discussed. Defense is off-limits, but everything else is on the table, including farm subsidies and corporate welfare.
Finally, as a bonus, I’m giving you a chance to sign on to a balanced-budge amendment. You don’t have to campaign in support of it when it goes to the States for ratification, but most of you would reap a political dividend by voting for its passage by Congress.
Don’t say I never did you a favor.