Boehner and The President Sitting in a Tree

Word this morning that Congressman John Boehner has asked the President to negotiate with him on the fiscal cliff issues behind closed doors with just the two of them present. This is a positive development or at least could be.

Look The President won reelection. He needs a victory and frankly he has all the cards. No matter what Republicans say he can take us over the cliff and in many ways we would be better off for it. Republicans could never vote against a middle class tax cut that stood independent of the Bush tax cuts, automatic defense cuts would be a blessing in disguise and Republicans would be blamed.

Boehner knows this. Of course for Boehner the Tea Party is the worst friend he has. As in with friends like these who needs enemies. With Limbaugh and other Conservatives urging him to walk away, to not blink, the Speaker at least is wise enough to know that sometimes you have to blink. We would have had a deal a year ago if he had not been beaten down not by Obama but by his own fire throwers.

It is not rocket science. It is clear what has to happen. I have more belief in Boehner's ability to see reality however than I do in the President's ability to use his power. In that regard we may be in a position where no one leads.

I also think it should be noted that a cap on deductions might be the most important thing and one that would raise more revenue than an actual tax rate adjustment. To me it is simple, remove the Bush tax cut for taxable income, not income taxable income, over 200,000, bring the estate, not the death tax, the estate tax back to pre Bush rates, and most importantly count all kinds of income the same for tax purposes thus removing the advantage for carried interest and all the other Romney tricks. 95 percent of Americans would support this and he could easily get this passed the day after we drove over the fiscal cliff.

Mr. President you have all the cards. Don't fold.