Something from Mike Allen's newsletter this morning.
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SIREN: Top officials in both parties says chances are increasing that Congress may have to return in the days after Christmas to finish work on a cliff-hanger deal. Christmas is on a Tuesday, and Congress may bring back its city-within-a-city for the last few days of that week -- ahead of the cliff deadline, Mon.., Dec. 31. We had been predicting a deal would pass on Sun., Dec. 23, getting everyone home for vacation. But both sides hardened their positions last week, and we're hearing the Republican inclination to cave has lessened, or at least been postponed.
--Top Republicans claim that the possibility of going over the cliff is more real than ever. And if we're about to go over the cliff, both sides will want to look like they're working: They can't be off skiing if we're about to run the risk of a severe economic disruption from nervous markets and exasperated credit raters. Democrats say they're prepared to return if need be, but continue to express optimism a deal can be done by Christmas. Dems contend that talk of returning by Christmas is partly a bluff by Republicans to stave off rising chatter they will cave on rates.
PLAYBOOK FACTS OF LIFE: With many top Republicans convinced that the politics of going over the cliff to protect tax rates for the wealthy is bad politics, the White House has begun to hear from Republicans on the Hill, on K Street and the business community looking for a way out. It's unclear whether these are sanctioned entreaties, or whether they were emboldened by Rep. Tom Cole's suggestion that his party would be better off extending the tax cuts for at least the 98%. But there are cracks in the GOP coalition. A top Democratic aide emails: "Thus far, not one Dem has said we need to get off rates. But Repubs are all over the place."
--A top Republican emails: "K Street prefers [giving on] rates to preferences. But Republican political operatives -- campaign people -- DO NOT see going over as bad politics. Their view is that Rs win a fight over the President's unwillingness to reform entitlements in a meaningful way. Their evidence is exit polling showing a preference for smaller government. Your point is not wrong: There some cracks. But they are relatively minor. The foundation remains solid." |
