|O RLY: No new taxes?|
Although we know my politics are proudly liberal, this isn’t a political piece: It’s a game theory piece. House Republicans do not want tax increases of any kind. The White House’s proposal calls for letting the Bush tax cuts expire for all but the top 2% of income earners (who would still receive the same tax cut for the first $250,000 in income). There are a handful of other details to the competing budget plans, but that is the main sticking point.
|Stacks on stacks on stacks|
If Rep. John Boehner and his Republican coalition carry out their bluff of riding us over the so-called Fiscal Cliff just to save tax breaks for the top 2%, he’s pretty much shipping light with 18 big blinds into the president’s 99 big blind stack. I might not call with J9o, but Obama’s pretty much holding AQ or better here. The prospect of going over the Fiscal Cliff and having the public being mad at Democrats is pretty slim. Add to the fact that he’s termed out in four years, and really there’s no political downside to taking America over the Fiscal Cliff. I’m never folding my AQ to a guy who’s clearly shipping light into my 99 big blind stack: I call.