Few signs of progress toward a fiscal cliff deal

“The only thing that would keep us from getting there,” Timothy Geithner said, “is a refusal from Republicans to let rates go up on the wealthiest Americans, and I don’t think they’re going to do that.” “The only thing that would keep us from getting there,” Timothy Geithner said, “is a refusal from Republicans to let rates go up on the wealthiest Americans, and I don’t think they’re going to do that.” Chris Usher/AP
John Boehner and Timothy Geithner both managed to crack smiles during televised interviews about the fiscal cliff on Sunday, and neither man raised his voice or grew visibly agitated.

But nothing else from either the House speaker or the Treasury secretary -- not body language, not rhetoric -- suggested Washington lawmakers are anywhere close to a breakthrough on solving the so-called fiscal cliff before its tax hikes and spending cuts begin to kick in next month.

Geithner, who has played point man for President Obama’s negotiating team with Republicans over the last week, told NBC’s David Gregory that “I think we’re going to get there” and reach a deal. His follow-up suggested that’s less optimism and more a public pressure tactic. “The only thing that would keep us from getting there,” he said, “is a refusal from Republicans to let rates go up on the wealthiest Americans, and I don’t think they’re going to do that.”

That’s exactly how the White House would like the public to view these negotiations: as eminently solvable, and stuck only on pesky upper-income tax rates. Republicans see them very differently, with a heavy emphasis on a need to reduce future government spending to bring down the budget deficit, as Boehner made clear.

“What we don’t know,” he told Fox’s Chris Wallace, “is what’s the president is willing to do” to reduce safety-net spending on programs such as Medicare and Social Security, as part of a debt-reduction package.

Neither Boehner not Geithner hinted at any real policy breakthroughs in the discussions. The interviews were more revealing about negotiating tactics -- specifically, which parts of their hands both men consider to be strongest, and worth pressing.

Geithner and Obama clearly see public support for raising taxes on the rich as their best card. “There's no surprise in this,” Geithner told ABC’s George Stephanopoulos. “We've been proposing this for a very long time. The president campaigned on it.  And I think that's where we're gonna end up.”

Boehner clearly sees the need to raise the federal borrowing limit early next year -- or risk default on debt or non-payment of major government obligations -- as the GOP’s best tool in forcing more spending cuts. “It’s the only way to leverage the political process to produce more change than what it would if left alone,” he said.

Perhaps the most important clues about the state of the negotiations came from what neither Boehner nor Geithner expressed in the interviews. Optimists would note the decided lack of rancor. Pessimists would note the complete lack of new concessions. All of which probably adds up to very little progress, thus far.
Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.