TPM is reporting that a deal on the budget and debt ceiling may be in the works.
As detailed here, in an article by Lori Montgomery, Obama administration officials say they’ve prepared a major, $4 trillion deficit reduction package to lay out before Republican and Democratic leaders at the White House [Thursday]. This would include significant, unspecified cuts to entitlement spending, but also real new tax revenues — including possibly a partial expiration of the Bush tax cuts.
This mix of substantial cuts to entitlements, which will set off the left, and tax hikes, which will make the Tea Partiers’ heads explode, sounds like an opening salvo to compromise.
So, who stands to lose if it goes through? The Democrats, because we’re so used to seeing them cave? Or would it be the folks who have stood their ground as the water rose up around their knees and refused under any circumstances to consider one penny in tax hikes to anyone at all?
That’s why they call them trial balloons…interchangeable with the lead variety.
[Edited for clarity.]