NYT PETER BAKER
For President Obama, the fiscal deal pending in the House would finally end four years of debate with Republicans about raising tax rates on the wealthy. But it seemed to reopen a debate within his party about the nature of his leadership and his skills as a negotiator.
While Mr. Obama got most of what he sought in the agreement, he found himself under withering criticism from some in his liberal base who accused him of caving in to Republicans by not taxing the rich more. Just as Speaker John A. Boehner has been under pressure from his right, Mr. Obama faces a virtual Tea Party of the left that sees his compromise as capitulation.
The main difference is that in the Obama era, the Democratic establishment has been less influenced, or intimidated, by the left than the Republican establishment has been by the right. Liberals have not mounted sustained primary challenges to take out wayward incumbents the way conservatives have. All but three Democrats voting in the Senate and 16 in the House supported the compromise on Tuesday, even as most House Republicans balked, giving Mr. Obama more room to operate than Mr. Boehner.
Liberals said Mr. Obama should have capitalized on his re-election victory and the expiration on New Year’s Day of all of the Bush tax cuts to force Republicans to accept his terms.
“The president remains clueless about how to use leverage in a negotiation,” said Adam Green, a co-founder of the Progressive Change Campaign Committee, a liberal advocacy organization. “Republicans publicly admitted they lost the tax debate and would be forced to cave, yet the president just kept giving stuff away.”
Robert B. Reich, the former labor secretary, said that Mr. Obama “has stiffened his tactical resolve” but that “he’s still the same President Obama who wants a deal above all else and seems willing to compromise on even the most basic principle.”
... Many liberals grew more comfortable once they learned more about the deal, and the revolt on Tuesday by House Republicans seemed to rally them behind the plan and against a common adversary.
Mr. Obama succeeded in forcing Senate Republicans to raise the top income tax rate to 39.6 percent from 35 percent despite their adamant opposition, although he agreed to apply that to household income above $450,000, instead of $250,000. He also won an increase in taxes on wealthy estates to 40 percent from 35 percent, though it was not as high as liberals wanted.
Jared Bernstein, a former economics adviser to Vice President Joseph R. Biden Jr., said Mr. Obama had done what he thought he had to, but he expressed concern that the president might have squandered leverage unless he holds firm in the debate over the debt ceiling. Republicans want to use a vote to raise the ceiling to force Mr. Obama to accept deeper spending cuts, but the president has vowed not to negotiate over the borrowing limit.
The bill will extend unemployment benefits for two million Americans; renew tax credits for child care, college tuition and renewable energy production; raise capital gains taxes; and phase out deductions for the wealthy. Mr. Obama also insisted that a two-month postponement of automatic spending cuts be financed by $1 in tax revenue for every $1 in spending reductions.
----Jared Bernstein, a former economics adviser to Vice President Joseph R. Biden Jr., said Mr. Obama had done what he thought he had to, but he expressed concern that the president might have squandered leverage unless he holds firm in the debate over the debt ceiling. Republicans want to use a vote to raise the ceiling to force Mr. Obama to accept deeper spending cuts, but the president has vowed not to negotiate over the borrowing limit.
“While some appear to think his team folded in the cliff debate, I don’t see it that way,” Mr. Bernstein said. “They saw a plausible path forward, and they took it. My point is it’s only plausible if they really don’t get derailed on the debt ceiling debate.”