Republicans Admit They'll Have To Cave On Taxes If Obama Is Re-Elected

Barack Obama

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Republicans are admitting now that they will have to accept President Obama’s tax plan to let the Bush tax cuts expire on income above $250,000, which could stop the gloom ahead of the looming fiscal cliffThe Washington Post rounded up four GOP lawmakers who said they would consider Obama’s re-election a referendum on tax policy, which has been a major point of division between him and Mitt Romney on the campaign trail

“This is a referendum on taxes,” said Rep. Tom Cole (R-Okla.), a senior member of the House Budget Committee. “If the president wins reelection, taxes are going up” for the nation’s wealthiest households, and “there’s not a lot we can do about that.”

Sen. Jim DeMint, a Republican from South Carolina, also said he would expect Obama’s plan to win out if re-elected, but he didn’t think it was because of a mandate for Obama. His reasoning was that looming defence cuts would spur Republicans to act:

“We’re not going to save our defence unless we go along with the president’s wishes to raise taxes on small business,” said Sen. Jim DeMint (R-S.C.), a leader of the tea party movement. “It’s not a good choice. I would never support it. . . . [But] there are enough Republicans, I think, who are so afraid of defence cuts that they would probably give in.

A recent survey of global investors showed that fiscal cliff is their biggest worry, outpacing the European debt crisis for the first time since April 2011.

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