The “Grand Bargain” refers to a yet-to-be-realized agreement between Republicans and Democrats to put the federal government’s finances on a more stable trajectory in which both sides capitulate on long-standing policy positions. For Republicans, that means agreeing to more tax revenues. For Democrats, it means agreeing to reduction in entitlement program benefits.
(Ignore the new “grand bargain” proposed by the president on Tuesday, which called for meager corporate tax reform in exchange for blowing more taxpayer money on the administration’s favorite bad ideas. The offering was a DOA political stunt.)
The “Grand Bargain”—as originally understood—hasn’t happened and it’s not going to anytime soon. A group of eight Republican senators has reportedly been discussing a possible deal with the White House, but similar efforts in the past have gone nowhere and the political landscape remains unchanged: Republicans control the House; Democrats control the Senate and White House. With the 2014 elections looming on the horizon, the House isn’t going to raise taxes and the Senate will continue to be in no hurry to touch entitlements.Details