President Barack Obama’s 2012 re-election campaign ran off the rails today when GOP leaders refused his last-minute demand for $400 billion in tax increases, instead announcing their intention to negotiate a plan with Senate Democrats.

This fallback option may only be a short-term plan to avoid a default by raising the limit on the nation’s credit card; it could be coupled with modest budget cuts of a few hundred billion dollars.

Obama’s favored approach, had it been approved, would have boosted his claims to swing-voters that he is a consensus builder in Washington, and that he is a political moderate willing to approve modest spending cuts.

Boehner refused to agree to tax increases that Obama demanded at the last minute. The increases amounted to $400 billion, Boehner said.

Continue reading →