Pretty clear now that the deal isn't about revenue at all - its about politics. Even though Boehner and the squishy house republican leadership agreed to $800B in tax increases that Beeho wanted during the campaign, it is through limiting tax deductions and not rate increases. Beeho is demanding rate increases - or no deal - and no specified spending cuts or entitlement reform. He refuses to negotiate, letting the media be the negotiator for him.

Although by most measures in a negotiation, Boehner is being "reasonable", he continues to play by traditional rules and is utterly losing the game. Beeho is 100% about power politics, all the time - and this is no different. Most of the media will give Boehner no credit for being reasonable, and we will go over the cliff. The house republicans will own the blame. It seems to me that given Beeho's approach, there are really only two responses:

1. Let Beeho's plan pass and let Beeho own the results. Although the media will somehow try to hang that on the republicans, I don't see that as successful if the republicans vote "present" and nothing more.

2. Pass the Bush tax cuts in the house, send to the Senate, and go home. They will get blamed anyway, might as well get blamed while staking out your position. That is, if there aren't going to be negotiations then defend your position and principles and let the chips fall where they may.

The republicans still need to figure out they need to play 100% hardball if they are going to have any future at all. With Boehner's approach, there will be great bloodletting in the republican party and look for a change in many seats in 2014. Maybe ultimately thats what had to happen.

Singlestack