Twitter now says GOP concedes it will get ZERO spending cuts in cliff deal. This would be worse than going over the cliff. It would be utterly unacceptable. Better to accept the taxes and defense cuts and bank the AUTOMATIC domestic spending cuts, then go back later to restore defense and cut taxes again. MUCH MUCH better to do it that way than to not achieve the already-automatic levels of spending savings.
To let spending start growing again while also saving the lower tax rates on those who create the least economic growth, but not on the “investor class,” would be the absolute worst of all worlds. The deficit and debt would rise, the economy wouldn’t be any better off (and might be worse), and the principle of fighting tax-rate hikes would be out the window.
If this really is the shape of the deal, it is utterly unacceptable. No deal is better than this.