"If any Republicans thought that President Obama would respond with magnanimity in victory, they now know better. He is determined to rout them on taxes, give as a little as possible on spending, and blame them for any economic damage in the bargain. The question for the GOP is how to minimize the harm to the economy, as well as to their chances of a political and policy comeback in 2014 and beyond. ...

"Mr. Obama wants to give the appearance of a looming fiscal crisis because it serves his political interest in spooking Republicans to give him everything he wants. He's pressing so hard for tax rate increases not because they will bring in much revenue but because he wants GOP tax cover for Democrats in 2014 and to get Republicans to concede that tax rates must rise. Once he pockets that, he'll be back by more. 

"Republicans need not play along, and they and the country will suffer if they do. Above all, they need to start negotiating as a team with Mr. Obama and stop making premature concessions for the TV cameras that only make the White House less likely to meet them half way."

“[On] December 7, 1941 – a date which will live in infamy – the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan. … 

"No matter how long it may take us to overcome this premeditated invasion, the American people in their righteous might will win through to absolute victory.

"I believe that I interpret the will of the Congress and of the people when I assert that we will not only defend ourselves to the uttermost, but will make it very certain that this form of treachery shall never again endanger us."

"If the fiscal cliff talks make Lindsay Lohan look like a productive member of society, perhaps it's because President Obama and John Boehner are playing by the dysfunctional Beltway rules. The rules work if you like bigger government, but Republicans need a new strategy, which starts by exposing the rigged game of 'baseline budgeting.' 

"Both the White House and House Republicans are pretending that their goal is 'reducing the deficit,' which they suggest means making real spending choices. ... 

"Here's the reality: Those numbers have no real meaning because they are conjured in the wilderness of mirrors that is the federal budget process. Since 1974, Capitol Hill's 'baseline' has automatically increased spending every year according to Congressional Budget Office projections, which means before anyone has submitted a budget or cast a single vote. Tax and spending changes are then measured off that inflated baseline, not in absolute terms. ... 

"If Republicans really want to slow the growth in spending, they need to stop playing by Beltway rules and start explaining to America why Mr. Obama keeps saying he's cutting spending even as spending and deficits keep going up and up and up."

"With their enthusiastic backing of President Obama and the Democratic Party on Election Day, the bluest parts of America may have embraced a program utterly at odds with their economic self-interest. The almost uniform support of blue states’ congressional representatives for the administration’s campaign for tax 'fairness' represents a kind of  bizarre economic suicide pact. 

"Any move to raise taxes on the rich — defined as households making over $250,000 annually — strikes directly at the economies of these states, which depend heavily on the earnings of high-income professionals, entrepreneurs and technical workers. In fact, when you examine which states, and metropolitan areas, have the highest concentrations of such people, it turns out they are overwhelmingly located in the bluest states and regions."

"Republicans will cave on the question of raising the tax rate for the highest-income Americans. The only question is whether they do so before or after the government goes over the so-called fiscal cliff. 

"First, many in the GOP do not believe that raising the rate on top earners from 35 percent to 39.6 percent (the rate before the Bush tax cuts) would seriously damage the economy. Second, they know that most Americans approve of higher taxes on the top bracket, and President Obama, having campaigned and won on that platform, seems dead-set on higher rates. Third, they fear that if the government does go over the cliff and Democrats propose re-lowering taxes for everyone except the highest earners, Republicans would be in the impossible position of resisting tax cuts for 98 percent of the country on behalf of the top 2 percent."

"Republicans underestimate their ability to win the fiscal-policy argument in the public arena. If everyone's taxes go up, voters will instinctively blame the party of higher taxes. Mr. Obama has spent two years hammering the country about the fairness of redistribution -- but Republicans have inoculated themselves against additional demagoguery by conceding and proposing that the rich pay more. 

"The president's broader fiscal argument is even weaker. He demands new stimulus spending, abandons deficit reduction and serious entitlement reforms, double-counts previously enacted savings, and labels tax increases as a balanced approach. Republicans can win this debate and gain further negotiating leverage if they are willing to try."

"[T]he most frightening aspect of the White House proposal is that it wasn't an error. Perhaps the proposal was thoroughly calculated. This suggests a president who doesn't care about the outcome of the cliff negotiations -- who thinks that he wins politically no matter what. He's betting that either the GOP will be far more responsible than he is and do anything to avert a crisis, or that the cliff gives him the tax hikes his partisans are demanding. Win-win, save for the enormous pain to average families across the country."

"With a chip on his shoulder larger than his margin of victory, Barack Obama is approaching his second term by replicating the mistake of his first. Then his overreaching involved health care — expanding the entitlement state at the expense of economic growth. Now he seeks another surge of statism, enlarging the portion of gross domestic product grasped by government and dispensed by politics. The occasion is the misnamed 'fiscal cliff,' the proper name for which is: the Democratic Party’s agenda."

"Whatever resolution is achieved for the Fiscal Cliff will probably make very little difference to the long-term trajectory of the U.S. economy. What does matter desperately is entitlement reform, controlling the growth of health-care costs and, ideally, some sort of comprehensive tax reform that could raise a bit more money while being less of a burden on economic growth. Unless these issues are addressed, the Fiscal Cliff debate may monopolize the attention of legislators and commentators, but it will all be a lot of sound and fury signifying very little indeed." 

"The actual liabilities of the federal government -- including Social Security, Medicare, and federal employees' future retirement benefits -- already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure. 

"Why haven't Americans heard about the titanic $86.8 trillion liability from these programs? One reason: The actual figures do not appear in black and white on any balance sheet. ...

"Neither the public nor policy makers will be able to fully understand and deal with these issues unless the government publishes financial statements that present the government's largest financial liabilities in accordance with well-established norms in the private sector. When the new Congress convenes in January, making the numbers clear -- and establishing policies that finally address them before it is too late -- should be a top order of business."