In Chattanooga on Tuesday, the latest stop on his economic inequality tour, President Obama made himself an offer he couldn't refuse. If Congressional Republicans agree to a corporate tax increase, he said, then he'll agree to spend more money on his favorite public-works projects. If Republicans bargain hard, will he also offer an expansion of ObamaCare as a sweetener?

We know this sounds like an exaggeration, but that's the essence of what the President proposed as what he called a new "grand bargain." Mr. Obama...