Republicans To Obama On Taxes: Letís Compromise By Not Raising Taxes [View all]
President Obama ran on raising taxes and won. House Republicans ran on not raising taxes, and got to keep their majority. So now the GOP is offering a familiar sounding compromise: lets not raise taxes.
More specifically, Obamas re-election, and the looming expiration of the Bush tax cuts, have made House Republicans prime imperative to preserve the current tax rates on high earners, which Obama campaigned and won on returning to Clinton era levels.
Its a big ask, given the results of the election, and Obamas long-standing pledge to veto legislation that extends all of the Bush tax cuts, even temporarily. Thus, their hopes rest on a vague suggestion that theyll concede higher revenues in a future tax reform agreement with Obama, so long as he drops his demands for higher tax rates and agrees to cut entitlement spending.
This sounds familiar because its broadly speaking the same deficit cutting deal Republicans spent most of this past Congress pursuing one that raises little, if any revenue, let alone revenue from high earners. And early signs indicate that Democrats wont bite.
Because the American people expect us to find common ground, we are willing to accept some additional revenues, via tax reform, House Speaker John Boehner said in the Capitol Wednesday his first major address since Tuesdays election. But the American people also expect us to solve the problem. And for that reason, in order to garner Republican support for new revenues, the president must be willing to reduce spending and shore up the entitlement programs that are the primary drivers of our debt.
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