A few dozen Republicans have joined a bipartisan call to breakthe impasse between President Barack Obama and House Speaker JohnBoehner over taxes for the highest-earning Americans.
|The Republicans signed a letter calling for exploration of “alloptions” on taxes and entitlement programs, a signal that somerank-and-file members are ready to bargain.
|One of the petition leaders, Representative Mike Simpson ofIdaho, says he could accept higher rates for married couplesearning more than $500,000 a year, in exchange for an overhaul ofspending on entitlements such as Medicare.
|Separately, Representative Kay Granger of Texas is endorsingOklahoma Republican Tom Cole's call to extend all tax cuts formiddle-class earners as “just the right thing to do.”
|What unifies these lawmakers is a recognition that Obama'sre-election has strengthened his hand in negotiations aimed ataverting more than $600 billion in automatic tax increases andspending cuts set to take effect in January. The letter'sapproximately 80 signers are half-Republican, half-Democratic,according to Simpson spokeswoman Nikki Watts.
|“It's pretty obvious Obama won the election, and he promised hewas going to raise taxes on the wealthiest,” Simpson said in aninterview. “What Republicans said is, 'We've got to haveentitlement reform.'”
|While it may be an unpalatable trade for both sides, he said,“There's enough sane people left to get it done.”
|A trade-off of higher taxes for entitlement spending cuts wouldrequire Boehner to convince more than 100 of his majority party tojoin House Democrats in approving a deal.
|Representative Steve LaTourette of Ohio says Boehner could getthe 218 votes needed to send a tax increase to the Democratic-runSenate if about 120 House Democrats “buy in” to entitlement cuts,such as raising the eligibility age for Medicare or adjusting theannual Social Security cost-of-living adjustment.
|“You could get enough Republicans to bring it over the line,” hesaid.
|The sentiments of LaTourette, Simpson and allies suggest a patharound the primary obstacle to a deal. It includes Obama'sinsistence on raising tax rates for couples earning more than$250,000 a year with Boehner's approach of curbing taxdeductions.
|Obama, in a Dec. 4 interview with Bloomberg Television, said he is“flexible,” so long as tax rates are increased.
|Bloomberg News
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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