Senate GOP: Willing To Accept Up To $300 Million In Net Tax Increases

Source: Dan Friedman / National Journal

Senate Republicans are willing to accept up to $300 million in net tax increases over 10 years as part of a potential super committee deal, aides said on Tuesday. The Republicans called the move a major concession; Democrats said it was a public relations ruse.

A GOP aide to a super committee member said the “centerpiece of the plan” would be Republicans accepting elimination of tax deductions associated with wealthy Americans in exchange for a permanent reduction reduced marginal tax rates set during the Bush administration.

Republicans said tax deductions for second homes and charitable deductions could be slashed or eliminated as part of the agreement, with Bush tax cuts permanently extended and corporate tax rates possibly reduced. The aide said the deal would likely be worth a total of about $1.2 trillion – the goal the super committee needs to meet to stave off mandatory sequestration under this summer’s Budget Control Act. It includes $700 billion in spending cuts over 10 years, with roughly half from entitlement cuts, the staffer said. The framework would also include savings from increases in government fees – nontax revenue.

Republicans said the ideas reflected discussions between Sen. Pat Toomey, R-Pa., and Senate Finance Committee Chairman Max Baucus, D-Mont., and did not necessarily have backing from a majority of GOP or Democratic committee members.

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