Boehner: Debt panel can start on major tax changes

By David Espo

Associated Press

Published: Thursday, Sept. 15 2011 7:25 p.m. MDT

The presidential limousine is parked in the Georgetown neighborhood of Washington as President Barack Obama attends a private fundraising event, Thursday, Sept. 15, 2011.

Charles Dharapak, Associated Press

Enlarge photo»

WASHINGTON — House Speaker John Boehner urged Congress' deficit "supercommittee" on Thursday to lay the groundwork for a broad overhaul of the U.S. tax code, rejecting Democrats' talk of tax increases but leaving open the possibility the government's take could rise as a result.

Tax increases "are not a viable option" for the committee, Boehner declared in a speech to the Washington Economic Club, ruling out many of the proposals that President Barack Obama is expected to forward to the 12-member panel next week, including some that are part of his major jobs proposal.

Boehner made his remarks as White House officials disclosed that Obama intends to travel to Cincinnati next week as he campaigns for public support of his $447 billion proposal to cut into the nation's 9.1 percent unemployment rate. The political symbolism of the site was unmistakable — an overcrowded bridge that links Boehner's Ohio with Senate GOP leader Mitch McConnell's Kentucky, a span the president has cited as an example of the repair work his jobs program would make possible.

"We are going to run this like a campaign in the sense that we have to take it to the American people," Obama said Thursday, describing the White House strategy to donors at a political fundraiser.

"The Republicans in the House, their natural instinct right now is not to engage in the cooperation we'd like to see," he said.

Separately, White House spokesman Jay Carney said Obama will not recommend any budget savings from Social Security when he releases his recommendations to the deficit-cutting committee next week, despite the president signaling support for that idea in summertime debt-reduction talks with Boehner.

Carney declined to say what, if any, recommendations the president might make to find savings from Medicare.

The day's events underscored the extent to which the committee of 12 lawmakers is likely to be guided by the views of the most senior leaders in both political parties as it tries to develop legislation to reduce deficits by $1.2 trillion or more over a decade.

The panel has almost unlimited authority to recommend changes in federal spending and taxes and is working against a deadline of Nov. 23. It held a closed-door meeting during the day, but officials declined to provide details of what was discussed.

In his speech, Boehner was alternately critical of Obama's economic policies and somewhat conciliatory.

"Businesses are not going to hire someone for a $4,000 tax credit if government mandates impose long-term costs on them that significantly exceed the temporary credit," he said, describing a portion of what the president asked Congress to approve in his jobs program.

"Let's be honest with ourselves," he said. "The president's proposals are a poor substitute for the pro-growth policies that are needed to remove barriers to job creation in America."

The centerpiece of Obama's jobs program is a one-year extension of Social Security payroll tax cuts for workers, expanded to include businesses. He is also seeking other tax breaks, as well as an extension of unemployment benefits, aid to states to permit them to hire teachers and first responders, and construction funding for highways and bridges like the one he intends to visit in Ohio next week.

Asked whether the congressional debt panel might include some of Obama's jobs recommendations in its own work, Boehner said, "I think it's too early to determine whether some of it ends up being the work of the ... committee or whether we do it separately."

Any broad compromise that clears the bipartisan committee is almost certain to require Democratic agreement to savings from benefit programs such as Social Security and Medicare, along with Republican acquiescence to additional revenues, although any such tradeoffs are rarely discussed openly until the last possible moment in negotiations.

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