Boehner says panel should redo tax code
House leader urges major overhaul
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.
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.
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.
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.
Boehner said the elements of an eventual overhaul of the tax code would be lower rates for individuals and corporations while closing deductions, credits, and special carve-outs.
“Yes, tax reform should include closing loopholes. Not for the purposes of bringing more money to the government. But because it’s the right thing,” he said.