Republican Cantor opens door to tax hikes

Reuters via Yahoo ^ | July 6, 2011 | Andy Sullivan and Jeff Mason

[BradtotheBone]

WASHINGTON (Reuters) - A top Republican said on Wednesday his party could compromise on taxes as part of a broad budget deal as President Barack Obama warned the United States could spiral back into recession if Congress does not act soon.

Ahead of a Thursday meeting with Obama, House of Representatives Republican Leader Eric Cantor indicated that Republicans could break an impasse over taxes that has held up a deal to avert an early August default.

"If the president wants to talk loopholes, we'll be glad to talk loopholes," Cantor said at a news conference. "Any type of discussion should be coupled with offsetting tax cuts somewhere else."

Cantor's comments open the door to a compromise that would clear the way for Congress to raise the $14.3 trillion debt ceiling before the country runs out of borrowing capacity on August 2.

Failure to act by then could force the United States to default on debt service, retirement payments, or other obligations.

A U.S. default could cause "a whole new spiral into a second recession or worse," Obama told a Twitter town hall on Wednesday.

Cantor declined to say specifically what tax provisions would have to be part of the deal. An aide said possible elements could include an extension of last year's payroll tax break or a research and development tax credit.

[Westbrook]

Jerk.

Let the house of cards fall.

It’s over, and we can’t afford any more of this foolishness.

[b4its2late]

as President Barack Obama warned the United States could spiral back into recession if Congress does not act soon.

And he said we needed the stimulus package to help us recover......

[Virginia Ridgerunner]

Cantor going wobbly? What else is new?

[arderkrag]

WASHINGTON (Reuters) - A top Republican said on Wednesday his party could compromise on taxes as part of a broad budget deal as President Barack Obama warned the United States could spiral back into recession if Congress does not act soon.

"Back into"? By my count, we never really left the first one! We're no longer in a recession - we're in a depression! If anyone but a lib was in office, that's exactly what the press would be saying - "Depression Part II"!

[RockinRight]

This doesn’t sound all that ominous to me.

Basically just politi-speak for “I’ll show you mine if you show me yours.”

[TribalPrincess2U]

Another one bites the dust.

X Cantor out. Gone. So long, doofus.

[American Quilter]

NO. NO MORE TAXES. Let the govt default.

[lowbridge]

as President Barack Obama warned the United States could spiral back into recession

Back into? Have we left the first one? /s

[Paladin2]

Eric, Eric, Eric....

Your name will live in infamy.

[grumpygresh]

Tell zero to get rid of the earned income tax credit. Also close loopholes for supposed non profits such as Media Matters.

[klb99]

Spineless gutless GOP......every time they go toe to toe with O they blink.

I’m sick of it.

[ClearCase_guy]

1) We go further into debt.
2) Taxes go up, and economic activity slows.
3) Obama looks like a leader who can broker solutions to difficult problems.
4) Republicans look weak and incapable of adhering to the will of the people.

Yeah! That's how they do it in Washington! Get 'er done!!

[LibLieSlayer]

I am telling you now... if these lying weasels fail in holding the line... the republican party will have to be killed off... they are already beyond worthless and it is every single republican incumbent in office that is a coward... there is a cancer within those that have been there two or more terms and they must all be voted into the unemployment line.

LLS

[FrankR]

Ya know, the media in this country exhibits their low degree of intellectual acheivement daily...one Republican makes a statement, and they report it like it's the official GOP stance.

I guess it's easier to talk in terms of groupthink than to do any actual research.

[LibLieSlayer]

No... you do not understand... NO MORE BUSINESS AS USUAL OR THERE WILL BE NO MORE repubic party!

LLS

[oblomov]

Just pass a law directing the US Treasury to pay interest on the debt before any other obligations are paid. Then, there is no default.

[scbison]

I agree.. He is talking tax loopholes and I am for getting rid of loopholes as long they is a reduction in tax rates.

[boomop1]

If Cantor gives an inch they will take a mile, the line in the sand has been compromised.

[walsh]

No more games!

Shut the government down!