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Republican Cantor opens door to tax hikes
Reuters via Yahoo ^ | July 6, 2011 | Andy Sullivan and Jeff Mason

Posted on 07/06/2011 12:38:25 PM PDT by 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.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Extended News; Government; US: Virginia
KEYWORDS: 112th; bho44; cantor
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1 posted on 07/06/2011 12:38:28 PM PDT by BradtotheBone
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To: BradtotheBone

Jerk.

Let the house of cards fall.

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


2 posted on 07/06/2011 12:39:52 PM PDT by Westbrook (Having children does not divide your love, it multiplies it.)
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To: BradtotheBone
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......

3 posted on 07/06/2011 12:40:19 PM PDT by b4its2late ("Pray for Obama. Psalm 109:8")
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To: BradtotheBone

Cantor going wobbly? What else is new?


4 posted on 07/06/2011 12:40:29 PM PDT by Virginia Ridgerunner (Sarah Palin has crossed the Rubicon!)
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To: 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.

"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"!
5 posted on 07/06/2011 12:40:59 PM PDT by arderkrag (Georgia is God's Country.----------In the same way Rush is balance, I am consensus.)
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To: BradtotheBone

This doesn’t sound all that ominous to me.

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


6 posted on 07/06/2011 12:42:45 PM PDT by RockinRight (If we're "teabaggers" then they're "d-baggers.")
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To: BradtotheBone

Another one bites the dust.

X Cantor out. Gone. So long, doofus.


7 posted on 07/06/2011 12:42:51 PM PDT by TribalPrincess2U (I pledge allegiance to the flag of the United States of America.. VOTE out the RATS!)
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To: BradtotheBone

NO. NO MORE TAXES. Let the govt default.


8 posted on 07/06/2011 12:43:01 PM PDT by American Quilter (Take back the White House and Senate in 2012--end the Obama Depression.)
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To: BradtotheBone
as President Barack Obama warned the United States could spiral back into recession

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

9 posted on 07/06/2011 12:43:12 PM PDT by lowbridge (Rep. Dingell: "Its taken a long time.....to control the people.")
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To: BradtotheBone
Eric, Eric, Eric....

Your name will live in infamy.

10 posted on 07/06/2011 12:43:12 PM PDT by Paladin2
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To: BradtotheBone

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


11 posted on 07/06/2011 12:43:22 PM PDT by grumpygresh (Democrats delenda est)
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To: BradtotheBone

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

I’m sick of it.


12 posted on 07/06/2011 12:43:45 PM PDT by klb99 (I now understand why the South seceeded)
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To: BradtotheBone
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!!

13 posted on 07/06/2011 12:43:53 PM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
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To: BradtotheBone
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

14 posted on 07/06/2011 12:44:44 PM PDT by LibLieSlayer ("GIVE ME LIBERTY OR GIVE ME DEATH"! I choose LIBERTY and PALIN!)
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To: BradtotheBone
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.
15 posted on 07/06/2011 12:46:11 PM PDT by FrankR (A people that values its privileges above its principles will soon lose both.)
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To: RockinRight

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

LLS


16 posted on 07/06/2011 12:46:39 PM PDT by LibLieSlayer ("GIVE ME LIBERTY OR GIVE ME DEATH"! I choose LIBERTY and PALIN!)
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To: BradtotheBone

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.


17 posted on 07/06/2011 12:47:26 PM PDT by oblomov
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To: RockinRight

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


18 posted on 07/06/2011 12:48:25 PM PDT by scbison
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To: BradtotheBone

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


19 posted on 07/06/2011 12:48:42 PM PDT by boomop1
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To: BradtotheBone
No more games!

Shut the government down!

20 posted on 07/06/2011 12:50:29 PM PDT by walsh
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To: BradtotheBone

Not All Jews Are Smart.(tm)


21 posted on 07/06/2011 12:51:06 PM PDT by NativeNewYorker (Freepin' Jew Boy)
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To: BradtotheBone

Dropping the loopholes to flatten and lower taxes is ok, anything else should get you fired.

Pray for America


22 posted on 07/06/2011 12:51:19 PM PDT by bray (Will the Country Club vote for Palin or Obama?)
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To: RockinRight

I sure don’t see Cantor saying tax increase in this article. Closing loop holes needs to be looked at.


23 posted on 07/06/2011 12:52:53 PM PDT by BubbaJunebug
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To: BradtotheBone
Obama and the democrats are setting the trap and the Republicans are walking right into it. By breaking their no-tax pledge, they are writing the campaign commercials for their opponents in 2012 just ask George H. W. Bush, they are also taking the tax issue off the table as a hammer against democrats. If they attack Obama for supporting tax increases, all he has to do is come back and say it was the right thing to do and even they supported the increases.
24 posted on 07/06/2011 12:53:42 PM PDT by apillar
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To: boomop1
If Cantor gives an inch they will take a mile, the line in the sand has been compromised.
Not sure I agree. He is firm on deficit reduction. In exchange for loophole closing, he wants offsetting tax cuts elsewhere. Looks like he took their talking points they were counting on for the next couple of weeks off the table. Look, there is no way they can pass any kind of tax legislation, even if they wanted, in the next few weeks. The move by Cantor merely keeps them on-subject which is deficit reductions, real cuts. IMHO, of course.
25 posted on 07/06/2011 12:54:52 PM PDT by Tennessean4Bush (An optimist believes we live in the best of all possible worlds. A pessimist fears this is true.)
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To: Westbrook

Unexpected? Did anyone expect the GOP would not raise your taxes...I mean enhance their revenue? I predict we will soon hear the dreaded word when we are about to be sold down the River. “Package”.
Be warned when you hair them start talking about a Package the fix is in. I wonder who will say it first? Normally it is a RAT.


26 posted on 07/06/2011 12:56:10 PM PDT by screaminsunshine (Socialism...Easier said than done.)
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To: apillar

Close loophole and offset with tax cut is a net tax increase?


27 posted on 07/06/2011 12:56:50 PM PDT by Tennessean4Bush (An optimist believes we live in the best of all possible worlds. A pessimist fears this is true.)
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To: grumpygresh
Tell zero to get rid of the earned income tax credit. Also close loopholes for supposed non profits such as Media Matters.

I'm with you on the Earned Income Tax Credit. Has anyone come up with a total number of dollars that one is costing us????? If you're trying to cut the Federal deficit, the first place you should start is to quit paying tax refunds to people who don't pay any income taxes!

My personal belief is that we agree with Obama on the "Shared Sacrifice" concept....meaning that EVERYONE has to pay at least 5% of their income in taxes. That way the tax burden is shared beyond the upper earning 50% of people. The bottom 50% who don't pay any income tax won't lose any sleep if our taxes go up....but if everyone's taxes go up they tend to take it more personally.

28 posted on 07/06/2011 12:57:49 PM PDT by Retired COB (Still mad about Campaign Finance Reform)
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To: Virginia Ridgerunner
Cantor going wobbly? What else is new?

Or setting a trap. From the article....

"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."

So Obama can have his private jet tax, but he has to have an equal tax cut someplace else. But the goal is to balance the budget. And since any tax increase must under Cantor's law be compensated with a tax cut the only way to balance the budget is with spending cuts. And Obama won't do that. So it allows Cantor to look reasonable, but in reality still forcing Obama to agree to no "net" tax increases and large spending cuts.

Obama won't cut spending in any meaningful way so we still hit the cap like a ton of bricks. And that is actually what I want to see. As that is the only thing that might bring about real spending cuts.
29 posted on 07/06/2011 1:00:11 PM PDT by GonzoGOP (There are millions of paranoid people in the world and they are all out to get me.)
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To: BradtotheBone

I support raising taxes if coupled with hell freezing over.


30 posted on 07/06/2011 1:00:14 PM PDT by OrangeHoof (Obama: The Dr. Kevorkian of the American economy.)
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To: BubbaJunebug

What constitutes a loophole? If you “close a loophole,” you increase taxes, i.e., revenue. The is the same difference as calling an illegal alien an undocumented worker. Playing word games may fool some people, but it won’t fool the Tea Party. If the Reps cave, we need a third party. We may lose in the short run, but it is the only way we can break the stanglehold of the current one party establishment with two wings.


31 posted on 07/06/2011 1:00:28 PM PDT by kabar
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To: scbison

Which is exactly what he’s saying.

I certainly understand cynicism re: Cantor, as he’s reliably wimped out in the past—but what he’s saying so far is reasonable.


32 posted on 07/06/2011 1:00:37 PM PDT by 9YearLurker
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To: Tennessean4Bush

I agree with that. Actually, close every tax loophole that exists. Why settle for a few items.

Congress should go line by line through the tax code and fix it. Seems like the only two people who have read the tax code is Ryan and Cantor.


33 posted on 07/06/2011 1:01:14 PM PDT by EQAndyBuzz (As long as the MSM covers for Obama, he will be above the law.)
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To: BradtotheBone

Stupid move, but I expected no less.


34 posted on 07/06/2011 1:02:41 PM PDT by b4its2late ("Pray for Obama. Psalm 109:8")
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To: All

The overall most important aspect to all of this is that IT MUST BE FRONT LOADED.

Do not come back to us celebrating some deal with $4 TRILLION over 10 years, and the FIRST YEAR’S CUT IS 20B. Any GOP congress member who comes back with that gets primaried. Period!

NO MORE BS. FY 2012 must be a 400B cut, minimum!


35 posted on 07/06/2011 1:06:47 PM PDT by Owen
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To: EQAndyBuzz
Congress should go line by line through the tax code and fix it.

I'd suggest that they start over and replace it with the Fair Tax.

36 posted on 07/06/2011 1:06:50 PM PDT by Retired COB (Still mad about Campaign Finance Reform)
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To: BradtotheBone

Oh, Cantor, we hardly knew ye.


37 posted on 07/06/2011 1:19:23 PM PDT by OldNewYork
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To: BradtotheBone

Wouldn’t read too much into this comment, yet!!!!

Depends on what he means by “loop hole”. If it means something similar to eliminating ethanol, wind, and solar energy subsidies; I’m all for it.


38 posted on 07/06/2011 1:19:25 PM PDT by SeaHawkFan
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To: BradtotheBone
As usual, certain FReepers don't read further than the very misleading headline. Cantor says nothing about tax hikes, and I doubt the rest of the Republicans would go along with any hikes.

Yahoo via AP editor is a disturber.

39 posted on 07/06/2011 1:23:51 PM PDT by muleskinner
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To: EQAndyBuzz
Actually, close every tax loophole that exists. Why settle for a few items.

Give me some examples of tax loopholes. Mortgage interest? Depreciation? I guess the federal government has a right to every cent we make. They just must decide who to take it from, how much, and when.

40 posted on 07/06/2011 1:26:18 PM PDT by kabar
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To: muleskinner
s/b Reuters via Yahoo

Rueters can be as bad as MSNBC, and is in this case.

41 posted on 07/06/2011 1:27:23 PM PDT by muleskinner
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To: kabar
Give me some examples of tax loopholes. Mortgage interest? Depreciation? I guess the federal government has a right to every cent we make. They just must decide who to take it from, how much, and when.

Those would be deductions, not loopholes. Tax loopholes tend to be flaws in the wording of the new law. Also they can be waivers given to a select group allowing them to avoid a tax that the general populace has to pay. For example Google, uses a strategy that has gained favor among such companies as Facebook Inc. and Microsoft Corp. The method takes advantage of Irish tax law to legally shuttle profits into and out of subsidiaries there, allowing them to dodge 3.1 billion in US income tax. For many years it was possible to change the company car to a company SUV and receive a 50% break as a small "Truck" due to a loophole in vehicle classification.
42 posted on 07/06/2011 1:37:23 PM PDT by GonzoGOP (There are millions of paranoid people in the world and they are all out to get me.)
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To: BradtotheBone

I know it is fashionable around here to spout the knee jerk “RINO” and “screw the Republicans it is time for a third party” comments but for a moment can we focus on what Cantor ACTUALLY said:

“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 SOMEHWERE ELSE.”

My Translation: “Sure dems, we will give you some face saving loophole closures so you can claim victory but it will cost you meaningful tax cuts that actually help business.”

The funny thing about our tax code, ok not so funny, is that it is full of “loopholes” that were nothing more than special interest pork in disguise. If they want to close those in the name of saving face, fine. If we can get actual stimulating tax cuts in return, let’s get them.


43 posted on 07/06/2011 1:40:39 PM PDT by FlipWilson
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To: ClearCase_guy

I agree with you 100 per cent. Feel sorry for those newly 2010 elected enthusiastic-for-the-Constitution House Reps. And newly elected in 2010 Senators. They are seeing that many of us out here are getting “DONE” with the ones caving and not adhering to the will of their constituents.
If they cave on taxes, I hope we have many new people getting into the House and Senate races for 2012. I can dream, can’t I?


44 posted on 07/06/2011 1:52:38 PM PDT by jinglethosekeyes (The more we know, the worse we will be if BHO wins)
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To: ClearCase_guy

I agree with you 100 per cent. Feel sorry for those newly 2010 elected enthusiastic-for-the-Constitution House Reps. And newly elected in 2010 Senators. They are seeing that many of us out here are getting “DONE” with the ones caving and not adhering to the will of their constituents.
If they cave on taxes, I hope we have many new people getting into the House and Senate races for 2012. I can dream, can’t I?


45 posted on 07/06/2011 1:52:47 PM PDT by jinglethosekeyes (The more we know, the worse we will be if BHO wins)
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To: ClearCase_guy

I agree with you 100 per cent. Feel sorry for those newly 2010 elected enthusiastic-for-the-Constitution House Reps. And newly elected in 2010 Senators. They are seeing that many of us out here are getting “DONE” with the ones caving and not adhering to the will of their constituents.
If they cave on taxes, I hope we have many new people getting into the House and Senate races for 2012. I can dream, can’t I?


46 posted on 07/06/2011 1:52:47 PM PDT by jinglethosekeyes (The more we know, the worse we will be if BHO wins)
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To: kabar

I consider tax loopholes those little things that people use tax attorneys for. I don’t consider interest on mortgage a loophole. I do consider taking an empty basement and writing it off as a office a loophole. I don’t consider taking the tax break on a yacht a loophole. But I do consider moving that yacht to another state to claim the tax break a loophole(ala John Kerry)

There are over 67,000 pages in the tax code. I am willing to bet that 99% of that you and I will never see in our lifetime. if you play by the tax code, you shouldn’t have a problem with any of this, rich or poor. However, if you are trying to circumvent the tax code with attorneys playing legal games based on changing of a word or phrase, heck yes that should be closed.

I have no clue how much revenue this would generate. And the president randomly selecting industries for this because it sounds good to the base is not the answer. And I would believe that any “rich mans” tax loophole that they do close probably has been superseded with something else and this will have no impact on anyone. But it sounds good and I doubt the media is going to take the time and peruse 67,000 pages to find what that would be.

Unless it was a republican.


47 posted on 07/06/2011 1:53:30 PM PDT by EQAndyBuzz (As long as the MSM covers for Obama, he will be above the law.)
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To: BradtotheBone

Ball-less and spine-less...not a one of all the politicians in D.C. have them..... =.=


48 posted on 07/06/2011 2:02:23 PM PDT by cranked
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To: LibLieSlayer
Calm down before you suffer a coronary. ;-)

Any improvement in your business?

49 posted on 07/06/2011 2:03:44 PM PDT by verity (The Obama Administration is a Criminal Enterprise.)
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To: BradtotheBone

Republican Party - a defunct American political party which voted itself out of existence in 2011.


50 posted on 07/06/2011 2:05:46 PM PDT by Buckeye McFrog
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