Republicans Open Door to Eliminating Tax Breaks

By JEFFREY SPARSHOTT And AMY SCHATZ
WSJ

WASHINGTON—Republican lawmakers showed some openness Sunday toward the idea of eliminating tax breaks, a crucial step if lawmakers are to reach an agreement on cutting the deficit and break the current impasse over raising the federal debt ceiling.

Republican Sen. John Cornyn of Texas said lawmakers should close some tax loopholes and eliminate breaks as part of a broader effort to cut rates, though he cautioned that there may not be enough time to include such changes in a budget deal now under negotiation.

"Do we believe tax reform is necessary? I would say absolutely," Mr. Cornyn said on Fox News Sunday.

Republican Sen. John McCain of Arizona rejected the idea of tax increases, but didn't dismiss accepting some "revenue raisers" proposed by Republican Sen. John Kyl of Arizona. In the language of the current budget debate, that phrase tends to refer to eliminating tax breaks or subsidies, while leaving largely intact the marginal rates paid by companies and individuals. Mr. Kyl has been representing Senate Republicans in budget talks led by Vice President Joseph Biden.

Mr. McCain wouldn't elaborate Sunday on which "revenue raisers" he might accept.

(More here.)