Cutting Loopholes to Seal Debt Deal?

Republicans have rebuffed Democrats’ calls for any comprehensive deficit-reduction package to close tax loopholes.

Dollar_SignsIn a marked shift, Republicans are now willing to close some tax loopholes as part of a final deal to raise the nation’s legal borrowing limit, House Majority Leader Eric Cantor (R-Va.) said.

But Cantor said that raising taxes was still off limits in negotiations to raise the $14.3 trillion debt ceiling by the Aug. 2 deadline.

“If the president wants to talk loopholes, we’ll be glad to talk loopholes,” Cantor said at his weekly roundtable with reporters. “We’ve said all along that preferences in the code aren’t something that helps economic growth overall. But listen, we’re not for any proposal that increases taxes, and any type of discussion should be coupled with offsetting tax cuts somewhere else.”

Yet Senate Republican leaders balked at Cantor’s new openness to closing the loopholes.

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Source: Felicia Sonmez, Roz Helderman and Lori Montgomery | The Washington post