Closing Tax Loopholes Could be Key to Budget Deal, Obama Says —New York Times, CBS News, and Washington Post, Associated Press

Obama’s New Vision: No Further Increases in Tax Rates; Instead Focus on Eliminating Loopholes and Deductions 

And just last week all the pundits were saying any sort of serious budget deal was dead.   Now, The New York Times, CBS News, and Washington Post/Associated Press report that president Barack Obama said future deals with Congress on the U.S. budget could set aside the option of raising tax rates and, instead, focus on eliminating tax loopholes and deductions to reduce the deficit. “I don’t think the issue right now is raising rates,” Obama said.  Instead, a focus might be on mortgage interest payments and charitable deductions.  Mark Landler at the Times reports: 

President Obama said in a televised interview on Sunday that he could foresee a budget deal in Congress that did not include further increases in tax rates but instead focused on eliminating loopholes and deductions.

Mr. Obama has generally insisted that all revenue options, including higher rates, should be considered to slow the rise of federal budget deficits. But in the interview with Scott Pelley of CBS News, he said, “I don’t think the issue right now is raising rates.”

Having just raised rates on people earning more than $450,000 a year, Mr. Obama said the focus now should be on targeted spending cuts and changes to the tax code, which he said favored the wealthy.

CBS News reports:  

One month after signing into law a “fiscal cliff” deal upping taxes on American families making more than $450,000 a year, President Obama said today there’s “no doubt” additional revenue is needed to bring down the U.S. deficit, but believes lawmakers can do it “without raising taxes again.”

The Washington Post and Associated Press reported yesterday:

President Barack Obama says the U.S can reduce its budget deficit by closing tax loopholes and making “smart” reductions in spending.

 

 

Hope Never Dies: A Budget Deal Still Could Become Reality

 

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