GOP: Obama once backed our loophole plan
Turns out that President Obama once backed the idea of raising more government revenue by closing tax loopholes rather than by raising tax rates.
Congressional Republicans are flagging this Obama comment from 2011: "What we said was give us $1.2 trillion in additional revenues, which could be accomplished without hiking taxes -- tax rates -- but could simply be accomplished by eliminating loopholes, eliminating some deductions and engaging in a tax reform process that could have lowered rates generally while broadening the base."
In current negotiations to avoid the "fiscal cliff," Obama backs higher tax rates for the wealthy, specifically by eliminating the George W. Bush-era tax cuts for Americans who make more than $250,000 annually.
House Speaker John Boehner, R-Ohio, has pitched a plan that raises revenues by closing loopholes and eliminating or reducing certain tax deductions. "There is a middle ground solution that can cut spending and bring in revenue without hurting American small businesses," Boehner said.
Obama and aides say the GOP plan won't raise nearly the $800 billion over a decade that it claims, at least not without eliminating popular deductions such as the ones on charitable contributions and home mortgage payments. "When you look at the math, it doesn't work," Obama told Bloomberg Television on Tuesday.
Said a statement from Boehner's office: "It's a solution President Obama himself once supported. If the math worked in 2011, why doesn't it work today?"
Both parties are seeking to avoid the "fiscal cliff," the series of tax increases and budget cuts that take effect in 2013 without a debt reduction agreement.
White House spokesperson Amy Brundage responded:
"As you saw Erskine Bowles say this week, a lot has changed since we were negotiating with Speaker Boehner in 2011, including an election in which the American people spoke on the need for a balanced approach that protects the middle class and asks the wealthiest Americans to pay slightly higher tax rates.
"Moreover, even in the 2011 negotiations Speaker Boehner agreed that if tax reform did not work out then there would be decoupling with the middle-class tax cuts made permanent and the rates for high-income households rising.
"Since the 2011 negotiations we have taken a hard look at the numbers and the math and there's simply no plausible and desirable way to achieve the kind of deficit reduction we need without hurting our economy and sticking it to the middle class unless we ask for slightly higher rates for the wealthiest individuals. The math simply doesn't add up.
"We are willing to do tough things and compromise to find a solution here. But the fact remains that there's one thing standing in the way of achieving a deal and that's the Republicans' refusal to ask for slightly higher rates for the wealthiest individuals. We are hopeful that they'll come to the table on this so we can find a solution that has balance and is good for the economy."