GREAT FALLS – U.S. Sen. Max Baucus said Friday that the deficit supercommittee is still talking about raising tax revenue despite an assertion from House Speaker John Boehner that such hikes are not an option, and believes the panel is confident it can reach a deal on a messy issue.
Baucus, a Democrat, told The Associated Press that Republicans on the panel, some of whom Boehner appointed, have not closed the door on some sort of tax increase as long as it is attached to larger spending cuts. He said the panel is confident that a bipartisan deal can jumpstart the economy by providing hope that Washington D.C. will deal with budget problems and infighting.
The supercommittee has until Thanksgiving to approve $1.5 trillion in 10-year budget savings through some combination of spending cuts or tax increases. If Congress doesn’t approve at least $1.2 trillion in debt reduction by Christmas, automatic spending cuts will be triggered, affecting hundreds of government programs.
The 12-member bipartisan panel was created last month as part of a compromise that avoided a threatened government debt default. The president subsequently asked Congress to find another $447 billion in savings to pay for his jobs initiative.
But Baucus said the group of leading House and Senate members is so far not addressing the president’s request, although indicated it could come up later as the jobs plan develops and after the president delivers more specific deficit reduction ideas Monday.
“It has not come up at all when we talk in our group,” Baucus said of the president’s call for more cuts to pay for the jobs plan. “I think it is because we are so focused on our mandate.”
Baucus said he is focused on cutting through partisanship that surrounds proposed increases to tax revenue. He indicated a plan favored by Democrats to raise taxes on higher income earners could be a difficult sell, and said a bipartisan deal removing some tax credits and deductions may be more feasible.
“I believe in addition to the spending cuts, there has to be revenues raised,” Baucus said.
Past debt-reducing compromises have been mired in Republican opposition to raising taxes and Democratic refusal to cut key benefit programs. The panel has been told by nonpartisan staff that the magnitude of the deficit reductions will mean that voters will have to either pay more for government or accept less in services.
Baucus said Republicans have so far been receptive that some sort of revenue increase needs to be included.
“It is clear to me that revenue is not at all off the table,” Baucus said. “No one has said no to me when I have asked, ‘if in addition to significant budget cuts would you agree to increasing revenue?'”
Baucus, like some others, said he thinks the panel should shoot higher than even $1.5 trillion to send a message to America that Congress can get its act together.
“If we can reach an agreement, that in of itself will be a boost to the country and the economy,” Baucus said.