DEFICIT ISSUE:A LEADING Republican lawmaker would not rule out tax increases yesterday if they fostered economic growth, adding that "everything is on the table" for a US congressional panel charged with forging a deal to cut the deficit.
Representative Dave Camp, head of the tax-writing Ways and Means Committee in the House of Representatives, said the deepening global financial crisis would prompt him and other “super committee” members to pull together.
Asked what pressure the economic turmoil put on the committee, he said: “It does add an importance to what we are trying to do. It makes the stakes even higher.” Mr Camp, who was named on Wednesday to the new special deficit reduction panel, voiced optimism that the group of six Republicans and six Democrats would reach agreement.
Mr Camp’s fellow Republicans have stood firm against raising taxes to reduce the deficit, arguing that higher rates would harm an already fragile economy.
They also have resisted efforts to end special-interest tax breaks, such as a tax credit for ethanol producers, outside the context of a broad tax reform.
Mr Camp declined to detail what he would consider.
On Wednesday following his appointment to the panel, Republican Senator Patrick Toomey, a favourite of the conservative Tea Party movement, told reporters that the tax code has “indefensible” special-interest tax breaks that could be considered.
The senator said he was not interested in any large tax increases, that could hurt the economy. – (Reuters)
