In Economic Speech, Boehner Closes Door On Tax Increases

House Speaker John Boehner (R-OH)
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House Speaker John Boehner (R-OH) says the joint deficit Super Committee can’t rely on the tax code for a penny’s worth of its $1.5 trillion deficit reduction target. But as is so often the case when legislators discuss taxes, he left plenty of wiggle room for the panel’s 12 members.

“When it comes to producing savings to reach its $1.5 trillion deficit reduction target, the Joint Select Committee has only one option: spending cuts and entitlement reform,” Boehner told a friendly audience at the Economic Club of Washington, DC.

This is oddly precise language. Boehner’s also argued that the committee should go beyond $1.5 trillion, and reduce deficits by multiple trillion dollars. So what happens beyond $1.5 trillion is unclear.

Because so many Republicans have boxed themselves in with pledges to never raise taxes by a penny, and because some Democrats feel uncomfortable forthrightly acknowledging that they think some peoples’ tax rates should be higher, members speak in a complicated code language. Democrats talk about increasing “revenue,” without saying whether they mean higher rates, or elimination of tax preferences. Republicans put the kibosh on “tax increases,” but are intentionally vague about whether that extends to loopholes, credits, etc.

And Thursday was no different. Boehner said the Super Committee should lay the groundwork for comprehensive tax reform, but left the question of whether that tax reform would be revenue positive in and of itself intentionally vague.

“Yes, tax reform should include closing loopholes. Not for purposes of bringing more money to the government. But because it’s the right thing to do,” Boehner said. However, he added. “Tax increases, however, are not a viable option for the Joint Committee.”

That’s amusing coming from Boehner, who in the same speech said “if we want to create a better environment for job creation, politicians of all stripes can leave the ‘my way or the highway’ philosophy behind.” But it still leaves the endgame unclear. That, as always, will depend first on how flexible Super Committee Republicans are willing to be and whether Super Committee Democrats are ready to withhold their support if their GOP counterparts don’t deliver.

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