Exclusive: Democrats push tax hikes first in deficit talks

Reuters ^ | Sep 30, 2011 | Richard Cowan and Tim Reid

[mdittmar]

(Reuters) - Democrats want tax hikes to be the first item negotiated in "super committee" deficit-reduction talks, trying to force Republicans to confront an issue at the heart of this year's budget fights, sources told Reuters.

The tough stance by Democratic members of the powerful 12-member congressional panel reflects the party's wariness that Republicans might try to sideline the issue of revenue increases in the negotiations.

"They've raised the idea of doing taxes first," a Republican aide involved in the discussions said on Friday on condition of anonymity.

The panel has the task of finding ways of cutting the U.S. deficit by at least $1.2 trillion over 10 years. If it fails to agree on a plan by November 23, automatic spending cuts will be triggered, beginning in 2013.

If Democrats hold firm to their demand for taxes to be discussed first, that could make it hard for the committee to make the tight November deadline. Congress is due to vote on the panel's recommendations by December 23.

[Go Gordon]

except that portion for grants and scholarships which we’ll return to the states as block grants.

Screw that. No grants and no scholarships with taxpayer money - PERIOD.

[Go Gordon]

Let’s cut oil and bio-fuel subsidies. (See which industry survives).

Just so I understand your point, what subsidies do oil companies get? I am not aware of any.

[Mike Darancette]

I’m using the vernacular of the liberal here; most of what oil gets is deductions allowed any citizen or business. Getting reimbursed for adding ethanol to fuel could be considered a subsidy though. My point is that the bio-fuel industry is not sustainable without subsidies.