Top Senate Republicans indicated on Sunday they would support the elimination of tax subsidies as part of a deal to lower the deficit and raise the debt ceiling.Sen. John McCain (R-AZ) and Sen. John Cornyn (R-TX) indicated they would support “revenue raisers” as part of an agreement to avert government default — but not tax increases.
“I think it’s clear that the Republicans are opposed to any tax hikes, particularly during a fragile economic recovery,” Cornyn said on “Fox News Sunday.” “Now, do we believe tax reform is necessary? I would say absolutely.”
Their statements offer a path to ending a week-and-a-half-long stalemate in negotiations over the debt ceiling — opening the door for a deal including Obama-administration-demanded cuts to corporate subsidies, while avoiding tax increases long declared off-the-table by Republican leadership.
The Obama administration has stated that a deal must be reached by July 22, in order to be implemented by the default deadline of August 2.
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