Democratic and Republican leaders appeared Sunday to draw closer to
reaching a compromise on keeping the country from going off the
fast-approaching “fiscal cliff” -- with closing tax loopholes for America’s
highest earners emerging as the potential middle ground.
Republican Sen. Bob Corker suggested that getting more revenue from the
country’s highest-earners should be part of the mix but only by closing
loopholes, not increasing taxes, and only if Democrats agree to cut federal
spending.
"I am optimistic," Corker said on "Fox News Sunday."
"I think there is the basis for the deal.”
The Tennessee senator also said party leaders could find likely
compromise on generating revenue but the real challenge will be cutting back on
such government programs as Social Security and food stamps, known as
entitlements.
Economists and others warn the country could go over the fiscal cliff in
January when tax cuts for many Americans expire while nearly $1 trillion in
federal cuts begin.
The automatic, across-the-board cuts are the result of Congress and the
White House failing to compromise on a more measured way to cut the federal
deficit.
Congress is under pressure to reach a deal in its so-called lame duck
session because an estimated $600 billion in federal spending cuts and tax
increases take effect at the end of December. And President Obama has invited
congressional leaders to the White House on Friday to discuss the issue.
The president wants to extend tax cuts for families that make less than
$250,000 annually.
New York Democratic Sen. Chuck Schumer said Sunday he agrees with House
Republicans who steadfastly say more cuts to federal spending are needed.
However, he disagreed with the idea that tax cuts result in deficit reductions
and increased government revenue.
“It doesn't make sense,” he said on
NBC's "Meet the Press. “I call it Rumpelstiltskin, after the gnome who
turned straw into gold. It's a fairy tale.”
David Axelrod, a top adviser on Obama’s reelection campaign, said he was
encouraged by House Speaker John Boehner signaling willingness last week to
close the loopholes to help cut the deficit.
“I think there are a lot of ways to
skin this cat, so long as everybody comes with a positive, constructive
attitude toward the task,” he said on CBS's "Face the Nation."
A similar plan was suggested by the commission created by Obama and led
by Republican Alan Simpson and Democrat Erskine Bowles.
Democrat Kent Conrad, chairman of the Senate Budget Committee also
expressed optimism but suggested Congress agree on plan that would at least
give lawmakers enough time to reach a more comprehensive deal to overhaul the
entitlement program and the tax code.
"You can't settle every detail in these next few weeks,” he said on
Fox. “What you can do is agree on a
framework.”
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