House of Representatives Loudspeaker John Boehner, in high-profile speech, called on a special congressional "super committee" to consider tax reforms that could close loopholes but not raise rates -- or tax revenues -- included in its bid to cut the US deficit.
Boehner's address towards the Economic Club of Washington was a comprehensive statement of Republican economic principles as Congress works to create down the stubbornly high 9. 1% unemployment rate as well as tame the national debt.
Republicans already have said they don't support many elements of Obama's $447 billion jobs package and can not back the tax increases he has proposed to cover it.
Boehner's comments indicated the bill is unlikely in order to emerge from Congress in anything like its current type.
Even as Boehner said there were some opportunities with regard to common ground, he indirectly criticized the temporary tax breaks that other senior Republicans had said they may support.
Boehner attacked "short-term gimmicks" and said a proposed tax credit for businesses that hire new workers might have little impact if employers were worried about other federal government policies. Washington's energies would be better channeled toward decreasing regulations on business, he said.
"Let's be honest along with ourselves. The president's proposals are a poor substitute for that pro-growth policies that are needed to remove barriers to job creation in the usa, " Boehner said.
Boehner said the newly created "super committee" of congressional Democrats as well as Republicans should try to simplify the tax code to be able to trim at least $1. 2 trillion from annual budget deficits over ten years.
But that overhaul should not bring more revenue towards the government and the committee should focus only on investing cuts and benefit reforms to trim deficits, Boehner stated.
The overhaul should yield a top rate of 25% with regard to both income and personal taxes, Boehner said later upon CNBC, down from their current level of 35%.
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The committee must finish its work by November. 23 and many budget experts say it would be challenged to finish a comprehensive rewrite of the tax code at that time. But the panel could lay out the broad describes of tax reform and instruct other lawmakers to fill in the details later on.
Republicans and Democrats broadly agree on the need to eliminate a few of the loopholes and exemptions that cost the government about $1 trillion in lost revenue every year.
But they disagree about the details -- particularly just how much the tax system would raise in revenue, and what the very best income-tax rate should be.
In negotiations earlier this summer time, Boehner proposed an overhaul that would raise about $36. 2 trillion over ten years -- about $800 billion more than if temporary taxes breaks, including the income-tax cuts put in place below President George W. Bush, were kept in place.
Permitting those tax breaks to expire would raise about $3. 9 trillion.
Throughout the negotiations, Boehner aides said the extra revenue would come not from higher rates but from the healthier economy operating under a more efficient tax signal.
"The Joint Select Committee has a huge opportunity, " Boehner said from the deficit-cutting panel. "It has a chance to lay the foundation for economic growth by dealing with a few of the obstacles that are standing in the way. ".