Democrats split on scope of US tax code overhaul
If Congress cannot strike a deal to avert $85 billion in broad federal spending cuts set for March 1, as appears likely, it should at least pursue a short-term fix that includes closing "special interest" tax loopholes, Obama said on Tuesday.
"There is no reason that the jobs of thousands of Americans who work in national security or education or clean energy ... be put in jeopardy just because folks in Washington couldn't come together to eliminate a few special interest tax loopholes," Obama said in White House remarks, adding that targeted spending cuts should also be part of the solution.
The March 1 deadline is part of an ongoing saga of partisan warfare over taxes and spending on Capitol Hill, with Democrats arguing for a mix of revenue and spending cuts, and Republicans pushing for spending austerity alone.
Democrats control the White House and Senate, while Republicans control the House of Representatives, so compromise will be required for any major tax code overhaul.
Democrats are divided about how to tackle the bipartisan goal of revamping the entire tax code, which has not been overhauled since 1986.
Tax writers, including Democratic Senator Max Baucus of Montana, have been laying the groundwork for a tax code revamp. He may release an options paper or discussion
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