Dems don’t embrace GOP’s marker on tax rates

In his statement, Levin said that previous tax reform discussions with Camp had focused on the corporate code and suggested that Republicans would want a tax code overhaul that would add to the deficit, at least at first. 

“It’s one thing to conceive a goal of a top tax rate of 25 percent for individuals and corporations — which would reduce revenues by $2 trillion over a decade,” Levin said. “It’s another to see how it would work when Republicans are slashing vital programs, there’s a need to decrease — not increase — the deficit and the very wealthy are already major recipients of the Bush tax cuts.”

Over in the Senate, a Finance panel aide said that Baucus, who has said he wants frequent tax reform hearings this year, would continue to work to revamp America’s tax code in a way that would spark job creation. 

“He intends to work to simplify the tax code and make it more competitive to reflect our increasingly global economy and ensure our tax system supports widespread economic growth,” the aide said. 

Officials from both sides of the aisle have given general support to tax reform, and the idea of lowering tax rates while eliminating tax credits and deductions. The corporate and individual tax codes currently have top marginal rates of 35 percent.

But the back-and-forth over the last day or so further illustrate the difficulties in getting legislation passed this Congress.

The Wall Street Journal first reported Camp’s rate preferences, adding that the chairman did not seem to view tax reform as a way to eat into budget deficits — a path recommended by President Obama’s fiscal commission. 

Some Republicans and business leaders have said that a tax reform plan should concern itself with giving American businesses’ a better chance to compete and not worry, at least at first, about how much revenue is collected. 

For its part, the Obama administration has indicated it believes the corporate code can be overhauld before the individual one, while lawmakers from both parties have called for a more comprehensive approach. 

Still, even with those potential roadblocks, top policymakers have said they believe that tax reform has a chance to move forward. 

Rep. Paul Ryan (R-Wisc.) said at a Thursday hearing that he saw tax reform as a possible area of agreement with the White House and that something could be accomplished this year. 

The House Budget Committee chairman added that he is opposed to tax increases to solve the deficit, but does believe that tax reform, done correctly, can raise revenue by spurring growth.