Graham would back debt deal eliminating tax loopholes

Sen. Lindsey Graham (R-S.C.) speaking on NBC’s “Meet the Press” made explicit that he would back a debt deal that eliminates tax loopholes and that uses the revenue raised for deficit reduction.

Graham said that no Republican would vote to raise tax rates, but eliminating special interest subsidies such as for ethanol is acceptable, he said.

{mosads}The statement conflicts with the stance of Americans for Tax Reform’s Grover Norquist who insists that any elimination of tax breaks must be accompanied by an equal reduction in taxes elsewhere.

“No one in the Republican Party is going to vote to raise taxes,” Graham said. “Many of us would look at flattening the tax code.”

“One way to do that is to do away with ethanol subsidies,” he said. “That doesn’t raise taxes. … That is one way to help pay off the debt.”

Senate Majority Whip Dick Durbin (D-Ill.) speaking on the same program reiterated his view that a grand bargain on the deficit “puts everything on the table,” including entitlements. He said that he backs changes to Medicare but not along the lines of the House-passed budget. That budget replaces traditional Medicare for future seniors with subsidies for purchase of private insurance.