–Incoming House Speaker Says He Will Talk Taxes With Obama Next Week
–Need To End Tax Cut ‘Uncertainty’
–Investments Stall When ‘Don’t Know What The Rules Are’
–Declines To Discuss Any Possible Tax-Cut Compromise

By John Shaw

WASHINGTON (MNI) – Incoming House Speaker John Boehner said
Wednesday that he will make the case for the permanent extension of the
Bush era tax cuts when he and other congressional leaders meet next week
with President Obama.

In comments to reporters, Boehner that it is necessary to “end the
uncertainty” about the fate of the Bush tax cuts.

“You can’t invest when you don’t know what the rules are,” he said.

Boehner said the tax-cut extension should be accompanied by tight
spending controls.

Renewing all Bush era tax cut would cost about $4 trillion over
a decade.

Boehner brushed aside several questions about whether he would
accept a compromise that extended the Bush tax cuts for a shorter period
of time by repeating his determination to renew all of them permanently.

Boehner also repeated the House GOP campaign pledge to work toward
the repeal of the new health care law signed by Obama this
spring.

The Bush tax cuts of 2001 and 2003 are set to expire at the end of
this year.

Obama has been sending multiple signals since last week that he is
willing to back down from his long-held position that the Bush tax cuts
be extended only for those individuals making $200,000 or less and
couples making $250,000 or less.

Appearing on CBS’s “60 Minutes” Sunday, Obama made it clear that
wants to reach an agreement with Congress on tax cuts this year.

“My number one priority coming into this is making sure that
middle-class families don’t see their taxes go up January 1st,” he said.

Earlier, Boehner had indicated he would be open to a plan that all
the Bush era tax cuts be extended for two years and that discretionary
spending be cut back to 2008 levels.

Some congressional Democrats have floated another idea: extending
the so-called middle class tax cuts permanently, but extending those for
upper income earners only for a year or two.

Rep. Eric Cantor, the incoming House Majority Leader, said on Fox
News Sunday that he opposes “decoupling the rates.”

“I am not for sending any signal to small businesses in this
country that they’re going to have their tax rates go up,” Cantor said.

Republican senator Orrin Hatch, who is set to become the ranking
Republican on the Senate Finance Committee, has said that he will press
for at least a three year extension of all tax cuts and preferably a
five year extension.

Congress returns next week for the first part of its Lame Duck
session. The House and Senate will be in session for a week and then out
the week of Thanksgiving. Congress is expected to return for several
weeks in December.

Democrats will retain their large majorities in the House and
Senate throughout the Lame Duck session.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]