Signals from the White House that it may adopt the Republican position of closing loopholes rather than raising marginal tax rates on the wealthy are helping boost markets today as the potential now exists to break the logjam in Washington.
The White House’s flexibility, first described by Democrat Erskine Bowles after meetings with Mr. Obama and others, and confirmed by administration officials, could envision tax rates increase from their current levels but less than Clinton-era levels.
Falling Over the Fiscal CliffThe trade-off, Mr. Bowles said, would be limits or curbs in tax deductions, which GOP leaders have expressed openness to.
This is an enormous step forward toward a grand bargain, if true.
