–House Speaker: Deficit Panel Doesn’t Have Time To Overhaul Tax Code
–Need ‘Fundamental’ Tax Reform, Should Lower Corp Rates
–Wants Deficit Panel To Focus On Spend Cut, Entitlements
–Never Feared US Would Default During Debt Ceiling Fight

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner Thursday said he
expects Congress’ Select Committee on Deficit Reduction to lay the
foundation for fundamental tax reform, but said it’s not realistic for
the panel to be able to craft a detailed plan in the limited time
available to it.

In a speech to the Washington Economic Club, Boehner urged the
deficit reduction panel to fashion a tax overhaul blueprint that calls
for lower personal and corporate tax rates by closing various loopholes.

“It’s probably not realistic to think the Joint Committee can
rewrite the tax code by November 23, but it certainly can lay the
groundwork for tax reform in the future,” he said.

The Speaker said the panel can establish “principles for broad
based tax reform.”

Boehner said he is “optimistic” the deficit panel will achieve its
goal of at least $1.5 trillion in budget savings, adding that
congressional leaders will “help make it work.”

Boehner said he expects the panel to work right up to its November
23 deadline, quipping that he expects the final package to be assembled
“closer” to November 23 than November 22.

The deficit panel, Boehner said, should put aside any idea of
raising taxes to achieve its deficit goals but instead focus on
“spending cuts and entitlement reforms.”

Boehner said he never believed that this summer’s brutal battle
over debt ceiling legislation would result in a U.S. default. But he
indicated that he had hoped to assemble, and pass, the final deficit
reduction package and debt ceiling increase well before the August 2
deadline.

The Speaker outlined the economic agenda he has embraced throughout
the year: reducing government regulations, cutting government spending
and preventing tax increases.

He said the combined effect of heavy regulations, “out of control
spending,” and the threat of tax increases has hurt the American economy
and hampered job growth.

It is necessary, he said, to “liberate the economy from the
shackles of Washington.”

Boehner said he is willing to work with President Obama on his jobs
legislation, adding he expects “components” of it to be approved by
Congress.

He also said he will work with the White House and Democrats in
Congress on the 2012 fiscal year budget. The new fiscal year begins on
Oct. 1.

“There will no shutdown or default,” he said.

Boehner said Congress must work to remove barriers for new job
creation and focus on long-term policies rather than “short-term
gimmicks.”

Boehner’s speech was scheduled shortly after Obama sought an
invitation to address a Joint Session of Congress last week to outline
new jobs agenda.

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

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