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November 14, 2012

Republicans Will Increase Taxes But Not Rates

First Read: "They're willing to give up additional REVENUES; they just don't want to see tax RATES go up. The two sides actually aren't that far apart. The question is whether they can agree on a revenue target for tax reform. That's Step 1; Step 2 is how the temporary agreement is forged regarding the tax rates for 2013, sequestration, payroll tax, etc. The White House's view: If you let the Bush tax rates expire for the Top 2%, it makes negotiating the issues surrounding sequestration (even the farm bill!) a lot easier. But the hurdle is big: getting the votes in the House. No Republican wants to vote for a tax RATE hike; it's likely a primary suicide mission."

"Ironically, the GOP may end up giving the president and Democrats MORE cover on taxes by agreeing to a revenue goal within tax reform, essentially, covering up tax hikes while the politicians can claim they've lowered tax RATES. Ah, the politics of the now vs. the politics of the long term. It's the GOP's challenge in managing its own base right now."

Financial Times: Republicans shift stance on taxing the wealthy.

Wonk Wire: Romney adviser calls for raising (some) taxes.


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