GOP Divided As Supercommittee Eyes Tax Revenue The divide between supercommittee Democrats and Republicans has been over whether tax revenues should be used to reduce deficits. Some Republican members of the supercommittee are now showing support for the idea, but the issue is dividing the GOP.
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GOP Divided As Supercommittee Eyes Tax Revenue

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GOP Divided As Supercommittee Eyes Tax Revenue

GOP Divided As Supercommittee Eyes Tax Revenue

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GUY RAZ, HOST:

Elsewhere on Capitol Hill, the deficit reduction panel known as the supercommittee remains deadlocked. Its twelve members must agree on a plan by Wednesday to cut more than a trillion dollars or the money will be cut automatically from future budgets. Here's the fundamental divide between Democrats and Republicans on the supercommittee: How much deficit reduction should come from increased tax revenues? Well, some powerful Republicans are now softening their opposition to boosting revenues. And as NPR's David Welna reports, that's dividing the GOP.

DAVID WELNA, BYLINE: Supercommittee co-chairman Jeb Hensarling has long opposed new taxes. And yet, here was the Texas House Republican a couple of days ago on CNBC endorsing the revenue-raising bid that fellow GOP supercommittee member Senator Pat Toomey made last week.

(SOUNDBITE OF TV SHOW, "THE KUDLOW REPORT")

REPRESENTATIVE JEB HENSARLING: We put $250 billion of what is known as static revenue on the table, but only if we can bring down rates.

WELNA: Democrats dismiss the offer, saying it's mainly about lowering tax rates for wealthy people and corporations. But Senate Budget Committee Chairman Kent Conrad says he is encouraged that Republicans are finally talking about doing something besides simply cutting spending.

SENATOR KENT CONRAD: They've crossed the line on saying in some way you need additional revenue. But when you go to the details of what they've proposed, there's no new revenue.

WELNA: Some of the top Republicans in Congress have rallied behind Senator Toomey's revenue-raising offer. One of them is House Speaker John Boehner, who showed a willingness himself during the debt ceiling debate to boost tax revenues. Here's Boehner this week.

REPRESENTATIVE JOHN BOEHNER: The offer that the Republicans put on the table is a fair offer. Toomey, something like Toomey.

GROVER NORQUIST: Toomey's proposal is a unicorn.

WELNA: That's Grover Norquist, who heads the anti-tax advocacy group Americans for Tax Reform. Norquist dismisses Toomey's revenue raising proposal as meaningless.

NORQUIST: It does not exist in the real world. Comments on how pretty the unicorn is are people playing with their imaginations.

WELNA: Still, for Lamar Alexander, the Senate's number three Republican, Toomey's tax proposal is a very real game-changer.

SENATOR LAMAR ALEXANDER: Republicans have put revenues on the table. Anyone who knows and understands the Republican Party knows that the proposal that was made last week by the Republican members of the supercommittee represents a substantial departure from what we'd normally be comfortable voting for.

SENATOR LINDSEY GRAHAM: That was a big deal. That was a change in the political dynamic.

WELNA: That's GOP Senator Lindsey Graham of South Carolina. Like virtually every other Republican on Capitol Hill, Graham once signed a pledge with Grover Norquist's anti-tax group not to raise taxes. And like a growing number of his GOP colleagues, Graham says he no longer feels bound by that pledge.

GRAHAM: I think it is OK to use deduction, exemption revenue to pay down debt as well as to lower rates. I think that's in our national interest.

WELNA: For Norquist, Graham's apostasy on taxes amounts to betrayal.

NORQUIST: His commitment was not to me; it was to the people of South Carolina. And if he wants to go to the people of South Carolina and say I lied my way into office, thought I'd let you know, he can do so.

WELNA: The move by supercommittee Republicans to raise new tax revenues has not sat well with fellow party members with ties to the Tea Party, including South Carolina's other senator, Jim DeMint.

SENATOR JIM DEMINT: I'm very concerned. I think we're being drawn into this quagmire here of accepting the idea that the problems we're having with debt have something to do with not taking enough taxes from people.

WELNA: And House Republican Steve King of Iowa doubts he would vote for any debt reduction deal that included new revenues.

REPRESENTATIVE STEVE KING: It's unlikely that I would do that, because, I'm like the majority of Republicans in here, I don't believe that we should be raising taxes. I think spending is our problem.

WELNA: Claremont McKenna College political scientist Jack Pitney says while some Republicans want a supercommittee deal badly enough to consider new revenues, others fear the wrath of voters.

JACK PITNEY: So even if Norquist weren't involved in this, you'd still have a lot of people voting in primaries who are very averse to any kind of concession on the revenue front.

WELNA: And for many in Congress, your number one job is to keep your job. David Welna, NPR News, the Capitol.

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