So, it appears that it took the S&P downgrade to make some Congressional Republicans come to their senses.
House Budget Chairman Paul Ryan (R-WI) said he is open to revenue increases as part of a deal to reduce the deficit today, seemingly shifting positions from the hardline opposition his party has maintained against revenue growth. Ryan said on Fox News Sunday that he would be open to a deal that containes $3 or $4 in spending cuts for every $1 in revenue increases if it came through a major reform of the tax code and was large enough. Host Chris Wallace asked if Ryan would be open such hypothetical deal if he were sitting on the joint super committee created by the deal to raise the debt ceiling. Ryan responded, “yes”:
WALLACE: If you were on that committee, and you get a deal — let’s say $3 or $4 dollars in spending cuts and entitlement cuts for every $1 in revenue increases, and the revenue increases came from tax reform […] — would you be open minded to including some of that revenue as part of a debt deal?
RYAN: It all depends on the spending side of the ledger. … If we’re convincingly restructuring these entitlement programs and getting that spending line down to meet that revenue line, then can you have higher revenue growth through more economic growth and tax reform? Yes, the answer is yes.
- Chris Wallace Challenges Paul Ryan On Whether ‘Failing To Compromise’ Led To S&P Downgrade (mediaite.com)
- The Caucus: Downgrade Debate Moves to Talk Shows (thecaucus.blogs.nytimes.com)
- S&P Chief: U.S. Must Curb Spending (foxnews.com)
- Ryan Downplays Prospects of New Deficit Committee (blogs.wsj.com)
- S&P’s Political Miscalculation (swampland.time.com)