A Hunch

by Daniel Foster

To me this is the key paragraph amid all the reports of a secret Boehner/Obama deal:

“The Congressional leaders, whose help Mr. Obama would need to bring a compromise forward, were told that the new revenue tied to the looming agreement to increase the debt limit by Aug. 2 would be produced in 2012 through a tax code rewrite that would lower individual and corporate rates, close loopholes, end tax breaks and make other adjustments to produce revenue gains.”

My hunch is that what this means is a sort of Gang of Six solution in reverse: instead of specific tax hikes and vague promises for future spending cuts, what we could be looking at is a bill that creates a bipartisan commission to look at the tax code, instructs congressional committees to report out bills that address loophole x by date y, creates streamlined procedures for considering and voting on such proposals, and etc.

If that hunch is right, it represents a big win, as it will more or less make the tax hike caucus just as angry as Gang of Six made conservatives. Whether the cuts in such a deal would be real cuts is, of course, an entirely different question.

The Corner

The one and only.