With the sequestration cuts set to take place in less than a month the attention of Washington is going to turn back to the deficit. To begin laying the groundwork for this next fight top Democrats are demanding that more revenue be part of any new deals. This demand was recently made by both President Obama and Senate Majority Leader Harry Reid on Sunday.
Obama called for more revenue as part of any deal during his pre-Super Bowl interview. From CBS News:
One month after signing into law a “fiscal cliff” deal upping taxes on American families making more than $450,000 a year, President Obama said today there’s “no doubt” additional revenue is needed to bring down the U.S. deficit, but believes lawmakers can do it “without raising taxes again.”
“I don’t think the issue right now is raising rates,” the president said in an interview with CBS Evening News anchor Scott Pelley. “There’s no doubt we need additional revenue, coupled with smart, spending reductions in order to bring down our deficit. And we can do it in a gradual way so that it doesn’t have a huge impact.”
Reid made the demand for more revenue on This Week. From ABC News:
Asserting that “the American people” are on his side, Senate Majority Leader Harry Reid, D-Nev., told me during an exclusive interview for “This Week” that any that deal reached between Republicans and Democrats to avoid the looming sequester must — “without any question” – include revenue.
“The American people are on our side. The American people don’t believe in these austere things. We believe that the rich should contribute. We believe we should fill those tax loopholes — get rid of them, I should say. And that’s where we need to go,” Reid said. “And I’ve got a pretty good fan base for that: the American people. Republicans, Democrats, and Independents.”
Of course Congressional Republicans are firmly opposed to any new revenue claiming that issue has already been fully dealt with. As a result, it seems the possibility of the sequestration cuts actually appears to be increasing.
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