WASHINGTON — House Democratic leader Nancy Pelosi says she’s hopeful lawmakers can come to a deal to avoid a year-end “fiscal cliff” but any agreement has to include tax rate increases for the wealthy.
She tells ABC’s “This Week” that she can’t accept a deal that caps deductions and closes some loopholes but does not alter current tax rates for the wealthy.
The California Democrat says “just to close loopholes is far too little money” and other ideas have to be considered. Republicans have suggested they are open to finding more revenues.
Just so we all understand here, raising rates without reducing deductions and loopholes will not raise much “revenue” at all. What Democrats want is to keep a complicated tax code, so they can play political games with their class warfare rhetoric. If they were to simplify the tax codes, that might actually be a workable and effective solution. And, the ones that will be hurt by raising rates will not be big business, it will be smaller businesses.