If you’ve followed the “fiscal cliff” debate, then you know that it has kicked up a debate over taxes that Republicans should win. But rather than make the case for less taxes and for entitlement reform, House Speaker John Boehner has shown a willingness to raise tax revenues, though he refuses to support raising tax rates.
But the prospect of Republicans backing increased tax revenues has caused a substantial rift with fiscal conservatives in Congress, many of whom feel that the GOP is risking economic growth and job creation by taking more money of the economy:
In order to get one with President Barack Obama — who has refused to cut a deal until Republicans agree to increase tax rates on the wealthy — the GOP may have to go even further on taxes, a prospect that could prompt a full-scale party rebellion.
“That’s a big gulp,” Senate Minority Whip Jon Kyl (R-Ariz.) said of the $800 billion in new taxes, which did not include a tax rate increase. “As long as we’re not talking about rates, there may be a way to accomplish it.”
Asked about the concerns from conservatives, Kyl said: “They are right it would hurt job creation. Absolutely right. Well, that’s the question — what is the least, worst alternative? And I don’t know what the answer to that question is at this point.”