House GOP yet to decide on tax reform legislation

By Russell Berman - 01/23/12 06:22 PM ET

House Republicans want to lay out their vision for comprehensive tax reform this year but have yet to decide whether it will come in legislative form, Majority Leader Eric Cantor (R-Va.) said Monday.

The party is weighing the merits of releasing a detailed proposal in an election year environment in which President Obama and Senate Democratic leaders have shown little interest in engaging congressional Republicans on major legislation. Some in the party fear that a partisan tax bill could be a target for attacks by Democrats.

“I think that part of what we want to do is put out there our vision of what tax reform would look like. What that form is – bill, plan or whatever, we’ll have to see,” Cantor told reporters in a Capitol briefing.

The broad outlines of a Republican tax plan are no secret; the GOP wants to lower individual and corporate rates, simplify the code and eliminate many loopholes and preferences. Democrats share many of the same goals, but a chief sticking point is likely to be whether an overhaul of the tax code is designed to bring in more static revenue to the federal coffers, which conservatives view as an unacceptable tax increase.

“This administration and [Senate Majority Leader] Harry Reid and most on the other side just insist on raising taxes,” Cantor said. “They insist on a net revenue positive tax reform, and most of us look at that as an excuse to go and spend more money, and a hindrance towards growing small businesses, which is what we need.”

The chairman of the House Ways and Means Committee, Rep. Dave Camp (R-Mich.), has been working on a tax overhaul for more than a year, and Cantor said Camp “is ready to lead this effort.”

While the GOP may decide not to bring a broad tax reform bill to the House floor this year, many Republicans want to put forward their vision to prepare the public for an aggressive push – and an electoral mandate – if the GOP wins control of the White House and the Senate in November.

“I just think it’s important for us to let the public know if Republicans are given the majority in this town, if we win the White House along with the Congress, then we are going to pursue tax reform, we’re going to bring down rates, we’re going to simplify the code, make it easier and more equitable for the country,” Cantor said.

At the same time, he was not willing to concede that an Obama victory in 2012 would bring with it a mandate for higher taxes. “That’s a hypothetical I’m not answering,” Cantor said.