By Erik Wasson - 10/20/11 06:07 PM EDT
Hensarling acknowledged that a full overhaul might not be possible to outline in that short time frame.
“It’s a tight deadline, there is no doubt about that,” he said, adding that there is a time to “get a lot of it done.”
The main option for the supercommittee is to produce detailed instructions for the Senate Finance and House Ways and Means committees to follow in revamping the corporate tax code.
The instructions would likely include the final, lower corporate tax rate as well as some parameters for how tax breaks would be eliminated. There is controversy within the GOP on the question of whether backing a tax reform plan that raises effective tax rates for any companies or individuals would violate party principles.
Another key disagreement between the parties involves how to treat businesses that are taxed under the individual tax code and whether any added revenue from individual tax reform should be used to pay down the national debt.
Hensarling reiterated on Thursday that the GOP does support new revenue if it is brought in via increased economic growth.
Any agreement on taxes between the 12 members of the supercommittee could open the door to entitlement reforms and the possibility that it could exceed its mandate to cut $1.2 trillion.