Senators: Put tax reform timeline in debt deal, end stalemate

A bipartisan pair of senators pushing for a broad tax overhaul is calling on top policymakers to include a timeline for reform in any deficit reduction deal.

Sens. Ron WydenRonald (Ron) Lee WydenRussian interference reports rock Capitol Hill McSally unveils bill to lower drug prices amid tough campaign Graham: Trump has 'all the legal authority in the world' to pardon Stone MORE (D-Ore.) and Dan CoatsDaniel (Dan) Ray CoatsGrenell asks top intel official to remain in role amid lawmaker concerns John Ratcliffe back under consideration by Trump for top intel job Trump creates new headaches for GOP with top intelligence pick MORE (R-Ind.) acknowledge that it would be practically impossible to revamp the tax code by the Aug. 2 debt-ceiling deadline. 

But the two senators also told President Obama, House Speaker John BoehnerJohn Andrew BoehnerCoronavirus poses risks for Trump in 2020 Lobbying world Pelosi-Trump relationship takes turn for the terrible MORE (R-Ohio) and Senate Majority Leader Harry ReidHarry Mason ReidDemocratic insiders stay on the sidelines in 2020 race Harry Reid calls for end to all caucuses Reid pushes back on Sanders suggestion that a Democrat with plurality of delegates should be the nominee MORE (D-Nev.) that reform could be completed by the end of the year, not to mention help light a fire under the economy.

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“Tax reform can move us beyond this partisan stalemate. Done right, it will create good-paying jobs and provide businesses and families with the certainty they need to plan for the future,” the two senators wrote in a letter dated Wednesday. “There’s no better way to raise revenue and reduce the deficit than by growing the economy and putting Americans back to work.”

That message was dropped during another day when taxes took center stage in the deficit reduction debate, with House Majority Leader Eric CantorEric Ivan CantorThe Democrats' strategy conundrum: a 'movement' or a coalition? The biggest political upsets of the decade Bottom Line MORE telling reporters that Republicans would consider getting rid of certain tax breaks – as long as it was accomplished in a revenue-neutral way.

On the other side of the Capitol, Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellRepublicans give Barr vote of confidence Democrats block two Senate abortion bills VA could lead way for nation on lower drug pricing MORE pooh-poohed Cantor’s suggestion, saying it would be difficult to “cherry-pick items” during the current negotiations.

Wyden and Coats introduced a comprehensive tax reform bill earlier this year that would slash the corporate tax rate to 24 percent (from its current 35 percent), while also thinning the number of individual tax brackets down to three.

Wyden, a longtime fan of the 1986 tax reform, introduced similar legislation in the last Congress with then-Sen. Judd Gregg (R-N.H.). In their Wednesday letter, he and Coats also say that a tax overhaul can be part of a solution that hits at the heart of America’s fiscal problems, instead of messing around at the margins. 

“Resolving the nation’s debt crisis demands comprehensive, structural change, including tax reform,” they wrote.