For the second time in days, a leading Republican -- this time South Carolina Sen. Lindsey Graham -- edged toward violating something that has been sacrosanct: a longstanding pledge signed by many in his party never to raise taxes.
Congress Has the Key to its 'Handcuffs'
Graham's apparent willingness to ignore the no higher taxes pledge came just days after another prominent U.S. senator, Saxby Chambliss (R-Ga.), said he would not be not bound by the promise either.
"I care more about my country than I do about a 20-year-old pledge," Chambliss said.
Economists have said that closing loopholes and ending deductions likely will not generate sufficient money to chip away at the national debt, and that a combination of tax increases and spending cuts will be needed.
Speaking on the same program as Graham, Democratic Sen. Dick Durbin insisted that tax rates for the highest earners do have to go up.
"How in the world are you going to reduce deductions and generate enough revenue for meaningful deficit reduction?" Durbin said.
Some experts said that there need not be a "grand deal" by the end of the year, because lawmakers could give themselves an extension by passing new legislation.
"Anytime Congress puts handcuffs on itself, it still has the key to those handcuffs. It can open the handcuffs anytime they want, or say, 'OK, we'll change the lock,'" said Roberton Williams at the Tax Policy Center, an independent think tank.
For more on the fiscal cliff and its impact on manufacturing, click here.
Copyright Agence France-Presse, 2012
By Ivan Couronne
