A tax increase is “the best route to take,” he said, because as early as February, the administration will bump up against its borrowing-limit, which is set by Congress. The GOP can withhold approval for more borrowing unless the president accepts some curbs on spending, Corker told Fox News.
“The shift in focus in entitlements is where we need to go… the leverage is going to shift as soon as we get beyond this issue… to our side,” he said.
However, although several GOP legislators have signaled a retreat on tax rates, the vast majority of GOP legislators have united behind Boehner’s compromise proposal that would freeze tax rates while setting limits on loopholes and tax breaks commonly used by wealthy Americans.
That tax-revamp could get Obama $800 billion over a decade without imposing a huge hit on business incentives, Republicans say.
So far, Obama and most Democrats have not signaled any willingness to back down on their demand that Republicans agree to abandon their ideological support for low tax rates.
Their hard-line stance is helped by polls showing that a slight majority of Americans would blame the GOP if Obama’s refusal to preserve current tax rates carries the nation over the economically damaging “fiscal cliff.”