Schumer Opposes a Budding Tax Deal in Deficit Plan.

Senator Charles E. Schumer of New York, the Senate’s third-ranking Democrat, threw cold water Tuesday on what had been an emerging consensus for a bipartisan deficit- reduction plan — an overhaul of the tax code that lowers top income tax rates but raises more revenue. Mr. Schumer’s position greatly complicates efforts to win bipartisan support for a deal before January, when the “fiscal cliff” of tax increases and automatic spending cuts goes into effect.

In a speech to the National Press Club, Mr. Schumer said he rejected the idea of a tax code overhaul as “little more than happy talk.” Taxes, he said, could not be changed to bring in more revenue, lower the top tax rates and still protect the middle class from tax increases.

Instead, he said that the top two income tax rates should be frozen, and any additional revenues generated by closing loopholes and curtailing or eliminating tax deductions and credits should be devoted to deficit reduction.

“It is an alluring prospect to cut taxes on the wealthiest people and somehow still reduce the deficit, but you can’t have your cake and eat it, too,” Mr. Schumer said. “The reality is, any path forward on tax reform that promised to cut rates will end up either failing to reduce the deficit or failing to protect the middle class from a net tax increase.”

http://www.nytimes.com/2012/10/10/us/politics/in-speech-schumer-will-reject-idea-of-tax-code-overhaul.html?hp