Rand Paul sees compromise on taxes by closing loopholes but not raising rates

08/11/2011 07:58 AM

Republican U.S. Sen. Rand Paul said Congress could stand to make some changes to the tax code, for instance by reviewing tax rates on hedge fund managers whose earnings are often taxed at half the rates as most Americans.

Paul said he would object to any move to raise income tax rates on individuals, even the wealthy.

But he said in a four-minute interview that Congress should look at closing loopholes to make the tax system fair.

The interview begins with Paul answering a question about whether he thinks a bipartisan Congressional committee being formed this month can come up with “a big deal” on entitlement program changes, tax reform and spending cuts to put the nation on a stronger financial footing. Watch the interview:

Of course, news broke Wednesday that Paul didn’t land one of the three appointments Republican Senate Leader Mitch McConnell made to that 12-member bipartisan committee on spending cuts.

But McConnell did appoint a tea party favorite and fiscal conservative, Sen. Pat Toomey of Pennsylvania, who is a former head of the Club for Growth.

McConnell also named No. 2 Senate Republican, Senator John Kyl of Arizona ,and Ohio Senator Rob Portman, who is a former White House budget director.

They join Senate Democratic Leader Harry Reid’s picks of Sens. Patty Murray of Washington, Max Baucus of Montana and former presidential candidate John Kerry of Massachusetts.

Also Wednesday, Republican House Speaker John Boehner selected Representatives Jeb Hensarling of Texas, and Dave Camp and Fred Upton both of Michigan.

House Democratic Leader Nancy Pelosi has until Tuesday to round out the committee with her three appointments.

The group has been tasked with figuring out by Thanksgiving how to cut at least $1.5 Trillion dollars in federal spending over the next 10 years.

If the committee fails, that would trigger automatic cuts to Medicare and defense.


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