US Republicans soften stance on tax rises
As the 'fiscal cliff' nears there is fresh hope of compromise but the Democrats also will face pressure for significant spending concessions
Converting post-election Republican talk of openness to tax increases into bipartisan action could cause a fracture within the party while requiring significant spending concessions from Democrats.
As Congress returns this week to confront a so-called fiscal cliff at the end of the year, many Republicans who have long dismissed any tax increase as unacceptable now say they are willing to entertain higher revenue, provided Democrats accept cuts in entitlement programmes as part of a deficit-reduction deal.
This is particularly noticeable in the Senate, where several influential Republicans have said they were willing to renounce their past anti-tax pledges.
While the verbal openness to taxes questions the hold of anti-tax advocates on the party who have signed a pledge against tax increases, anti-tax leader Grover Norquist called the requisite deal for spending cuts "a pink unicorn".
"The new change is in how Republicans are talking about taxes, not their substantive position," said Keith Hennessey, who was an economic adviser to president George W. Bush.
"Key congressional Republicans have repeatedly indicated they are willing to agree to more revenue, and not just that which results from increased growth if, and only if, entitlements are fixed and the tax code is reformed."