Eric Cantor is ready to make a deal. With the debt talks spiraling out of control a day before congressional leaders are to meet with President Obama at that White House, the House Majority Leader told reporters at a news conference that his party would be open to closing some tax loopholes. "If the president wants to talk loopholes, we'll be glad to talk loopholes," Cantor said. "We've said all along that preferences in the code aren't something that helps economic growth… Increasing revenues paid by businesses and families, in this kind of economy especially, is counterintuitive… Any discussion of loopholes must be accompanied by off-setting tax cuts. We are not for increasing revenue."
Reuters reports that "Cantor's comments open the door to a compromise that would clear the way for Congress to raise the $14.3 trillion debt ceiling before the country runs out of borrowing capacity on August 2." The goal for Republicans and Democrats in Congress is to agree on $2.4 trillion in cuts that would offset the negative impact of raising the debt ceiling.
"In the non-health care mandatory area, there is a potential for over $300 billion in savings; in the health care mandatory area, well over $400 billion in savings. The rest would be the discretionary piece plus interest savings," said Cantor in breaking down the $2.4 trillion number. "That is the basis upon which I believe we can build a deal that can deliver on the promise that we are going to finally start to change things around here."