“This does settle the issue of rates for individuals,” Rep. Allyson Schwartz (D-Pa.) told POLITICO. “That’s good. That certainty and predictability is one of the gains” of the fiscal cliff legislation.
Michigan Rep. Sander Levin, the top Democrat on the tax-writing Ways and Means Committee, agreed. When asked whether more rate increases are in the offing, he responded, “I don’t foresee that.”…
But if higher tax rates are off the table, Democrats will need alternative sources of revenue. They say they’re moving their focus to money that can be gained by closing so-called loopholes in the Tax Code and limiting the amount that can be claimed in deductions — provisions that tend to benefit top earners disproportionately.
“A lot of us are disappointed that we didn’t get more revenues as part of this package,” said Rep. Peter Welch (D-Vt.), who argued that revenue will be needed to support entitlement programs. “Democrats are going to have to be candid that this is not going to be solved simply by raising rates on the top 2 percent.”