Prospects for tax reform dim after cliff deal

In a perfectly divided Washington, a mix of politics, policy and personality has made a comprehensive rewrite of the nation’s tax system — a top Republican priority — increasingly elusive in 2013, aides and lawmakers say. …

The latest wrinkle came Thursday. House Republicans were deeply discouraged by President Barack Obama’s nomination of Jack Lew as his new treasury secretary. Lew, according to sources, has privately expressed vocal opposition to moving toward a territorial tax system — a staple of GOP plans for corporate tax reform. …

The highest hurdle to a deal, perhaps, is the fact that Republicans insist that a rewrite of the Tax Code cannot generate more revenue for the federal government — while some Democrats favor a tax overhaul that raises revenue.

Indeed, the GOP is already trying to beat back efforts from Democrats to raise revenue as part of deals to raise the debt ceiling and get past sequestration. …

Republicans say they only want to look to revenue as a tool to help lower rates in the context of fundamental tax reform.