Structure of debt-ceiling deal committee will make it hard to raise taxes

Here is some welcome debt-ceiling limit news from Dow Jones Newswires:

The structure of the joint committee created under the proposed debt-ceiling deal reached Sunday and the yardstick by which its savings will likely be measured are both expected to make it harder for the group to raise tax revenues.

President Barack Obama on Sunday, along with congressional leaders, said they reached agreement on a plan to raise the debt ceiling by $2.4 trillion in two stages while cutting spending by about $2.7 trillion over 10 years. In the first phase, the deal would provide for roughly $900 billion in spending cuts over 10 years. A special committee of lawmakers would be charged with finding at least $ 1.5 trillion in deficit reduction through a tax overhaul and changes to safety- net programs.

Details of who is on this committee and the restrictions they face will be key for any tax policy recommendations. The White House said Sunday evening the committee's domain would include "both entitlement reform and revenue-raising tax reform."

But there is a formidable barrier to raising taxes: the proposed structure of the committee, which will have six Republican and six Democratic lawmakers, and would need seven votes to advance a recommendation. That would require one Republican agreeing to raise taxes, unlikely in this political climate.

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