GOP Gives Ground on Tax Hikes

In a significant shift, top House Republican Eric Cantor signaled today that his party could accept a deal that would raise revenue by closing some tax loopholes—but insisted that new revenue be offset by tax cuts elsewhere. Cantor’s potential compromise gives hope that a bipartisan deal can be reached before August 2, when the U.S. will default on its debt payments. Separately, Senate Republican leader Mitch McConnell echoed Cantor’s position.