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Kyl: Tax hikes will not be part of deal

WASHINGTON, June 26 (UPI) -- U.S. Sen. Jon Kyl, R-Ariz., said Sunday that Republicans will not accept any tax increases as part of a deficit-reduction deal.

Appearing on "Fox News Sunday," Kyl said his party would agree to some fee increases but not to changes in the tax code. He said President Obama's plan to balance every dollar in tax increases with $3 in spending cuts is a non-starter.

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"Most economists agree that in times of economic downturn like this, the last thing you want to do is to add more taxes on to the economy," Kyl said. "So, it would be inimical to economic growth and job creation, which is what we all ought to be urging here. When our economy grows and people are making more money, at the same income tax rates, they would pay more a lot more in taxes and the government will have more revenues."

Kyl, the Senate minority whip, suggested that ending some deductions or raising rates for high-income taxpayers would eventually hit the middle class. He pointed to the history of the alternative minimum tax, which started as a way to ensure those in the upper brackets paid at least some tax, and has ended up affecting large numbers of taxpayers because of inflation.

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