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State lawmakers want revenue on debt table

WASHINGTON, Sept. 22 (UPI) -- A delegation of state lawmakers urged the congressional supercommittee to include new revenue as part of its discussions to reduce the U.S. deficit.

Legislators told the Joint Select Committee on Deficit Reduction Wednesday to "go big" to reach a bipartisan deal that would cut the nation's debt but spare states from severe budget cuts, Stateline.org reported.

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The 12-member bipartisan bicameral congressional committee is tasked with finding $1.5 trillion in deficit savings during the next decade.

Indiana state Rep. Peggy Welch, a Democrat, said states could expect cuts of "10 to 25 percent" of their overall budgets as a result of the committee's work.

"We know that there will be cuts," New Hampshire Rep. Terie Norelli, a Democrat, told reporters. "What we are asking is that cuts to state budgets be proportional to everything else that's on the table."

House Speaker John Boehner, R-Ohio, earlier this month said supercommittee should focus on budget cuts, not new revenue. Also, nearly all Republican congressional members signed a no-taxes-increase pledge, Stateline.org said.

States didn't bear the worst of budget cuts when the supercommittee was created as part of the federal deal in August that raised the debt ceiling. Medicaid, the Children's Health Insurance Program, welfare and food stamps all were exempted from the $1.2 trillion in automatic cuts that would trigger if the panel doesn't reach agreement. However, Norelli said deep cuts to K-12 education, military installations, among other things, would occur if the committee fails to strike a deal.

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The state legislators not only asked the panel to include new revenue, but also asked a proposal that would allow states to collect sales taxes from online retailers be considered. The lawmakers argue that the tax proposal isn't a new tax because it extends existing sales taxes to online businesses, Stateline.org said.

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