Congressional battle over tax increases flares

WASHINGTON (AP)

The battle over whether tax increases can be used to cut the nation's debt flared Tuesday as the Senate's Democratic budget writer floated a possible millionaire's surtax to help cut projected deficits over the next decade.

But Republican leaders flatly said no to tax increases.

Senate Budget Committee Chairman Kent Conrad, D-N.D., raised the idea of an extra tax on the wealthiest taxpayers, Democratic officials said, and the Senate's Democratic leader, Harry Reid, D-Nev., called for an end to tax subsidies for oil and gas companies.

House Speaker John Boehner and Senate Republican leader Mitch McConnell both staked out seemingly unyielding positions against tax increases.

The conflicting approaches to debt reduction set the stage for a grand national debate that will likely play out for the next year and half over overhauling taxes and restructuring major government benefit programs such as Medicare, Medicaid and Social Security.