http://www.businessweek.com/news/201...ompromise.html

Not a Tax Increase

“They would argue that this is not a tax increase, so I want to give them the benefit of the doubt,” Rubio said in an interview.

The proposal would require Senate committees to produce legislation to reduce spending and raise revenue. The Senate Finance Committee would be instructed to lower tax rates, eliminate the alternative minimum tax and “reform” tax breaks for health care, charitable giving and homeownership.

The outline calls for three individual income-tax brackets with a top rate between 23 percent and 29 percent, down from 35 percent now. The corporate rate would drop to a single rate of between 23 percent and 29 percent, down from a top rate of 35 percent. The tax system would need to retain its current progressivity and retain benefits for low-income workers such as the earned income tax credit.

Some lawmakers hold out hope for the compromise offered by the three Senate Republicans and three Democrats after months of opposition to new revenue among House Republicans.



That article mentions lowering the tax brackets. I don't see how they can balance the budget and lower taxes.