Business and Finance

Global stock markets opened a risk-filled new year still smarting from a rough 2011, as many exchanges remained closed. German and French stocks rose in light volumes as a a reading of manufacturing activity in Europe improved.

Germany’s DAX closed up 3 percent Monday at 6,075 while the French CAC-40, which ended 2011 17 percent lower, climbed 2 percent to 3,222. Stocks fell in South Korea and closed flat in Taiwan.

Trading was light with the New York, London and most Asian stock exchanges closed.

Investors appeared to be reassured by European purchasing managers survey index numbers that improved in December from November. Activity in the manufacturing sector was up, but at levels that still show a fifth straight month of contraction.

Many of the world’s leading indexes are coming off a down year. Britain’s FTSE was off 5.6 percent by year end, Japan’s Nikkei fell 17 percent to its lowest close since 1982, and the Standard & Poor’s 500 showed zero gain.

Data releases later in the week such as eurozone inflation on Wednesday and German factory orders and U.S. non-farm payrolls on Friday will give traders more grist. The U.S. employment figure is expected to rise by some 150,000 after increasing 120,000 in November.

Markets face an uncertain first quarter as eurozone leaders try to get control of government debt woes that threaten to harm the global economy with another financial meltdown.

Much of the attention in coming weeks will center on Italy, the eurozone’s third-largest economy and the focal point of the eurozone’s struggle to deal with a crisis caused by heavy levels of government debt. Fears of default on those debts mean that bond investors demand ever-higher interest, making it a challenge for the new government of Prime Minister Mario Monti to roll over euro53 billion ($69 billion) in debt maturing in the first quarter cash advance. If a country can no longer borrow affordably to pay off bonds that are maturing, it faces eventual default or a bailout.

Debt woes may be compounded by at least a mild recession over the last quarter of 2011 and the first part of 2012.

In Asia, South Korea’s Kospi, which lost 11 percent of its value last year, closed nearly unchanged at 1,826.37. South Korea’s tech sector move higher, with Samsung Electronics up 2.1 percent and LG Electronics gaining 2.3 percent. Steel giant POSCO slid 1.1 percent and Korea Electric Power shed 1.8 percent.

Taiwan’s TAIEX, which was also open for business Monday, fell 1.7 percent to 6,952.21. Foxconn Technology, the world’s biggest contract electronics manufacturer, which makes iPads and iPhones for Apple Inc., fell 0.9 percent. Personal computer maker Acer Inc. shed 2.3 percent.

The Asian-Pacific region’s major benchmarks, including Japan’s Nikkei 225 index, Hong Kong’s Hang Seng Index and Australia’s S&P ASX 200, were closed.

Last year was one that traders would prefer to forget: most Asian equity indexes closed out 2011 deeply in the red. The Nikkei in Tokyo ended the year at 8,429.45 _ its lowest closing since 1982.

China’s benchmark Shanghai Composite Index, closed Monday, endured a 21 percent loss for the year as the impact of Beijing’s multibillion-dollar stimulus faded and the government tightened curbs on lending and investment to cool blistering economic growth.

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Global stock markets were mixed Friday on 2011’s last trading day and turned in heavy losses for the year after Europe’s debt crisis and natural disasters battered a struggling global economy. Japan’s benchmark hit its lowest close in three decades.

Benchmark oil hovered below $100 per barrel and the dollar weakened against the yen but rose against the euro.

Asian traders recorded gains for the day Friday but markets in Tokyo, Shanghai and Hong Kong ended the year with double-digit losses.

Japan’s Nikkei 225 index, after three straight days of losses, rose 0.4 percent to 8,429.45, but it was the lowest closing since 1982. China’s benchmark gained 1.2 percent to close at 2,199.42 _ still, a 20 percent loss for the year.

European shares were steady or slightly down in early trading. Britain’s FTSE 100 lost 0.2 percent at 5,555.92. Germany’s DAX was marginally down at 5,846.35 and France’s CAC-40 was nearly unchanged at 3,127.34.

Wall Street appeared headed for a lower closing, with Dow Jones industrial futures down 0.2 percent at 12,194 and S&P 500 futures slipping 0.2 percent to 1,255.40.

Hong Kong’s Hang Seng Index gained 0.2 percent to close at 18,434.39.

Australia’s benchmark S&P ASX 200 ended the year at 4,140.4 _ down 0.4 percent on the day and 14.5 percent lower for 2011. A day earlier, South Korea’s benchmark Kospi closed at 1,825.74 on Thursday _ 11 percent down on its last trading session of the year Thursday.

Analysts said global stocks tumbled in lockstep, suffering from the effects of natural disasters, a wobbly recovery in the U.S. _ and an escalating European debt crisis that has resisted repeated measures taken by the region’s governments and financial institutions.

“The big reason is Europe. Europe tried to muddle through without a real solution. They can save a small country like Greece, but they cannot save a big country like Italy. Two trillion euros in foreign debt _ nobody in the world has that kind of money,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong.

“Europe will enter a lost decade, a decade of no solutions and no growth,” he said. “Maybe except in Germany, their machinery is still selling.”

Japan’s benchmark plunged after the March 11 tsunami and earthquake disaster that destroyed huge chunks of the island nation’s northeastern region, left 20,000 people dead or missing and set off the world’s worst nuclear crisis since Chernobyl.

Disaster damage extended to key suppliers for major companies like Toyota Motor Corp. and Sony Corp., which suffered production disruptions. The Thai flooding that followed caused similar problems for automakers, including Honda Motor Co., but on a smaller scale.

The Tokyo market also saw two big-name brands lose much of their value.

One was Tokyo Electric Power Co., the utility that runs Fukushima Dai-ichi nuclear power plant, where at least three reactors went into meltdown after tsunami destroyed backup generators to keep power going at the plant.

Some officials say TEPCO may have to be nationalized because of ballooning losses and the costs to bring the reactors under control and compensate victims.

Another was camera and medical equipment maker Olympus Corp., whose offices have been raided by criminal investigators after fabricated accounting to cover up massive investment losses came to light no fax payday loans.

A British executive, who has since resigned from the board, was first to draw attention to the dubious investments, and has become a celebrity figure raising questions about old-style Japanese management.

Across the board, Japanese companies have been slammed by the rising value of the yen, which erodes the value of revenue from exports.

The Nikkei lost nearly a fifth of its value over the past year. It nose-dived right after the disaster, recouped some of those losses in July, but then started a decline that has the benchmark hovering at below the March value.

China’s benchmark Shanghai Composite Index lost 21 percent in 2011 as the impact of Beijing’s multibillion-dollar stimulus faded and the government tightened curbs on lending and investment to cool blistering economic growth.

The flood of state spending and bank lending after the 2008 crisis fueled a surge in real estate and stock prices. In 2010, Beijing responded by clamping down on credit and real estate speculation to cool inflation and soaring housing prices.

Beijing is trying to steer growth to a more sustainable level after 2010’s explosive 10.3 percent expansion. Growth eased to 9.1 percent in the three months ending in September, down from 9.5 percent the previous quarter.

Chinese leaders have promised to ease credit to help exporters and smaller companies cope with falling global demand and weaker domestic growth. But they say most controls will remain in place. That has disappointed stock traders who are hoping for interest rate cuts and looser controls on bank lending. They have responded in recent weeks by dumping stocks and moving some money to U.S. and European markets.

The benchmark Hang Seng Index slipped in the second half of the year as concerns over Europe accelerated, sending it to a 2011 low in early October before bouncing slightly to end the year at a 20 percent loss.

Hong Kong is Chinese territory, but its financial markets are open to foreign companies and investors, which made it a popular destination this year for foreign companies looking to go public, drawn by the prospect of raising their brand profiles with China’s newly wealthy as growth flags in their home markets.

Italian fashion house Prada was one of the biggest names to list in Hong Kong, with an initial public offering in June that raised $2.5 billion, making it the sixth-biggest IPO globally this year, according to deal tracking service Dealogic.

Other foreign companies that took out primary or secondary listings in Hong Kong include MGM China Holdings Ltd., the Macau casino arm of MGM Resorts International, luggage maker Samsonite S.A. and U.S. luxury handbag maker Coach Inc. However, the slumping market means share prices for many companies that went public are ending the year lower than IPO price.

Benchmark crude for February delivery fell 28 cents to $99.37 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 29 cents to settle at $99.65 in New York on Thursday.

In currency trading, the dollar fell to 77.58 yen from 77.65 yen late Thursday in New York. The euro fell to $1.2913 from $1.2939.

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Asian stock markets rose Monday as investors cheered a new European fiscal pact aimed at fixing the region’s debt crisis and preventing a collapse of the euro currency.

Japan’s Nikkei 225 index jumped 1.5 percent to 8,665.76. South Korea’s Kospi added 1.2 percent to 1,896.35 and Hong Kong’s Hang Seng gained 1.6 percent to 18,874.22.

Under the deal reached Friday, all 17 countries that use the euro agreed to allow a central European authority to oversee their future budgets. They also agreed to automatic penalties if they spend too much.

In addition to tighter controls on spending, Europe’s new “fiscal compact” calls for the launch of a permanent bailout fund for euro nations in 2012, a year ahead of schedule. The deal also will send 200 billion euros ($267 billion) to the International Monetary Fund, which controls another emergency fund for countries in crisis.

But the deal won’t help cut debt today, which in Italy, Greece and Spain has driven government borrowing costs close to levels considered unsustainable installment payday loans. That loose end brought into focus the future monetary policy of the European Central Bank, and whether it would be willing to buy enough national bonds from troubled countries to keep interest rates down.

Analysts at Credit Agricole CIB said “the lack of ECB action in terms of stepping up to the plate as lender of the last resort” still weighed on investment sentiment.

There were also doubts about the willingness of each individual country to ratify the agreement.

Benchmark oil for January delivery was down 7 cents to $99.34 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.07 to finish at $99.41 per barrel on the Nymex on Friday.

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WORKING OUT: After 15 years in Chicago, Sarah Dorsey Tourville is back in her hometown to open the 34th franchise of The Dailey Method, a national network of fitness studios.

Tourville’s studio, in the Village at Schneithorst at 1560 South Lindbergh Boulevard, will officially open tomorrow but is the location for a private cocktail reception tonight.

Tourville, who is former KTRS (AM 550) honcho Tim Dorsey’s eldest daughter, has been the head of ESPN’s ad sales for the Midwest the past 10 years.

She’ll be giving up that job at the end of the year to permanently relocate in St payday loans for self employed. Louis with her two children, Lilly, 4, and Ben, 2 ½. Her ex-husband is also moving here to be close to their children, Tourville said.

Tourville is offering special discounts and packages - such as six weeks of free classes for $100 — over the weekend to celebrate the opening of the studio. She added that proceeds from the opening events will go to St. Louis Children’s Hospital.

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Robert Deluce is the president and chief executive officer of Porter Airlines. In our series on the financial habits of notable Canadians, Deluce told the Toronto Star’s Emily Mathieu what he learned working at his family’s hunting and fishing charter business, the significance of a 1956 Oldsmobile and why, when it comes to purchases and sales, almost everything is negotiable.s

How did your family influence your attitude toward money?

My family is very entrepreneurial, so I’ve always looked at finances from a business perspective. Whether as an individual or a household it’s important to understand your revenue streams and expenses, and to look for quality and value when making decisions about how to spend money wisely.

What is the best financial advice you ever received?

I’ve always had to earn my own money. Even though I was involved in a family business, there was no free ride for me or my eight siblings. My parents always made sure that we were compensated for the work we did. I appreciate the value of money because of this.

What lessons did you take away from your first job?

My parents started a hunting and fishing charter business in 1951 in Northern Ontario called White River Air Services. I later boarded as a student at St. Michael’s College School in Toronto and worked at the family business when I went home during summer holidays. I would pump gas, load aircraft and do other odd jobs while learning the ropes as a teenager. I didn’t realize it at the time, but that was my apprenticeship for running a business, and an airline in particular.

What was the first item you purchased with your own money?

The first item of any significance was the purchase of an old 1956 Oldsmobile from my grandfather for $500. This was in 1968 while I was attending McGill University.

What has been your savviest investment?

The purchase of a home in 1987 from an investment banker on the day after the stock market tumbled. After doing a really light “freshen up” renovation, which consisted primarily of interior paint, we resold the house six months later for about $400,000 more than we had paid for it.

What is your worst spending habit?

Like many people, my morning coffee is a habit that adds up. Of course, I have to have the premium drinks, which makes it worse.

How do you prefer to pay, cash, card or debit?

Credit card. It helps me keep track of expenses and I always pay the full balance every month. Cash is my back up. I never use debit cards.

What hard financial lessons have you learned?

Never leave yourself with only one supplier; you must have choice and some tension to ensure value.

What is your best money-saving advice?

Everything is negotiable. Rarely should you pay the sticker price for a product or service. You can get a better price simply by asking, comparing suppliers, buying in larger quantities or employing other strategies. Sometimes you can negotiate more value by having upgrades or bonus items included in the cost. If you’re somewhere, like in a grocery store, where this doesn’t usually apply, you can still save money by planning ahead and buying staple items when they’re on sale before you absolutely need them and have no choice but to pay the going rate that day. Never be in a hurry to conclude the transaction. And if you are buying a car, absolutely do not ask for a certain colour as your first item of discussion.

Are there any money saving tips you can pass on to travellers?

It’s important to know what you’re getting for your ticket when flying. You can usually choose from various fare types and each one gives you different benefits. Buying the lowest fare usually means you’ll have to pay extra to make changes later on, but you save upfront. A premium fare has things like this built into the upfront price. You should purchase according to your needs and be aware of fees if they’re required for baggage, seat selection, etc. We try to offer real value at Porter by including certain amenities that other airlines either don’t offer or make you pay for.

Do you worry about retirement?

I don’t plan on retiring anytime soon, but I do have a financial plan.

Are money and success the same thing?

I don’t think so. There are a lot of ways to make money, but success is something that you earn. Most successful people also have a sense of accomplishment. This may come from building a business or contributing to a cause where there is also benefit to others, not just you. Often this has nothing to do with making money or your total net worth.

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A Greek high court on Friday considered appeals against a deeply resented new property tax that has sparked anger across the country because those who don’t pay it will get their power turned off.

As the case was being heard, hundreds of protesters outside the Council of State in Athens chanted “We won’t pay!”

Inside, court President Panayiotis Pikramenos voiced reservations over the stakes at hand.

“The Council of State has undertaken a burden that is not its own,” he said, opening proceedings. “(The court) will do its duty, but cannot undertake to handle a political problem that has built up over the past few years.”

Greece’s debt-strapped government is seeking to raise some euro2 billion ($2.7 billion) with the new tax. It is among a raft of harsh cutbacks _ including pension and pay cuts and tax hikes _ imposed over the past 20 months to secure international rescue loans to keep the country afloat.

Fourteen appeals have been filed by bar associations, unions, lawyers and property owners. The court will reconvene Jan. 19, with parties submitting written positions and is expected to rule several weeks later.

The tax _ which is paid through household electricity bills _ has meet with strong resistance throughout the austerity-weary country. Several municipalities have urged their citizens not to pay, or threatened power suppliers with lawsuits if they disconnect clients who can’t afford the emergency levy.

Prime Minister Lucas Papademos insisted Friday the tax can’t be scrapped as it will provide the state coffers with vital revenues guaranteed approval cash advance loans.

He told Parliament that his interim coalition government will ease payment terms for disadvantaged householders, including long-term jobless, in a country where unemployment has risen to record levels amid a deep recession.

“I too do not consider it right for citizens who objectively cannot pay the property levy to have their power cut off,” Papademos said. “I believe these arrangements will address many of the issues that have arisen. But the measure itself cannot be abolished, as it is necessary for our process of fiscal adjustment.”

Later Friday, lawmakers will start debating the 2012 austerity budget, which seeks to reduce government overspending to 5.4 percent of annual output _ from an estimated 9 percent this year.

Next year’s figure factors in 50 percent writedowns on the value of Greek bonds held by private creditors as part of a second international bailout for Greece, after a first euro110 billion ($148 billion) deal in May 2010 proved insufficient.

Former central banker Papademos was appointed last month to head a coalition government to push through financial reforms. The interim government is expected to call early elections in late February.

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Chicago was shaped in part by commodities exchanges where contracts representing corn, wheat and hogs have changed hands for more than a century.

But two prominent exchanges are threatening to leave the state if Illinois doesn’t change the way it taxes their trading.

State lawmakers are expected to convene Tuesday and to discuss a deal that would appease the CME Group Inc. and CBOE Holdings Inc., while meeting demands made by another Illinois mainstay, Sears.

Those who back the tax breaks say they’ll help keep jobs in a state whose unemployment rate hangs just above 10 percent payday advance lender.

Opponents say the state simply can’t afford to make such deals and question whether the companies would make good on their threats or whether they’re simply exploiting the state’s weak bargaining position.

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Libya’s transitional leaders have vowed to work with the International Criminal Court and with the United Nations in investigating alleged crimes committed by Moammar Gadhafi’s recently captured son and one-time heir apparent, the court’s prosecutor said Thursday.

ICC prosecutor Luis Moreno-Ocampo told The Associated Press that the court received the formal pledge in a letter from National Transitional Council chairman Mustafa Abdul-Jalil. He gave the AP a copy of the letter in an English translation.

Moreno-Ocampo said he was satisfied with that move, which appears to settle a dispute between the international court and Libyan authorities over which body should try Seif al-Islam Gadhafi with crimes against humanity.

Libya is obliged by a UN Security Council resolution to work with the ICC, but that does not necessarily preclude a trial in Libya. If the court determines that the country has a functioning legal system that will give Seif al-Islam a fair trial on substantially the same charges as were filed before it, it can leave the case with Libya.

Moreno-Ocampo said the most important thing is for Seif al-Islam, whom he called the “face of the old regime,” to face justice.

It “is very important for the world and for Libya to understand what happened here, how they attacked these people, how they killed these people,” Moreno-Ocampo said.

The ICC has charged both Seif al-Islam and the Gadhafi-era intelligence chief Abdullah al-Senoussi with crimes against humanity for unleashing the brutal crackdown on an uprising that began in February and spiraled into a civil war.

Moreno-Ocampo said he understood that it’s “a matter of national pride” for Libya’s leaders to try Gadhafi’s son themselves because they want to prove to the world that they are capable of holding a fair trial payday lenders.

He said investigations are under way into the alleged crimes committed by Gadhafi’s son and that he believed it would be ready for trial “in a few months.”

In his letter to the court, Libya’s Abdul-Jalil pledged to “fully cooperate” with the ICC and the UN Security Council.

But he asserts that the Libyan judiciary has “primary responsibility” to try Seif al-Islam, the only Gadhafi family member in Libyan custody.

The letter is addressed to a presiding judge at the court in The Hague, Sanji Mmasenono Monageng.

Seif al-Islam is being held by fighters from the Libyan town of Zintan, who flew him there after his capture in southern Libya on Saturday. The International Committee of the Red Cross visited Seif al-Islam there on Tuesday and said he appeared to be in good health.

Officials with the governing National Transitional Council also had reported that former intelligence chief al-Senoussi, who also is wanted by France over the 1989 bombing of French airliner, was captured over the weekend in the southern city of Sabha and was being held in a secret location.

However, senior Libyan officials have cast doubt on the claim.

Moreno-Ocampo said Libyan authorities told him they could not confirm that al-Senoussi was really arrested.

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The latest evidence that the economy is making steady gains emerged Friday from a gauge of future economic activity, which rose in October at the fastest pace in eight months.

A string of better-than-expected economic reports this month has led some analysts to revise up their forecasts for growth. Still, they caution that their brighter outlook remains under threat from Europe’s financial crisis.

“Things are looking better than we thought they would _ not great, but better,” said David Wyss, former chief economist at Standard & Poor’s.

The most recent sign was Friday’s report by the Conference Board that its index of leading economic indicators surged 0.9 percent last month. It was the index’s best showing since February. And it was far faster than the increases of 0.1 percent September and 0.3 percent in August.

The index is designed to predict economic activity. The October figure marked the sixth straight increase.

The jump reflected gains in nine of the index’s 10 components. Leading the way: a surge in permits for home construction; a narrower gap between short- and long-term interest rates that suggested less concern about inflation; a recovery in stock prices; and growth in the U.S. money supply.

A longer average workweek and fewer applications for unemployment benefits also contributed to the rise in the index.

All told, the components of the index signaled that the economy is steadily, if still slowly, strengthening.

On Thursday, the government reported further improvement in the number of people seeking unemployment benefits for the first time. The number fell to 388,000, the fewest since April.

In October, the economy added a net total of 80,000 jobs. It was the 13th straight month of gains. Still, the additional jobs were fewer than the roughly 125,000 that are needed each month just to keep up with population growth.

Many economists said the October gain in the leading indicators offered further assurance that the economy is in no imminent danger of slipping back into a recession, so long as Europe doesn’t fall into a severe downturn.

“This was a very positive reading for the leading indicators,” said Mark Zandi, chief economist at Moody’s Analytics. “The economy seems to be holding its own.”

Steven Wood, chief economist at Insight Economics, said the string of positive readings suggests “the economy should continue to experience at least moderate growth over the next six to nine months.”

In the first six months of the year, the economy grew at an annual rate of just 0.9 percent. Growth expanded to a 2.5 percent rate in the July-September quarter.

Before this month, many economists had estimated that growth in the current October-December quarter would roughly match the 2.5 percent pace of the July-September period. But in recent days, based on the healthier economic news, some analysts have boosted their forecasts.

This week, the government said retail sales in October and factory production were picking up. U.S. builders started slightly fewer homes in October. But building permits, a gauge of future construction, surged nearly 11 percent. That gain was led by a 30 percent increase in apartment permits, to their highest level in three years.

Wyss said he expected the annual growth rate in the current quarter to amount to about 3 percent, up from his earlier expectation of 2.5 percent. Economists at JPMorgan Chase & Co. are also expecting a 3 percent growth rate for the October-December period.

Wyss said one reason for his increased optimism is that he thinks a modest rebound in consumer spending will trigger companies to restock depleted shelves.

Even so, an economy growing at a 3 percent rate would still fall shy of the 4 percent to 5 percent pace that economists say is needed to significantly reduce the unemployment rate, which remains stuck at 9 percent.

And without stronger job gains, analysts say consumer spending, which accounts for about 70 percent of economic activity, will remain constrained.

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House Speaker John Boehner publicly blessed a Republican deficit-reduction plan Tuesday that would raise $300 billion in additional tax revenue while overhauling the IRS code, bucking opposition by some GOP presidential hopefuls and colleagues wary of violating a longstanding point of party orthodoxy.

Boehner, the top Republican in Congress, spoke as time grew perilously short for agreement by the deficit-fighting “supercommittee.” The panel has until a week from Wednesday to vote on any compromise, but several officials said that in reality, perhaps as little as 48 or 72 hours are available to the six Republicans and six Democrats.

While Boehner’s voice is important, his endorsement does not mean all Republicans will follow him or that a deal is in sight. Republicans have been unified for two decades in opposition to higher taxes, while Democrats on the supercommittee insist on additional revenue before they will agree to cuts in benefit programs like Medicare as part of a compromise.

The speaker said that the plan, outlined a week ago to Democrats on the committee, was “a fair offer.” Adding tax reform would generate economic growth, he said, speaking as the supercommittee groped uncertainly for a compromise to reduce red ink by $1.2 trillion or more over a decade.

Any deal must be certified by the nonpartisan Congressional Budget Office as meeting the $1.2 trillion target, circulated to lawmakers and then posted publicly before the committee takes formal action. Failure to act would trigger $1.2 trillion in automatic deficit cuts in 2013 that both sides say they want to avoid.

The full committee hasn’t met in several days, but various subgroups have been in near constant contact.

More than deficit reduction is at stake, one year into an era of divided government.

Democrats are hoping to add elements of President Barack Obama’s jobs legislation to any deficit-cutting deal, including extensions of a Social Security payroll tax cut and unemployment benefits that are due to expire at the end of the year. A comprehensive rewrite of farm programs may hang in the balance, too, and lawmakers also must pass legislation to assure sufficient funds to reimburse doctors who treat Medicare patients.

As the pace of private talks intensifies, the two sides vie publicly for the high ground in public opinion.

“I am still hopeful that a few Republicans will put their country first and come to us with a credible offer with real revenue,” Sen. Patty Murray, D-Wash., co-chair of the supercommittee, told reporters as she emerged from a late-afternoon meeting.

Earlier, the Republican Senate leader, Mitch McConnell of Kentucky, said GOP members on the committee outlined a proposal several days ago and have yet to receive a response from Democrats. “It’s been a long week, waiting for a counter-proposal,” he said.

The twin issues of taxes and benefit programs have long been stumbling blocks in budget negotiations.

In negotiations last summer, according to numerous officials, President Barack Obama and Boehner were considering sizeable cuts to benefit programs as well as an overhaul of the tax code that would have raised as much as $800 billion in additional revenue _ money that Republicans said at the time would have come from economic growth pay day loan lenders. The talks ultimately failed.

In his comments Tuesday, Boehner cited the importance of tax overhaul in the proposal that Sen. Pat Toomey, R-Pa., made to supercommittee Democrats last week.

“It’s important for us to, in my opinion, reform the tax code. And we’ve got the highest business tax rate in the world. We’ve got a personal tax system that’s so complicated it costs Americans about $500 billion a year to comply with the current tax code,” he said.

Boehner asserted that the changes would “make America more competitive and produce more economic growth. And so I do believe that reforming the code is a step in the right direction. The details of how we get there, frankly, I think are yet to be worked out.”

Republican officials have said the offer made by Toomey envisions an overhaul that would drop the top tax rate on personal income to 28 percent from the current 35 and shave or eliminate some itemized deductions that are commonly used. The top corporate rate would also fall.

The result would be an estimated $250 billion in additional revenue over a decade, they estimate.

Despite Boehner’s comments _ and Toomey’s credentials as an opponent of tax increases _ GOP presidential contenders Newt Gingrich and Rick Perry said they were prepared to oppose a plan along the lines of the one under consideration. Another candidate, Mitt Romney, brushed aside a question on the subject.

Supercommittee Republicans also support a proposal that would replace the current measurement of inflation used to adjust income tax brackets and cost-of-living increases with another, less generous one. They estimate it would result in an estimated $50 billion in higher tax revenue and reduce spending by roughly three times that amount.

Obama backed a similar plan last summer in his talks with Boehner. More recently, Democrats on the supercommittee included it in an offer, although liberals made clear their unhappiness and it was subsequently jettisoned.

Both Boehner and Rep. Jeb Hensarling of Texas, the GOP co-chair of the supercommittee, explained the Republican proposal to members of the rank-and-file at a closed door meeting.

According to numerous officials who attended, Hensarling displayed charts that sought to place the offer in the context of other scenarios that might occur if there is no agreement. Among them are increases in tax rates that would occur beginning on Jan. 1, 2013, if all of the cuts enacted when President George W. Bush was in office expire as currently scheduled.

“They haven’t thrown me out, so I guess I got a good reception,” Hensarling later said of his reception.

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