–House GOP Stages Debt Ceiling Demonstration Vote Before Obama Session
–House Republicans Say They Will Probe Obama On Deficits, Tax Reform
–President To Meet With House Democrats Thursday

By John Shaw

WASHINGTON (MNI) – House Republican leaders prepared for their
meeting with President Barack Obama Wednesday by sending the president a
sharp message in the form of a vote Tuesday evening.

The House voted overwhelmingly Tuesday to reject a bill that would
have increased the statutory debt ceiling by $2.4 trillion without any
conditions placed on it.

The House rejected the bill on a 97 to 318 vote. No Republican
voted for the debt ceiling increase.

Republican leaders said the purpose of the vote was to show the
White House and congressional Democrats that there is no support for a
clean debt ceiling increase that is not coupled with deficit reduction
measures.

House Ways and Means Committee Chairman Dave Camp made it clear
that the Tuesday evening vote was a message to Obama. “Now that he knows
that (a clean debt ceiling increase) is not an option, we have to hear
from him,” Camp said Tuesday after the vote.

Obama is meeting with House Republicans at 10 a.m. Wednesday. The
president meets with House Democrats Thursday.

House Republican leaders said they want to discuss with the
president his plans for cutting deficits, overhauling entitlements,
creating jobs and reforming the tax code.

Camp has said that he wants to get Obama’s reaction to a GOP idea
to cut the corporate tax rate from 35% to 25%.

House Speaker John Boehner has said that he will insist on
agreement on a package of spending cuts that is larger than the size of
the debt ceiling increase.

Vice President Biden is leading a set of talks that is trying to
secure a large deficit reduction package. He said last week that he
believes his group is close to identifying up to $1 trillion in savings.

However, Biden added that changes in tax policy must be part of the
talks, an assertion congressional Republican leaders resist.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Tim Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2.

** Market News International Washington Bureau: (202) 371-2121 **

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