–House Speaker: ‘Not Prepared’ To Support Payroll Tax-Cut Extension
–Rep. Boehner: Need Tax, Fiscal, Regulatory ‘Certainty’
–Vice President Biden To Resume Budget Talks At 1 P.M.
By John Shaw
WASHINGTON (MNI) – House Speaker John Boehner said Thursday
that Congress should focus its efforts on broad individual and corporate
tax reform rather than pursuing “short-term gimmicks” to boost the
economy.
At a briefing, Boehner said that he is “not prepared” to support an
idea that is being pushed by some Democrats to extend the payroll tax
holiday for workers for another year. President Obama has also spoken
positively about the idea.
Last December, the White House and Congress crafted a broad tax-cut
deal which included lowering the Social Security payroll tax on
employees from 6.2% to 4.2%. Some Democrats say this provision, which
expires at the end of the year, should be extended and possibly even
made to include employers.
Boehner repeated that the American economy will regain its strength
when there is more “certainty” about tax and regulatory policies and a
fiscal policy that is reducing deficits and debt.
The House GOP plan also endorses a comprehensive review of
government regulations, patent reforms, and reducing tax rates for
businesses and individuals to no higher than 25%.
The House Republican economic agenda also calls for
passage of the three pending U.S. trade agreements with Panama, Colombia
and South Korea.
Regarding fiscal policy, Vice President Joe Biden will hold the
budget third meeting this week in the Capitol at 1 p.m. The topic of
Thursday’s talks is entitlement reform.
The Biden talks Wednesday focused on budget triggers to control
deficits and spending.
When he left the budget talks Tuesday evening, Biden said his group
is trying to wrap up a budget agreement by the end of June in the hope
of presenting a package to President Obama and congressional leaders
before the 4th of July congressional recess.
The vice president said he is “convinced” the White House and
Congress will able to reach an agreement on a deficit reduction plan
that leads to $4 trillion in savings over 10 to 12 years.
Biden said there is already an agreement in the talks on “well
beyond” $1 trillion in savings.
The Biden talks are seeking a deficit reduction package that can
be developed to coincide with this summer’s vote on debt ceiling
legislation.
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.
Biden is negotiating with House Majority Leader Eric Cantor, Kyl,
Senate Appropriations Committee Chairman Dan Inouye, Senate Finance
Committee Chairman Max Baucus, Assistant House Minority Leader Jim
Clyburn and Van Hollen, the top Democrat on the House Budget Committee.
The administration is represented by Biden, Treasury Secretary Tim
Geithner, White House budget director Jack Lew and the director of the
National Economic Council Gene Sperling.
** Market News International Washington Bureau: (202) 371-2121 **
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