–House Majority Leader Says Panel Should Focus On Areas of Agreement
–Deficit Panel Should Draw From Biden Group’s ‘Blueprint’
–Troubled’ Admin Doesn’t Want Deal on Deficit

By John Shaw

WASHINGTON (MNI) – House Majority Leader Eric Cantor Tuesday said
Congress’ new deficit reduction panel should focus on securing $1.5
trillion in savings rather than the more ambitious fiscal goals that
some have suggested, including President Obama.

At a press briefing, Cantor said the deficit reduction panel should
“reach the goal” of $1.5 trillion in savings and hinted that major
reforms of taxes and entitlements might be too controversial for the
special committee.

“There are some things we can agree on together,” he said, adding
that the budget discussions led this summer by Vice President Biden are
a useful “starting point” for the new committee.

“That group produced a blueprint,” Cantor said of the Biden talks.

Cantor ruled out supporting any tax rate increases. “We need to say
away from that discussion,” he said, adding “raising taxes crushes job
creation.”

Cantor was sharply critical of Obama’s revamped $3 trillion deficit
reduction package, saying it relies heavily on tax increases that would
crimp economic growth and job creation.

He also said the president’s plan avoids “real” entitlement
reforms. Cantor said he is “troubled” that Obama does not appear to want
to reach an agreement with Republicans on fiscal issues.

Cantor said the House will pass a fiscal year 2012 stop-gap
spending bill Wednesday, adding the package will include $3.6 billion in
emergency assistance.

He blasted Senate Majority Leader Harry Reid for vowing to press
for $7 billion in emergency aid. He said Reid is “playing politics” with
the disaster funds.

Cantor said Republicans are not interested in “brinksmanship” on
the FY’12 discretionary budget, adding that a $1.043 trillion ceiling on
discretionary spending has been agreed to by Congress and the White
House.

The 2012 fiscal year begins Oct. 1. None of the 12 regular spending
bills have been approved yet.

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

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