–Senate Majority Leader Says He’s ‘Disappointed’ GOP Bolting Talks
–Senate Finance Chief Baucus: Need To ‘Keep Moving’ On Budget Deal
–Sen. Baucus: Still ‘A Lot of Time’ To Get Budget Deal
–Sen. Baucus: ‘Don’t Know Who Is Meeting Now’ On Budget Talks

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Thursday
he is “disappointed” that both House Majority Leader Eric Cantor and
Senate Minority Whip Jon Kyl are suspending their involvement in the
budget negotiating group led by Vice President Joe Biden.

But in comments to reporters, Reid declined to offer a broader
assessment of the state of the Biden budget talks that seem to be in
disarray–at least for the moment.

Senate Finance Committee Chairman Max Baucus, who is also a member
of the Biden group, said he is also “disappointed” with the departure of
the only Republican negotiators in the talks.

But he said he still believes there is hope for an agreement.

“Just got to keep moving,” he said, but added that he doesn’t know
“who is meeting now.”

“There is a lot of time,” Baucus said.

Biden was scheduled to hold another session of his group at 2 p.m.
ET, but both Baucus and Rep. Chris Van Hollen said they aren’t sure if
the talks will occur.

Van Hollen said that it makes sense to consider removing “special
interest tax breaks” as part of a comprehensive budget agreement.

In a statement Thursday afternoon, Kyl and Senate Minority Leader
Mitch McConnell said that President Obama needs to chose between a
bipartisan spending cut agreement or “job killing” tax increases.

“We need to hear from him,” they said, referring to Obama.

Democrats in the Biden budget talks have said that additional
revenues should be part of the discussion. Republicans, led by Cantor
and Kyl, have said tax increases should not be part of the agenda.

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 talks are focused on assembling a deficit reduction package of
spending cuts that would allow for Congress to consider a debt ceiling
increase sufficiently large to extend until after the 2012 November
elections. Various lawmakers and administration officials have put this
number at $2.4 trillion—for both the size of the debt ceiling increase
and the accompanying spending cuts.

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 has been negotiating with Cantor, Kyl, Senate Appropriations
Committee Chairman Dan Inouye, 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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