–House Majority Leader: Debt Hike Is ‘Opportunity’ To Slash Spending
–Confirms House To Vote Wednesday To Repeal Health Law
–Tax Reform Is ‘Necessary Piece’ of Economic Reform

By John Shaw

WASHINGTON (MNI) – House Majority Leader Eric Cantor said Tuesday
that House Republicans view the coming vote to increase the debt ceiling
as an “opportunity” to achieve “serious cuts” in federal spending.

At a briefing, Cantor said the coming debt ceiling vote is
consequential and will be used by House Republicans as a vehicle to
secure spending cuts and make budget reforms.

“This is a serious vote with serious consequences on both sides of
the vote,” he said.

Cantor said House Republicans are “looking into” Treasury’s cash
management plans to determine if Treasury Secretary Timothy Geithner’s
request for Congress to increase the debt ceiling between late March and
mid-May is necessary in this time frame.

Asked if he could imagine Congress not passing a debt ceiling
increase, Cantor evaded a direct answer but said the GOP wants to use
the vote to secure spending cuts.

Cantor said House Republicans will use the March vote on funding
the federal government as an opportunity to begin bringing federal
spending for non-defense discretionary programs to fiscal year 2008
levels.

The current stop-gap bill funding the federal government expires
March 4.

Cantor said House GOP leaders will use the early weeks of the new
Congress to pass a bill in the House to repeal the new health care law,
cut spending and review regulations.

Regarding spending, Cantor said “everything is on the table” to
reduce federal spending, but did not offer any specifics. Those, he
said, will be developed later by the House Appropriations Committee.

Cantor said the House GOP may use “macro tools” such as spending
caps to help secure spending savings.

He said the House will vote Wednesday to repeal the new health care
law which he called an “unsustainable and open-ended entitlement.”

After the repeal is passed, the House will begin to work on
legislation to replace the current health care law, he said.

The House is expected to pass the repeal of the new health care law
on a party line vote, but the measure is expected to die in the Senate.

Cantor said that the House will work on comprehensive tax reform in
this Congress which he called a “necessary piece” of broad economic
reform.

The House Ways and Means Committee will hold its first hearing on
tax reform Thursday.

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

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