–House Minority Whip Hoyer: Panel’s Failure Would ‘Diminish’ US
–Rep. Hoyer: ‘Not Helpful’ To Take Any Program Off The Table
–Rep. Hoyer: House To Vote On FY’12 Stop-Gap Wednesday

By John Shaw

WASHINGTON (MNI) – House Minority Whip Steny Hoyer Tuesday said
despite mounting partisan rancor Congress’ new deficit reduction panel
is “still able to reach a compromise” on a substantial deficit reduction
plan this fall.

At a briefing, Hoyer praised the deficit plan submitted by
President Obama as a “very significant, worthwhile event.”

“It’s a balanced plan that asks everyone to pay their fair share,”
Hoyer said.

Obama’s plan seeks $3.2 trillion in 10 year budget savings, about
$1.5 trillion of which would come additional revenues. Of this sum,
about $800 billion would come from allowing the Bush tax cuts to expire
for those making over $250,000 and about $700 billion would come from
closing tax loopholes and eliminating various deductions and credits.

The President’s plan would also claim more than $1.1 trillion in
savings by winding down the wars in Iraq and Afghanistan. The Obama
package will also include about $580 billion in entitlement savings. Of
these savings, about $248 billion will come from Medicare reforms and
$65 billion from Medicaid adjustments.

As the result of this package, the nation’s debt service costs
would decline by $430 billion, the administration officials said.

Hoyer warned Republicans against “knee-jerk opposition” to all of
Obama’s ideas.

Hoyer said the 12 member deficit reduction panel should review all
options to cut the deficit.

The Joint Select Committee on Deficit Reduction is charged to
submit a report to Congress by Nov. 23, 2011 that reduces the deficit by
$1.5 trillion between 2012 and 2021.

The final package, if one is agreed to by the majority of the
panel’s 12 members, must be voted on without amendment by the House and
Senate by Dec. 23, 2011.

If the panel fails to agree on a spending cut package or Congress
rejects its plan, a budget enforcement trigger would secure $1.2
trillion in budget savings through across-the-board cuts.

The cuts would be equally divided between defense and non-defense
programs but would exempt Social Security, Medicaid and low-income
programs.

“Everything needs to be on the table,” Hoyer said. “Taking things
off the table is not helpful,” he added.

He said the panel’s failure to secure its goal of $1.5 trillion in
budget savings would “further diminish” the U.S. in the eyes of the
world.

“The consequences of failure are substantial,” he said.

On a separate matter, Hoyer said that he expects the House to take
up the stop-gap spending bill for the 2012 fiscal year that funds the
government until Nov. 18. The new fiscal year starts Oct. 1.

“The CR (stop-gap bill) needs to be passed,” Hoyer said.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]