–Senate Majority Leader Scorches Cantor, Kyl For ‘Giving Up’
–Going To ‘Do Something’ On Debt Limit By Aug. 2
–Sen. Schumer: Budget Talks Will Resume at Higher Level

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid Thursday
ridiculed House Majority Leader Eric Cantor and Senate Minority Whip Jon
Kyl for displaying a “non adult attitude” by abandoning important
budget talks led by Vice President Biden.

In comments to reporters after a Senate Democratic luncheon, Reid
said it now appears that the final budget negotiations will be in the
“hands” of President Barack Obama, House Speaker John Boehner and —
“sadly” — himself.

“It appears Cantor has had enough of these negotiations,” Reid
said, adding that Kyl also decided to drop out of the talks.

“It appears they are giving up,” Reid said derisively, calling the
departure of Cantor and Kyl “untoward and terribly disappointing.” He
accused Cantor, Kyl and other Republicans of “walking away from our
country’s problems.”

Reid said most policymakers now have a “general idea” of the
contours of a budget agreement.

He added that he is determined that there will be a budget package
that will allow the debt ceiling to be increased by August 2. “We’re
going to do something by August 2,” he said.

Senate Appropriations Committee Chairman Dan Inouye, also a member
of the Biden talks, said he had been “hoping” the talks would conclude
Thursday with an agreement, and was “surprised” Cantor dropped out.

Sen. Dick Durbin, the second ranking Senate Democrat, said the
August 2 debt ceiling deadline should be viewed as “high noon” by
policymakers.

Durbin said sensible budget negotiations involve putting
“everything on the table,” a clear jab at Republicans for expressly
taking tax increases off the table.

Sen. Chuck Schumer, the third ranking Senate Democrat said, “The
talks will resume,” but at a higher level. He added that a final debt
ceiling package should include budget cuts and economic growth measures,
including some tax breaks to boost job creation.

Biden was scheduled to hold another session of his group at 2:00
p.m., but this session was canceled.

In a statement Thursday afternoon, Kyl and Senate Minority Leader
Mitch McConnell said Obama needs to chose between a bipartisan spending
cut agreement or “job killing” tax increases. “We need to hear from
him,” they said.

Democrats in the Biden budget talks have said 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 group met Tuesday and Wednesday and is scheduled to meet
Thursday and possibly Friday.

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 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.

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

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