–House Speaker Boehner Repeats His Plan Is ‘Far From Perfect’
–Says Revised Plan Is ‘Positive Step Forward’
–House Expected To Vote On Boehner’s Revised Bill Thursday

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner said Wednesday
evening that the Congressional Budget Office has examined his revised
spending cut plan and now estimates it would cut deficits by $917
billion.

In a statement, Boehner called this CBO estimate positive news and
vowed to press ahead.

“This bill is far from perfect but it’s a positive step forward
that denies (the) president the $2.4 trillion blank check that lets him
continue his spending binge through the next election,” he said.

Boehner’s hope to pass a House Republican debt ceiling plan
Wednesday unraveled last night when the CBO released a cost estimate
that showed his bill fell well short of its goal of at least $900
billion in savings.

The CBO estimated Boehner’s bill would save about $850 billion, so
Boehner redrafted the measure to increase its savings and ease the
concerns of conservative House Republicans on other provisions.

The House is expected to vote Thursday on Boehner’s revised bill.

Boehner has been proposing a two-step debt ceiling increase that
would raise the debt ceiling by $900 billion this year and $1.6 trillion
next year.

Under Boehner’s approach, passing the initial $900 billion debt
ceiling increase would require Congress to pass $1.2 trillion in
spending cuts through imposing caps on discretionary spending.

Approval of the second tranche of $1.6 trillion would require
passage of $1.8 trillion in spending cuts in entitlement programs that
are identified by a special congressional panel.

Under Boehner’s plan, the House and Senate would also have to vote
on a balanced budget constitutional amendment between this October and
the end of the year.

The White House issued a veto threat regarding Boehner’s bill
Tuesday afternoon.

Senate Majority Leader Harry Reid has predicted Boehner’s bill will
be voted down in the Senate or altered significantly.

Reid has proposed a bill that would cut spending by $2.7 trillion
over ten years and allow for passage by Aug. 2 of a $2.4 trillion debt
ceiling increase.

Reid’s plan calls for $1.2 trillion in discretionary savings, $1
trillion from winding down the wars in Iraq and Afghanistan, $400
billion in interest savings and $100 billion in entitlement savings.

The CBO has said Reid’s bill would secure $2.2 billion in savings.
He said he will “tweak” it to boost its savings so it nears the $2.7
trillion goal.

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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