–House Speaker: Always Knew That Super Committee Deal Would Be Hard
–Deficit Panel Must Achieve Positive ‘Outcome’
–Deficit Plan By Senate Democrats Not ‘Reasonable’
–‘Never Believed’ Deficit Panel Would Overhaul Tax Code
–House Passes Repeal Of 3% Withholding Requirement On Govt Contractors

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner said Thursday he
always anticipated Congress’ new deficit reduction panel would face
“some difficulty” in meeting its deficit reduction goals, but added that
the panel’s failure is not an option.

“I’m committed to getting an outcome,” Boehner said.

“We asked the Super Committee to do a big job,” he added.

The Speaker declined to specify what must be in the final
agreement, but said it’s primary focus should be in reforming
entitlement programs.

“It’s time for us to do our work there,” he said.

Boehner was very cool to a plan proposed this week by Senate
Finance Committee Chairman Max Baucus that calls for about $3 trillion
in deficit reduction over a decade with a nearly equal blend of spending
cuts and tax increases.

Baucus’ plan calls for about $1.3 trillion in new revenues, $575
billion in health care entitlement savings, $400 billion in
discretionary savings and about $250 billion in other entitlement
savings.

“I don’t think that’s a reasonable number,” Boehner said in an
apparent reference to the $1.3 trillion in additional revenues.

Boehner said he envisions the final deficit reduction agreement as
having “the same kind of structure” as other deficit reduction ideas
that have been discussed this year.

When Boehner was in talks with President Obama earlier this spring,
they discussed a $3 trillion to $4 trillion deficit reduction plan that
had about $800 billion in additional revenues. According to Boehner, the
talks foundered when Obama tried to push the revenue number up to $1.2
trillion.

At his briefing, the Speaker played down the probability that the
deficit panel will include comprehensive tax reform. He said he “never
believed” the panel would be able to “rewrite the tax code.”

Congress’ Joint Select Committee on Deficit Reduction is charged
with submitting a report to Congress by Nov. 23, 2011 that reduces the
deficit by between $1.2 trillion and $1.5 trillion for the 2012 and 2021
period.

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.

In a related matter, Boehner said the House will vote this year on
a balanced budget constitutional amendment, adding that there are a
“half dozen different versions” under consideration.

Boehner said he believes a constitutional amendment requiring a
balanced federal budget is the “ultimate enforcement mechanism” to
ensure fiscal discipline.

Finally, the House Thursday passed a bill to repeal a requirement
that federal, state, and local governments begin withholding 3% of
certain contract payments.

The plan would cost about $11 billion and would be paid for by
rescinding discretionary funds.

The Senate has been deadlocked on the bill.

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

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