–House Speaker Boehner: House GOP Bill Would End Debt Ceiling Crisis
–Calls New Republican Plan A ‘Compromise’ Bill
–‘No Reason’ Senate Shouldn’t Accept House GOP Plan

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner said Thursday the
raging dispute surrounding the debt ceiling could end if the Senate
takes up the legislation that he expects the House to pass later in the
day.

At a briefing with House Republican leaders, Boehner repeatedly
referred to the House GOP bill as “bipartisan” and “compromise”
legislation — an assertion that Democratic leaders have dismissed as
inaccurate.

Boehner called his bill “reasonable, responsible” legislation,
adding that it is “as large a step as we are able to take at this time”
to deal with budget deficits.

“I would hope they (the Senate) would take it up,” Boehner said of
his bill.

“There is no reason for them to say no,” he said, apparently
referring to both the White House and Senate Democratic leaders.

The House is expected to vote Thursday between 5:45 p.m. and 6:15
p.m. ET on Boehner’s plan.

Senate Majority Leader Harry Reid, earlier in the day, said his
staff hand-delivered a letter to Boehner’s office yesterday that was
signed by all 53 Senate Democrats who said they oppose Boehner’s bill.

Boehner’s plan would raise the debt ceiling by $900 billion this
year and $1.6 trillion next year. Passing the initial $900 billion debt
ceiling increase would require Congress to pass more than $900 billion
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.

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.

Boehner said Congress should not “play around with August 2nd,”
which is the debt ceiling deadline set by U.S. Treasury.

The Speaker gave no hint of compromise with President Obama and was
dismissive of a plan by Reid that would cut spending by $2.2 trillion
over ten years and allow for passage of the debt ceiling until 2013.

Boehner has said Reid’s plan is based on “phony accounting and
Washington gimmicks.”

A number of lawmakers have said they expect intense negotiations on
a final debt ceiling bill to begin after the House passes the Boehner
bill Thursday evening.

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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