–House Majority Leader: Biden Talks Are ‘Moving Forward’
–Hill Must Take Steps To End ‘Fiscal Insanity’ in DC
–Hope To ‘Meet Or Exceed’ Deficit Reduction Goals

By John Shaw

WASHINGTON (MNI) – House Majority Leader Eric Cantor Thursday said
he believes the budget talks led by Vice President Biden are “moving
forward,” adding he remains determined to insist that the final
agreement “cut spending by trillions.”

In comments on the House floor, Cantor defended the House GOP’s
linkage of debt ceiling legislation and deficit reduction action.

He said while Republicans very much want the nation to meet all of
its financial obligations, it is also essential to pass a substantial
spending reduction package to end “the fiscal insanity” of America’s
current budget policy.

Cantor said he believes it is important to “meet or exceed” the
goal of cutting spending by the same amount that the debt ceiling is
increased.

Cantor once again praised Biden for leading the talks fairly and
said he is “hopeful” the group can reach an agreement.

Biden is scheduled to meet with lawmakers later Thursday afternoon.
The talks have been delayed by votes in the House and Senate.

The Biden talks are exploring a deficit reduction package that can
be developed to coincide with this summer’s vote on debt ceiling
legislation.

Biden is negotiating with Cantor, Senate Minority Whip Jon Kyl,
Senate Appropriations Committee Chairman Dan Inouye, Senate Finance
Committee Chairman Max Baucus, Assistant House Minority Leader Jim
Clyburn and Rep. Chris Van Hollen, the top Democrat on the House Budget
Committee.

The administration is represented by Biden, Treasury Secretary Tim
Geithner, White House budget director Jack Lew and the director of the
National Economic Council Gene Sperling.

House Speaker John Boehner has said it’s important to forge a
deficit reduction agreement by the end of June so a vote on debt ceiling
legislation can occur well before the August 2 deadline that Treasury
has set.

Kyl, the Senate Minority Whip, told reporters last week that
Republicans want a package of more than $2.4 trillion in savings over a
decade or more as a condition for increasing the debt ceiling by that
same amount.

Cantor has said the Biden talks are focused on securing savings
over the ten year budget window, but added that additional savings
beyond this window would be very positive.

Cantor has also said that his strong preference is for “one debt
ceiling vote” this year that would increase the debt ceiling, rather
than considering a series of votes on smaller increases.

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

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