–House Majority Leader Says Deficit Panel Should Focus On $1.5T Goal
–Admin Should Spell Out ‘Concerns’ on China Currency Bill
–Currency Bill Could Have ‘Big Impact’ On U.S.-China Ties

By John Shaw

WASHINGTON (MNI) – House Majority Leader Eric Cantor said Tuesday
that deep differences between Democrats and Republicans on tax and
entitlement reform will prevent Congress’s new deficit reduction panel
from reaching a $4 trillion deficit cutting agreement, adding that the
panel should focus on securing between $1.2 trillion and $1.5 trillion
in savings.

At a briefing, Cantor said the congressional deficit reduction
panel should work to achieve the “do-able” goal of $1.5 trillion in
savings, adding that major reforms of taxes and entitlements are too
controversial for the special committee.

“Let’s get something done,” he said, adding that he is “hopeful”
and “optimistic” that a smaller deficit reduction agreement can be
reached.

“I do believe there will be an outcome,” Cantor said.

Congress’s deficit reduction committee is charged to submit a $1.5
trillion deficit reduction package by Nov. 23.

On another matter, Cantor was sharply critical of the Obama
administration for declining to outline its comprehensive views on China
currency legislation that is pending in the Senate.

“Clearly they’ve got concerns as well,” Cantor said, adding that
passage of the bill would potentially have a “tremendous impact” on the
U.S.-China relationship.

The Senate will vote Tuesday evening at 5:30 p.m. on passage of a
currency bill that is directed at China.

Based on two procedural votes held last week, the bill seems poised
to pass the Senate easily.

However, House Speaker John Boehner has called the legislation
“dangerous” and is very unlikely to schedule a House vote on the bill.
Cantor has been less clear on how he views the bill.

Cantor said he expects the Senate to reject President Obama’s jobs
plan Tuesday.

The Senate will also hold a procedural vote Tuesday evening to
formally begin debate on Obama’s $447 billion jobs package as modified
by Senate Democratic leaders.

Senate Republicans are expected to vote against the motion
to formally begin the Senate debate. Since 60 votes are needed to begin
the debate, the GOP could derail Obama’s plan — and likely will.

Cantor was sharply critical of the bill’s new package of offsets
including a proposed surtax on the wealthy. Senate Democrats have said
their proposal to levy a 5.6% surtax on household income about $1
million will pay for the full cost of Obama’s jobs plan.

Cantor said the president and congressional Democrats should “work
with us in an incremental way” pass measures that have bipartisan support
and would boost the economy.

One of those “areas of commonality,” Cantor said, is passage of the
three pending bilateral trade agreements.

He said he expects the House to pass the three bills this week.

Both the House and Senate are expected to vote on, and pass,
pending bilateral trade agreements between the U.S. and Panama,
Colombia, and South Korea. The congressional votes on the three trade
bills are expected Wednesday.

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

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