–Senate Budget Committee Chief: Need Plan Larger Than Simpson-Bowles
–Sen. Conrad: Should ‘Put In Place The Plan Right Now’
–Sen. Conrad: Phased-In Deficit Cut Plan Would Be ‘Tonic’ For Economy
By John Shaw
WASHINGTON (MNI) – Senate Budget Committee Chairman Kent Conrad
said Thursday the U.S.’s fiscal situation now requires a 10-year
deficit reduction plan that is even greater than the $4 trillion package
developed by the Simpson-Bowles committee more than a year ago.
In comments at a Senate Budget Committee hearing on the state of
the global economy, Conrad said his “fondest wish” would be for Congress
to support a deficit reduction plan of about $5.5 trillion over a
decade.
Congress should “put in place the plan right now,” Conrad said, but
added it should be phased-in carefully so that major deficit cutting
occurs only after the recovery has fully taken hold.
The approval of a “substantial” deficit reduction plan would
reassure financial markets and serve as a “tonic” for the American
economy, Conrad said.
Conrad said it will be very difficult for lawmakers to make
progress on deficit reduction during an election year, but he implored
all the members of his panel to try.
“Let’s give it our absolute best shot,” he said.
A bipartisan deficit reduction agreement would require all
lawmakers to “give some ground,” but the overall impact would be a major
boost in confidence in the country.
“Let’s try,” he said.
In addition to chairing the Senate Budget Committee, Conrad is also
a member of the so-called “Gang Of Six” which has drafted a plan to cut
deficits by $3.75 trillion over a decade. Their plan would include large
savings from entitlement programs and increase revenues by about $1.2
trillion.
** Market News International Washington Bureau: (202) 371-2121 **
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