–House Minority Whip Hoyer: Says Disapproval Vote Is Political Stunt
–Hoyer: Urges Payroll Tax Cut Deal By End of Jan, Mid-Feb At Latest
–Hoyer: Hopes Hill Revives $4 Trillion Deficit Reduction Framework

By John Shaw

WASHINGTON (MNI) – House Minority Whip Steny Hoyer said Tuesday
that the House’s vote this week to disapprove of the final tranche of
last year’s debt ceiling agreement is a little more than a “charade.”

At a briefing, Hoyer said that even if the House passes the
disapproval motion, it will likely be rejected by the Senate. He added
that even if the Senate were to pass the disapproval motion President
Obama would veto it.

“We need to be real,” Hoyer said, as he slammed House Republicans
for orchestrating a phoney vote for political reasons.

The House will vote Wednesday to disapprove the final installment
of last year’s debt hike agreement.

The vote was triggered by President Obama’s recent letter seeking
the final $1.2 trillion tranche of the debt ceiling increase that was
negotiated last August.

Under the debt hike agreement, now that Obama has formally made
this request Congress has until January 27 to vote on a motion to
disapprove the debt ceiling increase.

The House passed a disapproval motion last fall, but the Senate
rejected it. A similar scenario is likely this week.

Even if both chambers passed a disapproval motion, Obama could veto
the resolution. Overriding a presidential veto would require two-thirds
majorities in both the House and Senate — a virtually inconceivable
scenario.

Obama’s formal request and the congressional votes will have the
effect of increasing the current $15.2 trillion debt ceiling to $16.4
trillion, an adjustment that would probably delay any future debt
ceiling hikes until after the November election.

At his briefing, Hoyer said Congress should focus intensely this
year on short-term job creation steps and a long-term deficit reduction
plan.

“We need to be focused on jobs and we need to be real about
focusing on jobs,” Hoyer said.

Hoyer said that he hopes the House-Senate conference committee on a
payroll tax cut package reaches an agreement by the end of January,
adding that mid-February should be seen as the final deadline for
reaching an agreement.

“It won’t be easy … . Obviously, a compromise will have to be
reached,” Hoyer said.

Both Obama and congressional leaders have said they want to pass a
one year extension of the payroll tax cut, but they differ on how to pay
for the nearly $200 billion package. There are also disputes over GOP
efforts to overhaul the unemployment insurance program.

A two-month payroll tax cut extension package was approved by
Congress in December and expires at the end of February.

A House-Senate conference committee will formally negotiate the
package, but the talks are likely to be guided by congressional leaders
with input from the White House.

Regarding deficit reduction, Hoyer said he expects bipartisan
groups of lawmakers to continue to work for a “big, bold and balanced
fiscal plan.”

Hoyer said a $4 trillion deficit reduction plan over a decade is
needed, adding he is hopeful that many of the elements of the
Simpson-Bowles deficit reduction plan will “be given new life.”

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

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