–Senate Minority Leader: Can’t Have Big Budget Deal With Obama
–Administration ‘Too Committed To Big Government’ For Broad Deal
–Sen. Schumer Hammers GOP For ‘Drawing Dangerous, Draconian Line’
–President Obama Set to Meet With Hill Leaders Tuesday at 3:45 p.m.

By John Shaw

WASHINGTON (MNI) – Hours before heading to the White House for
another round of budget talks, Senate Minority Leader Mitch McConnell
unleashed a blistering attack on President Barack Obama’s fiscal
policies, and said a “grand” budget accord with the president is not
possible.

In remarks on the Senate floor, McConnell accused the president of
using the “poll-tested rhetoric of class warfare” as he argues for
additional taxes on the wealthy.

The Obama administration is “too committed to big government” for
it to work cooperatively with Republicans to pare back the size and
scope of the federal government, McConnell said.

McConnell said he had hoped to reach a “meaningful bipartisan
agreement” on fiscal policy, but said the administration was only
interested in the “appearance of belt tightening.”

Republicans, McConnell said, will not accept a “smoke and mirrors”
budget agreement in which “trillions” of spending is claimed but no
specifics are agreed to.

McConnell said the solution to confronting the nation’s fiscal
policies is to cut spending, particularly entitlement programs.

“The answer is to cut spending,” he said.

The Senate GOP leader spoke pessimistically about the status of the
budget talks at the White House, but did not indicate clearly what
congressional Republicans plan to do next.

Obama and Vice President Joe Biden will hold another round of
meetings with congressional leaders at 3:45 p.m. Wednesday.

Also speaking on the Senate floor, Sen. Chuck Schumer, the third
ranking Senate Democrat, blasted Republicans for a “one-sided,
ideological quest” to slash spending but not adjust revenues.

He said Republicans have drawn a “draconian dangerous line in the
sand” on taxes.

Schumer blasted House Majority Leader Eric Cantor who is leading
congressional Republicans opposition to any additional revenues.

He said Cantor “bolted” the Biden budget talks, scuttling a
possible deficit reduction and debt limit agreement this summer.

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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