–Senate Majority Praises Sen. McConnell’s Debt Ceiling Alternative
–Sen. Reid: ‘Somehow, Someway’ Will Resolve Debt Ceiling Impasse
–Sen. Reid: Hammers Boehner For Saying Debt Hike Is Obama’s ‘Problem’
–Senate Minority Leader: Obama Has ‘No Intention’ Of Cutting Spending
–Sen. McConnell: GOP Won’t ‘Cave’ On Tax Hikes, ‘Phoney’ Spending Cuts
By John Shaw
WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Wednesday
that he’s carefully reviewing a proposal by Senate Minority Leader Mitch
McConnell to create a new process to increase the statutory debt ceiling
by about $2.4 trillion.
In comments on the Senate floor, Reid praised McConnell’s
“thoughtful and unique proposal” to boost the debt ceiling, adding that
he is carefully studying how the plan would work.
In comments on the Senate floor, Reid acknowledged the two parties
are far apart on fiscal issues, but added he’s “confident we’ll find a
way” to pass the debt ceiling in a timely way.
Reid said that he’s hopeful that “somehow, someway” policymakers
will find a way to increase the debt ceiling before August 2.
Reid, while offering words of praise about McConnell, scorched
House Speaker John Boehner for saying the debt ceiling impasse is
President Obama’s “problem.”
Reid called that remark “irresponsible” and said that Boehner voted
seven times to increase the debt ceiling by $4 trillion during the Bush
administration — without demanding any spending cuts.
McConnell announced Tuesday that if no agreement on the debt
ceiling is reached soon he will back a plan that would allow the debt
ceiling to be increased in three tranches of $700 billion, $900 billion
and $900 billion over the next year.
To get these increases in the debt ceiling, the president would
have to introduce spending cut packages of the same size — and
Democrats would have to defeat Republican motions to disapprove of the
debt hike.
Speaking Wednesday on the Senate floor, McConnell continued to
blast Obama, saying the president has “no real intention of cutting
spending and dealing with deficits and debt.”
McConnell said Republicans won’t “cave” to Obama’s desire to
increase taxes and embrace a package of “phoney” spending cuts.
“Republicans refuse to be drawn into this legislative trap,” he said.
McConnell said Republicans are eager to have a “real debate” with
Democrats on fiscal policy, adding this will occur soon over a balanced
budget constitutional amendment.
President Obama and Vice President Biden will meet with
congressional leaders at 4 p.m. Wednesday.
Obama and are negotiating with Reid, McConnell, Boehner, House
Minority Leader Nancy Pelosi, Senate Majority Whip Dick Durbin, Senate
Minority Whip Jon Kyl, House Majority Leader Eric Cantor and House
Minority Whip Steny Hoyer.
Republican leaders said earlier this week they want the White House
talks to focus on a draft deficit reduction package of about $2 trillion
that was developed in budget talks led by Biden this summer.
However, Republican leaders Tuesday said the White House is backing
down from many of the spending cuts that were identified in those talks.
Democrats have said that the spending savings outlined in the Biden
talks were never agreed to and were always dependent on Congress and the
White House reaching a broad deficit reduction agreement that included
additional revenues.
Late last week, Obama and Boehner privately explored a $4 trillion
deficit reduction deal over about a decade, but then rank-and- file
Democrats spoke out against securing savings from Medicare and Social
Security while rank-and-file Republicans insisted that additional
revenues be taken off the table.
Boehner, under fierce pressure from many House Republicans, has
abandoned the quest for the broader agreement, but Obama continues to
say that it should be pursued.
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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