–Senate Majority Leader Reid: ‘Going To Wait’ For House To Act On Debt
–Assumes Boehner Will Fix Bill So It Can Pass House
–His Own Bill Is ‘True Compromise’ With Only Spending Cuts

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Wednesday
that all Democratic senators are poised to vote against House Speaker
John Boehner’s debt limit plan if it ever reaches the Senate.

In a briefing, Reid almost taunted Boehner, saying he could defeat
Boehner’s bill in the Senate today even before Boehner pushes his plan
through the House.

Reid derided Boehner’s bill as a “big wet kiss to the far right”
in his caucus.

“It is not a solution. It will not pass,” Reid said.

“Every Democratic senator will vote against it,” Reid said.

Reid said he assumes Boehner will rework his bill so it has more
spending savings and also wins the support of restive House Republicans.

Boehner had hoped to bring his package to the floor of the House
Wednesday, but he is delaying the vote for at least a day to make
adjustments to boost its deficit savings and win over reluctant House
Republicans.

Reid said that before he moves his bill in the Senate “we’re going
to wait to see what the House does.”

Reid touted the spending cut package that he proposed Tuesday,
saying he will “tweak” it so that it achieves the $2.7 trillion in
spending savings that he sought. He said his package which is based on
spending cuts that Republicans have supported in the past is a “true
compromise.”

The Congressional Budget Office has estimated Reid’s plan would cut
deficits by $2.2 trillion and Boehner’s plan would save $850 billion.

“We like our bill. We’re going to stick with it,” Reid said.

Reid declined to speculate on how the debt limit impasse will play
out, but offered a moderately optimistic assessment.

“Magic things can happen here in Congress,” he said.

One scenario that is being discussed on Capitol Hill is that the
House will pass a modified version of Boehner’s bill Thursday and that
bill will serve as the vehicle for a possible bipartisan compromise.

Under this scenario, a bipartisan agreement would be amended on to
the bill that the has House passed and would then be considered by the
Senate. If the Senate passed it, the bill would have to go back to the
House for a final vote.

While this scenario would take several days, Republican Senator Bob
Corker said he “assumes” congressional leaders have a “very short” debt
limit plan in “their back pocket” if a several-day bridging extension is
needed.

Reid’s has said his plan would cut spending by $2.7 trillion over
ten years and allow for passage of a $2.4 trillion debt ceiling
increase.

The CBO estimated Wednesday that Reid’s plan would cut deficits by
$2.2 trillion. The CBO estimated the first installment of Boehner’s
plan would cut deficits by $850 billion.

Boehner’s plan was designed to raise the debt ceiling by $1
trillion this year and $1.6 trillion next year. The initial $1 trillion
debt ceiling increase would require Congress to pass $1.2 trillion in
spending cuts through imposing caps on discretionary spending.

Approval of the second tranche of $1.6 trillion would require
passage of $1.8 trillion in spending cuts in entitlement programs.

Under Boehner’s plan, the House and Senate would also have to vote
on a balanced budget constitutional amendment between this October and
the end of the year.

The White House issued a veto threat regarding Boehner’s bill
Tuesday afternoon.

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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