–Senate Majority Leader: Blasts GOP For ‘Walking Away’ From Talks
–Sen. Reid: Debt Ceiling Impasse Would Cause Huge Financial Crisis
–Sen. Schumer Attacks McConnell Directly on Budget Stance
–Sen. Schumer: McConnell Would ‘Go To Map’ To Protect Wealthy

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Sen. Chuck
Schumer Tuesday blasted congressional Republicans for scuttling a
possible deficit reduction and debt limit deal over their insistence
that no revenues be part of an agreement.

In back to back speeches on the Senate floor, Reid and Schumer
criticized Republican leaders in strikingly blunt terms, suggesting that
the next phase of this summer’s budget battle will be sharply partisan
recriminations rather than quiet negotiations.

The biting comments of Reid and Schumer follow meetings Monday that
President Obama held with Reid and Senate Minority Leader Mitch
McConnell — a clear indication that Obama’s talks with McConnell were
not encouraging from the Democratic perspective.

Speaking first, Reid said U.S. failure to increase the debt ceiling
in a timely way would be “a black mark on this country’s reputation for
generations to come.”

“If we fail to avert this crisis, it will be the first time in our
great nation’s history that we’ve defaulted on our financial
obligations. It would send shock waves through the global economy,” he
said.

Reid accused Republicans of “walking away from the negotiating
table” because they could not accept any efforts to close tax loopholes
for businesses as part of a broad budget agreement.

He said the GOP is willing to cut deficits by deep cuts in critical
programs such as Medicare and Medicaid.

“Now it’s time for my Republican colleagues to put the good of our
economy ahead of their own politics,” he said.

Following Reid, Schumer made the same broad budget arguments and
repeatedly blasted McConnell for being inflexible on fiscal matters and
using “strident” language to derail budget negotiations.

Schumer said Republican demands could lead to a debt limit crisis
that would “jeopardize our economic standing in the world.”

Schumer accused McConnell of being willing to “go to the mat” to
protect special interest tax breaks.

The comments by Reid and Schumer come in the aftermath of the
collapse of the budget talks led by Vice President Biden.

Democrats in the Biden budget talks argued that additional revenues
should be part of the discussion. Republicans have said tax increases
should not be part of the agenda.

The Biden talks sought a deficit reduction package that can be
developed to coincide with this summer’s vote on debt ceiling
legislation.

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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