–Vice President Returns To Capitol Hill For Another Budget Negotiation
–House, Senate Republicans Appear To Differ On Debt Ceiling Strategy
–Rep. Van Hollen: Hope To Know This Week If A Budget Deal Is Doable

By John Shaw

WASHINGTON (MNI) – Vice President Joe Biden will take another trip
to Capitol Hill Wednesday for his second budget negotiating session of
the week.

The Biden group met for several hours Tuesday before Biden headed
to Chicago for an early evening speech.

The Biden group will meet at 2 p.m. Wednesday. It is also expected
to meet Thursday and possibly Friday.

Rep. Chris Van Hollen, a Democratic member of the budget
negotiations led by Biden, said Tuesday after the talks that the Biden
group had a “very serious conversation” about difficult spending issues.

He also said he is convinced that dealing with tax expenditures
must be part of the discussions, adding that closing tax loopholes could
generate a “significant amount” of budget savings.

Van Hollen downplayed the notion that a budget accord will be
secured this week, saying that by the end of this week policymakers
should have “some sense of where we are” regarding the effort for a
deficit cut agreement this summer.

Van Hollen said that if budget talks go well this week and into
next week it might be possible to have “an agreement in principle” by
the end of the month.

Van Hollen disputed suggestions that Congress might be prepared to
pass a series of short-term debt ceiling extensions this summer.

He said the Biden talks are focused on assembling a package that
would allow for Congress to consider a debt ceiling increase
sufficiently large to extend until after the 2012 November elections.

Various lawmakers and administration officials have put this number
at $2.4 trillion.

Congressional Republican leaders appeared to differ on debt limit
strategy Tuesday, with House Majority Leader Eric Cantor calling for
one debt limit vote this year while Senate Minority Leader Mitch
McConnell said it might be necessary to pass debt ceiling increases in
several smaller increments.

The Biden talks are seeking 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.

Biden is negotiating with Cantor, Senate Minority Whip Jon Kyl,
Senate Appropriations Committee Chairman Dan Inouye, Senate Finance
Committee Chairman Max Baucus, Assistant House Minority Leader Jim
Clyburn and Van Hollen, the top Democrat on the House Budget Committee.

The administration is represented by Biden, Treasury Secretary Tim
Geithner, White House budget director Jack Lew and the director of the
National Economic Council Gene Sperling.

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

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