–No Control Over Size, Timing Of Debt Limit Increase
–Fiscal Reform Must Include All Forms Of Spending; Including Tax Code

By Brai Odion-Esene

WASHINGTON (MNI) – The White House is working with “intensity and
determination” to reach an agreement in the deficit reduction
negotiations led by Vice President Joe Biden, White House Press
Secretary Jay Carney said Monday.

“We are very focused on the need to move with speed on taking a
vote to raise the debt limit,” Carney told reporters during the daily
press briefing. “It is essential.”

He reiterated the administration’s belief that raising the debt
ceiling is not an issue that can be put off until the last minute,
citing the negative impact that any suggestion of U.S. default could
have on the economy and the financial markets.

“But we are confident that the negotiations being led by the vice
president on reducing the deficit will reach a positive conclusion, and
we are confident that the Congress will vote to raise the debt ceiling,”
Carney said.

And while the White House does not believe there should be a direct
link between a vote to raise the debt limit and the plan to bring down
the long-term U.S. deficits, “we believe both can be done in the same
timeframe,” he added.

Carney acknowledged that the administration cannot control the
amount by which the debt ceiling is raised, or the timing of the vote.
This is something that will need to be worked between the leaders of
Congress and the administration.

So the focus is on areas that the White House can influence, such
as reaching an agreement in the ongoing negotiations, and continuing to
make the case “that we cannot play chicken with the full faith and
credit of the United States government,” Carney said.

Asked if any long-term fiscal plan would include stimulative
measures such as making the payroll tax cuts permanent, Carney said the
administration is happy to entertain discussions about extending the
payroll tax cut, and is also interested in other ideas on how to
continue growing the economy and create jobs.

However, he added, the government is also mindful of the fact that
it has to get its deficits and debt under control. “This is all about
balance, this is about achieving the right mix of decisions within a
broader package — both within the deficit reduction talks and broadly
going forward from there — that allow for the economy to continue to
grow and create jobs.”

It would also involve cutting spending “where it can be cut,”
Carney said. This would send the signal to both the American people and
the broader markets that the U.S. is getting its fiscal house in order.

“The best way to do that in a balanced way is to address all forms
of spending, including spending through the tax code,” he said.

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

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