–House Set To Pass, Senate To Reject, Boehner Bill Thursday
–As Public Debate Rages, VP Biden In Talks With Sen. McConnell
–Senate Majority, Minority Leaders Clash on Floor, Negotiate In Private

By John Shaw

WASHINGTON (MNI) – Like the proverbial tip of the iceberg, the
fierce public debate and the coming congressional votes Thursday on
House Speaker John Boehner’s revised debt limit plan represent just a
small part of all that is happening on Capitol Hill to pass debt ceiling
legislation.

The House is expected to vote Thursday evening between 5:45 p.m.
and 6:15 p.m. on Boehner’s plan.

Senate Majority Leader Harry Reid is telling senators that he wants
the Senate to vote, and defeat, Boehner’s plan Thursday after the House
approves the measure.

While sharply partisan debates are occurring on the floors of the
House and Senate now, in many ways these talkfasts are mere sideshows.

Far more consequential are the private talks that are said to be
occurring between Vice President Biden and Senate Minority Leader Mitch
McConnell on what kind of package could clear both the House and Senate
this weekend or very early next week — and secure President Obama’s
signature.

Additionally, McConnell and Senate Majority Leader Harry Reid, who
have been offering daily verbal attacks on the other party, are said to
be conferring closely on how to craft a final bill that increases the
debt ceiling.

Those talks will eventually include both Boehner and President
Obama — or their representatives.

For his part, Boehner offered no hint Thursday that he is thinking
about the debt ceiling endgame.

Wearing his best poker face, the Speaker called a bill that has
been written exclusively by House Republicans a “bipartisan” and
“compromise” package.

At a briefing Thursday afternoon, Boehner called his bill
“reasonable, responsible” legislation, adding that it is “as large a
step as we are able to take at this time” to deal with budget deficits.

“I would hope they (the Senate) would take it up,” Boehner said of
his bill.

“There is no reason for them to say no,” he said, apparently
referring to both the White House and Senate Democratic leaders.

Boehner’s plan would raise the debt ceiling by $900 billion this
year and $1.6 trillion next year. Passing the initial $900 billion debt
ceiling increase would require Congress to pass more than $900 billion
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 Speaker has been dismissive of the plan by Reid that would cut
spending by $2.2 trillion over ten years and allow for passage of the
debt ceiling until 2013.

Boehner has said Reid’s plan is based on “phony accounting and
Washington gimmicks.”

A number of lawmakers have said they expect intense negotiations on
a final debt ceiling bill to begin after the House passes the Boehner
bill Thursday evening and the Senate defeats it. They expect the final
product to be a complicated blending of the Boehner and Reid plans.

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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