–House Majority Leader Says Blame For Shutdown Would Be on Dems
–Dem Claims Of Possible Deal Are ‘Far Fetched’
–Obama Not Sufficiently ‘Involved’ In Spending Talks
–Still Supports Tax Holiday For Businesses

By John Shaw

WASHINGTON (MNI) – House Majority Leader Eric Cantor Tuesday
sharply disputed comments by some congressional Democrats that an
agreement between the White House and Congress on a final spending bill
for the 2011 fiscal year is within sight.

At a briefing, Cantor said any assertion that a budget accord is
looming is “far fetched.”

Cantor said congressional Democrats continue to resist “serious”
spending cuts and that President Obama has been disengaged from the
negotiations.

“He hasn’t got involved yet,” Cantor said of the president.

“We just want to cut spending,” he added.

Cantor said Republicans are not interested in another temporary
stop-gap spending bill.

“Time is up here,” he said, referring to the prolonged struggle
over the FY’11 budget.

“A short-term CR without a long term commitment (to spending cuts)
is unacceptable,” Cantor said.

Cantor said the consequences of a government shutdown would be
“bad” but added that responsibility would “fall on the laps” of
Democratic leaders.

He said that if a government shutdown were to occur, Congress would
still find a way to fund “essential services.”

Cantor said it is time to end the debate on the FY’11 budget and
then move on to other fiscal issues.

“We got bigger problems to deal with,” Cantor said.

The 2011 fiscal year began on Oct. 1 and the government has run on
six short-term funding bills. The most recent stop-gap bill will fund
the federal government until April 8.

House Republicans have been seeking $61 billion in spending cuts
from portions of the FY’11 budget. Congress so far has approved $10
billion in cuts.

Democratic leaders have offered a new proposal with $20 billion in
additional spending cuts.

On another matter, Cantor repeated his support for a one year tax
holiday for businesses.

He said he would like to “drive forward” with a bill to temporarily
reduce tax rates on repatriated earnings for corporations from the
regular corporate rate of 35% to 5.25%.

Cantor said he would prefer to place no restrictions on how firms
would use those repatriated dollars, but said this issue would be part
of a negotiation on the bill.

Cantor is a long-time supporter of repatriation legislation.

Cantor repeated his call for an aggressive effort for corporate tax
reform, with a goal of reducing the corporate rate to at least 25%.

Treasury Secretary Tim Geithner said earlier this year that it
makes far more sense for Congress to concentrate on achieving broad
corporate tax reform rather than a one time tax holiday.

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

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