–Senate Majority Leader: Deficit Cuts Are ‘Only Part of What We Need’
–Sen. Reid: GOP Mantra Is ‘Cut, Cut, Cut’
–Sen. Reid: Spending Cuts Is ‘Only Half the Equation’
–Sen. Schumer: Can’t Put Job Agenda On ‘Back Burner’

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid Wednesday said
the deficit reduction talks led by Vice President Biden should be
expanded to include measures to boost economic growth and job creation.

At a briefing with the Senate Democratic leadership team, Reid said
“reducing spending is only half the equation” for reviving the American
economy.

“Cutting is only part of what we need,” he said, adding that he’s
calling on Senate committee chairmen to submit their job growth
suggestions to him by August 1.

“We need to put jobs first,” he said.

Reid acknowledged that the Biden budget talks are likely to be
concluded by then, but said he has talked with the vice president about
adding economic growth measures to his negotiations.

Reid declined to support any specific measures, adding that he is
still studying such ideas as extending the payroll tax reduction
provision which expires at the end of the year.

Sen. Chuck Schumer, the third ranking Senate Democrat, agreed that
the Biden talks should come up with a package that cuts the budget
deficit and boosts economic growth.

“The debt ceiling deal must include both,” Schumer said, adding
that job creation should not be “put on the back burner.”

Schumer said he is beginning to wonder if Senate Republicans are
blocking various job growth ideas in order to “slow down the economic
recovery for political gain.”

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

Biden is negotiating with House Majority Leader Eric 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 Rep. Chris 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.

Kyl, the Senate Minority Whip, has said that Republicans want a
package of more than $2.4 trillion in savings over a decade or more as a
condition for increasing the debt ceiling by that same amount.

Biden reconvened his budget talks Wednesday afternoon at 2 p.m. in
Biden’s office on the Senate side of the Capitol.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]