–Senate Budget Chair Conrad: Need To Pass Deficit Cut Plan This Year
–Supports Budget Summit To Get Long-Term Deal
–Should Do Corp Tax Reform Only As Part of Broad Overhaul

By John Shaw

WASHINGTON (MNI) – Senate Budget Committee Chairman Kent Conrad
said Wednesday that Congress should attach a comprehensive deficit
reduction plan to legislation this year to increase the statutory debt
ceiling.

At a briefing to discuss fiscal matters, Conrad said it might be
necessary to pass some short-term debt limit increases while work goes
forward on a serious deficit reduction plan.

He acknowledged that it will be “extraordinarily difficult” to
develop a long-term fiscal plan, but said it was imperative to try now.

He said “relatively modest changes now” could begin to tackle the
deficit and mitigate the need for truly draconian policies later.

Conrad urged President Obama to convene a bipartisan budget summit
to tackle the whole range of fiscal issues that should be part of the
negotiations.

“Nothing can be sacrosanct. Nothing can be excluded,” Conrad said.

“We can’t continue to put this off,” Conrad said.

Conrad said that Congress should pass a “credible” budget this year
but added that the “really tough medicine” should not be implemented for
another 18 to 24 months, so the economy can pick up additional strength.

Conrad said a broad-based budget negotiation should include tax
reform, entitlement savings, and discretionary spending cuts.

“It’s got to be a Grand Compromise,” Conrad said.

He said that he believes that corporate tax reform should not be
advanced separate from comprehensive tax reform that includes taxes on
individuals.

“I personally believe it all has to be done together,” he said.

The Senate Budget Committee chairman said that a “fairly large”
group of senators is now working to put the findings of the
Simpson-Bowles commission into legislation that could be considered by
Congress this year.

That panel recommended nearly a $4 trillion deficit reduction plan
over a decade.

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

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