–House Minority Whip Hoyer: Need ‘Bold’ Deficit Plan This Year
–Any Sequestration Change Must Include Revenues
–Warns GOP Not To Play ‘Political Games’ With Debt Hike

By John Shaw

WASHINGTON (MNI) – House Minority Whip Steny Hoyer Tuesday said he
is “working” on a deficit reduction plan that is based on the
“Simpson-Bowles template.”

At a briefing, Hoyer declined to give details regarding his budget
initiative, other than to say he is “pursuing” a package that is based
on the Simpson-Bowles plan.

He said that enacting a “big, bold, balanced plan” this year to cut
future budget deficits is “the single most important thing” Congress
could do.

The Simpson-Bowles plan calls for more than $4 trillion in deficit
reduction over a decade, with spending cuts and tax increases. It would
reduce spending to about 22% of GDP by 2022 and bring revenues up to
about 21% of GDP in 2022.

Hoyer said Congress should be working in a bipartisan way to
prepare for the policy issues that are often referred to as the fiscal
cliff. He called this potentially “the biggest fiscal storm” of his 30
year congressional career.

These are the expiration of Bush era tax cuts at the end of the
year, across-the-board spending cuts that will begin in January, and the
need to increase the debt ceiling.

Hoyer said he would oppose any change in across-the-board spending
cuts that are set to begin in January unless the replacement package
includes additional revenues.

House Republicans have passed a bill that would replace about $110
billion in across-the-board discretionary cuts in FY’13 with a $300
billion, 10 year plan that is composed largely of entitlement savings.

Hoyer warned congressional Republicans not to play “political
games” with debt ceiling legislation later this year, adding that last
year’s prolonged fight over the debt ceiling “destabilized” the U.S. and
global economy.

“Both parties have played this partisan, demagogic game” on the
debt ceiling in the past, Hoyer said.

Finally, Hoyer said Congress must make progress soon on two pending
issues–a long-stalled highway bill and legislation to prevent an
increase in the interest rate on some student loans.

But he said Republicans are “pursuing confrontation over
compromise” on both issues.

** MNI Washington Bureau: (202) 371-2121 **

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