–Senate Majority Leader Reid: Boehner Plan’s Numbers Are ‘All Wrong’
–Sen. Reid: ‘Assure Everyone’ That Boehner Plan Is Dead In Senate
–Senate Minority Leader McConnell: ‘Strong Support’ for Boehner Plan
–Sen. McConnell: Senate GOP Against Reid Plan
–Meanwhile, House Speaker Tries To Salvage Plan In the House

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Senate
Minority Leader Mitch McConnell Wednesday resumed their sharp exchanges
on the U.S.’s debt ceiling impasse.

Speaking on the Senate floor, Reid continued to scorch the plan put
forward by House Speaker John Boehner while McConnell insisted the
Speaker’s plan is the best alternative under discussion.

Reid noted Boehner’s plan is being attacked by conservative
Republicans and failed to secure its cost savings goals according to a
report by the Congressional Budget Office.

“I can assure everyone … that it wouldn’t pass the Senate and
certainly, if by some strange phenomenon it passed, the president
wouldn’t sign it. We don’t have to worry about that. There’ll be no
veto. This legislation is so weak that it won’t get out of this
chamber,” Reid said.

Reid came out strongly again against any short-term increase in the
debt ceiling.

“Congress has a duty to do what it takes to avert default in one
swift leap,” he said.

Reid noted Boehner is delaying his bill in the House because of
Tuesday’s CBO cost estimate. He has said the House delay is needed
“because the numbers they have come up with are all wrong.”

Speaking next, McConnell offered his “very strong support” for
Boehner’s plan, saying it is the most credible alternative.

McConnell blasted Reid’s plan, saying it “pretends to solve the
problem but really doesn’t.”

Reid’s has said his plan would cut spending by $2.7 trillion over
ten years and allow for passage of a $2.4 trillion debt ceiling
increase.

The CBO estimated Wednesday that Reid’s plan would cut deficits by
$2.2 trillion. The CBO estimated the first installment of Boehner’s plan
would cut deficits by $850 billion.

Boehner’s plan was designed to raise the debt ceiling by $1
trillion this year and $1.6 trillion next year. The initial $1 trillion
debt ceiling increase would require Congress to pass $1.2 trillion 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 CBO score was an embarrassing blow to Boehner’s aspirations to
pass a debt hike bill quickly through the House Wednesday. If the
Speaker goes forward with the House vote this week, it would likely be
Thursday or Friday, almost on the eve of the Aug. 2 deadline.

The CBO score is just one of Boehner’s troubles — and possibly not
the most severe. A number of conservative House Republicans have said
they won’t support the bill because they do not think it is strong
enough. Almost all Democrats in the House are likely to vote against it.

The White House issued a veto threat regarding Boehner’s bill
Tuesday afternoon.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Timothy 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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