–Senate Majority Leader Reid: Open To ‘Reasonable Suggestions’
–Sen. Reid: Boehner Plan Is Dead In Senate If Passes House
–Sen. Reid: Final Deal Must Give ‘Each Side Something’
–Senate Minority Leader McConnell: ‘Shocked’ Dems Oppose Boehner Plan
–Sen. McConnell: ‘Inconceivable’ Obama Would Veto Boehner Bill
–Sen McConnell: Two Step Debt Hike Is Only Real Sticking Point On Debt

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid Thursday said
his office “hand delivered” House Speaker John Boehner a letter
yesterday saying all 53 Senate Democrats are opposed to his debt hike
bill and will vote against it if the legislation passes the House.

The House is expected to vote on Boehner’s debt hike plan Thursday
evening between 5:45 p.m. and 6:15 p.m. ET.

In remarks on the Senate floor, Reid said the debt limit impasse is
being caused by a block of “radical Republicans” in the House who are
untroubled by the prospect of a default on America’s debt.

Reid touted his plan to raise the debt limit, but also signalled he
is open to altering it when the debt ceiling debate shifts to the
Senate.

“Both sides know that neither side will get everything it wants.
That does not mean we should not come together to find a compromise that
gives each side something that it needs,” Reid said.

Reid said he has assured Senate Republicans that he is open to
“reasonable suggestions to make the Senate compromise better.”

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

It calls for $1.2 trillion in discretionary savings, $1 trillion
from winding down the wars in Iraq and Afghanistan, $400 billion in
interest savings and $100 billion in entitlement savings.

Of the $100 billion in entitlement savings, $40 billion comes from
program management reforms, $30 billion from Fannie Mae and Freddie Mac
reforms, $15 billion in spectrum sales, and between $10 and $15 billion
in agriculture reforms.

Speaking next, Senate Minority Leader Mitch McConnell blasted
Senate Democrats for threatening to block Boehner’s bill if it comes
over from the House. He said he is “shocked” by that threat.

Such an action would threaten the nation with default, he said,
adding he finds it “inconceivable” that President Obama would veto
Boehner’s bill if it reached his desk.

McConnell said the only real sticking point between the two sides
now is the Republican insistence that there be a two-step debt ceiling
increase process, with a debt hike now and another one next year.

Boehner’s plan would raise the debt ceiling by $900 billion this
year and $1.6 trillion next year. The initial $900 billion 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 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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