US Senate Set To Reject House GOP 'Cut, Cap, And Balance' Plan
--Senate To Vote On House Republican Plan At 10 A.M.
--House Speaker John Boehner Is Meeting With House Republicans Now
--Intense Budget Talks Are Expected This Weekend
By John Shaw
WASHINGTON (MNI) - The Senate is expected to reject in a 10 a.m. ET
Friday vote a House Republican plan that its authors say would lead to
$6 trillion in budget savings over a decade.
The House passed the GOP's so-called "Cut, Cap and Balance" bill
Tuesday on a 234 to 190 vote.
The bill would cap annual federal spending at 19.9% of gross
domestic product by 2021, limit discretionary spending for fiscal year
2012 at $1.019 trillion, and allow for a $2.4 trillion increase in the
debt ceiling after the House and Senate pass a balanced budget
House Speaker John Boehner said this fiscal approach is "balanced"
and should be supported by President Obama. The White House has said
Obama would veto the bill if it reached his desk.
Senate Majority Leader Harry Reid has called it one of the most ill
advised pieces of legislation to come to the Senate floor in years,
adding that it's "anathema to what our country is all about." He
predicted it will be defeated in the Senate vote.
Senate Minority Leader Mitch McConnell has said it is the best
fiscal alternative now under discussion.
Once the bill is disposed of, budget talks between Congress and the
White House are expected to shift into an even higher gear, with intense
talks likely over the weekend.
Boehner is now meeting with House Republicans regarding the status
of his budget talks with the administration and is expected to make
remarks to the press in the next hour.
** Market News International Washington Bureau: (202) 371-2121 **