–House Speaker Boehner: Markets Will ‘Act’ If No Fiscal Reform
–No Debt Hike Without Spend Cuts & Budget Controls
–Spend Cuts Must Be Larger Than Debt Ceiling Hike
–Repeats Support For Corporate Tax Reform
By John Shaw
WASHINGTON (MNI) – House Speaker John Boehner said again Thursday
that Congress will not pass a debt ceiling increase this summer unless
the hike is coupled with specific and substantial spending cuts and
budget process reforms.
At a briefing, Boehner said the debt ceiling increase must be
coupled with “real changes” to spending programs, especially
entitlements.
“It’s time to bend the cost curve,” Boehner said.
“I think this is the moment … to get the fiscal house in order,”
he said.
The Speaker repeated that he will not be satisfied with only
budget process reforms, deriding the use of “phony caps” and phony
targets.”
“All the gimmicks that have been used in the past have never
worked,” Boehner said.
Boehner said there is an urgent need to cut budget deficits by
curtailing spending, saying that Congress should “act boldly” or “the
markets will act for us.”
“We’re in a hole and we got to stop digging,” he said.
Boehner said that Republicans will insist that Congress approve
spending cuts this summer that are greater than the size of the increase
in the statutory debt ceiling.
Some analysts have said that a debt ceiling increase of $2 trillion
will be needed to push the next debt ceiling vote until after the 2012
November elections.
Boehner decline to say over what period of time the spending cuts
should be phased in.
Boehner repeated his support for “fundamental reform of the
corporate tax code,” adding that the current corporate tax rate “makes
America less competitive than we could be.”
He said he supports cutting back some tax expenditures to reduce
the corporate tax rate.”
** Market News International Washington Bureau: (202) 371-2121 **
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