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US Rep Cantor: Biden Talks Created 'Blueprint' For Debt Deal

By John Shaw

WASHINGTON (MNI) - House Majority Leader Eric Cantor said Wednesday that the budget talks led by Vice President Biden this spring and summer created the "blueprint" for a final deficit reduction and debt ceiling increase agreement.

At a briefing, Cantor said the Biden-led talks created a framework for "well in excess" of $2 trillion in spending savings over a decade, but reached an impasse on the issue of whether tax increases should be part of the final package.

Cantor said the Biden talks reached broad agreement on $300 billion in non-health care entitlement savings, $400 billion in health care-related entitlement savings, large savings from discretionary programs and substantial savings from debt reduced debt service costs.

All of these proposed savings would have exceeded $2 trillion, Cantor said.

But he added that a disagreement on whether additional revenues should be part of the accord led to the suspension of the negotiations.

"We are not going to support tax increases," Cantor said, referring to congressional Republicans.

"Why would we want to raise taxes in a sputtering economy?" he said.

But Cantor said on several occasions that he believes the Biden talks created the basis for a final accord on the debt limit and a deficit reduction package.

"We've got a blueprint in place," Cantor said, adding "this is a blueprint for us."

Cantor said passing a debt ceiling hike is difficult and signalled again that he strongly prefers there not be multiple votes on the debt ceiling. He said he agrees with President Obama that the deficit reduction and debt ceiling agreement reached this summer should be substantial and not be a partial package.

"This is a tough vote," he said.

Cantor was a member of the Biden group and brought the talks to a halt when he dropped out of them several weeks ago.

Cantor and other congressional leaders will meet with President Obama and Biden at the White House Thursday.

** Market News International Washington Bureau: (202) 371-2121 **


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