Senate Foregoing July 4 Recess
With the breakdown of Vice President Biden’s bipartisan deficit reduction negotiations over Democrats’ insistence on tax increases and Republicans’ refusal to accept any increase, the Senate is planning to stay in Washington and forego their July 4 recess in order to focus on deficit reduction negotiations, according to Senate Majority Leader Harry Reid (D-N.V.).
Senate Democrats will host a meeting next Wednesday with President Obama and Vice President Biden to discuss proposals for deficit reduction. President Obama declined a similar invitation from Republican Minority Leader Mitch McConnell. In addition to the meeting with the president and vice president, Senate Budget Committee Chairman Kent Conrad (D-N.D.) is planning to introduce his much delayed budget proposal. Chairman Conrad claims his budget will cut more than $4 trillion from the federal deficit.
It is unlikely the bipartisan negotiations will resume as the political rhetoric heats up before the August 2 deadline for reaching a deal on raising the debt ceiling. It has been reported that the latest proposal Republican leaders walked away from included $1 trillion in discretionary spending cuts over 10 years, coupled with revenue raises of about $400 billion over 10 years. The $400 billion in increased revenue is the deal breaker for Republicans.
It appears that if any deal is made on the debt ceiling and deficit reduction prior to August 2, it will be made between the president and House and Senate Leaders.
For more information, please contact Sean O’Neill at (202) 547-8892 or oneills@agc.org