Senate Moves Closer To Fiscal Deal

foxSenate leaders on Monday signaled that they are close to approving a deal in the Senate that would re-open the U.S. government and raise the nation’s debt ceiling level until early February 2014 while leaving Obamacare mostly in tact.

President Obama postponed a planned Monday afternoon meeting with congressional leaders and explained that the delay would give Senate leaders more time to work out a budget deal.

The proposed legislation floated on Monday in the Senate would fund the U.S. government at the current spending level of $986 billion (annually) through Jan. 15th while establishing a House-Senate budget committee that secures a long term fiscal replacement plan to the sequester budget cuts and report their progress to Congress by Dec. 13th.

The new Senate proposal would not delay or repeal a tax on medical devices that has some opposition in both parties.

It would also delay until 2015 an Obamacare reinsurance tax that unions have opposed while requiring income verification with the new health insurance exchanges.

If the legislation is approved later today in the Democrat-majority Senate, it will move to the Republican majority House where the spotlight will shift to House Speaker John Boehner (R-Ohio) who will have to decide whether to put the new legislation up for a vote or else be swayed by Tea Party House Republicans and prevent a vote while potentially allowing America to default, a move he previously said he would never do to the nation.

House Majority Leader Eric Cantor told reporters yesterday that Republican lawmakers will conduct a closed door meeting on Tuesday to discuss their next step forward.

 

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