US's McConnell: Need To Pass Debt Hike In 'Next Month Or So'

--Senate Majority Leader McConnell Says He And Sen. Schumer Met Tuesday With

Tsy's Mnuchin On Debt Ceiling 

--Sen. McConnell: Must 'Never, Ever Default' On Debt

--Sen. Schumer: Need to Know House GOP Stance on Debt Ceiling Legislation

By John Shaw

     WASHINGTON (MNI) - Senate Majority Leader Mitch McConnell said Tuesday that

he and Senate Minority Leader Chuck Schumer met earlier in the day with Treasury

Secretary Steve Mnuchin on debt ceiling legislation, adding they will continue

to discuss the best "way forward" on the issue.

     At a briefing after a Senate Republican policy luncheon, McConnell said

Congress should vote on debt ceiling legislation in the "next month or so."

     McConnell said the U.S. should "never, ever" default on its debt.

     The House has already begun its August recess and is not scheduled to

return to Washington until early September. The Senate is is session this week

and next and then begins its August break.

     McConnell's comments appeared to signal that Congress will take up the debt

ceiling issue in September.

     Speaking at a separate briefing after McConnell, Schumer said a productive

debt ceiling discussion must include House Speaker Paul Ryan and House Minority

Leader Nancy Pelosi.

     "We have to know where they are," Schumer said.

     Schumer added it's especially important to know the stance of House

Republicans on the debt ceiling.

     On another matter, McConnell said tax reform will at the top of the

congressional agenda this fall and he remains hopeful a tax reform package will

pass by the end of this year.

     He said that he would prefer a "bipartisan effort to scrub the code," but

expects only a "few" Democrats will willing to work with Senate Republicans on

tax reform.

     Schumer sharply disputed McConnell's assessment of tax reform.

     He said Republicans are determined to take a partisan approach to tax

reform, adding that if they do so, they will fail as they have done on health

legislation.

     Schumer said Democrats want a tax overhaul package that cuts taxes for the

middle class, doesn't add to the deficit, and which is developed under regular

congressional procedures. 

     "The best tax reform is bipartisan tax reform aimed at helping the middle

class," Schumer said.

--MNI Washington Bureau; tel: +1 202-371-2121; email: john.shaw@marketnews.com

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