Ticking Clock

Harry Reid Gives In on Taxes

World markets began to fall Monday after debt talks in Washington fell apart once again, with Japan and Hong Kong declining nearly 1 percent and the Shanghai Composite Index tumbling 3 percent. Back in D.C., Republicans attempted to broker a short-term deal, but Democratic leaders rejected it. Senate Majority Leader Harry Reid appears, however, to have accepted Republicans’ main demand by saying he would present a $2.7 trillion package that did not raise taxes. Reid may accomplish that by counting money saved by ending the wars in Iraq and Afghanistan. House Speaker John Boehner is expected to push for a pared-down plan that will cut $1 trillion in spending and extend the debt limit through the end of the year.