A Peterson Foundation billboard displaying the national debt is pictured on K Street in downtown Washington on Feb. 8, 2022. (Jemal Countess/Getty Images for Peter G. Peterson Foundation)
Posted on 01/18/2023 6:09:08 PM PST by SeekAndFind
Speaker of the House Kevin McCarthy (R-Calif.) rejected President Joe Biden’s demand that Congress increase the nation’s debt ceiling without attaching any conditions such as the spending cuts that virtually all congressional Republicans are demanding.
In an informal news conference with reporters just outside the Capitol, McCarthy said “we’re six months away, approximately, and what I would like to do is sit down with all the leaders, especially the President, and start having the discussion.”
The Speaker said Biden’s refusal to discuss anything other than a “clean” increase in the debt ceiling, which limits federal borrowing, is “a sign of arrogance that he would say he wouldn’t even discuss it. I mean think about what the Democrats have done just in four years, they’ve increased discretionary spending by 30 percent. When Republicans were in control for eight years, discretionary spending didn’t go up one dollar.”
Noting the national debt is nearly $32 trillion, McCarthy asked “why would you do this to any future generation in anything we do? Why wouldn’t you sit down and talk, especially with something as serious as a debt limit; why would you want to wait until the end? Who wants to put the nation through some type of threat at the last minute with the debt ceiling? Nobody wants to do that.”
A Peterson Foundation billboard displaying the national debt is pictured on K Street in downtown Washington on Feb. 8, 2022. (Jemal Countess/Getty Images for Peter G. Peterson Foundation)
McCarthy added that “any household that was mis-spending, the first thing they would do is sit down and set a budget. Why wouldn’t we request the House and Senate to do a budget … why wouldn’t we now set a budget, set a path that will get us to a balanced budget? And let’s start paying this debt off and make sure future generations have as many opportunities as we do.”
Medicare, Social Security and the military would not be subject to spending cuts, according to McCarthy, who said Biden’s demand for a debt ceiling increase without strings is “off the table.”
McCarthy’s comment follows Biden’s Jan. 16 remark describing Republican demands that the debt ceiling increase be combined with significant cuts in federal spending as “fiscally demented.” The interest costs of servicing the national debt are in excess of $500 billion annually.
Congress approved and Biden signed into law a $1.7 trillion omnibus spending bill in late December that keeps the government funded through September. The immediate problem is that federal borrowing to pay for the omnibus bill technically will hit the debt ceiling Jan. 19, according to Secretary of the Treasury Janet Yellen.
As a practical matter, the Treasury department has ways of avoiding a default on the debt interest payments that would give Biden and the Congress several months in which to work out a deal involving a boost in the ceiling combined with some level of specific spending cuts sought by House Republicans.
House Republicans are backing McCarthy’s demand for spending cuts. Rep. Ralph Norman (R-S.C.) issued a Jan. 17 statement in which he says “every major piece of financial legislation ought to come with some incremental, responsible spending cuts to keep us moving along a trajectory towards a balanced budget.
“That’ll take time and effort of course, but whether it’s a normal appropriations bill or something like a debt ceiling increase, every step along the way represents another opportunity to cut a little more spending to help balance the budget within 10 years.”
Similarly, Rep. Victoria Spartz (R-Ind.) issued a warning to her GOP colleagues and an unexpected vow, saying, “Our national debt is approaching a level not just harmful to economic growth and irresponsible to future generations, but dangerous to our national security today. We are entering treacherous waters and must couple any debt ceiling increases with real reforms.”
The Indiana Republican continued, saying “huge amounts of politically directed spending and crony capitalism have created a significant oligopoly problem in nearly every market sector—not much different from oligarchs ruling in post-socialist countries. Health care monopolies lobbied by special interest groups, like hospitals, is one of the major examples.
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Wow! We really ARE living in Upside Down World these days - on BOTH sides of the aisle!
Kind of refreshing, but I’m still unconvinced that McCarthy isn’t going to eventually stab us all in the back.
My Dad attended Dan’s Bake Sale!
He had a blast. He said it was every bit as fun, Patriotic and meaningful as a MAGA Rally. :)
Cut every department and agency within the Federal Government by 15% right off the top.
"Hello. I am from the government, and I am here to HELP."
Run for cover. A government lackey is here to provide help!! Not!!
That chart looks like a missile launch.
It’s past time that politicians did the right thing and reduce spending.
And demand a vote in 1 hour.
Until he inevitably caves.
Strategy to keep the White House in 2024 by letting Republicans force a government shutdown; Democrat strategy is being exhibited by their party’s nominal leader, the president, in demanding a ‘clean’ increase to the debt limit.
Paraphrasing... “Look at these unreasonable Republicans who are demanding that we cut funding for lunches for children so they can make political hay over a fictional number. They’re already robbing families of the child care tax credit monthly disbursements...”
GOP needs to be clear on what they want to cut to raise the debt ceiling.
Like the 87,000 IRS agents that want to audit the middle class and $600 venmo transactions. That has to go!
Be specific and tie it to certain levels of debt ceiling relief. Make the democrats say no to every reasonable cut.
Biden gets his first piss off memo from congress it’s about time.
This isn’t going to happen. McConnell is already sending signals he’s good with a clean bill and will undermine the House which honestly isn’t going to stand their ground based on the previous history where government shutdowns are concerned.
Watch for the Democrats and McConnells liberal House Republicans to cut a deal and pass this over the GOP house leaderships opposition.
As I said....
I am more than familiar with being disappointed with the Republican Surrender Caucus.
Look, we all know the house can and likely will cave, but they don't have to. They can simply refuse to pass anything.
...and term/age limits
From your lips to the leadership’s ears and hopefully to their lips. The lack of clear statements of vision and goals has been a GOP downfall for most of this century.
Why is this squeaky hack STILL squawking?
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