White House negotiators and Republicans in the US Congress will meet again Tuesday to try to resolve a months-long standoff over raising the US government’s $31.4 trillion debt ceiling, with the country which will face the risk of default within nine days.
President Joe Biden’s Democratic supporters and the Republicans, who control the House of Representatives under Kevin McCarthy, have remained deeply divided over how to control the federal deficit. Democrats argue that wealthy Americans and businesses should pay more taxes, while Republicans want spending cuts.
Biden and McCarthy emerged from their third meeting this year on the debt ceiling on Monday night talking about the need to strike a bipartisan deal, even as they cling to policies that expose divisions between the two sides.
White House aides returned to Capitol Hill after meeting for more talks Monday night.
Biden and the Democrats want to freeze spending in fiscal 2024 at levels adopted in 2023, arguing that this would represent a spending cut because agency budgets would not match inflation. The idea has been rejected by Republicans, who insist on cuts to 2022 levels, Democratic leaders said on Monday.
Republicans insist that federal spending must be significantly reduced from current levels if overall spending is to fall in the next fiscal year, even if military spending increases.
Biden wants to cut the deficit by raising taxes on the rich and closing tax loopholes for the oil and pharmaceutical industries. McCarthy said raising revenue is not feasible.
“I don’t think it’s a revenue issue. It’s an expense issue,” McCarthy said.
McCarthy said he and Biden had ordered their negotiators – who already met for several hours on Monday – to “work through the night” as they race to reach an agreement before June 1, when the Treasury Department warns the government federal could run without money.
Unless Congress raises the debt ceiling and allows the federal government to borrow money to pay its bills, the United States could default on its debt obligations for the first time in history, potentially sending the country into a recession and plunging the global financial markets into chaos.
Any deal to raise the debt limit must pass both houses of Congress and therefore depends on bipartisan support. Republicans control the House 222-213, while Democrats hold the Senate 51-49.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
-ts4od9hwk7dy.png "Tati Break Shack does bikini tests after losing more than 30 kg; I wait")
