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Biden meets with Democratic leaders as debt showdown looms

  • POLITICS

President Joe Biden hosted the Democratic congressional leaders Tuesday on the White Home as they face a brand new period of divided authorities in Washington, starring down a debt ceiling disaster, the Russian conflict in Ukraine and their very own get together priorities working up towards a brand new Home Republican majority looking forward to confrontation.


What You Want To Know

  • President Joe Biden hosted the Democratic congressional leaders Tuesday on the White Home as they face a brand new period of divided authorities in Washington, starring down a debt ceiling disaster, the Russian conflict in Ukraine and their very own get together priorities working up towards a brand new Home Republican majority looking forward to confrontation
  • The president and high congressional Democrats used the gathering within the Roosevelt Room on the White Home to venture a unified entrance towards Republicans who’re threatening a showdown over elevating the nation’s borrowing authority
  • Because the assembly started, Biden mentioned Democrats had been keen to speak about “excessive Republican financial plans”
  • One thought being mentioned has been for Congress to determine some form of debt panel, very like the failed “Tremendous Committee” that attempted within the aftermath of the 2011 talks to give you agreed upon methods to chop federal spending

The president and high congressional Democrats used the gathering within the Roosevelt Room on the White Home to venture a unified entrance towards Republicans who’re threatening a showdown over elevating the nation’s borrowing authority. The White Home has repeatedly pressured that it needs Congress to raise the debt ceiling with out circumstances, and Democrats tried to shift the onus onto Home Republicans to place their playing cards on the desk, slightly than enter into any negotiations with a GOP that has but to spell out how a lot and what they need to minimize.

Because the assembly started, Biden mentioned Democrats had been keen to speak about “excessive Republican financial plans.”

“Apparently they’re genuinely critical about slicing Social Safety, slicing Medicare. And I really like their 30 p.c gross sales tax,” Biden mentioned as he sat down with the highest three Democratic leaders from the Home and the Senate. “We need to discuss quite a bit about that.”

Then Biden added: “Look, I’ve no intention of letting the Republicans wreck our economic system.”

After the assembly, Schumer instructed reporters on the White Home that the gathering underscored the “distinction between us and our get together, the Democrats and the Republicans” as he challenged GOP attorneys to place ahead a proposal on the debt restrict.

“Democrats are unified,” Schumer mentioned. “Republicans are in chaos.”

Rep. Hakeem Jeffries, DN.Y., the brand new Home minority chief, added: “We’ve got a duty to pay the money owed that the Congress has already incurred. That’s what the debt ceiling is all about.”

The approaching showdown has a well-known precedent—slightly greater than a decade in the past, a brand new era of “tea get together” Home Republicans swept to energy, wanting to confront the Obama administration to slash federal spending and curb the nation’s ballooning debt load. As vp on the time, Biden was central to these negotiations, however the Home Republicans and the White Home may by no means strike a deal, inflicting a fiscal disaster. This go round, Biden and his Democratic allies in Congress are in no temper to dealer offers with a brand new period of hardline Republicans led by the Freedom Caucus.

Home Speaker Kevin McCarthy is raring to push Biden to the negotiating desk, hoping to make good on the guarantees the GOP chief made to holdouts throughout his marketing campaign to develop into Home speaker to cease federal spending again to fiscal 2022 ranges, which might be a large 8 % finances minimize.

The White Home has not but invited McCarthy for a gathering, however says it plans to take action quickly.

“We have seen this film earlier than,” mentioned Sen. John Cornyn of Texas, a member of the Republican management.

Within the Senate, Republicans seem greater than prepared to face apart, for now, letting McCarthy and the Home GOP take the lead in talks with Biden — and cautious of embracing the type of cuts to federal spending the Home GOP needs however which have little likelihood of turning into regulation.

Senate Republican chief Mitch McConnell mentioned Tuesday, “I believe it’s totally cheap for the brand new speaker and his crew to place spending discount on the desk.”

McConnell mentioned of McCarthy’s yet-unscheduled-session with Biden: “I want him effectively and in speaking to the president. That is the place an answer lies.”

The afternoon assembly between Biden and the Democratic leaders got here because the White Home was throwing open its doorways for a brand new lawyer reception later Tuesday night, although some Home Republicans say they won’t attend due to the administration’s coronavirus protocols, akin to displaying proof of vaccination and getting examined prematurely.

“The time for arbitrary and unscientific pandemic protocols must be far behind us,” mentioned freshman Rep. Nick LaLota, RN.Y. “I’m forgoing a historic journey to the White Home to lift consciousness of this punitive coverage in hopes that President Biden will reverse it and different arbitrary, outdated, and unscientific restrictions throughout the federal system.”

On the debt, the Treasury Division notified Congress final week that the nation has reached its borrowing capability, $31 trillion, and might want to enhance the restrict to have the ability to proceed paying off its already accrued payments. Treasury Secretary Janet Yellen has launched extraordinary measures that are routinely used at instances like this, however that can run out in June.

Debt has been climbing for years, the final time the federal finances did not carry red-ink deficits was in the course of the Clinton years. As an alternative, the George W. Bush administration noticed the debt skyrocket because of tax cuts and the wars abroad. Debt grew once more within the Barack Obama period particularly within the aftermath of the Nice Recession.

The 2011 negotiations centered round a $1-for-$1 tradeoff of spending cuts for brand spanking new debt, however the sides may by no means comply with the dimensions and scope of reductions in federal well being care, army, infrastructure and different accounts. Thus far, the Biden administration has refused to interact with Home Republicans.

Sen. Ron Wyden, D-Ore., The chairman of the Finance Committee, mentioned his get together discovered its classes when negotiating with Republicans on the debt ceiling in 2011.

“We all know what occurred. It virtually threw the economic system into the ditch,” Wyden mentioned. “That is the lesson.”

One thought being mentioned has been for Congress to determine some form of debt panel, very like the failed “Tremendous Committee” that attempted within the aftermath of the 2011 talks to give you agreed upon methods to chop federal spending.

“The underside line is, can we discover a pathway ahead earlier than all of the theatrics begin?” mentioned Sen. Joe Manchin, the conservative West Virginia Democrat who is thought for straddling the get together strains. “We all know we will go it. It is only a matter of how a lot ache you need to put folks via.”

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