US political leaders are confident that they can secure enough support from mainstream lawmakers to pass a debt ceiling agreement”>bipartisan compromise debt ceiling deal, despite criticism from both the left and right. The deal was agreed upon by Democratic US President Joe Biden and Republican House Speaker Kevin McCarthy after weeks of negotiations. The 99-page bill needs to be approved by the House of Representatives and the US Senate before it can be signed by Biden to avoid a national default on the $31.4tn the US owes creditors. The White House communications director, Ben LaBolt, has warned that a default could lead to 8 million job losses in the US and a global recession. The proposed legislation bill limits non-defense spending, temporarily expands work requirements for some food stamp recipients, and claws back some Covid-19 relief funds. It also cuts $20bn off $80bn in new IRS spending designed to curb tax avoidance.
The first step in getting the legislation passed comes on Tuesday afternoon when the House rules committee will meet to discuss the new bill, called The Fiscal Responsibility Act of 2023. The bill will allow $4tn of extra national liabilities to January 2025, after the next general election. The White House is encouraging both parties to support the deal, with LaBolt stating that he expects the majority of congressional Republican members to support it. However, some progressive Democrats have expressed concerns about the deal, with Pramila Jayapal, chair of the Congressional Progressive Caucus, stating that the White House should worry about support from progressives. Right-wing conservatives have also criticized the deal, with Texas Republican Chip Roy calling it a “turd sandwich” and North Carolina’s Dan Bishop tweeting a green vomit emoji.
On Sunday, Biden called the agreement a “really important” step towards ensuring the US can pay its bills and meet its financial obligations. The bill temporarily suspends the debt ceiling until December 2022, allowing the US to continue borrowing to pay its bills. The deal also includes provisions to address climate change, healthcare, and tax reform.
2023-05-29 11:42:19
Post from www.theguardian.com
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