Democrats Shouldn't Rely on House GOP Support to Lift the Debt Ceiling

by Wall Street Rebel | Michael London | 08/25/2021 3:58 PM
Democrats Shouldn't  Rely on House GOP Support to Lift the Debt Ceiling

Republicans in the House have signaled that they would not support raising the debt limit and will instead press Democrats to renew the country's capacity to pay its debts.

 

In order to avoid the federal government running out of money to pay its obligations anytime in the next several months, Congress must achieve an agreement on raising the federal borrowing limit, also known as the debt ceiling, before the end of this year.

Top Republicans have said that Democrats should not rely on Republican cooperation to increase the debt ceiling this year, according to CNN.

Republicans in the House of Representatives have indicated that they are unlikely to support raising the debt ceiling and have instead put the onus on Democrats to do so, raising the prospect of a deadly clash that may occupy both chambers of Congress in the coming weeks and months.

Democrats were using a legislative tactic known as reconciliation to get around Republicans, according to Rep. Kevin Brady, the ranking Republican on the House Ways and Means Committee, who said Republicans had grown frustrated with the way Democrats were circumventing them on a $1.9 trillion stimulus bill in a Monday interview.

On top of that, they're set to ram through a multitrillion-dollar social-spending proposal entirely on their own.

Brady told Business Insider in a Monday-night interview...

"Considering they haven't had a single conversation about spending, stimulus, or the debt with us to date, I think they, by their behavior, have taken responsibility on passing this by themselves."

"Unless they have a conversation with Republicans, certainly there won't be Republican support in the House. Take it or leave it, no conversations, no working together - it's their responsibility, unfortunately."

Brady's remarks on the debt limit serve as a gauge for the Republican stance in the lower chamber, given his prominence as the author of the 2017 Republican tax legislation.

House Republicans may wind up following in the footsteps of the Senate Republicans under Mitch McConnell, since the majority of Republicans in the upper chamber have banded together to reject a raise in the debt limit.

Senate Republicans are seeking budget cutbacks in return for their support, despite the fact that Republicans backed increasing the debt limit several times during President Donald Trump's first year in office.

Secretary Janet Yellen noted that after the last debt-limit suspension ended on July 30, the Treasury Department was forced to take "exceptional steps" to assist the government in paying its obligations.

Increasing the debt limit does not result in an increase in federal expenditure; rather, it allows the United States government to pay down its existing debt burden.

Treasury Secretary Janet Yellen said that the epidemic was making it more difficult to predict when the agency will exhaust its emergency powers. The Congressional Budget Office predicted that the Treasury Department could keep the government afloat until October or November.

The office of House Republican leader Kevin McCarthy did not reply to a request for comment on the matter.

McCarthy signed on to a letter from House Budget Committee Republicans in July, which called for "spending restrictions" as a condition of any deal to raise or suspend the debt ceiling.

Certain legislation may be expedited and approved with a mere majority vote thanks to the process of reconciliation.

During President Donald Trump's administration, Republicans used the same process to achieve a significant corporation tax reduction.

In the same year, the Republican Party launched an unsuccessful attempt to repeal and replace the Affordable Care Act, which had no Democratic support.

Brady's other top Republicans would not go as far as he did.

Democrat congressional leaders, according to Republican Rep. Jason Smith of Missouri, the senior Republican on the House Budget Committee, have not responded to a letter they sent to them. Rep. Jason Smith said…

"We've heard crickets. The Democrats have failed in leadership. They're not even negotiating or communicating, so apparently they don't care about the debt ceiling."

 

                    What is the U.S. debt ceiling and what are the consequences of breaching it?

 

 

 

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