Washington.- The vote by Republicans in the House to condition significant spending cuts on a deal to increase the debt ceiling for a year has put President Biden on the defensive, forcing him to confront a series of potentially painful decisions at an economic time. dangerous.
Biden has long assured that he would not negotiate spending cuts or other efforts to reduce federal debt as part of discussions about increasing the country’s debt limit, which must be increased if the United States is to continue borrowing to pay its bills. bills.
However, business groups, tax specialists and some Democrats in Congress are calling on Biden to start negotiating a deal that could avoid a debt moratorium, which could happen as soon as June. or july.
Biden and his advisers must decide how quickly they could contact House Speaker Kevin McCarthy of California — along with Democratic Sen. Chuck Schumer of New York, Majority Leader, Sen. Mitch McConnell of Kentucky, Majority Leader Minority Leader and Rep. Hakeem Jeffries of New York, House Minority Leader — and on what terms.
The president faces a cascade of decisions as the country, already over its $31.4 trillion debt limit, approaches default.
He needs to find common ground, if any, with Republicans on spending cuts, who don’t share his preference for reducing the country’s debt mostly by raising taxes on corporations and the wealthy.
He will have to decide if he is prepared to sign any increase to the debt limit that is attached to the conditions demanded by the House conservatives.
Finally, you must also decide how aggressively you are going to intervene in that delicate politics of the House leadership.
A potential debt limit deal could spark a revolt among McCarthy’s most concerned members who were against his appointment and have the power to remove him from that post.
