Growing number of Democrats endorse the total abolition of the debt ceiling
Congress is on the verge of avoiding a catastrophic default – and some Democrats want it to be the last time.
Calls to remove the almost annual fight from lawmakers come from prominent voices such as the chairman of the House budget committee Jean YarmutJohn Allen Yarmuth On the money – Democrats set up a chaotic end to the year (D-Ky.) And Secretary of the Treasury Janet YellenJanet Louise Yellen On the money – Democrats set up a chaotic end of the year, who want to eliminate the debt ceiling in its current form.
They argue that members of Congress should never again be able to use the threat of default as political leverage – an approach that would respond to the GOP’s obstruction by playing their own tough game.
Although lawmakers are on the verge of avoiding a national default just a week before the October 18 deadline, when the United States is expected to exceed the debt ceiling, it will face it again in December, when the last short-term extension will expire.
This is leading some Democrats to come up with longer-term solutions, like removing the authority of Congress or exempting bills related to the debt limit from Senate filibuster rules.
Yarmuth joined Rep. Brendan Boyle (D-Pa.) Last week to introduce a bill that would transfer the power to increase the debt limit from Congress to the Secretary of the Treasury.
Speaker Nancy PelosiNancy PelosiOvernight Health Care – Brought to you by the National Council on Mental Wellbeing – Merck asks FDA to authorize five-day COVID-19 treatment On The Money – Democrats put in place a chaotic year-end Quarter of infrastructure Critics at Risk of Flood Failure: MORE Research (D-Calif.) Called the proposal a “great idea,” although she stressed that Democrats are focused on preventing a default now and that they would leave a conversation on long-term solutions for it. later.
Boyle has also introduced legislation in recent years to repeal the debt limit altogether in order to permanently eliminate a dire scenario that would lead to a deterioration in US credit, likely recession and delay in social security, wages. military and other essential payments made by the federal government.
He renewed his push this week after the Republicans, led by the Senate Minority Leader Mitch mcconnellAddison (Mitch) Mitchell McConnell Democrats ignore the one thing that matters. DEM PLUS (Ky.), In part supported their demands that Democrats use the longer, obstruction-free budget reconciliation process to raise the debt limit, ultimately agreeing to a short-term extension until December.
âWhile I welcome this change in stance from Senator McConnell, we need a long-term solution to our debt ceiling dysfunction. It’s time to end the debt limit as we know it, âBoyle said.
Representative Don Beyer (D-Va.), Chairman of the Joint Economic Committee, also called for abolishing the debt ceiling.
“A chaotic Senate vote 11 days before a deadline that could have ruined our economy is no way to rule the most powerful nation on the planet,” Beyer tweeted. “It doesn’t have to be like that – Congress has the power to stop it, and we should.”
Yellen spoke out in favor of removing the debt limit in testimony last week to the House Financial Services Committee, arguing that it is impractical to limit the Treasury’s capacity to pay expenses already adopted by Congress and the President.
“When Congress makes spending laws and puts in place a tax policy that determines taxes, those are the critical decisions Congress makes,” she said.
“And, if in order to fund these spending and tax decisions it is necessary to issue additional debt, I think that is very destructive for the president and myself, the secretary of the treasury, in the situation where we could being unable to pay the resulting bills past decisions.
In a virtual panel discussion with business leaders hosted by the White House on Wednesday, JPMorgan Chase CEO Jamie Dimon said: “We should get rid of the debt ceiling.”
âWe don’t need to have this kind of tugging every two years,â Dimon said when President BidenJoe BidenGruden becomes Raiders coach after more emails reveal homophobic and sexist comments Abbott bans vaccination warrants from any “Texas entity” Jill Biden to campaign with McAuliffe on Friday MORE asked him what he thought of the need to increase the debt ceiling.
Biden, meanwhile, has yet to take a position on debt ceiling reform. When asked at a press briefing this week whether the president supports abolishing the debt ceiling, the White House press secretary Jen psakiJen’s subpoena snob PsakiBannon sets up big decision for Biden DOJ The Memo: Biden’s horizon clouded by doubt Doubts over Biden administration’s skills increase MORE said the administration is focusing on the most impending deadline to avoid a default.
âRight now our goal is to raise the debt ceiling and the limited time we have left to do it and do it without affecting the retirement savings accounts, social security and economic security of millions of people. ‘Americans. There’s plenty of time to have a conversation after this, âPsaki said.
The United States is one of the few countries in the world known to have a debt ceiling in the first place, and its government has repeatedly come close to fiscal calamity over it.
Denmark is the only other major Western country to have a debt limit. But he is well above his spending level and has never failed in a serious breach, according to the Foreign Relations Council.
It is not clear that Democrats would be fully united on revising the debt limit; some tax-conscious centrists are reluctant to make major changes to precedents or seem dismissive of the national debt.
Democratic House leaders had to tone down the reluctance of some moderate members to vote for an autonomous suspension of the debt ceiling until December 2022 last week. In return for their votes, Democratic leaders pledged to vote on a resolution supported by members of the Blue Dog Coalition that would demand annual Congressional hearings on the country’s fiscal state to help inform proposals on how to reduce the national debt.
Republicans, on the other hand, have historically been divided over the debt limit and believe discussions about raising it should involve deficit reduction measures. Only 11 Senate Republicans were willing to join Democrats on Thursday in overcoming a procedural motion on extending the debt limit, underscoring the caucus’s reluctance to be seen as helping Democrats under the Biden administration on the issue .
But in recognition of the potential consequences of a default, Sen. Rick Scott (R-Fla.) Recently introduced legislation that would require the Treasury to prioritize payments to seniors, veterans and the military in the event of default.
In addition to removing congressional authority over the debt limit, the other “nuclear option” to prevent future confrontations by making a filibuster exclusion for related bills has been met with the resistance of the key centrist Sen. Joe manchinJoe Manchin Use common principles to guide our global and national energy policy. (DW.Va.).
âI was very, very clear where I stand on the filibuster. Nothing changes, âManchin said.
Even so, other Democrats already frustrated with Senate Republicans’ ability to use filibuster to block most of their agenda think it’s a better alternative than just kicking the box.
After the Senate passes the debt limit extension on Thursday night, the House will vote to send the bill to Biden on Tuesday night.
But before that deal came to fruition, the discussion of changing the filibuster, eliminating the debt limit, and even fringe ideas like minting a trillion dollar coin underscored the fear. and Democrats’ frustration that Republicans can force a showdown despite being in the minority.
“We are prepared to accept this offer in order to avoid fiscal ruin, but we are all beside ourselves that the only thing Republicans are prepared to do is to avoid disaster for three months and get back in. this position, “said the senator. Chris MurphyChristopher (Chris) Scott Murphy Growing number of Democrats endorse total debt ceiling abolition Senate approves short-term debt ceiling increase Democrats downplay deadlines for Biden’s sweeping spending plan MORE (D-Conn.).
âI think changing the rules of filibuster is a much better path than this. But, you know, it’s no secret that it was going to be difficult to get consensus on this in such a short period of time, âhe said.