GOP, Dems clash over Republican plan to avoid debt default: ‘Economic chaos’
‘Not acceptable’ to Americans, economy to add $19T to US debt: Rep. Jared Moskowitz
Rep. Jared Moskowitz, D-Fla., discusses the U.S. debt ceiling and the pressure on Biden to address the Chinese spy craft incident.
Republicans on the House Ways and Means Committee called up legislation Thursday aimed at helping the federal government avoid a catastrophic debt default, even as Democrats charged the bill would fuel "economic chaos."
The committee convened to discuss the House Republicans’ Default Prevention Act, which would exempt principle and interest payments on the debt and Medicare and Social Security spending from the debt ceiling once the ceiling is reached. The bill is aimed at allowing funding for these major obligations in order to avoid catastrophic results that could occur if a debt ceiling deal can't be reached.
The discussion took place even as the government is already bumping up against the current $31.4 trillion debt ceiling. The White House and congressional Democrats have thus far refused to negotiate on spending cuts as part of a deal to raise the borrowing limit, something the House GOP majority has insisted on as part of a deal.
With a potential default on the horizon later this year in the absence of a deal, Republicans are promoting the bill as a way to avert financial disaster while keeping federal spending in check.
But Rep. Richard Neal, D-Mass., the ranking member on the panel, called the proposal the "pay China first bill" and claimed it would help Beijing before vulnerable Americans and service members.
BIDEN PROPOSES TAX INCREASE FOR THOSE MAKING OVER $400K TO BOOST MEDICARE FUNDING