After months of Republican obstruction and brinkmanship, Congress voted Tuesday for an increase in the debt limit. This follows economic disaster that was threatened by Republican obstruction.
The debt ceiling was raised by the resolution by $2.5 trillionThis will put an end to the next fight on the fiscal move for 2023. Both chambers of Congress approved the measure largely on party lines. Rep. Adam Kinzinger (R.Illinois), was the only Republican to vote in favor. It is expected that President Joe Biden will sign the bill into law as soon and as possible.
Over the past months, Republicans in the Senate threatened to declare default on the U.S. for the first time ever in history because they refused to raise the debt ceiling. Even as Senate Minority Leader Mitch McConnell, a Republican from Kentucky, was trying to reach a deal this month with Majority Leader Chuck Schumer, he was still threatening to send the U.S. into default. Sen. John Cornyn (R-Texas)Insisted that Democrats give in to Republican demands for the debt ceiling and add the issue to their reconciliation bill.
McConnell’s obstruction of the GOP led to the country being incredibly close at default. Janet Yellen, Treasury Secretary, predicted that it would happen on December 15. Republicans would be likely to blame Democrats if the U.S. defaulted. They would obfuscate GOP responsibility.
Economists warned that even a brief default could cause long-term economic instability. Long-term defaults, however, are more likely to cause long-term economic instability. Would have been mechanically triggeredA recession sends the fragile COVID economy spiraling, destroying as much as $15 trillion in household wealth. President Joe Biden Had slammed Republicans for their political games, calling it “hypocritical, dangerous and disgraceful.”
McConnell 13 other Republicans in the SenateEnded up giving in to their dangerous game, voting with Democrats to allow the debt ceiling vote to be passed with a simple Mehrheit in the chamber.
Schumer applauded the resolution’s passage on Tuesday. “As I have said repeatedly, this is about paying debt accumulated by both parties, so I am pleased Republicans and Democrats came together to facilitate a process that has made addressing the debt ceiling possible,” he said.
Donald Trump was responsible for a large portion of the U.S. debt. With Republican lawmakers’ help on issues like tax breaks for the wealthy and corporations, the national debt rose by nearly $8 trillion during Trump’s term. This is the third highest deficit increase by any presidential administration, only lower that George W. Bush’s and Abraham Lincoln’s large wars.
The GOP is still refusing to vote to bypass the filibuster on the debt limit bill directly. This means that the GOP has created a false talking point about the debt ceiling to attack Democrats. Republicans You have been lying aboutThey should pay their debts, and not ignore their significant role in the current debt situation. Republicans are already attacking Republicans for their apparent irresponsibility as Democrats voted on Tuesday to raise debt ceiling.
“Later today, every Senate Democrat is going to vote on party lines to raise our nation’s debt limit by trillions of dollars,” McConnell saidPrior to the vote. Likely referring to the reconciliation package known as the Build Back Better Act, he continued, “if they jam through another reckless taxing and spending spree, this massive debt increase will just be the beginning.”
However, the typically conservativeThe Congressional Budget Office (CBO), has determined that the House passed the Build Back Better Act. It would actually decrease the deficit. The debt ceiling was not a topic of conversation for the Republicans. when the CBO estimatedThe government would have to spend $2.3 trillion on the 2017 tax cut over ten years.
