Mr. McConnell and 10 Republicans agreed in October to allow the Senate to take up a short-term increase to the debt limit, which ultimately passed with Democratic votes. But some of those senators warned they would not acquiesce again, and Mr. McConnell and Mr. Schumer began quietly discussing alternatives.
“I’m confident that this particular procedure, coupled with the avoidance of Medicare cuts, will achieve enough Republican support to clear the 60-vote threshold,” Mr. McConnell said, predicting a Thursday vote for the bill in the Senate.
That would require 10 Republicans to join Democrats in advancing the bill, a prospect that Mr. McConnell discussed at lunch with members of his party on Tuesday afternoon.
Some lawmakers said they would be open to supporting the legislative gymnastics in the interest of foisting political responsibility for raising the debt ceiling on Democrats.
Understand the U.S. Debt Ceiling
What is the debt ceiling? The debt ceiling, also called the debt limit, is a cap on the total amount of money that the federal government is authorized to borrow via U.S. Treasury bills and savings bonds to fulfill its financial obligations. Because the U.S. runs budget deficits, it must borrow huge sums of money to pay its bills.
Why does the U.S. limit its borrowing? According to the Constitution, Congress must authorize borrowing. The debt limit was instituted in the early 20th century so the Treasury did not need to ask for permission each time it needed to issue bonds to pay bills.
Do other countries do it this way? Denmark also has a debt limit, but it is set so high that raising it is generally not an issue. Most other countries do not. In Poland, public debt cannot exceed 60 percent of gross domestic product.
What are the alternatives to the debt ceiling? The lack of a replacement is one of the main reasons the debt ceiling has persisted. Ms. Yellen said that she would support legislation to abolish the debt limit, which she described as “destructive.” It would take an act of Congress to do away with the debt limit.
“To have Democrats raise the debt ceiling and be held politically accountable for racking up more debt is my goal, and this helps us accomplish that,” Senator John Cornyn, Republican of Texas, told reporters before the lunch.
“To me, that’s the most important part: that the voters in 2022 see that the people who recklessly spent money that our future generation is going to have to pay back didn’t care,” he added.
The legislation would also postpone until 2023 mandatory cuts to a range of federal spending programs, including farm aid, community block grants and a 4 percent reduction in Medicare payments to doctors and hospitals.
Source Article from https://www.nytimes.com/2021/12/07/us/politics/debt-ceiling-deal-congress.html
Comments