The <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">White House</a> responded to a <a href="https://www.dailywire.com/topic/budget" target="_blank" rel="noopener">budget</a> cut proposal from the <a href="https://www.dailywire.com/topic/freedom-caucus" target="_blank" rel="noopener">House Freedom Caucus</a> with a series of criticisms that the group’s senior lawmaker calls “preposterous.”
The Biden administration offered a budget framework earlier this month which would increase spending from $5.8 trillion to $6.9 trillion and <a href="https://www.dailywire.com/news/more-taxes-and-more-spending-heres-what-you-need-to-know-about-president-bidens-newest-budget" target="_blank" rel="noopener">implement</a> several tax hikes on wealthy individuals and businesses. Members of the House Freedom Caucus, a bloc of conservative Republican lawmakers, countered with a proposal that would establish topline discretionary spending at the fiscal year 2022 level for one decade and allow for 1% annual growth.
An <a href="https://twitter.com/freedomcaucus/status/1634205313623572480" target="_blank" rel="noopener">announcement</a> of the House Freedom Caucus framework asserted that its budget proposal would inhibit “the wasteful, woke, and weaponized federal bureaucracy.”
The release of the budget proposals coincides with <a href="https://www.dailywire.com/news/congressional-budget-office-reveals-when-government-will-run-out-of-cash" target="_blank" rel="noopener">negotiations</a> between President Joe Biden and House Speaker Kevin McCarthy (R-CA) over the debt ceiling, a measure established by Congress that disallows the federal government from spending beyond the predetermined statutory limit of $31.4 trillion. When the national debt surpassed the limit earlier this year, Treasury Secretary Janet Yellen <a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">warned</a> lawmakers that she was forced to implement “extraordinary measures” to fund the government until early June, after which the government will default on obligations.
Members of the House Freedom Caucus will consider voting to raise the debt ceiling contingent upon acceptance of their budget framework, as well as moves to rescind the $400 billion White House student loan cancellation plan, the $80 billion recently allocated to double the size of the IRS, and unspent stimulus funds passed during the lockdown-induced recession. The stringent demands from the House Freedom Caucus were met with <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/20/five-alarm-fire-the-house-freedom-caucus-extreme-budget-proposal-endangers-public-safety/" target="_blank" rel="noopener">claims</a> from the White House on Monday that the framework would “make our borders less secure” and “defund the police.”
House Freedom Caucus Chair Scott Perry (R-PA) told The Daily Wire that the rebuttal from the Biden administration was not a serious counterargument to the proposal.
“This White House has done more to endanger our law enforcement and the American People than any in history. Fear and smear isn’t a pillar of policy,” Perry commented. “It’s propaganda, and this latest tactic is a disgusting attempt to distract, deceive, and deny his record-setting incompetence surrendering operational control of our southern border to lawless drug cartels, sinking our economy, and ushering in debt and bank crises.”
The assertion that law enforcement funding would be jeopardized by the House Freedom Caucus framework likely resides in the call for a reduction in “topline” spending, which would still allow lawmakers to reallocate wasteful spending within individual agencies.
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The White House <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/21/five-alarm-fire-the-house-freedom-caucus-extreme-budget-proposal-raises-costs-for-families/" target="_blank" rel="noopener">added</a> on Tuesday that the House Freedom Caucus proposal would raise “costs for families.” Inflation rates have more than <a href="https://www.dailywire.com/news/biden-says-economy-will-continue-to-make-progress-after-another-dismal-inflation-report" target="_blank" rel="noopener">quadrupled</a> since Biden assumed office two years ago.
The Daily Wire asked Perry under what circumstances members of the House Freedom Caucus would amend their intentions to make votes on the debt ceiling contingent on their budget framework. He responded that “nearly every significant deficit reduction agreement since 1980” emerged from a negotiation regarding the debt limit.
“America is facing an unprecedented, unsustainable debt crisis thanks to out-of-control spending from Washington,” the lawmaker said. “President Biden, however, refuses to negotiate with Congress. Furthermore, the Constitution and our laws require the federal government to pay our debts, and the President has both the money and tools to do so. If he chooses to default on America’s debt for political reasons, that is on him and him alone.”

Key Speakers At Conservative Political Action Conference

House Freedom Caucus Chairman Responds As White House Lobs Spurious Claims At Spending Cut Proposal

House Freedom Caucus Chairman Responds As Biden Blasts Spending Cut Plans

Biden Administration

Budget

Congress

Freedom Caucus

National Debt

Politics

The showdown over the future of the federal <a href="http://dailywire.com/topic/budget" target="_blank" rel="noopener">budget</a> is taking shape as President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> releases his fiscal year 2024 spending proposal and <a href="https://www.dailywire.com/topic/house-republicans" target="_blank" rel="noopener">House Republicans</a> prepare to leverage their new majority to block the plan.
The White House suggested an <a href="https://www.dailywire.com/news/more-taxes-and-more-spending-heres-what-you-need-to-know-about-president-bidens-newest-budget" target="_blank" rel="noopener">increase</a> in the federal budget from $5.8 trillion to $6.9 trillion over the next fiscal year while reducing cumulative deficits by $3 trillion over the next decade through a number of tax hikes on businesses and wealthy individuals. Households with more than $100 million in wealth would be subjected to a 25% minimum tax, while the top marginal tax rate would also be increased to 39.6% from the current 37% rate. Businesses would see an increase in the corporate tax to 28%, which would split the difference between the current 21% rate and the previous 35% rate that was in effect before the Tax Cuts and Jobs Act of 2017.
The proposal, which also suggested new health care and education subsidies, largely adheres to the Democratic emphasis on redistributive fiscal policy. “This budget builds on our economic progress by making smart, fiscally responsible investments, which would be more than fully paid for by requiring corporations and the wealthy to pay their fair share,” Treasury Secretary Janet Yellen said in a <a href="https://twitter.com/SecYellen/status/1633908057380929571" target="_blank" rel="noopener">statement</a>. “The budget’s growth-enhancing investments will continue the economic progress of the last two years and further boost the economy’s productive capacity.”
Republican officials, who have not yet countered the budget with a proposal of their own, meanwhile <a href="https://www.dailywire.com/news/dead-on-arrival-republicans-slam-biden-budgets-higher-taxes-and-spending" target="_blank" rel="noopener">contested</a> various elements of the plan. “President Biden just delivered his budget to Congress, and it is completely unserious. He proposes trillions in new taxes that you and your family will pay directly or through higher costs,” remarked House Speaker Kevin McCarthy (R-CA). “Washington has a spending problem, not a revenue problem.”
The release of the budget proposal coincides with <a href="https://www.dailywire.com/news/congressional-budget-office-reveals-when-government-will-run-out-of-cash" target="_blank" rel="noopener">negotiations</a> between Biden and McCarthy over the debt ceiling, a measure established by Congress that disallows the federal government from spending beyond the predetermined statutory limit of $31.4 trillion. Yellen <a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">warned</a> lawmakers that the Treasury Department was forced to implement “extraordinary measures” earlier this year to fund the government until early June, after which the government will default.
The House Freedom Caucus, which withheld votes from McCarthy at the beginning of the present Congress until he committed to negotiating with Biden on efforts to reduce the national debt, announced that members would likewise <a href="https://twitter.com/freedomcaucus/status/1634205313623572480" target="_blank" rel="noopener">refuse</a> to support raising the debt ceiling unless various White House policies are rescinded.
Among the initiatives that the Republican lawmakers want to repeal are the $400 billion student debt cancellation executive order, the $80 billion allocation to the IRS enacted under the Inflation Reduction Act, and all unspent stimulus funds earmarked during the lockdown-induced recession. Votes in favor of raising the debt limit are also contingent upon capping discretionary spending at fiscal year 2022 levels for the next decade with a 1% annual growth allowance.
Business leaders and government officials have <a href="https://www.dailywire.com/news/were-going-to-have-to-fix-this-jpmorgan-chase-ceo-sounds-the-alarm-over-soaring-national-debt" target="_blank" rel="noopener">cautioned</a> that a default would likely induce a worldwide financial crisis. Increases in the national debt, however, are unsustainable: the federal government’s obligations surpassed $31.5 trillion, equivalent to roughly 120% of the nation’s gross domestic product. Maintenance costs are meanwhile increasing due to the present <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">rise</a> in interest rates.
An <a href="https://www.dailywire.com/news/government-must-raise-taxes-40-or-cut-spending-30-to-achieve-fiscal-balance-study" target="_blank" rel="noopener">analysis</a> from economists at the University of Pennsylvania’s Wharton School recently concluded that a 30% decrease in spending or a 40% increase in taxation would be necessary to handle current deficit spending and future obligations. Republican and Democratic administrations alike have overseen <a href="https://www.dailywire.com/news/the-american-people-want-a-real-change-steve-forbes-rebukes-both-parties-for-sinful-government-spending-habits" target="_blank" rel="noopener">surges</a> in debt over the past several decades.

US-POLITICS-BIDEN-STATE OF THE UNION

Democrats And Republicans Fire First Shots In Debt Limit Showdown

Democrats And Republicans Battle Over The Budget

Debt Ceiling

Economy

House Republicans

Joe Biden

Kevin McCarthy

Taxes

President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> unveiled record spending and several new <a href="http://dailywire.com/topic/taxes" target="_blank" rel="noopener">tax</a> increases on Thursday in his <a href="https://www.dailywire.com/topic/budget" target="_blank" rel="noopener">budget</a> proposal for fiscal year 2024.
The suggested $6.9 trillion for the federal government’s operations between October 1, 2023, and September 30, 2024, would mark a $1.1 trillion increase from the $5.8 trillion proposed by the commander-in-chief for the previous fiscal year. House Republicans are expected to reject the proposal and counter with a budget of their own.
“This year’s budget cuts the deficit by nearly $3 trillion over the next decade by asking the wealthy and big corporations to begin to pay their fair share,” Office of Management and Budget Director Shalanda Young said in a <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2023/03/09/on-the-record-press-call-by-omb-director-shalanda-young-and-cea-chair-cecilia-rouse-on-the-presidents-fy24-budget/" target="_blank" rel="noopener">statement</a>. “It does this in part by reforming our tax code to reward work, not wealth, including by ensuring that no billionaire pays a lower tax rate than a teacher or a firefighter, and by quadrupling the tax on corporate stock buybacks.”
The <a href="https://www.whitehouse.gov/wp-content/uploads/2023/03/budget_fy2024.pdf" target="_blank" rel="noopener">budget proposal</a> is indeed marked by a number of tax hikes on affluent households, including a 25% minimum tax on those with more than $100 million in wealth that the budget calls a “billionaire minimum tax.” The top marginal tax rate would also be increased to 39.6% from the current 37%, which would represent a return to levels seen before the Tax Cuts and Jobs Act of 2017, the hallmark legislative accomplishment of former President Donald Trump.
The budget would also <a href="https://www.dailywire.com/news/some-people-can-expect-medicare-tax-increases-under-next-biden-budget" target="_blank" rel="noopener">increase</a> the investment income tax used to fund Medicare from 3.8% to 5% for individuals earning more than $400,000 per year, a move that the White House claims would extend the solvency of the Medicare Hospital Insurance Trust Fund for at least 25 years.
“The tax code currently offers special treatment for the types of income that wealthy people enjoy. Whereas the wages and salaries that everyday Americans earn are taxed as ordinary income, billionaires make their money in ways that are taxed at lower rates, and sometimes not taxed at all,” the budget said. “This special treatment, combined with sophisticated tax planning and giant loopholes, allows many of the wealthiest Americans to pay lower rates on their full income than many middle-class households pay.”
Businesses would likewise see a number of tax hikes, including an increase in the corporate tax to 28%, which would split the difference between the current 21% rate and the previous 35% rate that was in effect before the Tax Cuts and Jobs Act. The budget would also quadruple the stock buyback tax from 1% to 4% such that companies invest unused profits in operations.
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A number of federal agencies would see large budget increases relative to enacted levels in the previous fiscal year: allocations for the Labor Department would rise by 11%, allocations for the Education Department would rise by 13.6%, and allocations for the Environmental Protection Agency would rise by 19%. Budgets for the Defense Department and the Department of Veterans Affairs would meanwhile increase 3.2% and 2.2% respectively.
The budget proposal would <a href="https://www.dailywire.com/news/biden-wants-to-cut-3-trillion-in-spending-over-the-next-decade-america-needs-20-trillion-in-cuts-to-balance-the-budget" target="_blank" rel="noopener">decrease</a> the total deficit over the next decade from $20 trillion to $17 trillion. Reforms to taxes on wealthy households and the stock buyback penalty would increase revenues by $1.1 trillion over the next decade, while the hike in the corporate tax would increase revenues by $1.3 trillion. Childcare, early learning, housing, higher education, and other social initiatives would meanwhile introduce $1.1 trillion in new spending, while paid leave programs and tax benefits for certain families would reduce revenues by $1.0 trillion.

President Biden Delivers Remarks On 2024 Budget Plan In Philadelphia

More Taxes And More Spending: Here’s What You Need To Know About President Biden’s Newest Budget

Here’s What You Need To Know About President Biden’s Newest Budget

U.S.

The <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">White House</a> intends to cut the federal <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">budget deficit</a> by a total of $3 trillion over the next decade, a reduction that falls short of the $20 trillion in cuts required to balance the budget.
An unnamed senior White House official <a href="https://apnews.com/article/biden-budget-deficit-trillion-republicans-economy-810ff80dcd8812f2138eef571f2444f3" target="_blank" rel="noopener">told</a> the Associated Press on Wednesday that the commander-in-chief’s next budget proposal, which he is scheduled to unveil on Thursday, will decrease the deficit by $3 trillion over the next decade should lawmakers approve the plan. White House Press Secretary Karine Jean-Pierre confirmed the figure later on Wednesday and said that the proposal “shows the American people that we take this seriously.”
Biden had previously <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/02/07/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery/" target="_blank" rel="noopener">vowed</a> during his State of the Union address that the budget proposal would lower the deficit by $2 trillion.
A recent <a href="https://www.cbo.gov/publication/58946" target="_blank" rel="noopener">report</a> from the Congressional Budget Office concluded that the federal government is slated to spend $80 trillion in outlays between 2024 and 2033 while procuring $60 trillion in revenues over the same time horizon, implying that the government is slated to accrue $20 trillion in new deficits. The plan from the White House would therefore reduce the deficit by 15%.
“The ongoing deficits are the result of a mismatch between government spending and tax revenue,” Tax Foundation Senior Economist Erica York said in a recent <a href="https://taxfoundation.org/federal-budget-deficit-taxes/" target="_blank" rel="noopener">analysis</a>. “While revenue and spending as a share of GDP will meet or exceed their historical averages, spending growth outpaces revenue growth, leading to persistent deficits. Growing costs for interest, health-care programs, and Social Security drive the relative rise in spending.”
President Joe Biden and House Speaker Kevin McCarthy (R-CA) are presently <a href="https://www.dailywire.com/news/congressional-budget-office-reveals-when-government-will-run-out-of-cash" target="_blank" rel="noopener">negotiating</a> to decrease spending after the debt ceiling, an arbitrary cap on the national debt established by Congress, exceeded the statutory limit of nearly $31.4 trillion earlier this year. Each official has said they will not consider reforms to Social Security and Medicare, raising <a href="https://www.dailywire.com/news/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms" target="_blank" rel="noopener">questions</a> as to whether meaningful spending cuts will be possible since the two programs constituted 46% of the federal budget during the last fiscal year, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department.
Biden has consistently promised to avoid raising taxes on individuals earning less than $400,000 per year and indicated during his State of the Union address that he would reduce deficits by increasing taxes for high-income households and large businesses. “I will pay for the ideas I’ve talked about tonight by making the wealthy and big corporations begin to pay their fair share,” he remarked. “Big corporations aren’t just taking advantage of the tax code. They’re taking advantage of you.”
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The White House accordingly <a href="https://www.dailywire.com/news/some-people-can-expect-medicare-tax-increases-under-next-biden-budget" target="_blank" rel="noopener">said</a> on Tuesday that the budget proposal would suggest raising the investment income tax used to fund Medicare from 3.8% to 5% for individuals earning more than $400,000 per year. “Since Medicare was passed, income and wealth inequality in the United States have increased dramatically,” the White House contended. “By asking those with the highest incomes to contribute modestly more, we can keep the Medicare program strong for decades to come.”
Debate over fiscal policy among Republicans and Democrats comes as the national debt surpasses $31.5 trillion and the government faces <a href="https://www.dailywire.com/news/congressional-budget-office-reveals-when-government-will-run-out-of-cash" target="_blank" rel="noopener">insolvency</a> in the next several months. Runaway federal spending has <a href="https://www.dailywire.com/news/national-debt-surpasses-31-trillion-for-the-first-time-republicans-and-democrats-both-to-blame" target="_blank" rel="noopener">occurred</a> under administrations controlled by both major parties.

President Biden Delivers State Of The Union Address

Biden Wants To Cut $3 Trillion In Spending Over The Next Decade. America Needs $20 Trillion In Cuts To Balance The Budget.

Biden Will Cut $3 Trillion From Deficit Over The Next Decade

Congressional Budget Office (CBO)

Some individuals can expect a <a href="https://www.dailywire.com/topic/medicare" target="_blank" rel="noopener">Medicare</a> tax increase under the new <a href="https://www.dailywire.com/topic/budget" target="_blank" rel="noopener">budget</a> proposal scheduled to be unveiled this week by the <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a>.
Medicare, a federal health insurance program intended for senior citizens, is partially <a href="https://www.irs.gov/individuals/net-investment-income-tax" target="_blank" rel="noopener">funded</a> by a 3.8% tax on investment income for individuals earning more than $125,000 or married couples filing jointly and earning more than $250,000. The White House contended in a Tuesday <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/07/fact-sheet-the-presidents-budget-extending-medicare-solvency-by-25-years-or-more-strengthening-medicare-and-lowering-health-care-costs/" target="_blank" rel="noopener">statement</a> that “modestly increasing” the tax rate to 5% for those earning more than $400,000 would extend the solvency of the Medicare Hospital Insurance Trust Fund by at least 25 years.
“Since Medicare was passed, income and wealth inequality in the United States have increased dramatically,” the statement said. “By asking those with the highest incomes to contribute modestly more, we can keep the Medicare program strong for decades to come.”
The White House additionally vowed to close loopholes in the Medicare tax system because “some high-paid professionals and other wealthy business owners have managed to shield some of their income from tax by claiming it is neither earned income nor investment income.” The Medicare Hospital Insurance Trust Fund is expected to deplete in 2028, according to a <a href="https://www.cms.gov/files/document/2022-medicare-trustees-report.pdf" target="_blank" rel="noopener">report</a> issued last summer by trustees for the program.
The announcement comes as Republicans and Democrats discuss mechanisms to reduce the budget deficit and mitigate increases to the national debt, which now surpasses $31.5 trillion. President Joe Biden and House Speaker Kevin McCarthy (R-CA) are <a href="https://www.dailywire.com/news/congressional-budget-office-reveals-when-government-will-run-out-of-cash" target="_blank" rel="noopener">negotiating</a> to decrease spending after the debt ceiling, an arbitrary cap on the national debt established by Congress, exceeded the statutory limit of nearly $31.4 trillion earlier this year.
Each official has said that they will not consider reforms to Social Security and Medicare, raising <a href="https://www.dailywire.com/news/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms" target="_blank" rel="noopener">questions</a> as to whether meaningful spending cuts will be possible since the two programs constituted 46% of the federal budget during the last fiscal year, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department. Biden administration officials have asserted that Republicans are seeking to reduce benefits from Social Security and Medicare despite repeated statements from McCarthy and other lawmakers to the contrary.
Biden <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/02/07/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery/" target="_blank" rel="noopener">vowed</a> during his State of the Union address that his budget proposal would “lower the deficit by $2 trillion” even as no reforms are made to Social Security and Medicare. “If anyone tries to cut Social Security, I will stop them. And if anyone tries to cut Medicare, I will stop them,” he declared. “When I offer my fiscal plan, I ask my Republican friends to offer their plan. We can sit down together and discuss both plans together.”
Runaway federal spending has been a <a href="https://www.dailywire.com/news/national-debt-surpasses-31-trillion-for-the-first-time-republicans-and-democrats-both-to-blame" target="_blank" rel="noopener">problem</a> under Republican and Democratic administrations: former President Donald Trump added $7.5 trillion to projected debt levels through his legislative agenda and executive orders, while President Joe Biden has added $5 trillion to projected debt levels. Not considering the stimulus measures passed by both chief executives during the lockdown-induced recession implies an added debt burden of $4 trillion for the former and $2.5 trillion for the latter.
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Biden also claimed during his State of the Union address that he oversaw “the largest deficit reduction” in the nation’s history during his first two years in office. Although he witnessed a decline in the deficit from $3.1 trillion in fiscal year 2020 to $1.4 trillion in fiscal year 2022, according to <a href="https://fred.stlouisfed.org/series/FYFSD" target="_blank" rel="noopener">data</a> from the Office of Management and Budget, he neglected to mention that the record spending came as a result of legislation passed in response to the lockdown-induced recession. The deficit last year still exceeded those witnessed in the years before the crisis.

President Biden Delivers Remarks On The Economy In Maryland

Some People Can Expect Medicare Tax Increases Under Next Biden Budget

Medicare Tax Increases Are Coming In Next Biden Budget Proposal

Executive

Medicare

Sen. <a href="https://www.dailywire.com/topic/joe-manchin" target="_blank" rel="noopener">Joe Manchin</a> (D-WV) called on his <a href="http://dailywire.com/topic/republicans" target="_blank" rel="noopener">Republican</a> and <a href="http://dailywire.com/topic/democrats" target="_blank" rel="noopener">Democratic</a> colleagues on Thursday to implement a compromise that would decrease the <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a>.
The lawmaker’s <a href="https://www.manchin.senate.gov/newsroom/press-releases/icymi-manchin-calls-on-biden-administration-congressional-leaders-to-get-serious-about-the-national-debt" target="_blank" rel="noopener">remarks</a> came after Sen. James Lankford (R-OK) recited President George Washington’s Farewell Address on the Senate floor, a tradition that the upper chamber has <a href="https://www.lankford.senate.gov/news/press-releases/lankford-delivers-george-washingtons-farewell-address" target="_blank" rel="noopener">maintained</a> for more than 160 years to commemorate the founding father’s birthday. Manchin referenced the distaste Washington held for partisan factions as he exhorted <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> to address the national debt, which now surpasses $31.5 trillion.
“Washington warned of the dangers of putting the will of a political party ahead of the will of the nation,” Manchin commented. “Washington warned against the accumulation of debt and encouraged us to ‘cherish public credit as a very important source of strength and security.’ And yet here we are today, watching party politics and out-of-control spending threaten the very foundation of our great nation.”
The comments come as the federal debt ceiling, an arbitrary cap on the national debt established by Congress, exceeded the statutory limit of nearly $31.4 trillion earlier this year, prompting Treasury Secretary Janet Yellen to <a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">launch</a> “extraordinary measures” intended to fund the government through the early summer. President Joe Biden and House Speaker Kevin McCarthy (R-CA) are presently engaged in the early stages of negotiations to address the debt limit and decrease long-term spending; each have said that they will not consider reforms to Social Security and Medicare, raising <a href="https://www.dailywire.com/news/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms" target="_blank" rel="noopener">questions</a> as to whether meaningful spending cuts will be possible since the two programs constitute nearly half of the federal budget.
Manchin, widely regarded as a centrist, noted that excessive federal spending has been a <a href="https://www.dailywire.com/news/national-debt-surpasses-31-trillion-for-the-first-time-republicans-and-democrats-both-to-blame" target="_blank" rel="noopener">problem</a> under Republican and Democratic administrations alike: former President Donald Trump added $7.5 trillion to projected debt levels through his legislative agenda and executive orders, while President Joe Biden has added $5 trillion to projected debt levels. Not considering the stimulus measures passed by both chief executives during the lockdown-induced recession implies an added debt burden of $4 trillion for the former and $2.5 trillion for the latter.
“My Democratic friends don’t want to say a word about our out-of-control spending and are outright refusing to even talk to Republicans about reasonable, responsible reforms. They want to pass a ‘clean’ debt ceiling bill without a commitment to fix anything,” Manchin continued. “My Republican friends refuse to offer any specifics, and some have recklessly threatened default, which is something that absolutely has to be off the table. We will never solve this problem by each party running in the opposite direction. We will only be able to change course by coming together, embracing common sense, and finding common ground.”
Manchin added that the government must get its “financial house in order” just like “every family has to do around their kitchen table” on a regular basis.
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“Our national debt weakens our economy, it weakens our national security, it weakens the trust Americans have in their government, and it weakens our role in the world. Fortunately, we still have time this year to prevent this catastrophic financial forecast,” he continued. “I am asking all of you to join me in calling for an honest budget, without the accounting gimmicks and tricks, a short-term deal to bring down our out of control spending right now, this year, and a plan to deal with our longer-term fiscal challenges.”

Joe Manchin

‘Party Politics And Out-Of-Control Spending’: Manchin Calls Out Both Republicans And Democrats For Worsening The National Debt

Manchin Rebukes Both Parties For Worsening The National Debt

Democrats

Republicans

After decades of near-uninterrupted budget deficits and unprecedented spending during the COVID pandemic, the U.S. national debt is $31.5 trillion and growing.
Congress is currently embroiled in a fight over raising the debt ceiling — increasing the amount that the federal government is allowed to borrow. Republicans insist that the federal government must cut its spending in order for them to agree to raise the debt ceiling, but so far they have not <a href="https://www.nytimes.com/2023/01/31/us/politics/republicans-spending-debt-ceiling.html" target="_blank" rel="noopener">specified</a> which spending measures should be cut.
Without a deal, the government could run out of money by as early as this summer, <a href="https://www.nytimes.com/2023/02/22/business/economy/us-debt-limit.html" target="_blank" rel="noopener">according</a> to both Treasury Secretary Janet Yellen and an analysis from the Bipartisan Policy Center. Many have reported that the failure to raise the debt ceiling would mean a default on the nation&#8217;s debt, which even the most optimistic forecasts warn would cause extensive damage to the nation&#8217;s economy.
The regularity and indecisiveness of these debt battles highlight the fact that politicians from both major parties have chronically avoided concrete solutions to spending and the debt. The Tea Party made concerns about the national debt — which stood at a retrospectively quaint $13 trillion in 2010 — one of the pillars of their movement. Other than these periodic debt ceiling battles, however, the Republican Party has offered very few solid policy proposals for tackling the problem aside from vague calls to &#8220;cut spending&#8221; not unlike the GOP&#8217;s current demand in the debt ceiling fight.
While most elected officials are pretty short on answers in regard to the issue, solutions are indeed out there.
The two most notable plans to tackle the debt are the Simpson-Bowles Plan and the plan developed by the Domenici-Rivlin Task Force.
The Simpson-Bowles Plan was <a href="https://www.pgpf.org/finding-solutions/comprehensive-plans" target="_blank" rel="noopener">formulated</a> by former Republican Wyoming Sen. Alan Simpson and former Bill Clinton Chief of Staff Erskine Bowles while the two sat on the National Commission on Fiscal Responsibility and Reform.
The plan called for raising federal revenue to 21% of GDP, which was only 14.6% of GDP in 2010, while simultaneously reducing spending to 21% of GDP, which was 23.4% that year. In 2019, before the fiscal chaos of the coronavirus pandemic, federal expenditure was 21% of GDP, but federal revenue was only 16.3%, <a href="https://www.cbo.gov/publication/55824" target="_blank" rel="noopener">according</a> to the Congressional Budget Office. To get the 2019 revenue up to 21% of GDP, it would have <a href="https://www.cbo.gov/system/files/2019-11/55824-CBO-MBR-FY19.pdf" target="_blank" rel="noopener">required</a> an increase of over $1 trillion.
Additionally, the plan called for reducing the overall tax rate for Americans but eliminating almost all deductions and tax credits. The plan also recommended strict caps on future spending and a reform of Social Security.
The Domenici-Rivlin Task Force was <a href="https://www.pgpf.org/finding-solutions/comprehensive-plans" target="_blank" rel="noopener">created</a> by the Bipartisan Policy Center in 2010 and also included a former Republican senator and former Clinton administration official — Pete Domenici of New Mexico and Alice Rivlin, respectively. Its plan shared several measures with Simpson-Bowles, but it recommended a reduction in spending to 23% of GDP instead of 21%, a full freeze on all spending after that reduction, and a thorough reform of entitlements.
In 2019, the Peter G. Peterson Foundation <a href="https://www.pgpf.org/Solutions-Initiative-2019" target="_blank" rel="noopener">hosted</a> the Fiscal Summit, which brought together prestigious think tanks like the American Enterprise Institute, the Manhattan Institute, and the Center for American Progress to present potential solutions to the national debt. The overall impact that each plan would have on the national debt varied widely, but all seven proposals followed the same basic structure of the two plans from 2010: reduce spending, increase revenue, reform the tax code, and make adjustments to entitlements.
Almost every realistic plan to appreciably reduce or eliminate the national debt will include some combination of those measures. However, there are some actions that could help put a dent.
A drastic increase in legal immigration could help increase federal revenue. In theory, the more people there are in the country, the higher the demand for goods and services, thereby <a href="https://fiscalpolicy.org/immigrants-are-part-of-our-economic-growth-blame-congress-not-immigrants-if-americas-taxes-dont-pay-for-our-expenses" target="_blank" rel="noopener">growing</a> the economy and the tax revenue gleaned from it, and these new taxpayers would help bolster entitlement programs like Social Security. Immigrants also <a href="https://www.investopedia.com/financial-edge/0611/june-20-5-ways-the-u.s.-can-get-out-of-debt.aspx" target="_blank" rel="noopener">start</a> businesses at twice the rate of natural-born American citizens, and accepting highly skilled immigrants who would most likely pay higher taxes could be an effective method of increasing revenue.
The labor force participation rate is still <a href="https://www.usatoday.com/story/money/2023/02/23/men-leaving-workforce-economy-fed-interest-rates/11326201002/" target="_blank" rel="noopener">low</a> after the shock of the pandemic, and there is an acute shortage in highly skilled job applicants, so filling those positions with immigrants who would then pay taxes could be an effective strategy.
The U.S. government could also sell federal land to quickly raise revenue. The Bureau of Economic Analysis <a href="https://www.bea.gov/research/papers/2015/new-estimates-value-land-united-states#:~:text=New%20Estimates%20of%20Value%20of%20Land%20of%20the%20United%20States%20(PDF)&amp;text=Estimates%20suggest%20that%20this%201.89,held%20by%20the%20federal%20government." target="_blank" rel="noopener">estimated</a> in 2015 that all federally owned land in the contiguous United States was worth around $1.8 trillion. Barring the sale of federal land used for military installations and national parks, the remaining value of federal land would most likely <a href="https://www.cato.org/blog/can-federal-assets-cover-national-debt" target="_blank" rel="noopener">stand</a> at less than $1 trillion, but that would be $1 trillion the federal government would not have to acquire through cutting important social programs or raising taxes.
The starkest solution would be to simply default on the debt, wherein the federal government would declare that it is unable to repay its obligations to its debtors.
The economic consequences of a full-fledged default would be <a href="https://www.nbcwashington.com/news/local/what-is-the-debt-limit-and-what-happens-if-the-us-defaults/3257735/#:~:text=The%20U.S.%20has%20never%20defaulted,backdrop%20of%20slowing%20economic%20growth." target="_blank" rel="noopener">severe</a>. The country&#8217;s credit rating would almost certainly be downgraded. The stock market would most likely take a severe hit, the U.S. dollar would weaken, interest rates would rise, and most Americans&#8217; retirement savings would be impacted.
“Nobody knows for sure what will happen, because it’s never happened before,&#8221; Eric Swanson, an economics professor at UC Irvine, <a href="https://time.com/6248656/what-debt-ceiling-means-for-you/" target="_blank" rel="noopener">told</a> TIME back in January.
Some commentators have argued that the short-term consequences of a default might be agonizing, but in the long run, it may not be as catastrophic as many warn.
In 2011, as a consequence of another debt ceiling standoff between House Republicans and then-President Barack Obama, the United States&#8217; credit rating was <a href="https://www.ai-cio.com/news/what-happens-if-us-debt-defaults-just-short-term-pain-sages-say/" target="_blank" rel="noopener">downgraded</a> from AAA to AA+. That caused some turbulence in the market at the time, but it has not significantly impacted the nation&#8217;s ability to borrow, and the stock market recovered fairly quickly.
Even if we default and short-term economic disruptions ensue, the United States is so prosperous and such an integral part of the world economy that both foreign and domestic investors will still be enticed to purchase any future debt in the form of bonds. Additionally, if the nation enacts strict fiscal measures in some variation of the Simpson-Bowles Plan along with a default, it could prove that it is dedicated to a more responsible path and quickly regain the confidence of investors.
The U.S. could also selectively default. It could choose to just default on the portion of the debt <a href="https://www.pgpf.org/blog/2022/09/the-federal-government-has-borrowed-trillions-but-who-owns-all-that-debt" target="_blank" rel="noopener">owned</a> by foreign entities, roughly 33% of the public debt; the portion owned by government agencies, <a href="https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124" target="_blank" rel="noopener">around</a> $7 trillion; or that which is owned by individuals in the top 1% of income or wealth. That could eliminate large portions of the debt while possibly avoiding the worst outcomes of a full-on default.
However, a recent opinion piece <a href="https://www.wsj.com/articles/default-on-u-s-debt-is-impossible-deficit-treasury-cbo-janet-yellen-supreme-court-constitution-public-debt-clause-federal-reserve-328dafe5" target="_blank" rel="noopener">published</a> in The Wall Street Journal argued that a default is unconstitutional. According to the piece, Section 4 of the 14th Amendment stipulates, &#8220;The validity of the public debt of the United States, authorized by law &#8230; shall not be questioned.&#8221; It&#8217;s unclear if that includes the debt held by intra-governmental agencies, which is roughly 20% of the total.
So, barring a Supreme Court case re-interpreting that section of the amendment or a new constitutional amendment to change that section, the nation is stuck with the vast majority of its debt.
Besides the nuclear option of default, most comprehensive plans to fix the national debt rely on simple premises. Get spending under control, increase federal revenues, reform the tax code, etc. Politicians, especially those in the GOP, have been advocating for similar measures for decades, but whenever they are in power, the opportunity to take action seems to pass them by. They are well aware that spending cuts and tax increases are deeply unpopular with the constituents of both parties, and election season is always just around the corner.
The biggest obstacle to fixing the debt doesn&#8217;t seem to be the lack of a plan, but the lack of will to enact it.

US hits debt limit, taking ‘extraordinary measures’ to avoid default

Congress Continues To Ignore Plans To Fix The National Debt In Favor Of Endless Can-Kicking

Congress Continues To Ignore Plans To Fix The National Debt For Endless Can-Kicking

Federal Government

Janet Yellen

Readers Pass

Treasury Department

<a href="https://www.dailywire.com/topic/congressional-budget-office-cbo" target="_blank" rel="noopener">Congressional Budget Office</a> Director Phillip Swagel revealed on Wednesday that the federal government could “run out of funds” between July and September.
The federal <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>, an arbitrary cap on the <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> established by Congress, exceeded the statutory limit of nearly $31.4 trillion last month, prompting Treasury Secretary Janet Yellen to <a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">launch</a> “extraordinary measures” intended to continue funding the government through the month of June. Swagel, whose agency is tasked with providing analyses of budget and economic information to Congress, said in a <a href="https://www.cbo.gov/publication/58940" target="_blank" rel="noopener">statement</a> that lawmakers should address the debt limit before the government defaults on obligations.
“We project that, if the debt limit remains unchanged, the government’s ability to borrow using extraordinary measures will be exhausted between July and September,” he said. “The projected exhaustion date is uncertain because the timing and amount of revenue collections and outlays over the intervening months could differ from our projections. In particular, income tax receipts in April could be more or less than we estimate.”
President Joe Biden and House Speaker Kevin McCarthy are presently engaged in negotiations to lower federal spending ahead of any changes to the debt ceiling. Republican lawmakers <a href="https://www.dailywire.com/news/here-are-the-concessions-house-speaker-kevin-mccarthy-gave-to-republican-holdouts-to-win-their-support" target="_blank" rel="noopener">struck a deal</a> with McCarthy under which the party’s new majority will introduce a budget that must refrain from increasing the debt limit in the name of fiscal responsibility.
“If the debt limit is not raised or suspended before the extraordinary measures are exhausted, the government would be unable to pay its obligations fully,” Swagel added. “As a result, the government would have to delay making payments for some activities, default on its debt obligations, or both.”
Policymakers at the Federal Reserve have <a href="https://www.dailywire.com/news/federal-reserve-raises-target-interest-rates-by-quarter-point-marking-slowdown-of-aggressive-hikes" target="_blank" rel="noopener">increased</a> target federal funds rates substantially over the past several months, resulting in higher interest rates across the economy as central bankers attempt to quell inflationary pressures. Interest payments on the national debt are therefore slated to be larger than defense expenditures within the next five years, according to a <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">projection</a> from Moody’s Analytics.
The national debt currently exceeds $31.5 trillion. Swagel said “newly enacted legislation and changes to the economic forecast that boost interest costs and spending on mandatory programs” mean that the cumulative deficit between 2023 and 2032 is slated to increase by $3 trillion. “The increase in mandatory spending is driven by rising costs for Social Security and Medicare,” he continued. “As the cost of financing the nation’s debt grows, net outlays for interest increase substantially.”
Biden and McCarthy have nevertheless <a href="https://www.dailywire.com/news/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms" target="_blank" rel="noopener">vowed</a> not to discuss amendments to Social Security and Medicare. The two programs marked 46% of the federal budget during the last fiscal year alongside other health initiatives, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department. Both trust funds managed by Social Security are slated to be insolvent by 2035, according to a <a href="https://crsreports.congress.gov/product/pdf/RL/RL33514" target="_blank" rel="noopener">report</a> from the Congressional Research Service. The agency recommended increasing payroll taxes or reducing payouts to avoid an automatic reduction for all recipients.
Biden <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/02/07/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery/" target="_blank" rel="noopener">claimed</a> during his most recent State of the Union address that he oversaw “the largest deficit reduction” in the nation’s history during his first two years in office. Although he presided over a decline in the deficit from $3.1 trillion in fiscal year 2020 to $1.4 trillion in fiscal year 2022, according to <a href="https://fred.stlouisfed.org/series/FYFSD" target="_blank" rel="noopener">data</a> from the Office of Management and Budget, he failed to mention that the record spending occurred due to legislation passed in response to the lockdown-induced recession. The deficit last year still exceeded those witnessed in the years before the crisis.

The U.S. Treasury Building

Congressional Budget Office Reveals When Government Will Run Out Of Cash

Government Will Run Out Of Cash Sometime This Summer Or Fall

President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> will likely present an optimistic picture of the <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economy</a> during his second <a href="https://www.dailywire.com/topic/state-of-the-union" target="_blank" rel="noopener">State of the Union</a> address on Tuesday night, even as experts say many of the wins he may claim will be based upon misrepresentations or distortions of reality.
The commander-in-chief faces a new political reality as the Republican Party narrowly <a href="https://www.dailywire.com/news/biden-to-deliver-state-of-the-union-address-with-new-speaker-looking-over-his-shoulder" target="_blank" rel="noopener">secured control</a> of the House of Representatives following the midterm elections, diminishing his capacity to pass legislation at the same pace as the first two years of his term. As the economy recovers from the lockdown-induced recession, however, Biden has adopted a rosy economic outlook that presents a misleading picture of the nation’s business and consumer climate.
Biden <a href="https://twitter.com/POTUS/status/1622965916282793984" target="_blank" rel="noopener">claimed</a> ahead of his speech that the United States has witnessed the “fastest gas price decline in eight years” and annualized headline inflation which has declined for “six months” due to his economic policies. Both assertions ignored the reality that energy costs and overall price level increases were much lower before he assumed control of the Oval Office.
National average gas prices were $3.49 per gallon at the end of January 2023, according to <a href="https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&amp;s=EMM_EPMR_PTE_NUS_DPG&amp;f=W" target="_blank" rel="noopener">data</a> from the Energy Information Administration, marking a 47% increase from $2.38 per gallon in January 2021. Prices reached heights of $5.01 per gallon in June 2022 before their recent moderation, which occurred as Biden <a href="https://www.dailywire.com/news/biden-to-release-more-oil-from-strategic-reserve-ahead-of-midterms" target="_blank" rel="noopener">released</a> nearly half of the Strategic Petroleum Reserve ahead of the midterm elections even as he <a href="https://www.dailywire.com/news/top-wall-street-ceo-slams-biden-for-going-hat-in-hand-to-saudi-arabia-for-oil-admits-investors-dont-give-a-s-about-wokeness" target="_blank" rel="noopener">asked</a> hostile regimes such as Saudi Arabia and Venezuela to produce more oil for the United States.
“It’s not fair to blame Biden for the rapid rise, but it’s also not fair to credit him for the decline,” Norbert Michel, vice president and director of the Cato Institute’s Center for Monetary and Financial Alternatives, told The Daily Wire. “It’s statistical malfeasance to tout the most rapid decline in eight years while ignoring the largest, most rapid rise in the last decade.”
Despite the recent decreases in headline inflation driven by the lower energy prices, costs in categories such as food and shelter continue to rise. Year-over-year inflation was charted at 6.5% in December 2022, according to <a href="https://www.dailywire.com/news/the-tide-has-turned-inflation-sees-largest-drop-since-2020-lockdowns" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics, nearly five times the 1.4% rate recorded in December 2020.
Biden also claimed that he presided over a “record decrease” in deficit spending. Although he oversaw a decline in the deficit from $3.1 trillion in fiscal year 2020 and $2.8 trillion in fiscal year 2021 to $1.4 trillion in fiscal year 2022, according to <a href="https://fred.stlouisfed.org/series/FYFSD" target="_blank" rel="noopener">data</a> from the Office of Management and Budget, he neglected to mention that the record spending occurred as a result of legislation passed to mitigate fallout from the lockdown-induced recession. The deficit posted last year still significantly exceeds those witnessed in the years before the crisis.
“Claiming credit for a record decrease in deficits when fiscal year 2022 ended with a $1.4 trillion deficit is Orwellian doublethink,” Romina Boccia, director of budget and entitlement policy at the Cato Institute, told The Daily Wire. “The one thing President Biden can legitimately take credit for is how his administration’s policies, such as student debt forgiveness, the American Rescue Plan, and subsidies to industries from energy to semiconductor manufacturing, will steeply increase deficits over the next decade.”
Biden likewise claimed that the economy has seen the “two strongest calendar years of job growth in history” and the “lowest unemployment rate” in more than half a century. The job market has meanwhile languished under historically low labor force participation, which has prompted companies to raise wages and pass increased costs onto consumers, exacerbating inflationary pressures. There are currently two open positions for every one unemployed individual, according to <a href="https://www.bls.gov/charts/job-openings-and-labor-turnover/unemp-per-job-opening.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics.

President Biden Delivers His First State Of The Union Address To Joint Session Of  Congress

Biden Paints Rosy Picture Of The Economy Before State Of The Union. Here’s The Real Story.

Debunking Biden's Economic Claims Ahead Of State Of The Union

Gas Prices

Inflation

State of the Union

<a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">White House</a> officials took an adversarial posture toward House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) ahead of his Wednesday meeting with President <a href="http://dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden</a> about the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> and possible spending cuts.
The two officials are slated to meet after the debt ceiling, an arbitrary cap on the <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> established by Congress, exceeded its statutory limit, provoking renewed calls among <a href="http://dailywire.com/topic/house-republicans" target="_blank" rel="noopener">House Republicans</a> to balance the budget. National Economic Council Director Brian Deese and Office of Management and Budget Director Shalanda Young said in a <a href="https://admin.govexec.com/media/gbc/docs/pdfs_edit/013123mccarthyletter.pdf" target="_blank" rel="noopener">memorandum</a> that Biden would ask McCarthy whether he will commit to preventing a default on the national debt.
“As the President has said many times, the United States must never default on its financial obligations,” the memo said. “Raising the debt ceiling is not a negotiation; it is an obligation of this country and its leaders to avoid economic chaos. Speaker McCarthy’s unwillingness to-date to taking the threat of default off the table makes him an outlier, including among current and former leaders of his own party.”
McCarthy repeated multiple times during a Sunday <a href="https://www.dailywire.com/news/reforming-social-security-and-medicare-off-the-table-in-debt-negotiations-mccarthy-says" target="_blank" rel="noopener">interview</a> with CBS News that the federal government would not default on obligations. The memo nevertheless cited statements from Senate Minority Leader Mitch McConnell (R-KY) indicating his refusal to allow a debt default, as well as past statements from President Donald Trump and President Ronald Reagan in which they committed to preserve the nation’s high credit rating.
Biden will also press McCarthy on when Republicans will release their budget proposals. The memo implied that the budget would include reductions to Social Security and Medicare, as well as “cuts to research, education, and public safety,” even though McCarthy stressed during the CBS News interview that Social Security and Medicare would remain “off the table” in the negotiations. The memo was dated January 30, which was one day after the interview.
“On March 9, President Biden will release his budget. The budget will show how the President plans to invest in America, continue to lower costs for families, protect and strengthen Social Security and Medicare, and reduce the deficit with tables and numbers showing exactly how his economic and fiscal policies add up to achieve these goals,” the memo continued. “Speaker McCarthy has said that reducing the deficit is a top priority for him and his Caucus. So far, however, House Republicans have offered up detailed plans to increase the deficit with tax policies that would benefit the wealthiest Americans.”
The refusal from both Biden and McCarthy to address Social Security and Medicare has <a href="https://www.dailywire.com/news/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms" target="_blank" rel="noopener">raised questions</a> regarding whether meaningful spending reductions will be possible. The two programs constituted 46% of the federal budget during the last fiscal year alongside other health initiatives, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department.
Social Security has long been considered the third rail of American politics: the vast majority of citizens have historically indicated that they want benefits from the program retained with no reductions, even as nearly half are concerned about continued funding for the program, according to <a href="https://news.gallup.com/opinion/polling-matters/258335/social-security-american-public-opinion.aspx" target="_blank" rel="noopener">data</a> from Gallup. In order to balance the budget while exempting defense, veteran benefits, Social Security, and Medicare from cuts, all other federal spending would have to be reduced 85%, according to an <a href="https://www.dailywire.com/news/federal-spending-must-be-cut-26-to-balance-budget-even-more-to-keep-core-social-defense-programs-intact-analysis" target="_blank" rel="noopener">analysis</a> from the Committee for a Responsible Federal Budget.

White House Takes Adversarial Posture Toward McCarthy Ahead Of Budget Cut Meeting. Here’s What They Want Him To Do.

White House Takes Adversarial Posture Toward McCarthy Ahead Of Budget Cut Meeting

<a href="https://www.dailywire.com/topic/republican-party" target="_blank" rel="noopener">Republican</a> and <a href="https://www.dailywire.com/topic/democratic-party" target="_blank" rel="noopener">Democratic</a> officials preparing to negotiate spending reductions have expressed an unmitigated refusal to involve <a href="http://dailywire.com/topic/social-security" target="_blank" rel="noopener">Social Security</a> in the conversation.
President <a href="http://dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden</a> and House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) are slated to meet on Wednesday after the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>, an arbitrary cap on the <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> established by Congress, exceeded the statutory limit of nearly $31.4 trillion. The White House has asserted that lawmakers on the other side of the aisle are attempting to reduce benefits from Social Security, the retirement, disability, and survivor benefit program established during the Great Depression, as well as Medicare, which provides health insurance to older Americans.
“You paid for your Social Security. Every single paycheck from the time you started working,” Biden <a href="https://twitter.com/JoeBiden/status/1619495290284740609" target="_blank" rel="noopener">said</a> on social media. “If Republicans try to cut it, I will veto it.”
McCarthy has meanwhile balked at the suggestion and affirmed that Republicans have no desire to discuss the programs in the forthcoming negotiations. “Let’s take those off the table,” he said in a recent <a href="https://www.dailywire.com/news/reforming-social-security-and-medicare-off-the-table-in-debt-negotiations-mccarthy-says" target="_blank" rel="noopener">interview</a>. “If you read our Commitment to America, all we talk about is strengthening Medicare and Social Security.”
Social Security, Medicare, and other health initiatives constituted 46% of the federal budget during the last fiscal year, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department. In order to balance the budget while exempting defense, veteran benefits, Social Security, and Medicare from cuts, all other federal spending would have to be reduced 85%, according to an <a href="https://www.dailywire.com/news/federal-spending-must-be-cut-26-to-balance-budget-even-more-to-keep-core-social-defense-programs-intact-analysis" target="_blank" rel="noopener">analysis</a> from the Committee for a Responsible Federal Budget.
Tax Foundation Senior Economist Erica York confirmed to The Daily Wire that leaving the two programs untouched would not be possible if officials are serious about restoring fiscal sanity. “If reforms to Social Security and Medicare and raising new revenues are all completely off the table,” she commented, “balancing the budget within the next ten years is an unrealistic goal because it could only be achieved by making infeasibly large cuts to other spending programs.”
Social Security has long been considered the third rail of American politics: the vast majority of survey respondents have historically indicated that they want benefits from the program retained with no reductions, even as nearly half are concerned about continued funding for the program, according to an <a href="https://news.gallup.com/opinion/polling-matters/258335/social-security-american-public-opinion.aspx" target="_blank" rel="noopener">analysis</a> from Gallup.
Both trust funds managed by Social Security are nevertheless slated to be insolvent by 2035, according to a <a href="https://crsreports.congress.gov/product/pdf/RL/RL33514" target="_blank" rel="noopener">report</a> from the Congressional Research Service. The agency recommended increasing payroll taxes or reducing payouts to avoid a benefit reduction; though the two major parties have floated both courses of action in recent decades, the remarks from Biden and McCarthy indicate that a compromise on Social Security reforms will not even be considered.
“Typically, we’ve seen Democratic proposals focus on increasing the payroll tax for solvency,” York continued, “and Republican proposals focus on the spending side for solvency, such as increasing the retirement age or curbing benefits for high-income earners.”
Republican and Democratic administrations have maintained unsustainable budget deficits and inflated the national debt to more than $31.5 trillion. President Barack Obama, President Donald Trump, and President Joe Biden have each witnessed deficits nearing or surpassing $1 trillion, according to <a href="https://fred.stlouisfed.org/series/FYFSD" target="_blank" rel="noopener">data</a> from the Office of Management and Budget, even during fiscal years that were not affected by stimulus measures intended to address the 2008 financial crisis and the 2020 lockdown-induced recession.

House Minority Leader Kevin McCarthy and Republican Conference Press Conference

Sparing The Sacred Cow: Republicans And Democrats Refuse To Touch Social Security As Debt Crisis Looms

Republicans And Democrats Refuse To Touch Social Security As Debt Crisis Looms

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Social Security

House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) said that spending cuts to <a href="http://dailywire.com/topic/social-security" target="_blank" rel="noopener">Social Security</a> and <a href="http://dailywire.com/topic/medicare" target="_blank" rel="noopener">Medicare</a> are “off the table” as lawmakers seek to fund the government while reducing deficits.
McCarthy plans to meet with President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> on Wednesday to discuss possible budget cuts after the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>, an arbitrary cap on the <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> established by Congress, exceeded the statutory limit of nearly $31.4 trillion. The lawmaker said multiple times during an <a href="https://www.youtube.com/watch?v=e8FaXFR0jRg" target="_blank" rel="noopener">interview</a> with CBS senior foreign affairs correspondent Margaret Brennan on Sunday that Republicans would not offer to reduce allocations for Social Security and Medicare.
“Let’s take those off the table,” McCarthy said when asked about the programs. “If you read our Commitment to America, all we talk about is strengthening Medicare and Social Security.”
Social Security, Medicare, and other health initiatives constituted 46% of the federal budget during the last fiscal year, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department. In order to balance the budget while exempting defense, veteran benefits, Social Security, and Medicare from cuts, all other federal spending would have to be reduced 85%, according to an <a href="https://www.dailywire.com/news/federal-spending-must-be-cut-26-to-balance-budget-even-more-to-keep-core-social-defense-programs-intact-analysis" target="_blank" rel="noopener">analysis</a> from the Committee for a Responsible Federal Budget.
McCarthy, who presides over a narrow majority in the House of Representatives, expressed a willingness to examine defense programs for unnecessary waste. “I want to make sure we’re protected in our defense spending, but I want to make sure it’s effective and efficient. I want to look at every single dollar we’re spending, no matter where it’s being spent. I want to eliminate waste wherever it is,” he continued. “Like every single household, like every single state, we shouldn’t just print more money. We should balance our budget.”
Keeping veteran and defense spending intact would require 33% spending reductions for all other federal programs, including Social Security and Medicare, according to the Committee for a Responsible Federal Budget. The average annual benefit for a new retiree would thus decrease by $13,000, while as many as 25 million recipients of Medicare would lose eligibility.
Treasury Secretary Janet Yellen <a href="https://www.dailywire.com/news/very-irresponsible-yellen-blasts-house-republicans-for-wanting-spending-cuts-amid-debt-showdown" target="_blank" rel="noopener">warned</a> lawmakers that the “extraordinary measures” adopted by her agency to keep the government solvent will last only until June. Brennan pressed McCarthy on whether he would commit to avoiding a default on obligations at all costs.
“We have hundreds of billions of dollars. This won’t come to fruition until some time this June. So the responsible thing to do is sit down like two adults and start having that discussion. Unfortunately the White House was saying before that they wouldn’t even talk. I’m thankful that we’re meeting on Wednesday, but that’s exactly what we should be doing,” McCarthy responded. “What has happened with the debt limit is we’ve reached our credit card limit. Should we just continue to raise the limit, or should we look at what we’re spending?”
Republican lawmakers <a href="https://www.dailywire.com/news/here-are-the-concessions-house-speaker-kevin-mccarthy-gave-to-republican-holdouts-to-win-their-support" target="_blank" rel="noopener">struck a deal</a> with McCarthy under which the party’s new majority will introduce a budget that refrains from increasing the debt ceiling. The national debt exceeded $31.5 trillion even as <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">maintenance costs</a> soar due to a higher interest rate environment. An <a href="https://www.dailywire.com/news/government-must-raise-taxes-40-or-cut-spending-30-to-achieve-fiscal-balance-study" target="_blank" rel="noopener">analysis</a> from economists at the University of Pennsylvania’s Wharton School recently found that a 30% decrease in spending or a 40% increase in taxation would be necessary to handle current spending and future obligations.

Reforming Social Security And Medicare ‘Off The Table’ In Debt Negotiations, McCarthy Says

Social Security And Medicare Cuts 'Off The Table' In Debt Negotiations

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