President Biden and House Speaker Kevin McCarthy will meet face-to-face Wednesday afternoon as part of high-stakes negotiations to reach a deal on raising the nation’s debt ceiling in order to avert an imminent financial disaster.
In the weeks preceding the meeting, the White House and House Republicans established their respective views.
Biden has stated that he will not negotiate the debt ceiling and has demanded that McCarthy and his Republican colleagues reveal their strategies for reducing expenditure.
“Show me your budget, and I’ll show you mine,” the president said Monday to reporters.
According to Punchbowl News, McCarthy, who was elected speaker in a contentious four-day, 15-ballot vote last month, has stated that changes to Social Security and Medicare are out of the question and wants to strike a budget-cap agreement to decrease federal spending to 2022 levels.
McCarthy told reporters on Tuesday, “I think the first thing [Biden] should do, especially as president of the United States, is say he’s willing to sit down, find common ground, and negotiate.”
However, Republicans are apparently divided over how to reduce the deficit, with some advocating cuts to the Pentagon budget and others to domestic spending as a whole.
The Washington Post reported that House Republicans will gather Wednesday morning to discuss potential expenditure cuts and encourage members to keep on track during discussions to raise the $31.4 trillion debt ceiling so as not to provide Democrats with talking points.
Rep. Nancy Mace (R-S.C.) told the newspaper, “There are different factions within our party that have different ideas and are trying to come together to see what that might look like in the coming weeks and months.” “This is a conversation we must have. We must have a strategy.”
McCarthy stated that he agreed in principle that the debt ceiling must be increased, but he also urged lawmakers to assume their responsibilities.
“I am responsible for any charges incurred by my child on the credit card.” But I’m also responsible enough that I won’t simply increase the ceiling and move on,” the Republican from California told Punchbowl News.
The negotiations are clouded by the fundamental mistrust each party has for the other.
McCarthy believes that Biden will have to negotiate at some time, either now or this summer, when the US government faces the possibility of defaulting on its debt, which would send shockwaves through the global economy.
However, the speaker expressed concern to Punchbowl News that the White House is not “serious.”
“The only thing I’m going to evaluate is whether you want to negotiate or play politics. … I will not participate in these games. So please let me know when you wish to negotiate. If you believe you can defeat me, I will be reasonable. Therefore, the sooner we sit down, the sooner this won’t become a problem,” he stated.
“However, we will eventually have to dance together. Therefore, when would you like to play the music, now or later?” he added.
There is also skepticism within the White House.
Officials of the administration continue to request that Republicans disclose a list of proposed deficit-reduction spending cuts and explain how these reductions will achieve their goals.
According to Punchbowl, the White House remains unconvinced that McCarthy could get his fellow caucus members to agree to any arrangement, citing the procedure used last month to install McCarthy as speaker on the 15th ballot during acrimonious discussions with various factions of the Republican Party.
It received a memo describing Biden’s viewpoint that was provided on Tuesday by Brian Deese, head of the National Economic Council, and Shalanda Young, director of the Office of Management and Budget.
As stated numerous times by the President, the United States must never default on its financial responsibilities. “Raising the debt ceiling is not negotiable; it is a responsibility of this country and its leaders to prevent economic chaos,” stated the memo.
The statement also noted that Vice President Biden will submit his budget on March 9 and asked on Republicans to “likewise commit to releasing a budget, so that the American people can see how House Republicans intend to reduce the deficit.”
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