Biden meets with Democratic leaders as debt showdown looms | - ELMARKO.NET Biden meets with Democratic leaders as debt showdown looms |

Biden meets with Democratic leaders as debt showdown looms |

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By LISA MASCARO and SEUNG MIN KIM Associated Press

President Joe Biden is hosting the Democratic legislature leaders Tuesday astatine the White House arsenic they look a caller epoch of divided authorities successful Washington, staring down a indebtedness ceiling crisis, the Russian warfare successful Ukraine and their ain enactment priorities moving up against a caller House Republican bulk anxious for confrontation.

The gathering successful the Roosevelt Room astatine the White House was a mode for Biden and the apical Democrats connected Capitol Hill to task a unified beforehand against Republicans who are threatening a showdown implicit raising the nation’s borrowing authority. The White House has stressed repeatedly that they privation Congress to assistance the indebtedness ceiling without conditions.

As the gathering began, Biden said Democrats were anxious to speech astir “extreme Republican economical plans.”

“Apparently they’re genuinely superior astir cutting Social Security, cutting Medicare. And I emotion their 30 percent income tax,” Biden said arsenic helium sat down with the apical 3 Democratic leaders from the House and the Senate. “We privation to speech a batch astir that.”

Then Biden added: “Look, I person nary volition of letting the Republicans wreck our economy.”

Ahead of the meeting, Senate Majority Leader Chuck Schumer said the House Republicans are risking a perchance devastating indebtedness default that would cascade crossed the system hitting American households.

“We’re present witnessing the House GOP recklessly flirt with default,” Schumer said.

Schumer said Democrats basal agreed successful moving to rise the bounds and halt Republicans from imposing draconian fund cuts to national programs. “If the MAGA GOP stops paying our nation’s bills, Americans wage the price,” helium said, referring to those Republicans allied with the Trump-era Make American Great Again movement.

Senate Majority Leader Chuck Schumer of N.Y., speaks during a quality conference, Dec. 22, 2022.AP Photo/Jacquelyn Martin, File

The coming showdown has a acquainted precedent — a small much than a decennary ago, a caller procreation of “tea party” House Republicans swept to power, anxious to face the Obama medication to slash national spending and curb the nation’s ballooning indebtedness load. As vice president astatine the time, Biden was cardinal to those negotiations, but the House Republicans and the White House could ne'er onslaught a deal, causing a fiscal crisis. This spell around, Biden and his Democratic allies successful Congress are successful nary temper to broker deals with a caller epoch of hardline Republicans led by the Freedom Caucus.

House Speaker Kevin McCarthy is anxious to propulsion Biden to the negotiating table, hoping to marque bully connected the promises the GOP person made to holdouts during his run to go House talker to pare national spending backmost to fiscal 2022 levels, which would beryllium a sizable 8% fund cut.

The White House has not yet invited McCarthy for a meeting, but says it plans to bash truthful soon.

“We’ve seen this movie before,” said Sen. John Cornyn of Texas, a subordinate of Republican leadership.

In the Senate, Republicans look much than consenting to basal aside, for now, letting McCarthy and the House GOP instrumentality the pb successful talks with Biden — and wary of embracing the benignant of cuts to national spending the House GOP wants but that person small accidental of becoming law.

Senate Republican person Mitch McConnell said Tuesday, “I deliberation it is wholly tenable for the caller talker and his squad to enactment spending simplification connected the table.”

McConnell said of McCarthy’s yet-unscheduled-session with Biden: “I privation him good and successful talking to the president. That’s wherever a solution lies.”

The day gathering betwixt Biden and the Democratic leaders comes arsenic the White House is throwing unfastened its doors for a caller lawmaker reception aboriginal Tuesday evening, though galore House Republicans accidental they volition not be due to the fact that they cannot abide by the administration’s request for visitors to beryllium vaccinated against the coronavirus.

On the debt, the Treasury Depart notified Congress past week that the federation has reached its borrowing capacity, $31 trillion, and volition request to summation the bounds to beryllium capable to proceed paying disconnected its already accrued bills. Treasury Secretary Janet Yellen has launched bonzer measures which are routinely utilized astatine times similar this, but that volition tally retired successful June.

Debt has been climbing for years, the past clip the national fund didn’t transportation red-ink deficits was during the Clinton years. Instead, the George W. Bush medication saw the indebtedness skyrocket acknowledgment to taxation cuts and the wars overseas. Debt grew again successful the Barack Obama epoch particularly successful the aftermath of the Great Recession.

The 2011 negotiations centered astir a $1-for-$1 tradeoff of spending cuts for caller debt, but the sides could ne'er hold to the size and scope of reductions successful national wellness care, military, infrastructure and different accounts. So far, the Biden medication has refused to prosecute with House Republicans.

Sen. Ron Wyden, D-Ore., the president of the Finance Committee, said his enactment learned its lessons erstwhile negotiating with Republicans connected the indebtedness ceiling successful 2011.

“We cognize what happened. It astir threw the system into the ditch,” Wyden said. “That’s the lesson.”

One thought being discussed has been for Congress to found immoderate benignant of indebtedness panel, overmuch similar the failed “Super Committee” that tried successful the aftermath of the 2011 talks to travel up with agreed upon ways to chopped national spending.

“The bottommost enactment is, tin we find a pathway guardant earlier each the theatrics start?” said Sen. Joe Manchin, the blimpish West Virginia Democrat who is known for straddling the enactment lines. “We cognize we’re going to walk it. It’s conscionable a substance of however overmuch symptom you privation to enactment radical through.”

Associated Press writers Josh Boak, Kevin Freking and Mary Clare Jalonick contributed to this report.