The Democrats’ refusal to engage with House Republicans on the debt ceiling and their relentless hammering of the GOP’s radical tax plan is paying off already. The House GOP tried to storm in victoriously and act as though they were in charge. Barely Speaker Kevin McCarthy’s tortured path to the gavel took some of the wind out of their sails. The fact that the extremist, dystopian policy vision McCarthy was forced to accept from the Freedom Caucus is so unpopular with the public—with Democrats pointing that out at every turn—isn’t hurting either.
Already, we’re seeing some fractures in the House GOP on the debt ceiling fight. Since well before the election, McCarthy and team have promised they will not allow a suspension or increase to the debt ceiling unless they could force cuts to Social Security and Medicare. Now that they’re going to have to really vote on that stuff? Well, not so much.
House GOP leadership is already considering allowing a “clean” debt ceiling suspension, arguing that if they buy some time, they can combine this fight with the government funding fight Congress will have to have in September and do better. That’s after they passed an organizing rule for the whole House for the whole session that explicitly said no debt ceiling hike without a vote on spending cuts.
That’s coming just a week after House GOP plans to let the nation go into default in order to force the Treasury Department to make choices were revealed. It looks like maybe Wall Street is winning over the Freedom Caucus here.
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Reality might be as well, because the GOP that was saying Social Security and Medicare would absolutely have to be on the table back in October now says: “We won’t touch Social Security and Medicare.” That’s a direct quote from McCarthy to Donald Trump Jr. (ick) in an interview for Trump Jr.’s Triggered podcast.
Beyond that, House Budget Chairman Jody Arrington is oddly declaring that the U.S. government has “never defaulted,” and, “We won’t default now.” That’s what he told PunchBowl News on Friday.
“Many believe, even constitutionally, that we have to pay the principal and interest on our debt. We have to pay our creditors. Like, you can’t not do that.
“Now that’s a debate. I’ve heard both sides of it, and we haven’t seen it play out. But I think there are many smart people with tremendous historic context and experience who believe that we are constitutionally obligated.”
That’s actually the argument that some constitutional scholars are making, probably the strongest argument for President Joe Biden to deal with the debt ceiling without Congress having a say. Section Four of the 14th Amendment says clearly: “The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” The U.S. Supreme Court affirmed that in 1935, and expanded it it to “[embrace] whatever concerns the integrity of the public obligations.” So it seems like Arrington is arguing away his own House majority’s claim to power in the issue.
He’s definitely trying to downplay the threat of a default to make it seem like not such a big deal that his party has been calling for the whole thing to be blown up. Which they totally are and which the Freedom Caucus maniacs who put McCarthy in leadership will insist upon. Rep. Chip Roy, a ringleader in the speaker negotiations, made it clear: “Not one member of the United States Congress wants to default,” he said. “But under no circumstances should we bless a so-called clean increase in the debt ceiling without meaningful spending reform.”
McCarthy and team are going to have a problem there, then, when they try to bring up this kick-the-can-down-the-road clean increase.
Speaking of leadership pissing off the maniacs, House Majority Leader Steve Scalise told The Hill that he does not support the whackjob national sales tax bill McCarthy promised would get a floor vote. In fact, McCarthy himself has said he doesn’t support it, and though he promised a floor vote for it, he now says it “would have to go through committee.” That’s probably the kiss of death for the bill.
The bill was an absolute gift to Democrats: a national 30% sales tax on every purchase—goods and services—Americans make. It’s been a regular talking point for Biden, and a fun one.
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