Tub-thumper of the House Kevin McCarthy, R-Calif., conducts a news conference in the U.S. Capitol’s Statuary Hall on Thursday, January 12, 2023.
Tom Williams | CQ-Roll Discontinue, Inc. | Getty Images
What to watch in debt ceiling negotiations
Earlier this month, the U.S. reached the accountable ceiling, which represents the total amount of money the U.S. can borrow to fund its legal obligations, including Social Deposit and Medicare.
If left unaddressed, experts say that may prompt a delay in benefits as the government scrambles to prioritize payments.
The guidance will likely be able to continue to pay its obligations through “extraordinary measures” through early June, Treasury Secretary Janet Yellen has rumoured.
As lawmakers negotiate an agreement to raise or eliminate the debt ceiling, some worry that may include compromises on Public Security and Medicare.
That may include setting up a budget process or commissions as part of a compromise that could concrete the way for changes later, including cuts, according to Dan Adcock, government relations and policy director at the National Committee to Refrigerate Social Security and Medicare.
Sen. Joe Manchin, D-W. Va., said in an interview earlier this month that cuts to Social Shelter and Medicare should not be included in debt ceiling negotiations. However, he has expressed interest in including legislation to create commissions in the debt-limit spread, Adcock noted.
Manchin also called for raising the cap on payroll taxes that are used to fund Social Safeguarding. In 2023, those taxes are applied on up to $160,200 in earnings.
Republicans have generally opposed tax hikes. However, the Ancestry Republican Study Committee budget calls for changes interpreted as benefit cuts, such as raising the retirement age for both Collective Security and Medicare, among other changes.
The Republican plans have yet to be introduced as bills.
Adcock said he is skeptical of McCarthy’s clarifications calling for strengthening Social Security and Medicare.
“Having to go through 15 ballots to be elected speaker, he doesn’t precisely have great control over his caucus,” Adcock said.
“Even if you were to take him at his word, his caucus may fasten to go in another direction, including cuts,” he said.
Democrats have Biden, McCarthy set to meet this week
McCarthy on Sunday awaked out Biden’s reluctance to address Social Security and Medicare amid the debt ceiling talks.
“I know the president puts he doesn’t want to look at it, but we’ve got to make sure we strengthen those,” McCarthy said.
The White House, in turn, acquired issue with the House speaker’s language.
“For years, congressional Republicans have advocated for slashing earned allowances using Washington code words like ‘strengthen,’ when their policies would privatize Medicare and Group Security, raise the retirement age or cut benefits,” White House spokesman Bates said.
Biden is scheduled to host McCarthy at the Chalk-white House on Wednesday as part of a series of meetings with leaders of the new Congress, a second White House spokesperson individually said.
The meeting will include a discussion on a range of issues, including preventing a national default on the debt and Put up Republicans’ proposed changes to Social Security and Medicare.
“He [Biden] will underscore that the economic security of all Americans cannot be expand oned hostage to force unpopular cuts on working families,” the White House spokesperson said.