Republicans Have Named Their Price to Raise the Debt Ceiling
Tax leniency for the rich and austerity for workers and young people are standard Republican fare. What’s notable this time is using government default as leverage for those tax breaks and austerity. If the GOP pulls it off, it will set a frightening precedent.
Speaker of the House Kevin McCarthy makes his way to a news conference on April 20, 2023. (Tom Williams / CQ-Roll Call, Inc via Getty Images)
House Republicans have finally made their demands for raising the debt ceiling before the government defaults on its loans. It’s not going to be pretty.
In a speech delivered at the New York Stock Exchange, House Speaker Kevin McCarthy outlined the party’s demands.
Contrary to expectations, McCarthy did not tie demands for cuts to Social Security and Medicare to an agreement to raise the debt ceiling. So what do Republicans want to put on the chopping block? Their proposal would undo Biden’s partial student-loan cancelation (which is already tied up in court) as well as the moratorium on collecting student debt. They also want to roll back parts of the Inflation Reduction Act and cut money that is supposed to go to the Internal Revenue Service (IRS) to increase enforcement on the rich. And their plan would make it significantly harder for people to access Medicaid, food stamps, and Temporary Aid for Needy Families (TANF — the main cash welfare program for poor families with children).
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