Biden, McCarthy discuss looming debt default deadline
Fox News White House correspondent Jacqui Heinrich reports on House Speaker Kevin McCarthy’s first solo meeting with President Biden on preventing the U.S. from defaulting on its debt June 1.
We are at a pivotal moment in American history. In the coming days, decisions will be made with respect to our federal budget and the national debt that could impact the lives of virtually every American in our country for decades to come.
In my view, the debate we are having on the debt ceiling is about our national priorities. It is about what we value as a nation and whose side we are on.
At a time of unprecedented wealth and income inequality, when the top 1% has never had it so good and when three people on top own more wealth than the bottom half of our society, do we finally demand that the billionaire class start paying their fair share of taxes? Or do we shower the wealthy and well-connected with trillions of dollars in new tax breaks?
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At a time when corporations are making enormous profits by jacking up the price of health care, prescription drugs, gasoline and groceries, do we finally end the huge loopholes that exist in our rigged tax code that allow large corporations to avoid paying their fair share of taxes?
Democrat Rep. Hakeem Jeffries of New York, center, speaks to members of the media with Democrat Senate Majority Leader Chuck Schumer, also from New York, center left, after a debt ceiling meeting with President Biden at the White House on May 16, 2023. (Ting Shen/Bloomberg via Getty Images)
Or do we eliminate the corporate minimum tax passed last year that prevents giant profitable corporations from paying nothing in federal income taxes after making billions in profits?
At a time when we pay, by far, the highest prices in the world for prescription drugs do we finally take on the greed of the pharmaceutical industry and substantially reduce the price of what Medicare and the American people pay for life-saving medicine?
Or do we continue to allow the pharmaceutical industry to bankrupt Medicare and cancer patients by charging outrageously high prices at the pharmacy counter?
At a time when the United States spends more on the military — $877 billion — than the next 10 nations combined, do we finally begin to eliminate the enormous waste, fraud and cost over-runs that exist at the Department of Defense?
Do we address the information revealed in a recent "60 Minutes" investigation that documented the billions in price gouging that defense contractors steal from taxpayers? Or do we continue to appropriate more money for the Pentagon than our generals have requested?
Sadly, the Republicans have made their priorities abundantly clear throughout the budget negotiations.
If Congress does not agree to impose massive cuts on the needs of working people, the elderly, the children, the sick and the poor — they will allow, for the first time in our history, the U.S. to default on the national debt.
This action will have a devastating impact on our economy, destroy millions of jobs and cause interest rates on mortgages and auto loans to skyrocket.
At a time when we pay, by far, the highest prices in the world for prescription drugs do we finally take on the greed of the pharmaceutical industry and substantially reduce the price of what Medicare and the American people pay for life-saving medicine?
The hypocrisy of Republicans in Washington is truly breathtaking. Over and over again, we hear from the Republican leadership about how deeply concerned they are about the large deficit and national debt that we have.
Really? If that's the case, why have they been pushing for the complete repeal of the estate tax which benefits a handful of multi-billionaire families and would increase the federal deficit by $1.8 trillion?
Why are they pushing for an extension of the Trump tax breaks that disproportionately benefit the wealthy and large corporations and would increase the federal deficit by $3.5 trillion?
Why do they want huge increases in defense spending that would increase the national debt by hundreds of billions of dollars?
President Biden needs to stand up to House Republicans and use the 14th Amendment to prevent a default. (AP Photo/Evan Vucci)
While defaulting on our nation's debt would be a disaster so would enacting the budget Republicans passed in the House in April. Here are just some of the estimated impacts of what is included in their budget to cut non-defense discretionary spending by at least 22% next year:
- Deep and sweeping budget cuts that would push 790,000 Americans out of their jobs and push our economy toward a recession.
- Up to 21 million Americans could lose Medicaid, ripping away the healthcare they need.
- 80,000 jobs would be cut at the Department of Veterans Affairs alone and millions of veterans would be forced to wait much longer for the care and benefits they need.
In my view, the debate we are having on the debt ceiling is about our national priorities. It is about what we value as a nation and whose side we are on.
- 1.2 million women, infants and children would not receive the nutrition they need to stay healthy through the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) program.
- Nutrition services, such as Meals on Wheels, would be cut for more than 1 million low-income seniors.
- 640,000 families would lose access to rental assistance and more than 430,000 low-income families would be evicted from their homes.
- 200,000 children would be thrown off Head Start and 180,000 kids would lose access to childcare.
- 2 million Americans would lose access to health care services through Community Health Centers.
In other words, while the top 1% owns more wealth than the bottom 90% of our population, and when 60% of our workers are living paycheck to paycheck, the Republican budget would cause massive suffering for the most vulnerable people in our country.
The willingness of Republicans to hold the world's economy hostage to their Draconian and cruel demands has made it extremely difficult to enact a bipartisan budget deal at this time.
So where do we go from here?
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In my view, there is only one option. President Biden has the authority and the responsibility under the 14th Amendment of the Constitution to avoid a default.
The language in that amendment is quite clear. It says, "The validity of the public debt of the United States ... shall not be questioned." This is a constitutional guarantee that the U.S. will always pay all its debts, period.
This is not a radical idea. Making sure that the United States continues to pay its bills regardless of whether the statutory increase in the debt ceiling is raised or not is an idea that has been supported by Republicans and Democrats.
Back in 2016, then-President Donald Trump was correct when he said: "This is the United States government. First of all, you never have to default because you print the money."
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Using the 14th Amendment would allow the United States to continue to pay its bills on-time and without delay, prevent an economic catastrophe, and prevent huge cuts to healthcare, education, childcare, affordable housing, nutrition assistance and the needs of our veterans.
It must be exercised.
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