Factbox: What’s in Republican McCarthy’s debt-limit spending cut package? Reuters, Andy Sullivan.
Items Republicans and McCarthy are pushing for in a debt-limit package. The bill would essentially pair $4.5 trillion in spending cuts with a $1.5 trillion increase in the federal debt limit. Republicans are wanting to talk about government borrowing.
“What’s in your wallet,” today as one bank loves to ask when it comes to credit cards. Well, it is probably going to be far less if the McCarthy and the rest of the Republicans have their way in Congress. For general reference, here is what the Republicans are offering up. Keep in mind much of the issue with he debt stems from an earlier trump tax bill.
Debt – Ceiling Increase:
Generous Republicans are offering up a $1.5 trillion increase in spending if Democrats cut back on some of their programs since 2020. This is not anything new, most of us already knew this. Such a contraction would play hell with the economy which is doing rather well right now. New Deal democrat sees some clouds on the horizon. And Powell keeps trying to kill employment with Fed Rate increases. It appears banks are suffering more than Labor.
Meanwhile the general public is oblivious to what the Republic package means for them. They are too tied up in pointing the finger at others claiming they are getting freebies. The news for them is, much of the program benefits should be close to free if not free. Healthcare being one of them, food another, etc.
Republican’s plan reduces government spending to last year’s levels. This would be a decrease 0f ~9%. Yearly growth would be capped at 1% annually for the next 10 years. This action would save approximately $3.2 trillion. No details have been provided and the concern is with specific government operations, air traffic control, housing, military etc. Environmental programs cut to provide more money to Pentagon spending in their states. No inflationary measures in the bill either.
Claw Back Unspent Covid 19 Funds:
$Five-point-two trillion approved by Congress in 2020 and 2021 under Republican President Trump and Democrat Joe Biden. Both are targeted by the House Republicans as a way to rein in federal spending. The cuts would undercut healthcare for military veterans and pensions for blue-collar workers with little impact to improving the U.S. fiscal status. This is not the problem with the economy.
What remains is $80 billion.
Cancel Student Loan Debt Relief:
Republicans have portrayed as unfair to those who did not go to college or already paid off their debts. Students can get a better loan deal on the street from loan-sharks. These loans are predatory.
Republicans are targeting an $80 billion plan updating the Internal Revenue Service. The IRS hire more employees and deploy new technology. Blocking both of these initiatives would hurt government revenues.
Repeal Geen Tax Incentives
Block new and repeal old incentives for renewable energy, electric vehicles and other climate-friendly technology. The bill does not target corporate tax increases, drug-pricing restraints, etc.
Tighten Work Requirements
This part is a C&P. Republicans would stiffen work requirements for participants in some antipoverty programs.
Childless adults up to 56 who get health insurance through Medicaid, which covers low-income people, would have to work at least 80 hours a month or participate in job training or community service.
Likewise, childless adults up to 56 years old who receive SNAP Program food assistance would lose benefits after three months if they could not prove they were working at least 20 hours a week or participating in a job training program. Those work requirements currently apply to those up to 50 years old.
Increased Authority Over Regulations:
Congress would have greater power to review new rules put forward by the executive branch (What no separation of branches?).
More Incentives for Oil and Gas:
This House bill involving Fossil Fuel passed in the House and stalled in the Senate. Republicans hope to revive it. They would do us a favor if they spent more time on sponsoring and promoting new energy technology. Most of them are old and live for the moment.
This is most of the Republican wish list, I am confident there is probably more in the political shadows. We will have to wait and see what is there.