The Democrat-controlled House of Representatives on Tuesday passed a legislative package to suspend the debt ceiling, which could continue to drive up inflation in the country.
The bill also requires Senate approval, but Republicans oppose suspending the government’s borrowing capacity.
The package approved by the Democrats is given with the purpose of being able to maintain the high public spending budget of the Federal Government; with this action they seek to maintain the financing of the Government until December 3, suspending the debt ceiling until December 2022 and also including 28,000 million dollars for natural disasters and 6,000 for Afghan evacuees.
Treasury Secretary Janet Yellen, part of Joe Biden’s administration, has also advocated raising the debt ceiling saying that if a new limit is not approved the country could go into default in October.
This debt ceiling situation, which is pushing the U.S. into the abyss, comes about because the government spends far more money than it gets through federal taxes.
In 2021 alone, the government is estimated to incur $5.8 trillion in spending and have $3.5 trillion in revenue, leaving a deficit of $2.3 trillion, according to the Congressional Budget Office.
The Government can only issue debt up to the limit established by Congress, which has the power to raise this ceiling as it sees fit.