An hour ago House Speaker Kevin McCarthy gave a speech about the debt ceiling. President Joe Biden is slated to deliver the annual State of the Union address the day after this speech.
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McCarthy and Biden are currently in the first stages of what is anticipated to be a months-long discussion on a debt ceiling vote.
Last month, the country exceeded its statutory cap, requiring Treasury Secretary Janey Yellen to enact a number of temporary steps to keep the government from going into default.
By early June, if Congress has not passed a law raising or suspending the country’s debt ceiling, global economic chaos may result. Republicans in the House, though, assert that they won’t vote to lift the cap absent significant expenditure reductions.
The IRS routinely publishes new tax legislation and adjustments to tax rates around October or November. As these yearly updates increase taxes to keep up with the cost of living, the changes for 2023 might be little or significant depending on inflation this autumn.
Another possible solution for how the government will continue to have enough money to borrow is to halt investing in federal pensions. One of the best retirement plans is the Federal Employees Retirement System, which benefits around two million civilian federal employees. Pension investments should be completely recovered after the debt limit issue is resolved.
To now, the White House has declined to “negotiate” a debt ceiling increase, though. Instead, Biden has urged Congress to enact a “clean” bill—that is, one without any restrictions on legislation—instead.
That will “never happen,” McCarthy recently assured reporters.
