House GOP setting up election-year debt limit fight

Published

2 years ago

April 21, 2023

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House Republicans could be setting up another fight over the debt limit — this time, just months before the 2024 presidential election.

A sweeping, 320-page bill they unveiled this week would raise the debt ceiling, which caps how much money the Treasury can borrow to pay the country’s bills, through the end of next March or by $1.5 trillion, whichever happens first.

The move has already prompted fierce blowback from Democrats, with Senate Majority Leader Chuck Schumer (D-N.Y.) dismissing the proposal as a non-starter and accusing Republicans of punting the issue.

“Amazingly, one of the few specifics [Speaker] McCarthy has presented is his terrible idea to kick the can down the road for just one year and undergo the same crisis again,” Schumer said this week. “Why would anyone want to undergo this crisis again, again and again?”

Speaker Kevin McCarthy (R-Calif.) brushed off questions about the proposed timeline earlier this week, instead turning his focus to Democrats for refusing to come to the table to work out a deal that pairs raising the debt limit with fiscal reforms.

“I think the most important thing here is I would like to do this together and solve this problem, but they don’t want it, so we’re going to send a bill over to the Senate,” McCarthy told The Hill.

But other Republicans defended the timeline.

Rep. Andy Harris (R-Md.) told The Hill he prefers extending the debt limit “for a short period of time,” saying the move would allow House Republicans more leverage to shape fiscal policy in a divided Congress.

“You get another bite at the apple in a little while,” Harris told The Hill.

Rep. Kevin Hern (R-Okla.), chairman of the Republican Study Committee, the House’s largest GOP caucus, also said earlier this week shorter-term measures raising the debt limit could give the party more leeway for fiscal reforms. But he also said there’s other math at play behind the push.

“It really goes back to what you can actually get passed right now with 218 votes to be able to have that limit build your tail spinning right now,” Hern told The Hill. “It really is nothing about a second bite of the apple that’s not part of the calculus.”

“Look at the amount of money you would need to offset,” Hern said, adding the “debt ceiling would need to be raised to roughly $3.5 trillion to get beyond the election next year — and trying to find consensus on $3.5 trillion in savings might be very difficult.”

At the same time, some Republicans see their fight to curb spending as a winning issue, as the national debt hovers around the roughly $31.4 trillion threshold set by Congress more than a year ago.

“I think that spending is going to have a major impact on the presidential election because this inflation is hurting every American,” Rep. Byron Donalds (R-Fla.) said ahead of the bill’s release earlier this week.

Rep. Dan Crenshaw (R-Texas) also said then that he thinks Americans “will look at a list of the things that we’re asking for and say that it makes total sense.”

“Everyone should know by now our debt [is] a problem,” he told The Hill, but he also said he “doesn’t think it affects the election too much one way or the other.”

“I talk to regular voters,” he said, “they’re not having talks about the debt limit increase at the kitchen table.”

Still, partisan battles over the limit can garner significant public interest when cuts to popular programs are on the table.

Recent examples include the monthslong campaign by Democrats accusing Republicans of wanting to make cuts to popular programs like Social Security and Medicare — which GOP leaders adamantly vow is off the table in debt limit talks and weren’t included in the proposal rolled out this week.

And of course, there is the threat of a partisan fight triggering a federal default — an outcome Republicans in both chambers say won’t happen, but one experts warn could be catastrophic for the economy.

“It’s a risk because it’s a very volatile conference that McCarthy has to wrangle,” GOP strategist Rob Stutzman said. But he added that there’s a “pretty good upside for them as well.”

“If there’s a default, there’ll be massive blame,” he said, but he added: “I think the Republicans have wind in their sails and that there’s public opinion for them to use this as a leverage point on spending.”

Republicans saw an edge last year in polling when it comes to who Americans prefer on issues like the economy compared to Democrats.

Other polling has also shown a majority of Americans agree that the government is spending too much, with 60 percent of respondents saying so in an AP-NORC survey published in March.

But when pressed on where the government is spending too much, respondents in the poll, conducted between March 16-20, were largely divided in most areas. The only area where most voters — 69 percent — agreed is too costly is funding for assistance for other countries.

Coming in second was assistance for big cities, which 41 percent of respondents agreed the government spent too much on. And less than 30 percent of respondents said the same for areas like the military (29 percent), the environment (25 percent), aid for the poor (18 percent), child care assistance (16 percent), and education (12 percent).

The number of respondents who said spending for entitlement programs like Medicare and Social Security was excessive was even smaller, with 10 percent and 7 percent, respectively, saying as much in the poll. Both programs account for a significant chunk of annual spending.

GOP leadership plans to vote on the debt ceiling bill next week. But its chances of passage are unclear as leaders still work to shore up necessary support.

Democrats and advocates have also come out against a slew of proposal attached to the newly unveiled debt ceiling bill. That includes portions targeting popular decisions by the Biden administration on student loans, beefed up work requirements for food stamps recipients and those on Medicaid, among a host of other partisan plans. Indiana Gov. Holcomb signs bill making machine gun ‘switch’ illegal Former WWE wrestler charged with theft of millions from Mississippi welfare

The bill is very unlikely to pass the Democratic-led Senate as it stands. And though there is also support among Republicans in the Senate, they also acknowledge the final bill will ultimately need the backing of both parties to secure passage.

“It’s what he can get done, and it’s what the president would accept,” Sen. Mike Rounds (R-S.D.) said, when discussing the proposed election-year timeline and the impact another debt limit fight slated for early 2024 would have on the presidential race.

“That’s the reason why I say let them fight it out first, because clearly the President is going to have an interest in the presidential cycle,” Rounds said. “And most certainly the Speaker has an interest in the presidential cycle.”

Entertainment

Sean ‘Diddy’ Combs attempting to obstruct justice from jail, prosecutors say

Published

28 mins ago

November 18, 2024

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Sean 'Diddy' Combs attempting to obstruct justice from jail, prosecutors say

Sean “Diddy” Combs has attempted to contact prospective witnesses from jail in a bid to sway public opinion ahead of his upcoming sex trafficking trial, prosecutors have claimed.

The accusations were made in a Manhattan federal court filing in which the prosecution opposes the 55-year-old rapper‘s latest $50m (£39m) bail proposal. A bail hearing is scheduled for next week.

Combs pleaded not guilty to charges that he coerced and abused women for years with the aid of a network of associates and employees, while silencing victims through blackmail and violence, including kidnapping, arson and physical beatings.

He says his sexual relationships were consensual, and strenuously denies all wrongdoing.

In the latest step of the ongoing case, prosecutors say a review of recorded jail calls made by Combs shows he has asked family members to reach out to potential victims and witnesses and has urged them to create “narratives” to influence the jury pool.

They say he has also encouraged marketing strategies to influence public opinion.

The filing said: “The defendant has shown repeatedly – even while in custody – that he will flagrantly and repeatedly flout rules in order to improperly impact the outcome of his case.

“The defendant has shown, in other words, that he cannot be trusted to abide by rules or conditions.”

Prosecutors wrote that it could be inferred from his behaviour that Combs wants to blackmail victims and witnesses into silence or into providing testimony helpful to his defence.

Read more: What is Sean Combs charged with?

It is alleged that Combs began breaking rules almost as soon as he was detained at the Metropolitan Detention Center in Brooklyn, New York City, after his arrest in September.

Two judges have concluded he is a danger to the community and at risk of fleeing, rejecting two previous bail requests.

In Combs’s latest request, his lawyers cited changed circumstances, including new evidence, which they said made it sensible to release him ahead of his trial next year.

But prosecutors said defence lawyers created their latest bail proposal using some evidence prosecutors turned over to them, and the new material was already known to defence lawyers when they made previous bail applications.

In their submission to a judge, prosecutors said Combs’s behaviour in jail shows he must remain locked up.

They cited examples including Combs enlisting family members to plan and carry out a social media campaign around his birthday earlier this month, “with the intention of influencing the potential jury in this criminal proceeding”.

They say he encouraged his seven children to post a video to their social media accounts showing them gathered to celebrate his birthday.

Afterwards, they say he allegedly monitored the analytics, including audience engagement, from inside the jail and “explicitly discussed with his family how to ensure that the video had his desired effect on potential jury members in this case”.

Prosecutors also alleged Combs made clear his intention to anonymously publish information that he thought would help his defence team.

“The defendant’s efforts to obstruct the integrity of this proceeding also includes relentless efforts to contact potential witnesses, including victims of his abuse who could provide powerful testimony against him,” they wrote.

Sky News has contacted Combs’s lawyer for comment.

Combs is currently in custody in Manhattan. His criminal trial is scheduled for 5 May 2025.

Politics

Row over how many farms will be affected by inheritance tax policy – as PM doubles down ahead of farmers protest

Published

28 mins ago

November 18, 2024

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Row over how many farms will be affected by inheritance tax policy - as PM doubles down ahead of farmers protest

Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.

It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.

But the prime minister looked to quell fears as he resisted calls to change course.

Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”

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The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.

And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.

Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.

He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.

“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”

Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.

Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.

However, that number has been questioned by several farming groups and the Conservatives.

Government figures ‘misleading’

The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.

The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.

Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.

Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.

Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.

APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).

Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.

Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.

Politics

Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill

Published

28 mins ago

November 18, 2024

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Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill

A split is emerging in the cabinet, with Education Secretary Bridget Phillipson revealing she will join several of her colleagues and vote against the bill to legalise assisted dying.

Ms Phillipson told Sky News she will vote against the proposed legislation at the end of this month, which would give terminally ill people with six months to live the option to end their lives.

She voted against assisted dying in 2015 and said: “I haven’t changed my mind.

“I continue to think about this deeply. But my position hasn’t changed since 2015.”

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MPs will be given a free vote on the bill, so they will not be told how to vote by their party.

The topic has seen a split in the cabinet – however, Prime Minister Sir Keir Starmer has yet to reveal how he will vote on 29 November.

Ms Phillipson joins some other big names who have publicly said they are voting against the bill

These include Deputy PM Angela Rayner, Health Secretary Wes Streeting, Justice Secretary Shabana Mahmood and Business Secretary Jonathan Reynolds.

Border security minister Angela Eagle is also voting against the bill.

Senior cabinet members voting in favour of assisted dying include Energy Secretary Ed Miliband, Science Secretary Peter Kyle, Work and Pensions Secretary Liz Kendall, Culture Secretary Lisa Nandy, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Welsh Secretary Jo Stevens.

The split over the issue is said to be causing friction within government, with Sir Keir rebuking the health secretary for repeatedly saying he is against the bill and for ordering officials to review the costs of implementing any changes in the law.

Sky News’ deputy political editor Sam Coates has been told Morgan McSweeney, the PM’s chief of staff, is concerned about the politics of the bill passing.

He is understood to be worried the issue will dominate the agenda next year and, while he is not taking a view on the bill, he can see it taking over the national conversation and distracting from core government priorities like the economy and borders.

Details of the bill were published last week and include people wanting to end their life having to self-administer the medicine.

It would only be allowed for terminally ill people who have been given six months to live.

Two independent doctors would have to confirm a patient is eligible for assisted dying and a High Court judge would have to give their approval before it could go ahead.