Before U.S. Treasury Secretary Janet Yellen called the "debt default deadline (Dec. 15)," the proposal to raise the government's debt ceiling finally broke through the barriers, moving from the Senate to the House of Representatives and about to be handed over to President Joe Biden's desk.
On Tuesday, December 14, EST, the U.S. House of Representatives passed a bill to raise the federal government's debt ceiling by 221 votes to 209, adding $2.5 trillion to $31.4 trillion from the current $28.9 trillion.
According to Democratic Leader Charles Schumer, the increase in debt could support the federal government until 2023.
Democrats and Republicans have been arguing for months over the bill to raise the debt ceiling.
In response to this new debt line of 2.5 trillion yuan, the two parties also have their own arguments.
In the Democratic party's view, the newly increased debt line is related to the debt left by the previous president, Trump, during his term. The sweeping tax cuts implemented at the time to combat the COVID-19 pandemic resulted in about $7.85 trillion in debt.
Republicans, however, prefer to link the new debt line to the Biden administration's $1.75 trillion "Rebuild Beautiful" bill.
Republican Leader Mitch McConnell said in a speech before the vote:
If Democratic senators vote again to pass a reckless tax and spending bill, this massive debt increase will be just the beginning.
Previously, Republicans also insisted that Democrats act alone and let them approve the debt ceiling on their own through the budget mediation process, so that the passage of the Biden administration's "Rebuilding the Good" bill could be hindered by cumbersome procedures.
In contrast, Schumer's attitude is optimistic, he said:
Since government debt is linked to both parties, I'm excited to see that we can work together on passing the bill to make it possible to raise the debt ceiling.
In the short term, raising the debt ceiling can solve the urgent need and avoid the embarrassing situation of the government shutting down.
In the long run, however, this is not a long-term solution.
As some progressive lawmakers have argued, a high debt ceiling renders the debt ceiling meaningless.
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