Biden attacks Republicans over 'mind-boggling' debt ceiling threat - Reuters

WASHINGTON, Jan 26 (Reuters) - President Joe Biden formed Republicans arsenic representing the enactment of "chaos and catastrophe" connected Thursday and sharply criticized their refusal to o.k. an summation successful the U.S. indebtedness ceiling unless they get a woody connected spending cuts.

In an impassioned code astatine a steamfitters national hallway successful Virginia, Biden launched onslaught aft onslaught connected Republicans who power the U.S. House of Representatives, saying immoderate of their proposals are unsafe for the American economy.

House Speaker Kevin McCarthy, a Republican, has vowed not to o.k. a indebtedness ceiling summation unless Biden and his chap Democrats scope a negotiated woody with Republicans connected cutting aboriginal authorities spending.

"We indispensable yet code Washington’s irresponsible authorities spending if we privation to enactment America connected a amended fiscal path," McCarthy wrote connected Thursday.

Biden called McCarthy's presumption "mind-boggling."

“I volition not fto anyone usage the afloat religion and recognition of the United States arsenic a bargaining chip. In the United States of America, we wage our debts," Biden said.

Of Republicans aligned with erstwhile President Donald Trump, Biden said: "They look intent connected being the enactment of chaos and catastrophe."

Republicans' menace is antithetic - the U.S. indebtedness ceiling has been accrued connected a bipartisan ground successful Congress for decades, with the objection of a 2011 ballot that included spending cuts for respective years ahead.

Treasury Secretary Janet Yellen said connected Jan. 19 that the United States has reached its existent $31.4 trillion borrowing cap, but tin proceed paying its bills until June by shuffling wealth betwixt assorted accounts. Investors person warned edging person to that deadline could person dire marketplace repercussions.

In his archetypal large economical code of the year, Biden besides promoted his grounds connected the U.S. economy, including the instauration of much manufacturing jobs, a debased unemployment complaint and better-than-expected economical maturation figures.

Biden addressed European leaders' ailment that his legislative bundle past twelvemonth offers monolithic subsidies for U.S.-made products that they accidental volition interaction trade. He said helium is getting disapproval from overseas for focusing excessively overmuch attraction connected the United States.

"The hellhole with that," helium said.

Biden reiterated his menace to veto Republican proposals that would bounds his authorization to pat the strategical petroleum reserve, chopped taxes connected corporations and levy a nationalist income taxation should they scope his desk.

Since Democrats power the Senate, his veto pen is improbable to beryllium needed, but Biden and the White House person lit connected these and different fringe Republican proposals to item the gulf betwixt the 2 parties' plans.

"They privation to rise your state prices. They privation to chopped taxes for billionaires," Biden said. "They privation to enforce a 30 percent nationalist income tax," helium added.

Biden, who is laying the groundwork for a 2024 reelection bid, told national members successful Springfield, Virginia, that helium would veto immoderate specified bills. "Not connected my watch, I volition veto everything they nonstop us," helium said.

Biden besides went aft pharmaceutical companies for making immense profits utilizing national incentives for probe and concern and promised to walk authorities extending a $35 headdress connected insulin for Medicare users to everyone.

The system nether Biden has been gripped by ostentation that is now ebbing, arsenic are fears that a recession is imminent. U.S. gross home merchandise grew astatine a 2.9% annualized rate successful past year's 4th quarter, exceeding expectations, the Commerce Department reported Thursday.

REPUBLICAN PROPOSALS

Since the caller Congress started this month, the House has passed a measure to slash the Internal Revenue Service's budget, and immoderate Republicans propose cutting Social Security and Medicare, status and healthcare spending programs for elder citizens.

"Do they deliberation this is going to assistance with inflation," Biden said of the income taxation proposal. "What successful God's sanction is this each about?"

As Biden started his speech, House Speaker McCarthy tweeted, "If President Biden is truthful anxious to talk connected the economy, past helium should acceptable a day to sermon a liable indebtedness ceiling increase."

A bill connected the strategical petroleum reserve that the White House says volition rise state prices was different 1 of a bid of governmental messaging measures that the House passed successful its archetypal week of business, and it is seen arsenic having small to nary accidental of being taken up by the Senate.

The nationalist income taxation connection is included successful the Fair Tax Act of 2023, introduced connected Jan. 9 by Republican Representative Earl "Buddy" Carter of Georgia. It would regenerate the U.S. income, payroll, property and acquisition taxes with a 23% income taxation and halt backing the Internal Revenue Service aft 2027.

McCarthy responded "no" this week erstwhile asked by reporters if helium supported the bill, which Georgia Republicans person been introducing without occurrence since 1999.

Reporting By Steve Holland and Nandita Bose; Additional reporting by David Morgan, Editing by Heather Timmons, Alistair Bell and Jonathan Oatis

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