WASHINGTON (Nexstar) – It appears the situation over the debt talks is not moving in a positive direction with Republicans demanding cuts that Democrats say are unreasonable – all under a looming default deadline.
On Monday, some of the leaders from both parties on Capitol Hill were trying to sound cautiously optimistic, but on Tuesday it doesn’t seem that the two sides were any closer to reaching a deal.
While trying to reassure the country that the U.S. won’t default on its debts and obligations, House Speaker Kevin McCarthy said, “we have more than enough money to pay the credit card bill.”
However, Republicans refuse to increase the debt limit unless their demands are met.
“You owe more on the credit card than you make an entire year,” McCarthy added.
Rep. Garret Graves (R-LA) added, “We’re not talking about draconian levels of cuts. These are reasonable levels of spending.”
Democrats say the proposed cuts are anything but reasonable.
“House Democrats are not going to sign on to devastating cuts to teachers, food assistance or Medicaid,” Rep. Pete Aguilar (D-CA) said.
Democratic lawmakers say Republicans are holding the U.S. economy hostage.
“They’ve added new extreme demands to their ransom list,” Aguilar added.
Democratic Massachusetts Representative Jim McGovern said, “Republicans are going after food assistance so they can give another tax break for billionaires. It is a disgrace, it is a shame.”
President Biden, Treasury Secretary Janet Yellen, and other financial experts say that even a brief default would seriously damage the economy.
“If they crash the economy, it’s not the millionaires who would hurt. It’s working families,” Rep. Teresa Leger-Fernandez (D-NM) said.
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For now, it appears neither side is backing down.
“There will be no more taxes, it’s the spending in Washington that’s the problem,” Rep. Steve Scalise (R-LA) said.
While some of the lower-level negotiators are continuously talking, there is no indication when President Biden and Speaker McCarthy will talk again.