Sunday, May 7, 2023

GOP Playbook 101: Default on the Nation's Debt for Bills Due then Blame Democrats


Sketchy plan from worse House Speaker ever

Speaker McCarthy's National Debt IED

Updated (May 9): This from Reuters News with this headline:

“Republicans defiant after Biden debt ceiling meeting”

Details at the link … more later – stay tuned for sure – this is a biggie as they say – really a big deal.

GOP House Speaker Kevin McCarthy (R-CA) and his “new” GOP with the likes of Reps like Taylor Greene (GA); Bobert (CO); Gorsar (AZ); Gaetz (FL); Jordan (OH); Comer (KY): Biggs AZ); Perry (PA); Gohmert (TX); Roy (TX) a very big Social Security cutter advocate, and a dozen or so others in the MAGA and 2020 election denier hardline batch of Republicans are the worse ever.

Harking Back: Despite comically promising to pay off the debt in eight years, Trump’s “new” GOP now under Kevin McCarthy and those keeping him in office on wild promises in fact was a spendthrift. Trump jacked up the national debt all four years in office which was more in fact than President Obama’s total eight years.

Note the GOP silence on that fact.

The GOP House bill they just passed (which won’t pass the Senate) is about to throw the nation in the first default on our history – thus causing a “monetary pandemic.”

That story is here from GO Banking Rates with this headline:

“House Just Passed $4.5 Trillion GOP Debt Limit Plan — 4 Most Important Cuts That Could Hit Your Wallet”

The GOP-run House passed a debt ceiling bill by the slimmest of margins (217-215) on April 26, with the final plan featuring $4.5 trillion in spending cuts while raising the debt limit by $1.5 trillion until May 2024. If the Republican-led bill gets Senate approval and the signature of President Biden, it will help the federal government avoid a default.

But the bill probably won’t advance past the House with that slim margin. Senate Majority Leader Chuck Schumer (D-NY) said the bill is “dead on arrival.” And in an April 25 statement, President Biden signaled he will veto the Republican plan. If the bill were to somehow make it into law, its massive spending cuts could have a financial impact on millions of Americans.

Here are four ways the most important cuts could hit your wallet:

Social Security BenefitsThe bill’s impact on Social Security is a matter of fierce debate. Speaker McCarthy said his plan does not touch Social Security, and there is nothing in it that directly mentions the program. Social Security advocates say one feature of the bill, returning discretionary spending to fiscal year 2022 levels, would result in a 23% reduction in spending for all federal programs if defense and veterans’ programs are exempted.

Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, wrote in an email statement shared with GO Banking Rates:That would be a huge hit for the Social Security Administration (SSA), which already is chronically underfunded. A cut of that size would exacerbate glaring customer service problems at the SSA.”

The nonprofit Social Security Works noted in a separate email to GO Banking Rates saying:That if the bill becomes law, it will force SSA to close field offices, reduce hours, and lay off thousands of workers. This will make it far harder for Americans to claim the benefits they’ve earned.”

A delay in processing benefit applications could hit Social Security recipients who need the money sooner rather than later.

That was one of the concerns raised in a March 17 letter from SSA Acting Commissioner Kilolo Kijakazi to Rep. Rosa DeLauro (D-CT), who serves on the Appropriations Committee saying:Returning funding to FY 2022 levels would result in longer wait times for benefits.”

Federal Student Loan ForgivenessThe GOP bill would immediately eliminate Biden’s student loan forgiveness plan, which means millions of borrowers who looked forward to debt relief won’t get it. This might be a moot point because legal challenges to the plan could strike it down even if the GOP debt ceiling plan doesn’t get signed into law.

Food Stamp BenefitsThe GOP plan also would raise the age limit to 56 from 50 on work requirements to receive food purchasing assistance from the Supplemental Nutrition Assistance Program (SNAP). Recipients in the affected age group who are unable to work would see their benefits reduced or eliminated altogether.

Tax RefundsAnother feature of the GOP bill is that it would rescind funding for the IRS to upgrade technology and increase hiring due to various retirements, resignations, and such. Considering other problems the IRS already has in processing returns and answering customer service calls, etc. And, a severe cut in staffing could result in longer wait times to get refunds.

My 2 Cents: So, the GOP has a plan to starve people into submission to accept their plan or lose their SNAP benefits for food?

I guess there are no Republican low-income, unable to work people, or those handicapped, and who use SNAP and draw SS who would mind all that reduction? 

But, good loyal Trump MAGA types, well they don’t complain, they just stay in line blindly voting Republican. Why? 

To keep their party in power to help them, right, just never complain just blame the DEMS.

That all sounds very SOP for this “new” GOP don’t you think – it sure does to me.

How to reverse course and make corrections? Simple: Vote in 2024 to change that bunch of GOP mindset players now in office. Change is mostly good.

Thanks for stopping by.


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