Debt Ceiling Proposal: White House Slams Kevin McCarthy's Newly-Unveiled Plan

White House slams House Speaker Kevin McCarthy over newly unveiled debt ceiling proposal
The plan seeks to cut funding worth $4.5 trillion to President Joe Biden's Inflation Reduction Act
However, Democrats argue that the plan would also cut hundreds of thousands of jobs from GOP districts

The White House slams House Speaker Kevin McCarthy's newly-unveiled debt ceiling proposal, arguing that the Republican lawmaker's plan will cut jobs in several GOP districts.

McCarthy would propose to cut $4.5 trillion in spending that would put at risk more than 100,000 green manufacturing jobs, many of which are located in Republican congressional districts.

McCarthy's Debt Ceiling Proposal

The new GOP bill would revoke parts of United States President Joe Biden Inflation Reduction Act, which Democratic lawmakers in Congress passed last year. This includes removing green tax credits given to companies building electric vehicles, charging stations, solar and wind facilities, EV batteries, and other infrastructure for renewable energy, as per USA Today.

The House Speaker said his debt ceiling proposal would end President Biden's "green giveaways." McCarthy's latest plan was revealed on Wednesday amid Republican lawmakers' desire to raise the debt ceiling by $1.5 trillion.

The White House released a memo that cited eight Republican congressional districts that would be affected by McCarthy's debt ceiling proposal. These include Rep. Marjorie Taylor Greene's rural Georgia district, where many companies previously announced that manufacturing projects would be conducted with aid from the green subsidies.

The deputy press secretary of the White House, Andrew Bates, argued that McCarthy's plan, which threatened to cut manufacturing jobs or force the US to default, was not a compelling message.

Raising US Debt Ceiling

The announcement came after Biden made a speech on Wednesday in Maryland, where he earned a series of policy and political attacks at GOP lawmakers in the House. The president's remarks came as a reminder for the White House to move quickly in its attempts to escalate the political pressure on House Republicans as the deadline for the country's borrowing limit approaches, according to CNN.

Several months of messaging and rapid response efforts to fight against Republican debt proposals turned into a full-scale attempt this week to try and undercut McCarthy's spending cut and debt ceiling proposal as they were created.

About McCarthy's Monday speech at the New York Stock Exchange, Biden said that the House Speaker went to Wall Street to describe the MAGA economic vision for the United States.

In his New York speech, McCarthy said that America's debt could be considered a ticking time bomb that would detonate unless lawmakers took it seriously and took responsible actions. There, he showed a preview of the proposal.

On the other hand, President Biden reiterated that Congress must raise the $31.4 trillion debt limit without imposing any conditions. This is similar to what it had done three times under former United States President Donald Trump. The Democrat argued that they should have a serious, detailed conversation about the economy, said Reuters.