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  • Writer's pictureMITCH ROSCHELLE

Debt Ceiling Looms Large

I think the big story of the week, may be the looming budget battle as our federal government reaches its debt ceiling this Thursday.

This may be the first test for Speaker McCarthy, as he goes toe to toe with the president, who has made it very clear he will not negotiate over the debt ceiling, if it means cutting spending. And those spending cuts are the very thing that speaker McCarthy will be pushing for, because as he built a coalition to get the speakership, the Freedom Caucus was adamant that they wanted to see some fiscal restraint.

Speaking of fiscal, President Biden refer to Republicans as being fiscally demented. He vowed to veto bills that come before his desk that include any tax cuts.

To give you an idea of how difficult this may be, roughly 49% of the federal budget goes to entitlements. So cutting back on spending, potentially requires cutting back on entitlements. And Republicans, as hard as they may try, have been unsuccessful reining in some of that spending.

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