Rep. Jason Smith: Republicans, Democrats need to negotiate on debt ceiling

U.S. Rep. Jason Smith, chairman of the influential House Ways and Means Committee and a lawmaker who has represented 28 Southern Missouri counties since 2013, said both parties must get to the negotiating table to head off a federal debt limit crisis.

"President (Joe) Biden is refusing to set up a meeting with Speaker (Kevin) McCarthy to talk about the approaching debt limit fight. Add Social Security to that. This is an issue that will be impacting all Americans, and (the system) will be insolvent in the next 10 years. Republicans and Democrats have to come to the table to fix this. One party can't do it," Smith told Fox Business host Neil Cavuto in an April 14 televised interview.

Definition

The debt limit is effectively a ceiling restricting how much national debt Congress will allow the U.S. Treasury to incur.

According to an analysis from Wells Fargo, the multinational financial services company, if the U.S. does not raise the debt ceiling, the government will start defaulting on its financial obligations sometime between early July and early September.

Defaulting

According to NBC News, a default on the national debt may mean — among other things — the following: stopping or curtailing tax refunds, a hold on Social Security payments and Medicare reimbursements and a moratorium on paying military salaries.

The debt ceiling has been increased numerous times, most recently in December 2021, when the debt limit was set at $31.4 trillion. The U.S. hit its current debt limit Jan. 19.

Proposal

Reuters news agency reported McCarthy of California is trying to persuade fellow Republicans to support a $1.5 trillion increase in the debt ceiling coupled with tough new spending controls.

Smith has long been critical of Biden administration spending, telling Fox Business "$31 trillion worth of spending — (with) our economy having the highest inflation over the last 40 years and with a president trying to propose tax increases and more spending — is the wrong solution for America."

Of note

Smith's office released the following data points in response to a Southeast Missourian inquiry about the potential federal debt limit crisis:

• "The last 11 spending reduction reforms enacted by Congress were bipartisan and attached to legislation raising the debt ceiling. While a U.S. senator, President Biden voted for such reforms in 1985, 1987, 1993 and 1997 — and helping negotiate spending constraints in 2009 and 2011, while serving as Barack Obama's vice president."
• "Despite record tax revenues from the 2017 Tax Cuts and Jobs Act, federal spending has continued to balloon, increasing by $10 trillion over the past two years."