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‘Ransom demands’: White House blasts McCarthy’s debt limit plan on manufacturing

The White House on Thursday blasted a debt limit proposal unveiled by Speaker Kevin McCarthy (R-Calif.) the day prior as “ransom demands” that would take a “two-by-four” on the American manufacturing sector.

“‘Let me kill over 100,000 manufacturing jobs — mostly in red states — or I’ll force America to default on bills we racked up and trigger a recession,’ is the opposite of a compelling message,” wrote Biden spokesperson Andrew Bates, adding that McCarthy “unveiled his ransom demands for not triggering a catastrophic default and sending the U.S. economy into a needless, unprecedented tailspin that kills millions of jobs.”

The bill McCarthy and House Republicans unveiled would target aspects of the Inflation Reduction Act, a keystone to Biden’s domestic agenda that Democrats passed without GOP support last year, including aiming to end the green energy tax credits.

The House GOP bill pairs a debt ceiling increase expected to last into next year with what McCarthy said would be about $4.5 trillion in savings generated in part by cutting Biden administration priorities. It aims to raise the debt limit by $1.5 trillion or through March 31, 2024, whichever comes first, and it proposes reverting discretionary spending caps to fiscal 2022 levels while limiting growth to 1 percent annually over the next decade.

Bates also highlighted some House Republicans whose districts have seen manufacturing boosts from the Inflation Reduction Act, including Rep. Marjorie Taylor Green (R-Ga.), whose district is creating 2,500 solar manufacturing jobs, and Rep. Joe Wilson (R-S.C.), whose district is adding more than 2,000 electric vehicle investment-related jobs, according to the White House.

“Killing newly created American manufacturing jobs just so the super wealthy and big corporations can enjoy tax welfare would be a gut-punch to America’s competitiveness and to thousands of working families in red states,” the White House spokesman said.

The back-and-forth between the White House and House Republicans, particularly McCarthy, is steadily escalating this week with both sides refusing to budget just yet on any compromise.

Earlier on Thursday, the White House bashed the House GOP proposal, calling it a “blueprint to devastate hard-working American families.” It also stressed that House Republicans who vote for the bill would be voting to offshore American manufacturing.

The bill McCarthy announced is expected to get a House floor vote next week. But with just a four-vote Republican majority, McCarthy will have to work to get enough of his party on board to ensure it can pass.

Source: The Hill

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