Speaker Kevin McCarthy (R-CA) reiterated his call for spending cuts in exchange for raising the debt ceiling on Monday evening in a pre-rebuttal to President Joe Biden’s State of the Union address.
The California Republican did not lay out specifics on where Republicans would like to see a reduction in spending but argued the country could not stay on its current fiscal trajectory.
“Americans are getting hammered by higher prices. Today, nearly two-thirds of all Americans are living paycheck to paycheck, struggling to make ends meet,” he said. “Meanwhile, China is infiltrating our culture, our farmland, and our skies because they see us as weak. This is not sustainable. But of all the dangers we face, the greatest threat to our future is our national debt.”
“You deserve the truth. So, let’s start with the facts. Our national debt is high — too high. And the problem is getting worse, not better,” he added. “We are now $31 trillion in debt.”
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McCarthy blamed domestic spending for inflation, drawing a line between the administration’s policies and the rising cost of consumer goods.
“When debt is too high, inflation is the result. That’s where we are today. Inflation has exploded. Mortgage rates have doubled. Working Americans, after inflation and taxes, have gotten a pay cut. And eggs, a staple of America’s breakfast, have gone from a cheap source of protein to a luxury good,” he said.
“Like many Americans, you may be wondering, ‘How did we get here?'” he added. “Yes, our nation has taken on debt for most of its history. But the last few years have been different.”
Despite Democrats countering that the debt also significantly increased under the Trump administration, McCarthy placed blame squarely at the feet of Democrats.
“Washington fell for a financial fad, a fiscal fraud, that the national debt doesn’t matter, that money can always be created out of thin air to pay for it, and that the solution to higher prices is higher taxes,” he said.
“For years, we’ve watched as Democrats in Congress spent your hard-earned tax dollars like those dollars were imaginary,” he added. “They took our nation’s credit card, spent like crazy, and left us in deep debt. But not once did they seek or accept any responsibility. Instead, they doubled down.”
McCarthy, who expressed optimism that he and Biden could strike a deal on spending levels and the debt following a meeting last week, called for talks to continue and pointed to Biden voting against raising the debt ceiling in 2004 while laying out his case for fiscal reforms.
“First, we will continue to sit down and negotiate — just as President Biden did in the past,” he said. “Second, we must commit to finding common ground on a responsible debt limit increase. Finding compromise is exactly how governing in America is supposed to work and exactly what the American people voted for just three months ago.”
Pushing back on Democrats’ claims that Republicans are seeking to cut social safety net programs as part of a debt ceiling deal, McCarthy insisted that “cuts to Medicare and Social Security are off the table.”
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He called for Washington to “move towards a balanced budget.”
“Future generations deserve nothing less,” he said. “A responsible debt limit increase that begins to eliminate wasteful Washington spending and puts us on a path towards a balanced budget is not only the right place to start. It’s the only place to start.”
Biden is slated to address the country at 9 p.m. EST on Tuesday evening.
