Solving the Debt Ceiling Dilemma with Rep. Brendan Boyle — ‘The Takeout’

As Washington races toward a possible June 1 default, leading Democrats on the House Budget Committee say a deadlock in talks is centered on rate hikes or suspension. said. debt ceiling The depth and duration of future spending cuts.

“The biggest bottleneck by far is simply the numbers,” Pennsylvania Democratic Rep. Brendan Boyle told CBS News’ “The Takeout.” “The length of the (spending) cap and how strict it is, that’s all. That’s 90% of the problem.”

Boyle also said House Republicans need to abandon their claim to cap domestic discretionary spending for up to 10 years. Boyle said the White House and Congressional Democrats would never agree to cut that period, big or small.

“Forget it,” Boyle said of the idea of ​​spending cuts for a decade. “It won’t happen. The deal should go on as long as it raises the debt ceiling. If it’s a two-year deal on the budget, we’re going to raise the debt ceiling for two years. If it’s one year, then two years.” “That’s another year. That’s pretty fair. And I can’t imagine Democrats accepting anything less than that.”

Overall, Boyle is optimistic that a deal can be reached soon.

I think we’re a lot more positive now than we were a few days ago,” said Boyle, adding, “This is so surprising because the closer the ‘X date’ is, the more motivated everyone is to reach an agreement. It doesn’t matter,” he said. ”

Boyle has remained in close contact with White House negotiators, citing proposed Republican changes to energy exploration permits and recovering billions of dollars allocated for coronavirus relief and preparations as roadblocks. I don’t think

“I think there’s really flexibility on this subject,” Boyle said of the recovery of the coronavirus funds. “It’s not a holdup, and I would be shocked if unused COVID-19 funds, reform permits, etc. were a hindrance.”

Boyle said Democrats and the White House are drawing a line against Republican pushes for work requirements that could affect Medicaid eligibility.

“We stand for what we do as a Democrat,” Boyle said. “What we don’t support is a back door way to get people out of healthcare in the name of having something as a labor requirement.”

Boyle also said the June 1 default deadline set by Treasury Secretary Janet Yellen is real and negotiators need to focus more.

“June 1 is absolutely real,” Boyle said, acknowledging that financial analysts have suggested early June as an X date and other possibilities. “We were so tempted by fate that we thought it was June 3rd and suddenly we woke up on June 2nd to find that the Treasury had indeed defaulted on its debts that morning. Do you want the situation of being noticed?”

Boyle also criticized Wall Street analysts for assuming a deal would be struck to avoid a default.

“Unfortunately, many people on the market and on Wall Street are convinced that this problem will definitely be resolved in time,” Boyle said. “I hope they are right. I think they are more likely to be right, but they are not aware of the great risk so far if this is not completed in time. It’s completely underestimated. It’s dangerous.” ”

Boyle describes himself as nominally optimistic about the likelihood of default. He believes default is possible.

“This is without a doubt the most serious crisis we have faced since 2011,” Boyle said, referring to an early debt ceiling confrontation that led to a temporary downgrade of the U.S. credit rating by Standard & Poor’s. said. “The odds of us defaulting, whether by design or by chance, are well above zero. Below 50%, but well above zero.”

Boyle also ruled out the possibility of prioritizing spending after the Treasury defaults, essentially paying some federal obligations but not others.This is an idea put forward by some Republicans.

“It’s a fairy tale,” said Boyle. “It’s a magical way of thinking. There is absolutely no mechanism for prioritizing debt.”

A negotiated settlement is not reached, but of the available options, Boyle rates so-called dismissal petitions as “unlikely,” and using the 14th Amendment as “the least-worst option.” bottom.

Boyle helped gather signatures from 213 Democrats for a immunity petition, a mechanism for minorities to force a vote to raise the debt ceiling to its lowest point. However, Boyle acknowledged that he needed five Republicans to sign the petition to start action on the floor. At this point, no Republican is willing to sign the petition beyond the Republican leadership.

“The situation is fluid,” Boyle said of the Republican petition. “As the days go by, the pressure increases exponentially as we get closer to X. As May 30 approaches, as May 31 comes around, all of a sudden, our focus is on the impending deadline. I’ve always kept saying that the discharge petition was demanded: “This is an opportunity. It’s an option. It’s an escape valve. I told[to the Republicans in the battlefield]that this is I urge you to be a hero and sign this discharge petition to end this potential catastrophe.”

Some Democrats have called on President Biden to use the 14th Amendment to continue paying the U.S. debt even without congressional approval, which has historically been a sign of Congress, Republicans, and Democratic administrations. has been a means of avoiding default. Constitutional scholars say Biden may be justified, but the inevitable lawsuits against the 14th Amendment invocation will hurt the economy and reputation, said Boyle. said that he would give Boyle thinks it should be reserved as an “option.”

“At the same time, I am a realist and recognize that there will still be some damage. We will suffer financially,” he admitted. “The question in the minds of people who buy our debt is, ‘Wait a minute, are we really getting our money back?'”

Still, Boyle said that in the absence of a deal, applying the 14th Amendment would be preferable to failing to comply.

“If an X-date is imminent and the president does not come to an agreement, that seems like the least bad option to me,” Boyle said.

But Boyle declined to criticize Biden’s debt ceiling tactics and messaging, which some Democrats have recently criticized.

“I was literally one of the first to endorse Joe Biden in Congress,” Boyle said. “It’s always easy to criticize the White House’s messaging. It’s important that all of us on the Democratic side speak as forcefully as possible and make repeated BS calls to Kevin McCarthy.”

Boyle said the so-called “BS” was McCarthy’s declaration that the concession that House Republicans wanted was a higher debt ceiling, but that it was in line with Democrats’ concessions on spending and other policies. said not too much.

“They believe they are conceding something by not letting the American economy blow up,” Boyle said. “That’s an outrageous act. It’s reckless. It’s irresponsible. What Kevin McCarthy really means is that he intends to put his own and his party’s political interests ahead of those of the United States. I mean. The thing is, can we stay like this?” Be normal, raise the damn debt ceiling, and don’t even deal with this nonsense. ”

Executive Producer: Aden Farch

Producers: Jamie Benson, Jacob Rosen, Sarah Cook, Eleanor Watson

CBSN Produced by Eric Susanin
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