John,

For months, Republicans have said that if they took control of Congress they would block increasing the U.S. debt limit unless major cuts were made to critical services benefiting working families, including Social Security and Medicare.[1] Now, their threats appear to be coming sooner than expected:

Join Americans for Tax Fairness Action Fund and our allies in calling on President Biden to not negotiate with Republican hostage takers and to demand a clean debt ceiling increase without cuts to critical services, including Social Security and Medicare.

The debt limit (or debt ceiling) states how much the U.S. government can borrow to pay its existing bills. Periodically, Congress must pass a law to raise it or suspend it—otherwise the government will default on its obligations, which many experts say would set off a global fiscal crisis.

If the debt ceiling is not raised, the federal government would not be able to pay the bills it has already committed to—which would effectively shut down the federal government and all the services it provides—because it would not be able to borrow the money needed to do it. And many households and businesses would be unable to pay their bills while they waited for payments the government legally owed them.

We went through this calamity in 2011, when congressional Republicans, emboldened by the 2010 Tea Party wave, forced President Obama to agree to massive cuts to critical programs in exchange for raising the debt ceiling. They also attempted to hold Social Security and Medicare hostage to deep cuts but were defeated.

Republicans consistently claim to be the party of fiscal responsibility. But, their track record says otherwise. For example, both President Trump and President George W. Bush rammed through Congress massive tax cuts that benefited the rich and corporations and added trillions of dollars to the deficit.

We need President Biden to draw a bright red line: He is not going to negotiate with Republicans over raising the debt limit, including making cuts to Social Security and Medicare. The United States will pay its bills on time no matter what MAGA Republicans demand.  

We will defend our economy and our earned benefits from Republican hostage takers.

Click here to call on President Biden to demand a clean debt ceiling increase without any cuts to critical services, including Social Security and Medicare.

While Treasury Secretary Janet Yellen must begin using “extraordinary measures” starting next Thursday to ensure the U.S. does not default on our bills, she still has enough resources to avoid a default through early June. But, let’s be clear: the very threat of a default could result in a downgrading of the U.S. credit rating, which would cost taxpayers billions of dollars in extra interest costs.

That’s why, together, we’re fighting for responsible fiscal policies that put the needs of the American people ahead of right-wing threats and hostage taking.

Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund

[1] “Speaker Drama Raises New Fears on Debt Limit,” The New York Times, Jan. 7, 2023