Hakeem And Señor T Agree On One Good Idea— Abolishing The Debt Ceiling Permanently

Congressional Republicans Generally Oppose That

"America's Even Playing Field" by Nancy Ohanian

At least 30-some-odd House Republicans are ideologically opposed to raising the debt ceiling— let alone abolishing it, even though it’s archaic and really doesn’t make any sense. It was established in 1917 as part of the Second Liberty Bond Act, during World War, giving the Treasury more flexibility to manage debt without needing constant congressional approval, while still maintaining oversight by capping total borrowing. It’s been raised over 100 times since then, often amid intense political battles. In 2011 a GOP debt ceiling tantrum triggered a crisis during the Obama administration that resulted in the first-ever credit rating downgrade of the U.S. government. Two years later they did it again, this time resulting in a government shutdown. And last year Congress narrowly avoided default after Republicans pushed for spending cuts in exchange for raising the limit.

The whole idea is economically risky and politically dysfunctional for several reasons because it’s pointlessly redundant since Congress already approves spending and taxation through appropriations bills and budgets. The debt ceiling simply limits the ability to borrow to finance spending that has already been legally authorized, making it an artificial obstacle. The regular debt ceiling standoffs create market uncertainty, needlessly drive up borrowing costs and risk default, which would severely damage the economy, hurt global markets and undermine confidence in U.S. Treasury bonds. And what for? It’s a political weapon the Republicans use against Democratic presidents, nothing more than a partisan bargaining chip, used to push ideological agendas, rather than addressing fiscal responsibility.

The country runs a structural deficit, and borrowing is necessary to cover obligations like Social Security, Medicare, and defense; it’s not anything like household debt. Refusing to raise the ceiling doesn’t fix spending issues— it simply jeopardizes the ability to pay bills already incurred. There is no other country with this stupid system.

Because of the tiny GOP margin and the weak leadership in Congress, Trump will need Democratic votes to raise the debt ceiling to move his agenda forward. If the Democrats refuse— which they should— his agenda comes stop a grinding halt by summer. According to a report from Axios Friday, Hakeem had “ruled out touching the debt ceiling as part of the government funding negotiations.” MAGA Mike had to remove it from the spending bill to get it passed. Meanwhile Hakeem “has said, his party may engage with Trump's demand that the debt ceiling be done away with,” something Señor T called for on Thursday, shocking the GOP. 

“Scrapping the debt ceiling,” wrote Stephen Neukam and Andrew Slender, “is a proposal many in the party have long embraced— and some Democrats like Rep.Don Beyer (D-VA) and Sen Elizabeth Warren (D-MA) couldn't help but endorse Trump's stipulation. Rep. Brendan Boyle (D-PA), Jeffries' leader on the House Budget Committee, has been telling colleagues ‘all week’ that they should push for the elimination of the debt limit. Boyle introduced a bill with dozens of his House Democratic colleagues last year to allow the Treasury Department to keep paying down the federal debt unless a veto-proof majority of Congress votes to stop them. He told Axios: ‘I believe 2025 is the time to permanently end the perennial debt ceiling dysfunction. I have been advocating for my Debt Ceiling Reform Act, which would end the debt ceiling as we know it.’ … Trump would likely have trouble with his own side and face pressure to back off eliminating the debt ceiling if he pursues it.”

Surveying all the GOP dysfunction last week, Jamie Raskin, new ranking minority leader of the Judiciary Committee, noted it wasn’t only about the economy. He told his followers on Friday that “As Trump’s oligarchs prepare for the royal restoration, the Judiciary Committee will be the headquarters of Congressional opposition to the authoritarianism of President Musk and Vice-President Trump and MAGA’s sweeping campaign to dismantle our Constitutional order. This is where we will wage our front-line defense of the freedoms and rights of the people, the rule of law, and democracy itself.”

He noted that “We know the MAGA party wants to abolish birthright citizenship and deport millions of people, ban abortion nationwide, prosecute prosecutors and judges who Trump has targeted, and promote greater economic concentration and monopoly in America. We are in the fight of our lives against the American oligarchs like the world’s richest man, Elon Musk, who is already plunging our government into chaos to promote tax cuts for the wealthy and budget cuts for everyone else.”

He promised to be there to “take on the oligarchs and the theocrats, the dictators and the kleptocrats. We’ll keep fighting for a government that uplifts children, promotes health and well-being, strengthens working people and expands the middle class.”

Yesterday, a quartet of AP writers reported that Señor T’s “decision to inject himself into the budget debate a month before his inauguration also showed that he remains more adept at blowing up deals than making them, and it foreshadowed that his second term will likely be marked by the same infighting, chaos and brinksmanship that characterized his first… For many of Trump’s supporters, disruption could be its own goal. Thirty-seven percent of those who voted for him this year said they wanted ‘complete and total upheaval,’ according to AP VoteCast, a broad survey of more than 120,000 voters. An additional 56% said they wanted ‘substantial change.’”

The circus-like atmosphere of the funding fight was reminiscent of Trump’s first term. Back then, one budget standoff led to a government shutdown when Trump demanded money for his U.S.-Mexico border wall. After 35 days— the longest shutdown in history— he agreed to a deal without the money he wanted.

It was a political low point for Trump, and 60% of Americans blamed him for the shutdown, according to an Associated Press-NORC Center for Public Affairs Research poll at the time.

Trump didn’t stop trying to bend Republicans to his will then. He’s certainly not going to do so now.

He cranking up the pressure on his own party over his Cabinet picks, pushing reluctant Republican senators to get on board with some of his most controversial choices, such as anti-vaccine activist Robert F. Kennedy Jr. as health secretary and Fox News host Pete Hegseth as defense secretary.

The spending debates next year seem certain to further test Trump’s influence in the House. Many conservatives view the rapid growth of the federal debt as an existential threat to the country that must be addressed. But some Republicans fear a voter backlash if steep cuts are made to federal programs upon which Americans rely.

Concerns about deficit spending could intensify if Trump pushes expensive tax cuts that he promised during the campaign, such as eliminating taxes on tips, Social Security and overtime pay.

He also wants to extend the tax cuts he signed into law in 2017 that are set to expire next year. He has called for further lowering the U.S. corporate tax rate from 21% to 15%, but only for companies that produce in the United States.

Trump has said he will pay for the dips in revenue with aggressive new tariffs that economists warn will lead to higher prices for consumers.

Rep. Dan Crenshaw (R-TX) said reducing spending would likely continue to be a gulf between Trump and House Republicans.

“That’s never been really a campaign promise of Trump, but it’s a big priority for House Republicans,” he said.

There was no sense that the animosity was dying down on Saturday. Some Republicans faulted the House leadership for not securing Trump’s “blessing” on the original deal. Democrats cast Trump as second fiddle to Musk.

While Trump stayed quiet, Biden announced that he signed the budget legislation.

“This agreement represents a compromise, which means neither side got everything it wanted,” he said. “But it rejects the accelerated pathway to a tax cut for billionaires that Republicans sought, and it ensures the government can continue to operate at full capacity.”