President-elect Donald J. Trump was forced to negotiate with Democrats over the borrowing cap during his first term.
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Trump Tossed a Debt Limit Grenade Into Spending Talks. Here’s Why.
President-elect Donald J. Trump was forced to negotiate with Democrats over the borrowing cap during his first term.
"... As he prepares to push an agenda of tax cuts and border security, Mr. Trump fears that a debt limit fight next year could interfere. His plans are expected to cost trillions of dollars, much of which will most likely need to come from borrowed funds. A drawn-out debt limit fight next year could force Mr. Trump and Republicans to bow to the demands of Democrats and could consume the congressional calendar.
“This is a nasty TRAP set in place by the Radical Left Democrats!” Mr. Trump wrote on social medial on Wednesday night.
Republicans are always reluctant to lift the debt limit, particularly when a Democrat is in the White House, saying it enables runaway spending. G.O.P. lawmakers regularly use it as a tool to extract concessions, such as spending cuts, from Democrats when they are in power.
But Republicans will soon control Congress, as well as the White House, putting the onus squarely on them to either deal with the debt limit or face the prospect of a default. The standoff over the debt limit last year roiled markets and led to a
downgrade of the long-term credit rating of the United States. Mr. Trump would like to avoid a similar scenario on his watch.
By addressing the debt limit during the final weeks of the Biden administration, Republicans could prevent Democrats from weaponizing it against them once they are in power. And, as Mr. Trump has made clear, he could then blame Mr. Biden for increasing the borrowing cap.
“It’s clear Trump wants to clear the deck so he doesn’t have to have a budget/debt limit showdown on his watch to clean up the mess from the Biden spending sprees,” said Stephen Moore, a Heritage Foundation economist who has been an adviser to Mr. Trump.
But it is far from certain that Democrats would go along with the plan, given that they have already blasted Mr. Trump’s push to extend all of the 2017 tax cuts and enact new ones.
Democrats have long criticized Republicans for playing dangerous games with the debt limit, and called for it to be abolished. But it is not clear how willing they might be to let go of it as a potential source of leverage. And while Mr. Trump has indicated that he is willing to spearhead a move to eliminate the debt limit, many Republicans might fear that following his lead would be fiscally reckless. ..."