The United States is in danger of recession for two years, warns the White House

The United States is in danger of going into a recession of at least two years if the administration of President Joe Biden and Republicans in Congress fail to reach an agreement on the debt ceiling and the budget.

The White House directly accuses the Republicans, led in the House of Representatives by Kevin McCarthy (California), and in the Senate by Mitch McConnell (Kentucky).

“Republicans are holding the economy hostage and driving us to the brink of default [of debt payments], which could cost millions of jobs and send the country into recession after two years of steady job and wage growth,” warned White House Communications Director Ben LaBolt.

The official recalled that this week President Biden met with the four leaders of Congress at the White House, including Democrats, Senate Majority Leader Chuck Schumer (New York), and House Minority Leader, Hakeem Jefries (New York).

“They agreed to move forward on a bipartisan budget framework,” LaBolt said.

He added that President Biden appointed an economic team to advance the negotiations, but accused that the Republican proposals have been the same.

“Republicans are recycling a thinly watered down version of their extreme budget proposal that would eliminate 100,000 teacher and support staff jobs , cut 2,000 law enforcement positions and could jeopardize health care coverage for millions. of Americans,” the official accused.

He stated that the Republicans would extend tax breaks for the richest and corporations, despite the fact that the country's debt grew 40% during the government of former President Donald Trump.

“Republicans are even once again trying to reward tax fraud by gutting funding for the IRS,” LaBolt warned.

What would Biden accept?

In a message to the G7 meeting in Japan, President Biden described the positions of the Republicans as “extreme”.

“I can't guarantee they won't force a [debt payment] default by doing something outrageous,” he said.

LaBolt advanced that the budget negotiation must include a serious debate on the expenses and the income, accusing the Republicans of refusing to discuss the income, affecting millions of working families.

“Republicans… are focused on pulling the rug out for working America instead of considering the president's proposal to cut waste and reduce the deficit by eliminating subsidies for oil and gas and pharmaceutical companies and asking the wealthiest to pay your fair share ”, defends LaBolt.

Texas representative, Republican Jodey Arrington, chairman of the House Budget Committee, rejected the Biden Administration's request for tax increases on the wealthiest.

“Policies and tax revenue could not be included in the Senate bill. We certainly weren't going to include it in the House bill,” Arrington said on ABC News. “Number one, it's not on the table for discussion. Number two, the taxes right now would only be passed on to consumers at higher prices. Therefore, we will exacerbate inflation.”

The Treasury Department warned that it has few funds to meet US financial commitments if there is no agreement before June 1.