US Speaker Kevin McCarthy on Wednesday released a bill that would raise the debt limit for about a year and cut federal spending — a highly anticipated proposal in a battle between the new leader of the House of Representatives and President Joe Biden.
The plan would increase the debt ceiling by $1.5 trillion, enough to stave off a US payments default until March 2024 at the latest. It also includes a host of proposals that are non-starters with congressional Democrats and the White House.
The McCarthy plan would bring discretionary spending back to 2022 levels — a $130 billion cut — with future increases capped at a 1 per cent annual rate in the coming decade.
The reductions “are not draconian, they are responsible”, the Republican Speaker said.
“If Washington wants to spend more, it will have to come together and find savings elsewhere, just like every single household in America.”
The plan would also rescind unspent Covid-19 funds and impose tougher work requirements for anti-poverty benefits.
Also on the chopping block is Mr Biden’s student debt relief plan and tax breaks for clean energy projects.
Mr McCarthy estimated that the bill would cut budget deficits by $4.5 trillion over a decade.
The Speaker hopes that Mr Biden will engage in talks to resolve the ongoing stalemate over raising the $31.4 trillion debt limit if the House passes the bill — which the President has said he is open to, but with a no-strings increase or suspension of the ceiling.
The two leaders continue to point fingers, saying the other would take blame for a debt default.
“If he fails, the American people will be devastated not just 10 or 20 years from now, but today,” Mr Biden said of Mr McCarthy at an event on Wednesday.
Mr McCarthy has accused the President of “ignoring the debt crisis”, claiming that Mr Biden is “playing partisan political games” that could result in “the first default in our nation’s history”.
Without an increase or suspension of the ceiling, the US would default on payment obligations as soon as June — an event Treasury Secretary Janet Yellen has warned would cause economic and financial collapse.
It is unknown if Mr McCarthy has the support of the 218 Republicans needed to pass the bill.
Mr Biden has released his own $7 trillion budget proposal that would reduce deficits by $3 trillion over a decade compared with current law, mostly through tax increases.
“Take default off the table and let's have a real serious, detailed conversation about how to grow the economy, lower costs and reduce the deficit,” he said.
Bloomberg contributed to this report
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
UAE currency: the story behind the money in your pockets
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UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
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Spider-Man: No Way Home
Director: Jon Watts
Stars: Tom Holland, Zendaya, Jacob Batalon
Rating:*****
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Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Fixtures
Sunday, December 8, Sharjah Cricket Stadium – UAE v USA
Monday, December 9, Sharjah Cricket Stadium – USA v Scotland
Wednesday, December 11, Sharjah Cricket Stadium – UAE v Scotland
Thursday, December 12, ICC Academy, Dubai – UAE v USA
Saturday, December 14, ICC Academy, Dubai – USA v Scotland
Sunday, December 15, ICC Academy, Dubai – UAE v Scotland
Note: All matches start at 10am, admission is free
The 12 breakaway clubs
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
UAE currency: the story behind the money in your pockets
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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KILLING OF QASSEM SULEIMANI
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
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Take Me Apart
Kelela
(Warp)
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