Biden Budget Proposal Contains "Substantial Deficit Reduction"
In an interview with Reuters, Yellen said that the Biden budget for fiscal 2024 will contain "substantial deficit reduction over the next decade." She added that the administration would show how they plan to accomplish this reduction and that Republicans must put their plan on the table for discussion and negotiation.
Republicans Demand Spending Cuts for Debt Ceiling Increase
The Republicans, who hold a slim majority in the House of Representatives, have demanded President Biden agree to spend cuts on raising the debt ceiling. Yellen stated that the United States "can't bargain over whether or not we're going to pay our bills. It's simply a fundamental responsibility a government has."
Tax Receipts Could Adjust Debt Limit Estimate
Yellen also mentioned that tax receipts collected around the April 15 filing deadline could allow for adjustments in the Treasury's estimate of when it would no longer be able to pay all of the government's bills without increasing the debt limit. Although the Treasury has not yet changed its early June estimate, Yellen said that the tax receipts will inform the potential default date, commonly called the "X-date."
