Biden, Rival Still 'Far Apart' On Debt Talks; Deal Takes Just 72 Hours To Wrap Up

US House Speaker Kevin McCarthy said on Wednesday that he and congressional Republicans were still "far apart" with President Joe Biden and the Democrats in talks to raise the federal debt ceiling, although the matter can be wrapped up in 72 hours if there's a deal

WASHINGTON (UrduPoint News / Sputnik - 24th May, 2023) US House Speaker Kevin McCarthy said on Wednesday that he and congressional Republicans were still "far apart" with President Joe Biden and the Democrats in talks to raise the Federal debt ceiling, although the matter can be wrapped up in 72 hours if there's a deal.

With just eight days before the United States will likely default on its payments without a hike of its present $34.1 trillion debt ceiling, McCarthy said he was sending negotiators to the White House to resume talks that have repeatedly broken down over the past fortnight.

"I'm sending our negotiation team down to the White House to try to finish up the negotiations with the White House. There's a number of places that we are still far apart," McCarthy told reporters in the US capital.

If the two sides were to reach an agreement, it would take a further three days for the matter to be concluded, he said.� "Once an agreement is reached, 72 hours" will be required for the government to go forth with its payments, McCarthy added.

US Treasury Secretary Janet Yellen has said the debt limit must be raised by June 1 to avoid a debt default, which, she said, would have untold ramifications for the US economy and the livelihood of Americans.

Both Republicans and Democrats blame each other for the stand-off.

"First of all, I don't think there will be a default and I don't see how you would blame the Republicans, when the president waited for 97 days to reach out to me," McCarthy said, referring to the gap between when he was elected House Speaker and the start of talks between him and the president.

At the crux of the disagreement is how much the government should � or should not � spend next year. While any deal reached now will only cover 2023 obligations, the Republicans are casting the ball forward to tie down federal commitments for 2024 as well.� With legacy US debt already at $21.5 million and growing each year, the Republicans say the country cannot continue with Democrats' overspending.

House Republicans passed a plan last month to raise the debt ceiling in exchange for cuts to government spending, but Biden and Senate Majority Leader Chuck Schumer quickly dismissed the proposal.

Democrats, on their part, are seething at Republicans' refusal to raise taxes on the rich � a privileged group that Biden says has never paid its fair share of the country's revenue � and for seeking increases in the budget for defense � a favorite political play for the Republicans, which has traditionally enjoyed strong support from the military and other uniformed personnel.

For context, Republicans voted to raise the debt ceiling three times, with no budget cut pre-conditions, when former President Donald Trump, the party's candidate, was in the White House.