U.S. House Speaker Kevin McCarthy (R-CA) has revealed a Republican debt ceiling proposal. In return for raising the debt limit by $1.5 trillion, the bill would cut $4.5 trillion from the federal budget, in part by repealing tax incentives passed last year for renewable energy, electric vehicles and other technologies. It would also return discretionary spending to fiscal year 2022 levels, limit spending growth to 1% a year and reallocate unspent COVID-19 relief money. But given that Democrats control the U.S. Senate, the “Limit, Save, Grow Act” is likely to be a non-starter, even if it does pass the House. Democrats claim the proposal favors the wealthy at the expense of everyone else.
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