Thursday, May 25, 2023

Conservatives Dispute Warning Of Imminent Default, Noting June Traditionally A Big Tax Revenue Month

 Fiscal conservatives say the U.S. won't default on its debt in early June, arguing that the Biden administration is attempting to "Pressure" House Speaker Kevin McCarthy into agreeing to raising the debt ceiling without offset spending cuts.

"We're not going to default on June 1," Arizona GOP Rep. Andy Biggs, a member of the conservative House Freedom Caucus, said Tuesday, as Treasury Secretary Janet Yellen continues to warn about how missing that deadline could result in economic disaster.

Yellen said as recently as Tuesday the U.S. could default in "Early June, and potentially as early as June 1," if the debt limit is not raised.

"We're going to have one of our biggest months of revenue in the month of June. ... So people need to understand you're not going to default."

"Biggs is saying June is a big revenue month: That's true because quarterly tax payments are paid in June," Marc Goldwein, a budget expert at the Committee for a Responsible Federal Budget, said Wednesday.

He said those payments aren't due until June 15, "So they aren't going to save us until we can otherwise get to June 13 or so."

"We have big payments on June 1 and June 2, so either of those are possible," he continued.

https://justthenews.com/government/congress/conservatives-says-us-wont-default-june-1-given-june-high-revenue-month-govt

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