McCarthy Defies Trump, Says House Won't Add Harvey Funds To Debt-Ceiling Bill

Tyler Durden's picture

Despite President Trump, Treasury Secretary Steven Mnuchin and OMB Director Mick Mulvaney’s urgings, it appears that Congress will not combine funding for the Hurricane Harvey cleanup effort with a measure to raise the debt ceiling, according to House Majority Leader Kevin McCarthy. Congress’s decision will create a major headache for the Trump administration in the coming weeks, as it tries to push through a government-funding bill and a measure to raise the debt ceiling over objections of conservatives who are calling for budget cuts and other concessions.

The House will bring a bill to approve the $8 billion in emergency funding requested by the White House early Wednesday, McCarthy said.

McCarthy, who appeared on Fox Business with Maria Bartiromo, tried his best to sound conciliatory, praising the president for meeting with lawmakers and other members of the “Big Six” group that’s supposedly handling tax reform, while adding that a spending bill and debt ceiling hike would inevitably be approved.

“Wednesday morning we’ll pass relief to make sure FEMA has enough money to get moving right now while the cities and counties get the estimates in so we can go farther in providing more assistance. But you’re going to hit that debt ceiling regardless. They’re afraid what Mnuchin is telling us, if you pass just the supplemental they may not be able to put that money forward without getting the debt ceiling raised. The thing I look for is this is an issue that we’re going to have regardless. This is not an issue you want to run away from, but congress has been successful in capping discretionary spending. Now we have.”

McCarthy said not combining the two measures wouldn’t create problems because they inevitably must be passed. Of course, the House is only in session for 12 days this month while the Senate is also in session, so the clock is ticking...

“We will deal with the debt ceiling regardless if Harvey even arrived in America and now we are asking for more money to provide for FEMA so FEMA does not run out of money,” McCarthy told Maria Bartiromo on Mornings with Maria.

 

“What Munchin is telling us, if you pass just the supplemental, they may not be able to put the money forward without having the debt ceiling raised.”

“What the Treasury secretary and it’s not just him saying it Mick Mulvaney the OMB director and the president are saying it, we have to deal with the debt ceiling regardless of whether Harvey arrived in America. And now we’re asking for more money to provide for FEMA so FEMA doesn’t run out of money. All they’re looking at are the numbers.”

He also stressed that the president is already making progress on tax reform by meeting with lawmakers, and that he expects a reform bill to reach the president’s desk by the end of the year, the administration’s official self-imposed deadline, which is becoming increasingly important to markets.

“Now we’ve got to move to tax to get the economy growing. We will deal with the wall a little later in the year. We have to finish off eight more appropriation bills. We have the budget to get this month. The budget is the beginning of tax reform. It allows us to go to reconciliation to tackle tax reform. All of that will get done this month.”

 

“This is a very good sign that they’re meeting with the president now. What we’re doing is learning the lessons from health care. Making sure the White House the House and the Senate are on the same page. That’s why I’m an even stronger believer that tax reform gets out of the house this year. We all know the way to make America stronger is economic growth.”

Voting for aid for Texans is an issue that should transcend political squabbling, McCarthy said.

“To those members who don’t want to tackle the tough issues, the sooner we get it done the sooner we can get to greater growth. Economically, Texas is hurting, think about what Texas’s economy contributes to the US.”

While the controversial border-adjusted tax is out, repatriation – another one of Trump’s top nationalist economic policy objectives – could make it into the final bill.

“Bring it back here and invest it in American or return it to shareholders as dividends.”

When pressed about the priorities for tax reform, McCarthy said it would be a package deal tackling both corporate and individual tax-rate reform.

He also couldn’t resist making a subtle dig at his colleagues in the Freedom Caucus, while urging lawmakers to come together to reach an agreement on Tax Reform.

If a member is out there worried about a tough vote, maybe this isn’t the right job for them. They've got to make decisions to move this country forward and that's what we're doing. The meeting at the White House is the right thing to do, and a good indication that tax reform is happening. Especially coming off of Harvey.”

McCarthy added that he would be in favor of lower the number of individual tax brackets.

“Why are there seven individual tax rates. Let’s make it three.”

To be sure, we await for a response from the president which, thanks to the influence of Chief of Staff John Kelly, might come in the form of an official statement instead of a tweet. As far as the budget is concerned, Trump still needs a plan for neutralizing intransigent Republicans, because he’s not likely to get any support from Democrats.
 

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stinkhammer's picture

RINO ass clowns     who's the real DREAMERS?  real Americans  that's who

stizazz's picture

Real Americans?

You mean the Indians.

hedgeless_horseman's picture

 

"Release Federal Funds..."

As if our government had the foresight to save up money for a rainy day.

What they really mean is borrow more from the bankers.

One goy's debt is another mensche's passive income.

DownWithYogaPants's picture

Not sure how passive that income is given JFK and what the Deep State is doing against Trump.

They have really pulled out the stops.  Good thing is it is so obvious even the dullest among us will eventually catch on.

spastic_colon's picture

congress didnt decide this until they got out of bed and saw today's markets.........about ten minutes ago.

Fake Trump's picture

I just heard someone said "buy the dip". Count me out. 

GETrDun's picture

Some dips are just bigger than others. This dip is gonna be a doozie!!

Lol

NidStyles's picture

These motherfuckers....

They doing everything they can to piss the people off aren't they....

It's obvious that is their intention now, there is no other explanation.

MANvsMACHINE's picture

This is where Trump needs to tell them that he's cutting 25%-50% of these departments out altogether to free up the funds.

https://www.usa.gov/federal-agencies/a

 

 

Handful of Dust's picture

These assholes were quick to bail out bankers, they better help those people along the coast in Texas and La.

Atomizer's picture

Nicely said. Good job HH. 

I'm hungry. Show me those beautiful plates of food. 

SoDamnMad's picture

He should talk about rainy days. Let Kevin McCrthy pay for the TOTAL repair of the Oroville Dam since California was negligent in maintaining the dam and inspecting the spillway for how many years, "We didn't inspect it because we were in a long drought period".

ejmoosa's picture

If we are going to use federal tax dollars as insurance payouts, then let's stsrt multiplying an individual's tax liability times a risk factor for where they live.

Because I see no reason why citizens who live in areas with little risk have to foot the bill for those who chose to live in harm's way.

hedgeless_horseman's picture

 

no reason why citizens who live in areas with little risk have to foot the bill for those who chose to live in harm's way.

...and not have insurance.

The reason is because politicians believe they can buy votes on the cheap, and professional voters are more than happy to sell themselves.

Give Me Some Truth's picture

Cutting to the chase ...

Congressman: "Maria, just know that we are going to print and borrow whatever money is necessary, to fund Harvey relief, and as far as that goes, to fund anything and everything the government is involved in, and that includes a world war with North Korea if necessary. I understand there is another hurricane out in the Atlantic.That's okay. We've got that covered too. So please don't worry. The money is not there, but we can create it whenever we need it. And we do  happen to need a lot of it right now."

Maria: "Thank you, Congressman, for your service to our nation. And now back to Bob to see how the markets are doing today. Bob, markets are looking good, right?"

GreatUncle's picture

Unless Trump asks for the money then it is a resounding NO!

GreatUncle's picture

Don't it make you smile though ... they now we know exactly what the fuck they are doing.

Anger will rise eventually the economy was supposed to have been fixed during the $80B MOM print ... like fuck was it.

 

Fox-Scully's picture

The ones that crossed over from Siberia and became the various NA tribes?????

tmosley's picture

Indians were communist savages, and deserved worse than what they got.

NidStyles's picture

We didn't steal anything, we conquered them. Huge difference.

AGuy's picture

"We didn't steal anything, we conquered them. Huge difference."

The word both of you are looking for is: Plunder

Kevin Trader's picture

no we mean the people that kicked the indians asses and told them thanks for keeping our fucking seat warm, tonto

stizazz's picture

Spoken like a real thief.

Mat Cauthon's picture

Indians aren't native... they migrated thousands of years ago across the Bearing Land Bridge OR, they simply inhabited the contental plate that broke off when Pangea drifted over a few thousand years.

Why do you think there are Egyptian heiroglyphs found in caves in the Grand Canyon?

http://io9.gizmodo.com/5875252/when-the-smithsonian-discovered-an-ancient-egyptian-colony-in-the-grand-canyon

stizazz's picture

I guess you're the real native. Whatever floats your bubble.

NidStyles's picture

Europeans were here first.

HRClinton's picture

Define "Native". Be specific. 

Without that, you're just wanking lyrically. 

yogibear's picture

Never trust an Irishman. McCain, McConnell.

AGuy's picture

"Never trust an Irishman. McCain, McConnell."

its "Never Trust a Politican!" Period!

stizazz's picture

Let's watch idiot Trump fumble and add Irma to the pile until he craps himself.

“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

Mr Trump, the establishment democrats and republicans are your sworn enemies and will never be your ally.

Quit listening to advisors, such as your daughter and her grifter husband.

Keep tweeting.

Keep going out on the road and talking to the American people.

Respect the generals, but use your best judgement.

MAGA

 

vietnamvet's picture

Well, our traitor of a President seems to think that he can Make Afghanistan Great Again.  The bad news is, that's another example of Trump's best fucking judgement!

ipso_facto's picture

'... Trump still needs a plan for neutralizing intransigent Republicans,...'

Gee does Trump need a plan to deal with RINOs?

To Hell In A Handbasket's picture

The man is a fool. Just add everything onto the debt-ceiling, because nothing is going to be paid back when the big default and reset comes. How many fucking times has the debt ceiling been raised? These fuckers still think the average American voter is a fool? And he's right. They keep on voting. Hope & Change 2.0.

GreatUncle's picture

Now if they were honest they would say ...

"We now need to CTRL-P $100B MOM to keep the economic system going".

That was mentioned during the $80B MOM period.

But oh no, see they can't say that because no ordinary fucker is going to get any of that $100B are they? Nope didn't think so.

So it is back to trying to create $100B MOM so the population does not notice, so ecological disasters, wars and all the other shit they create is their preferred mechanism of choice.

And what precisely is the fucking point of ordinary people paying $1 taxes when the economic mechanism is creating $100B because it fucking can.

May as well cancel all taxes and just don't fucking print it.

The Duke of New York A No.1's picture

Pass the debt ceiling - Mnuchians wife needs a new wardrobe.

 

 

OverTheHedge's picture

Hey guys, we know this! Because debt is money, the debt = money supply, and therefore MUST increase, otherwise there would be an immediate credit crisis. The debt can ONLY go up. The rest of it is posturing and politics, seeking to gain from crisis. Now, if Congress refuse to up the debt limit, for political purposes, does Trump lose  or gain from the chaos? Is it in his interest to have a functioning swamp, or a cash crisis and military disasters all at the same time? Who would get the most blame? Who would be least damaged?

(Those aren't rhetorical questions - I would love to know the answers)

AGuy's picture

"She only needs a fig leaf."

My guess is that she spends a few thousand per month to keep pretty.

Dan'l's picture

Build the fucking wall and deport all illegal aliens and help the people in Texas and cut some of the liberal money parasites like NPR & Planned Parenthood & all the bullshit programs that prop up all of the Commie programs Rinos have supported for decades.

Insurrector's picture

Dan'l - you are sorry waste of flesh.  Your simple mind can't handle reality, and you resort to parrotting the shit-for-brains you hang out with.

WolfgangCire's picture

fuck trump till kingdom comes

BearClaw's picture

With that micro-penis of yours...unlikely.

MANvsMACHINE's picture

How can you even see it?  Looks vaginal to me.

Soul Glow's picture

Good.  Why does anyone think we all need to pay for the people that choose to live in Houston?  It floods every year there now.  If you can't deal with the flooding move somewhere else.

rejected's picture

Jesus, this nation and the people that live here are totally fukin nuts and deserves all it will shortly get.

It floods everywhere you moron.