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U.S. House Republicans suggest raising debt limit, tax cut and spending cuts

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The U.S. House Republicans have suggested a new budget resolution that includes raising the debt limit by $4 trillion. This proposal is part of a larger fiscal strategy that also includes a $4.5 trillion tax cut and $2 trillion in cuts to mandatory spending over the next decade.
U.S. House Republicans are proposing to raise the federal debt ceiling alongside implementing tax cuts and significant spending reductions. This proposal comes as part of ongoing negotiations to avoid a potential default on the nation's debt, with the current deadline for action being June 5. The plan includes a $1.5 trillion increase in the debt limit or an extension until March 31, 2024, whichever comes first. Key elements of the proposal involve cutting discretionary spending to 2022 levels, limiting future spending growth to 1% annually, and rescinding unspent COVID-19 relief funds. Additionally, it aims to impose work requirements for certain federal aid programs, streamline energy project approvals, and repeal parts of the Inflation Reduction Act, including green energy tax credits. This approach has met with resistance from Democrats and the White House, who argue that such measures would disproportionately affect the middle and working classes while favoring the wealthy and corporations.

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