Biden Hammers Republicans on the Economy, With Eye on 2024
The president has found a welcome foil in a new conservative House majority and its tax and spending plans, sharpening a potential re-election message.WASHINGTON — President Biden on Thursday assailed House Republicans over their tax and spending plans, including potential changes to popular retirement programs, ahead of what is likely to be a run for re-election.In a speech in Springfield, Va., Mr. Biden sought to reframe the economic narrative away from the rapid price increases that have dogged much of his first two years in office and toward his stewardship of an economy that has churned out steady growth and strong job gains.Mr. Biden, speaking to members of a steamfitters union, sought to take credit for the strength of the labor market, moderating inflation and news from the Commerce Department on Thursday morning that the economy had grown at an annualized pace of 2.9 percent at the end of last year. In contrast, he cast House Republicans and their economic policy proposals as roadblocks to continued improvement.“At the time I was sworn in, the pandemic was raging and the economy was reeling,” Mr. Biden said before ticking through the actions he had taken to aid the recovery. Those included $1.9 trillion in pandemic and economic aid; a bipartisan bill to repair and upgrade roads, bridges, water pipes and other infrastructure; and a sweeping industrial policy bill to spur domestic investment in advanced manufacturing sectors like semiconductors and speed research and development to seed new industries.Republicans have accused the Biden administration of fanning inflation by funneling too much federal money into the economy, and have called for deep spending cuts and other fiscal changes.Mr. Biden denounced those proposals, including a plan to replace federal income taxes with a national sales tax, curb safety net spending and risk a government default by refusing to raise the federal borrowing limit without deep spending cuts. Why, he asked, “would the Americans give up the progress we’ve made for the chaos they’re suggesting?”Speaker Kevin McCarthy and House Republicans have not yet released a detailed or unified economic agenda.Haiyun Jiang/The New York Times“I will not let anyone use the full faith and credit of the United States as a bargaining chip,” Mr. Biden said, reiterating his refusal to negotiate over raising the debt limit. “The United States of America — we pay our debts.”But the president also sought to reach out to working-class voters — in places like his native Scranton, Pa. — who have increasingly voted for Republicans in recent elections. Mr. Biden said those voters had been left behind by American economic policy in recent years, and he tried to woo them back by promising that his policies would continue to bring high-paying manufacturing jobs that do not require a college degree to people who feel “invisible” in the economy.“They remember, in my old neighborhoods, why the jobs went away,” Mr. Biden said, vowing that under his policies “nobody’s left behind.”The Biden PresidencyHere’s where the president stands as the third year of his term begins.State of the Union: President Biden will deliver his second State of the Union speech on Feb. 7, at a time when he faces an aggressive House controlled by Republicans and a special counsel investigation into the possible mishandling of classified information.Chief of Staff: Mr. Biden plans to name Jeffrey D. Zients, his former coronavirus response coordinator, as his next chief of staff. Mr. Zients will replace Ron Klain, who has run the White House since the president took office two years ago.Voting Rights: A year after promising a voting rights overhaul in a fiery speech, Mr. Biden delivered a more muted message at Ebenezer Baptist Church in Atlanta on Martin Luther King Jr.’s birthday.The speech built on a pattern for Mr. Biden, who has found the new and narrow Republican majority to be both a political threat and an opportunity.Republicans in the chamber have begun a series of investigations into Mr. Biden, his family and his administration. They have also demanded deep cuts in federal spending in exchange for raising the borrowing limit, a position that risks an economic catastrophe given the huge sums of money that the United States borrows to pay for its financial obligations.The president has refused to tie any spending cuts to raising the debt limit and has called on Congress to increase the $31.4 trillion cap so the nation can continue paying its bills and avoid a federal default..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.But Mr. Biden, who is facing a divided Congress for the first time in his presidency, is increasingly acting as if the newly empowered conservatives have given him a political opening on economic policy. As he prepares for a likely re-election bid in 2024, he is seizing on the least popular proposals floated by House members to cast himself as a champion of the working class, retirees and economic progress.Mr. Biden’s speech on Thursday waded deep into policy details, including the acreage of western timber burned in fires linked to climate change, the global breakdown of advanced chip production and the average salary of new manufacturing jobs, as he recounted his legislative accomplishments.House Republicans have not yet released a detailed or unified economic agenda, and they have not made a clear set of demands for raising the debt limit, though they largely agree that Mr. Biden must accept significant spending curbs.But members and factions of the Republican conference have pushed for votes on a variety of proposals that have little support among voters, including raising the retirement age for Social Security and Medicare and replacing the federal income tax with a national sales tax.Mr. Biden has sought to brand the entire Republican Party with those proposals, even though it is not clear if the measures have majority support in the conference or will ever come to a vote. Former President Donald J. Trump, who has already announced his 2024 bid for the White House, has urged Republicans not to touch the safety-net programs. Other party leaders have urged Republicans not to rule out those cuts. “We should not draw lines in the sand or dismiss any option out of hand, but instead seriously discuss the trade-offs of proposals,” Senator Michael D. Crapo of Idaho, the top Republican on the Finance Committee, wrote in an opinion piece for Fox News, in which he called for Mr. Biden to negotiate over raising the debt limit.Representative Kevin Hern, Republican of Oklahoma, who sits on the House Ways and Means Committee, told a tax conference in Washington this week that there are “lots of problems” with the plan to replace the income tax with a so-called fair tax on consumption. Those include incentives for policymakers to allow prices to rise rapidly in the economy in order to generate more revenue from the sales tax, he noted.“Let’s just say it’s going to be very interesting,” Mr. Hern said at the D.C. Bar Taxation Community’s annual tax conference. “I haven’t found a Ways and Means member that’s for it.”Despite those internal disagreements, Mr. Biden has been happy to pick and choose unpopular Republican ideas and frame them as the true contrast to his economic agenda. He has pointedly refused to cut safety-net programs and threatened to veto such efforts.“The president is building an economy from the bottom up and the middle out, and protecting Social Security and Medicare,” Karine Jean-Pierre, the White House press secretary, told reporters this week. “Republicans want to cut Social Security, want to cut Medicare — programs Americans have earned, have paid in — and impose a 30 percent national sales tax that will increase taxes on working families. That is what they have said they want to do, and that is clearly their plan.”The focus on Republicans has allowed Mr. Biden to divert the economic conversation from inflation, which hit 40-year highs last year but receded in the past several months, though it remains above historical norms. On Thursday, he chided Republicans for a vote to reduce funding for I.R.S. enforcement against wealthy tax cheats — a move the Congressional Budget Office says would add to the budget deficit, and which Mr. Biden cast as inflationary.“They campaigned on inflation,” Mr. Biden said. “They didn’t say if elected, they planned to make it worse.”Progressive groups see an opportunity for Mr. Biden to score political points and define the economic issue before the 2024 campaign begins in earnest. That is in part because polls suggest Americans have little appetite for Social Security or Medicare cuts, and have far less focus on the national debt than House Republicans do.“It is a political gift,” said Lindsay Owens, the executive director of the Groundwork Collaborative, a liberal nonprofit in Washington. More