US President Joe Biden denounced House Speaker Kevin McCarthy's proposal regarding imposing caps on the government's spending, stressing that the Republican plan will reduce benefits for the working and middle classes while wreaking economic havoc. 

McCarthy, the top Republican in the US House of Representatives, officially released the plan's details earlier today and urged members of his party to act in concert as they go head-to-head with the President.

The United States hit its $31.4 trillion borrowing limit in January, forcing the Treasury to take "extraordinary measures" that allow it to continue financing the government's activities.

However, the US government runs the possibility of going into payment default as early as July if the debt ceiling is not raised or suspended by Congress before the present options run out.

Read next: US risks default by July unless debt limit is raised

In an effort to curb Democrats' allegedly "reckless" spending, House Republicans have vowed to increase the debt ceiling only if spending caps are put in place.

This #TaxDay, remember how @POTUS and House Democrats want to spend your hard-earned tax dollars:

87,000 new IRS agents to spy on your everyday transactions.

That’s why @HouseGOP voted to cancel that tyrannical initiative in the first week of our majority.

— Congressman Greg Murphy, M.D. (@RepGregMurphy) April 18, 2023

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McCarthy is calling for a floor vote before the end of the month, posting on Twitter Tuesday that it was "time to stop the madness."

"Democrats' reckless spending caused inflation, a banking crisis, and so many other problems," McCarthy tweeted.

However, Biden claimed that the Republican leader was proposing "huge cuts to important programs" that "millions of Americans count on," and that his plan would return the nation to "the same old trickle-down economic theories of the past."

Democrats are adamantly opposed to the Republican plan, contending that it amounts to extortion to tie raising the debt ceiling to budget cuts.

McCarthy "threatened to become the first speaker to default on our national debt," Biden said.

On his account, Senate Democratic leader Chuck Schumer said that no one "should confuse this wish list as anything more than a recycling of the same bad ideas we've heard about for weeks."

The US President reiterated that he is willing to discuss spending reductions but that Congress must first pass a "clean" -- no-strings-attached -- debt ceiling increase before time runs out.

Early in February, McCarthy and Biden met to talk about potential outcomes, but they were unable to come to an agreement.

Read next: 'Show me his budget!': McCarthy, Biden agree to further talks on deb