Republican Majority Leader Eric Cantor said Thursday that Democratic demands for tax increases to be paired with the spending cuts have brought budget negotiations led by Vice President Joe Biden to an impasse. Cantor said he’s pulling out of the talks after saying that the House Republicans will never approve tax increases.
The Virginia Republican said in a statement that the Republican-dominated House simply won’t support tax increases, and that he wouldn’t participate in the budget meeting scheduled for Thursday. Cantor said that it’s time for President Barack Obama to weigh in directly on the budget because Democrats insist on negotiating some tax increases.
My previous post has shown that there are not enough rich people to pay off the debts that Obama, and Bush before him, have placed on the nation and our children. Another post shows that the government can’t raise taxes fast enough to make up for the trillions of dollars in debt this administration is creating.
So why are the Democrats again bringing up raising taxes in a recession when it obviously is not the answer? Raising taxes will not even dent the $14.2T dollar debt. The debt will not be substantially lowered until entitlement spending is reduced.
In a few years, the entitlement programs - Social Security, Medicare, Medicaid and the interest on the natinoal debt will take the entire revenue stream from federal taxes. There will be no money left to pay for anything else.
The administration is also lying about defaulting on our loans if the debt ceiling isn’t raised. There’s more than enough money to pay for the principle and interest on the debt if it is the top priority and cut nonmandated programs.
The default on the national debt would be like a deadbeat, who before he pays off his credit cards, uses his payroll check to buy a car and since he didn’t pay off his credit debt, declares bankruptcy – a farce re-enforced by the mainstream media.
In fact, if Congress doesn’t raise the debt ceiling, the federal government has more than enough money to service its debt and there is enough revenue to cover about two-thirds of all government expenditures, including Social Security checks and Medicare.
There would be no reason for the government to default on the debt – unless the Obama administration intentionally refused to pay the country’s debt obligations to further their political agenda. Cantor should have left such meaningless talks. The talks will do nothing to fix our debt or debt ceiling problems!