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Democrats demand tax increase in debt ceiling budget talks – Republican Cantor pulls out

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.

Excerpt:

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!

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5 Comments

  1. Milton Waddams

    When are military cuts going to be on the table? $1.2T in defense spending is ripe for cutting. Ending the 3 wars we’re involved in would save a bunch. I have noticed you never mention Defense spending, only “entitlements” why is that? I often agree with you Ted, but until real cuts to defense spending are on the table along with the “entitlements”, this argument is intellectually dishonest at best.

  2. Ted Biondo

    Milton – when did I post I was against military cuts? I agree with you, everything has to be on the table, especially entitlement programs and Military – it’s all government expense!

  3. Obama & Co. increased the size of government by 25%. they can find something significant to cut, if they wanted to.

  4. Ariann

    Of course the wealthy don’t want to believe an increase in taxes will help the debt…they’d rather take it from the poor..the extreme of selfishness on their part.

  5. Ted Biondo

    Ariann – welcome to the blog. Please explain to me how the rich take taxes from the poor when the bottom 41% of the people pay no federal income tax. They also have the earned income tax credit (EITC) on any income they earn to reduce their federal taxes.

    As a matter of fact, the EITC is the largest poverty reduction program in the United States. Almost 21 million American families received more than $36 billion in payments through the EITC in 2004. Look it up in the IRS Q/A section.

    These EITC dollars have had a significant impact on the lives and communities of the nation’s lowest paid working people, lifting more than 5 million of these families above the federal poverty line.

    The rich can not take money from people who pay little or no taxes, the rich instead pay most of the taxes, some 50% of the taxes in just the top 5% of income. I am not one of those people BTW.

    The facts do not support your comment. The selfishness is the people who do not take the time to understand how much the federal government is stealing from the workers of the U.S. to pay for those who don’t work and are able-bodied!

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