We are facing a serious problem with the national deficit with the perverbial credit card limit due to expire some time in Agust. Everyone knows this. Even Democrats.
Enter stage right a deficit “committee” headed by Vice President Biden, tasked with the goal of finding a way to reach a deal that would allow for the debt limit to be raised while making substantial cuts to the budget. The catch: Democrats, banking Republicans will blink and are clinging bitterly to the notion that any debt reduction deal must include tax increases. Tax increases which are a nonstarter for Republicans, especially in the House of Representatives.
With this strategy in play, Majority Leader Eric Cantor walk out on the talks noting that any discussion is at an impass without President Obama personally engaging with Speaker of the House John Boehner on the matter.
For that courage, Cantor should be commended.
Democrats must understand that the core of the problem doesnt come from the current tax rate, which existed a decade ago. The problem is out of control government spending.
Whats more, the talked about 200 a billion a year “cuts” in programs amount to nearly nothing when the deficit is adding nearly 1.5 trillion a year.
To give example of how out of hand the number is, we spent roughly one third ($500 billion) in Afghanistan over the past decade. That means we could fund the war in Afghanistan for 30 years and it would just then equal a single year of deficit spending under what is now “base line” spending in Congress.
This is not sustainable. Something has to be done. It is time to roll up our sleaves and make cuts to the budget where they are needed and reform entitlement spending.
Democrats need to understand that Republicans and the American people are serious.
For that exact reason Eric Cantor should be applauded for his decision today.