From The Caucus blog of :
By Jennifer Steinhauer, June 23, 2011, 11:04 am
House Majority Leader Eric Cantor, Republican of Virginia, said Thursday that he was quitting the debt ceiling negotiations being led by Vice President Joseph R. Biden Jr. because of an impasse over the role of taxes in any final deal.
“I believe that we have identified trillions in spending cuts, and to date, we have established a blueprint that could institute the fiscal reforms needed to start getting our fiscal house in order,” Mr. Cantor said in a prepared statement.
“That said, each side came into these talks with certain orders, and as it stands the Democrats continue to insist that any deal must include tax increases. There is not support in the House for a tax increase, and I don’t believe now is the time to raise taxes in light of our current economic situation. Regardless of the progress that has been made, the tax issue must be resolved before discussions can continue.”
Much more at the link.
We always knew that the Democrats wanted to increase taxes, because they want to spend more money. Well, that’s the wrong thing to do, and the Republicans should hold firm: no tax increases in the debt ceiling increase, or there will be no debt ceiling increase. Then, after spending is cut, it will be reasonable to consider tax increases, to reduce the debt.
But if tax increases are part of the original package, it will mean that spending will be higher. The Democrats want to keep on just doing business as usual, but that’s how we got into this mess in the first place.