GOP leaders take fright at Obama deficit reduction plan

House Majority Leader Eric Cantor

Republicans have today come out with fighting talk against the notions for deficit reduction that the Obama administration is contemplating. They had a message today, Wednesday, for President Obama as he prepared to outline his plans, with at least a partial emphasis on taxes.  "Don't go there!" is their message to him. GOP leaders reiterated their argument that Washington has a "spending problem," not a revenue problem, and that new taxes on the wealthy, who Republicans describe as the job creators and small business owners who will drive the economic recovery, are a bad idea.

Generally speaking I'd agree with them. However, I'd separate the corporate types from the small business owners. The likes of Wal-Mart have exported jobs to Mexico, China and India. Brazil is now in the mix. Small business owners create jobs built on effort. The larger corporations tend to rely on tax avoidance, cost cutting and funny money. America is suffering from the fact that the Federal Government needs to spend money in order to keep people off the streets, with the mayhem and bedlam that would cause. It is going to require more than tax rises or tax breaks. The whole system needs a makeover, starting with giving the computerised money makers a lesson in fiscal integrity.

Posted in: Barack Obama,deficit reduction,Eric Cantor,GOP