Thursday, June 23, 2011

BREAKING NEWS: Cantor quits Biden budget talks—No budget deal if it includes any tax increases.

House Majority Leader Eric Cantor has suddenly pulled out of the budget negotiations concerning the deficit and debt ceiling.  Cantor said:

“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,” Cantor said in a 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.”

“ Given this impasse, I will not be participating in today’s meeting and I believe it is time for the president to speak clearly and resolve the tax issue. Once resolved, we have a blueprint to move forward to trillions of spending cuts and binding mechanisms to change the way things are done around here.”

Republicans have apparently decided that they can draw a line in the sand over the tax issue and that Obama will cave.  Will he?  We’ll see.  Liberal Democrats think Obama is going to give the Republicans everything the want—deep spending cuts that undermine the social safety net and slash entitlement programs without a single dime in tax increases.  They are afraid Obama just wants to get the budget deal done any way he can so he can move on to the election.

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