SPENDING IS THE PROBLEM: This chart prepared by Chairman Paul Ryan (R-WI) of the House Budget Committee was the subject of Speaker Boehner’s press conference today. It shows what happens to projected levels of tax revenue (green) if President Obama’s tax increases kick in (blue), and compares that with recent and projected spending trajectory (red).
As you can see, if the president gets his tax hikes, we still face a mountain of spending-driven debt.Republicans have offered a solution that averts the fiscal cliff with spending cuts and reforming our tax code in ways the president previously supported. Unfortunately, Obama and Democrats want to punish small businesses with higher tax rates while increasing spending.
Even Erskine Bowles, Clinton’s former Chief of Staff, admits “We have to cut spending. Even if you raise the top rates back to the Clinton rates, that only creates about $400 billion over 10 years. That’s $40 billion a year. We have a trillion dollar a year deficit.”
Spending is the problem. Republicans want to make needed spending cuts; Democrats are silent. And that’s why there’s still no agreement on averting the fiscal cliff.