The real problems are two-fold. Republicans such as Senators Saxby Chambliss, Lamar Alexander, and Lindsey Graham, who are prepared to validate Obama’s spending spree by increasing tax revenue, would like their constituents to believe they are fiscal conservatives, when it seems they really have no stomach to curb spending the nation can’t afford.
The nation has become dependent on big deficits to sustain even modest economic growth and keep unemployment from surging above 8 percent, because the Obama administration and Congress have not adequately addressed the structural problems that caused the recession and are now holding back growth:
Obama’s solution includes hiking taxes on the rich. But raising taxes on the wealthy by about $160 billion a year would hardly dent the deficit. And pushing up federal and state taxes paid by many small- and mid-sized businesses well above the 50 percent that many of them pay now would greatly impair jobs creation.