Eric Cantor at Harvard: America 'at a crossroads' on spending

Eric Cantor at Harvard: America 'at a crossroads' on spending


By Felicia Sonmez


House Majority Leader Eric Cantor (R-Va.) outlined Republicans' economic vision on Thursday evening, saying in a speech at Harvard University that Washington must reduce the role of government in order to preserve America's role as the "crucible of innovation."
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Cantor said that the key to American innovation lies in the success of the private sector, pointing to Republicans' emphasis on cutting spending, reducing federal regulations, replacing the national health care law and reforming the tax code. Those efforts, Cantor said, will "make it easier for intellectual capital and innovation to flourish again."

Mr Cantor has identified a key issue in the United States body politic; what is the role of the Federal Government?  Much of what he argues favors government support of business particularly big business.  Common Sense wonders though, is the proper role of government support of business, most particularly big business or is the proper role of government as outlined in the United States founding documents providing for defense of the country and promoting the general welfare of its citizens?

Common Sense believes that in recent years government has to often put the welfare of big business above the welfare of the governed.  One need only look at tax codes that in the last 50 years have shifted the cost of government to private citizens and away from business.  Consider that according to a recent GAO study two-thirds of all large U.S.- and foreign-controlled business operating in the U.S. managed to pay no (zero) federal income tax on a combined $2.5 trillion in sales from 1998 to 2005.  Giving big business a free ride doesn't support innovation.  Indeed study after study supports the notion that innovation comes from small businesses, particularly startups and venture funded efforts.

Common Sense wonders then if we're trying to improve the economy and reduce Federal deficits why do we continue to allow big business to pay no taxes?  Are we at a crossroads?  Certainly, but not the one Mr Cantor sees.  Rather we need to get Congress to return to the welfare of the citizens and stop providing principally for the welfare of big business.