Our problem is both. I’m going to go out on a long long limb and say that you probably do not now, nor have ever, run a business and hired poeple.
Project much? I have, for years, owned a profitable, medium-sized business that employs several dozen people. Haven't laid off anyone, haven't cut any hours, nor have I cut any benefits since the economy went south - And we continue to make a profit to this day. Not that any of that matters here, but you did raise the issue.
Our problem is most assuredly both. Currently, though, spending is creating the much bigger challenge to long-term sustainability for our society than the tax structure is.