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Four months ago, one of the largest Tea Party groups, Freedomworks, created a Tea Party Debt Commission to address the red ink in which this country is drowning. Because our current non-leader is doing nothing but fiddling while Rome burns, I'm happy to present the results of the Tea Party's work, the Tea Party Budget.
Here's what the Tea Party Budget will do to our debt picture in comparison to non-leader Obama's non-plan, and in comparison to the House GOP plan.
The ten year Tea Party Budget plan would balance the budget in four years, and then start paying off the debt, reducing it to 75% of GDP by 2021 (as opposed to non-leader Obama's Greece-like 120%). Gone would be the trillion+ dollar deficits. Gone would be America's high-speed rail to fiscal destruction. Gone would be the crippling of our children's futures.
And the Tea Party does it without raising taxes.
Here are some of the features:
“Cuts, caps, and balances” federal spending.
Balances the budget in four years, and keeps it balanced, without tax hikes.
Closes an historically large budget gap, equal to almost one-tenth of our economy.
Reduces federal spending by $9.7 trillion over the next 10 years, as opposed to the President’s plan to increase spending by $2.3 trillion.
Shrinks the federal government from 24 percent of GDP — a level exceeded only in World War II— to about 16 percent, in line with the postwar norm.
Stops the growth of the debt, and begins paying it down, with a goal of eliminating it within thisgeneration.To achieve these goals, our plan, among other things:
Repeals ObamaCare in toto.
Eliminates four Cabinet agencies — Energy, Education, Commerce, and HUD — and reduces or privatizes many others, including EPA, TSA, Fannie Mae, and Freddie Mac.
Ends farm subsidies, government student loans, and foreign aid to countries that don’t support us— luxuries we can no longer afford.
Saves Social Security and greatly improves future benefits by shifting ownership and control from government to individuals, through new SMART Accounts.
Gives Medicare seniors the right to opt into the Congressional health care plan.
Suspends pension contributions and COLAs for Members of Congress, whenever the budget is in deficit.
The Tea Party budget contains a Balanced Budget Amendment to prevent future Obama-like non-leaders from embarking on courses of fiscal lunacy. It makes the Bush tax cuts permanent.
Here's a very brief description of what is wrong with our federal government:
At the root of these problems is our own federal government — its size, its reach, and many of its policies. Washington is simply too big. Our government is doing too many things it can’t do well, or shouldn’t do at all, with money it doesn’t have. We are borrowing 43 cents of every dollar we spend. Waste and duplication abound. A report published this past March by the Government Accountability Office counted no fewer than 47 job training programs, 56 financial literacy programs, 80 economic development programs, 18 food assistance programs, 20 programs for the homeless, 82 teacher-quality programs spread across 10 agencies, and more than 2,100 data centers. All told, we have nearly 2,200 federal programs. What human being could ever know or monitor them all? Who’s minding this mess?
Perhaps the best summation of this lamentable state of affairs came at our field hearing in Indianapolis,from a young lady named Chloe Minor, age 15: “Government today is making a mess of things. My generation has absolutely no say in the matter. Each of us owes over $44,000 to pay off the national debt. It is obvious to me what is needed in this country is some teenage supervision!”
Yes, when our federal government acts more irresponsibly than any random 10-year old, perhaps teenage supervision is called for. The federal government is a monstrous bureaucratic maze of waste, propped up solely by the continuing rape of hard-working taxpayers. There will NEVER be enough money to feed the ravenous maw of ideologically-driven non-leaders like Obama. The only sane course of action is to rein in our own government. Otherwise, we're headed for the same fiscal collapse that is now threatening Europe. Who could possibly want to follow that path ?
Contrast the Tea Party budget with the failure of the Not-So-Super Committee's weak efforts:
..if the Super Committee succeeds, it will reduce spending by about $1.2 trillion over the next decade, from a steeply rising baseline. Our plan, by contrast, would reduce spending by eight times that amount, $9.7 trillion. Or to put it in percentageterms, assuming they meet their full charge without gimmicks or double-counting, the Super Committee plan would slightly reduce ten-year spending from $44 trillion to $43 trillion, a 2.3 percent trim. Our plan would reduce ten-year spending from $44 trillion to $34 trillion, a 23 percent reduction.
This is what is needed to get our nation off the financial suicide train.
The Tea Party budget was based upon principles in the Tea Party's Contract From America platform, as follows:
1. Protect the Constitution
2. Reject Cap & Trade
3. Demand a Balanced Budget
4. Enact Fundamental Tax Reform
5. Restore Fiscal Responsibility & Constitutionally Limited Government
6. End Runaway Government Spending
7. Defund, Repeal, & Replace Government-Run Health Care
8. Pass an ‘All-of-the-Above’ Energy Policy
9. Stop the Pork
10.Stop the Tax Hikes
All the savings details are too long for me to list here, but you can find all the details at the Tea Party Budget link above.
Because no balanced budget or debt reduction is possible without touching the third rail of politics, the Tea Party budget does address Social Security and Medicare/Medicaid. Here's what they do with Social Security:
The Challenge. Social Security is going broke, and beginning about 25 years from now will only have enough funds to pay about 75 percent of promised benefits. Benefits are also comparatively meager, and cannot be passed down to one’s heirs, should one die before reaching retirement age.
Our Answer. Successful experiments have proved that we can make this program sustainable and actually improve benefits. How? By harnessing the power of compound interest.Three decades ago, Chile embarked on a bold transformation of its retirement security system. Today, that system is the envy of the world, giving seniors far better benefits than the old, government-run system ever did. Soon after the Chilean reform got underway, three Texas county governments opted out of Social Security in favor of personal accounts. Today, county workers in those three jurisdictions retire with much more money and have significantly more generous death and disability supplemental benefits than do Social Security participants. And those three counties—unlike almost all others in the U.S.—face no long-term unfunded pension liabilities. All state and local governments should have the option of opting into the “Galveston model.” And all young people should have the option of opting into a better future with personal accounts like those found in Chile. The Tea Party Budget embraces the Chilean/Galveston approach, specifically by enacting a modified version of Rep. Jeff Flake’s (R-AZ) SMART Act. That bold reform allows new workers born after 1981 to invest one-half of their payroll taxes (7.65%) in a SMART Account, which they can use to fund their retirement and health care costs in retirement. If they prefer, they can give up their account and opt back into traditional Social Security at retirement.Thanks to this modern approach, our plan:
Doesn’t increase the retirement age.
Doesn’t means-test benefits.
Doesn’t cut benefits for people in or nearing retirement.
Doesn’t touch the existing Social Security Disability Insurance program.
Shores up the long-term solvency of traditional Social Security by slowing the growth of benefits (with “progressive price indexing”).
This reform — which we expect to be very popular — reduces federal payroll tax receipts by about $500 billion over the ten-year period—an excellent investment on a better system, and one that is fully paid for in this plan.
This would mark the beginning of the end for the government-run S.S. scam. No longer would the government be able to steal your retirement funds, then turn around and jack up your payroll taxes in Ponzi-like fashion to cover up their misdeeds. I not only say "yes", I say "hell yes !"
There's lot more to say here, but this is getting rather lengthy. I urge you all to read the details of the Tea Party budget. It's the best plan I've heard to date for fixing this mess, though there's still some room for improvement. Maybe I'll address more aspects of the budget in a future post.
One other interesting note. After the Tea Party produced their plan, they were going to present their recommendations to Congress...until the Senate Rules Committee, headed up by Chuck The Schmuck Schumer (D-NY), took away their microphones and locked them out minutes before the hearing was scheduled to start. Fascist jerk.
While the Occupy movement sits around in drum circles spouting inanities like "Capitalism Is Evil" and "Abolish Money", the Tea Party is actually doing work and coming up with solutions. The only problem I see with the Tea Party people is, there aren't enough of them...YET.