Skip to comments.RSC Spending Plan a Good Start, More is Needed
Posted on 01/21/2011 9:42:33 AM PST by red meat conservative
The Republican Study Committee, the conservative House caucus, released a bill this week to cut $2.5 trillion in spending over the next 10 years. This plan, which is summarized in a two page document, includes cuts in specific Obama programs, as well as the elimination of old programs and subsidies.
The main objective of the RSC plan is to pass a CR that caps non defense/security discretionary spending for the remainder of FY 2011 to 2008 spending levels. Then, beginning in 2012, this bill would slash discretionary spending to 2006 levels and would eliminate automatic increases for inflation. The Spending Reduction Act of 2011 also calls for cuts in federal employees and their salaries, the privatization of Freddie Mac and Fannie Mae, and the sequestering of the remaining stimulus funds. Finally, the plan calls for the elimination of 56 programs, mandates, or subsidies that will save an additional $330 billion over 10 years.
While the RSC plan is a bold and prudent beginning, there is much more work to be done. It's important to note that recent budget deficits have skyrocketed to a gargantuan $1.3-$1.4 trillion. This budget plan would only shave off an average of $100 billion per year. Here are some other programs that should be eliminated as we aim for a balanced budget. Many of these cuts will probably be included in the new Welfare Reform Act that the RSC plans to unveil in the coming days.
These figures represent annual budget cuts from eliminating or restructuring programs that were identified and compiled by Brian Riedl of the Heritage Foundation. I highlighted the suggestions that were already adopted by the RSC in their Spending Reduction Act.
(Excerpt) Read more at redmeatconservative.blogspot.com ...
You’re exactly right and I want to voice two reasons. First all the budget projections assume that today’s historically low interest rates stay low. If inflation sets in, they will go much higher and then making the minimum payment on the debt, now at 10% of revenues, could skyrocket to 20%, 30% or worse. Second, more and more Americans are going to reach retirement age and get on SS and Medicare. This will mean even more cuts, year after year, in those budgets to keep us solvent. Better to take our medicine now as this congress can’t speak for future congresses.
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