Skip to comments.This Is What Gets Defunded If The Treasury Has To Prioritize Payments
Posted on 07/25/2011 8:11:00 AM PDT by SeekAndFind
It's been assumed -- but never confirmed -- that if we hit the debt ceiling, that The Treasury could prioritize payments, continuing to make bond coupon payments and entitlements, while shutting off other spending.
The Bipartisan Policy Center has put together a presentation (.pdf) on the debt ceiling, and what prioritization would look like (via Stone Street Advisors).
These two charts show it all.
(Excerpt) Read more at businessinsider.com ...
The active duty military is going to get paid no matter what.
The longer one waits, the more cuts that will be needed to be done.
Looked at the charts, I say pay the vets and drop unemployment bennies.
Shut it down!
The active duty pay is all that would be a concern.
How about everybody on unemployment has two weeks to find a job. No more benefits after that. I think we will all be surprised how many of these people are working the system.
Figures that that would be the greatest expenditure.
I think this shows just how out of control spending has got. We can’t afford this. It was bound to fall in on it’s self once the economy started to stall.
Paul is looking for his payment and peter just filed chapter 7.
The list of things to be cut is very instructive as to where we should focus on cutting and eliminating. After the initial military pay and veterans services, the rest is where we should be trimming or cut out completely.
Instant rioting! Then again, the regime could then claim that unemployment is at 0%!
Unemployment insurance should be off the priority list.
Military pay MUST be put on the list. It is a Constitutional issue.
Why not cut 0bamao-care?
Why not eliminate the Department of mis-Education? A larger nest of malfeasance has never existed. Hundreds of billions in funding since its founding in 1977 by discredited Malaise President Carter, and the quality of American Education has been plummeting exponentially since.
How about the EPA? Their fixation on the discredited Global Warming hoax and their desire to tax us into penury while regulating us into the first century should be enough to signal their loss of any semblance of usefulness.
Hey, how about defunding the president’s parties and vacation junkets costing hundreds of millions?
They’d simply have to get over it. It was supposed to be a 26 week program and it’s turned into welfare. Time to dial it back.
The IRS confiscates money from the guy making $800 a week all year long knowing he isn't going to owe on April 15, but they don't want to give it back.
I think a major effort to repeal employer withholding would open a lot of eyes in this country.
"The people are responsible for the character of their government. If that body be ignorant, reckless, and corrupt, it is because the people tolerate ignorance, recklessness, and corruption. If it be intelligent, brave, and pure, it is because the people demand these high qualities to represent them..." - James Garfield
I might begin with stopping all unemployment benefits after 90 days (generous); next eliminate EPA & Dept.of Agriculture and Dept. Edukshun; on to fed. grants; highways and down the list checking for duplicating programs and each and every program that was out of date. Any and all food stamp recipients notified that food stamp program ends next month - period!
9 million don’t have a job?
many millions more have taken pay cuts?
how Soc. Sec. and Medicare,
all take across the board 10% cut?
10% is too much sharing the pain?
(Medicare used to have a lot higher copay.
that was removed.)
and 99 weeks for unemployment is too much.
cut it in half, that would save another
6.1 billion !
for a total of 16.01 billion.
and i would dearly love to see, the TOTAL cost,
of ALL money that illegals cost, directly and indirectly.
i read that it costs California alone over 21 billion a year.
nationally, it has to be over 100 billion right there.
Pay the debt and pay SS and medicare out of their current receipts...
Leaves about enough to pay military and half of everything else.
Cool. No big problem.
Agreed. But you will have a lot of folks tell you it doesn't matter. I agree with you.
Withholding is pernicious. Same with business taxes - just hidden in higher prices, lower wages, or reduced ROI.
Defund Dept. of Ed. NOW. It is NOTHING to help the kids. Every time money is thrown at Educ., it means another layer of bureaucrats and administration with no $ getting to the children and schools.
good point about refunds.
was an article this morning, talking about how lots of people, mostly women, get EITC “refunds” of 6-9 thousand!
i’d like to see a grand total, of just EITC
(income redistribution) refunds.
I overheard a fella the other day who was complaining that it was taking so long to get approved for SS disability.
He said if they don’t hurry, his unemployment is going to run out!
2 years ago, he was working and on nobodys teat.
But he’s sat on his ever-widening, sedentary behind for 2 years, and now has trouble walking.
He’s also now recieving healthcare for the whole family via Hoosier taxpayer provided medical, and got a bunch of energy-saving upgrades done to his house free of charge.
We’re teaching them how to do this.
It’s pretty clear Obama’s plan A is not to agree to a debt agreement and then maximize the pain and blame it all on the Republican House. Plan B is to get an agreement with tax increases, then use that to defeat Tea Party members who voted for it.
hehe... I agree with you.
However, urban areas will become war zones quickly.
Federal Revenues are approx $200 billion per month. You can easily pay active duty military and veterans affairs. Those two items are a drop in the bucket. The rest of the list could disappear and most people would never even know it had been shut down.
Bipartisan Policy Center.....
A US congressional panel rejected a proposal Thursday to cut off 7.5 Billion in aid to Pakistan.
So congress votes to give 7.5 Billion to Pakistan and
wants to default on 2.9 billion on active duty military
Would you like the red pill or the blue pill?
This whole budget is B.S. designed to fleece the public
and rob more of their dwindling property.
hehe... I agree with you.
However, urban areas will become war zones quickly.
I live nowhere near an urban area so.....win-win.
pay unemployement benefits before the active military? I think not. Cut unemployment checks in half and pay them both.
I have seen no effort by the administration to ask which retirees would be willing to forego all or part of their SS for some period of time- 6 months, or a year - certainly some would volunteer. Stop allowing SS for those age 62 unless they are certified as disabled
MEDICARE costs can be immediately shifted more onto individuals by establishing and raising deductibles
Ditto with MEDICAID, no more “free” visits, pay $1 or $5 or $10 and cut down on abuse of the system
Cut the cap gains tax to 10% for a 1 yr period, and stand back
I CALL SHENANIGANS...
This “Report” is bogus bullsh..t.
ONE: The “Unemployment insurance” mentioned is the Federal Extensions for 99-weekers. STATES have their own Unemployment Insurancce programs that the feds have been subsidizing since Porkulus.
TWO Revenues are closer to $200B a month, Not $172B
I’m in the heavily-wooded area of the burbs and have numerous contingency plans in my own household and with my neighbors to combat any insurgency. Unless there are more mindless unemployed zombies and thugs than there is ammo, I think we’ll be okay.
Cut out defense vendor payments. First of all, it’s filled with waste and over charging. Second, just force GE to pay the vendors with the taxes they should have been paying.
Cutting out all the government checks will not happen until there is no choice. And when that happens it’s every man for himself because things will get ugly.
That’s actually a pretty small list of things that wouldn’t get paid for. The other day I heard Erik Erikson whining on his radio show about the demise of NASA. NASA is the kind of thing you get rid of when you’re broke, not just NPR, Planned Parenthood or the Department of Education. Things I can also think of:
* Aid to Israel and any other foreign aid
* National Parks
* Most overseas military bases — pull out of Europe, South Korea, Japan and let them pay their own freight except for vital bases that support operations in our national interest
* Virtually all nonessential Federal agencies
I’m sure you all can think of things to add to the list. That is our new reality, courtesy of those who overspent and overpromised before us.
Agreed. Pay the military, pay the vets, give the tax refunds (just as much of a debt as interest payments). Drop unemployment benefits (why is the fedgov involved with them anyway - I pay unemployment taxes to my state).
I wish I had the same confidence about Retired Military Pay, but I do not...
Get rid of our outrageous payments to the U.N. STOP THEM NOW!!!
we are so screwed up
I think that all good conservatives should get out of the cities. Wouldn’t do to be caught there when the government funds stop. Those animals will be eating one another within days.
If anyone has any misconceptions about what drives our federal expenditures, these charts should have a sobering effect. The entitlement programs and debt servicing costs are about $130 billion a month. Look at all those things that total $134 billion that won’t be funded. Active duty military pay and federal salaries total only $17.1 billion. Food stamps are $9.3 billion.
I agree with Herman Cain. The decision should be by department.
Dropping unemployment insurance(12.8B) allows military pay to continue, plus a bunch more stuff). Is unemployment still 99 weeks?
Why are Social Security, Medicare and unemployment expenses on the “ok to pay” list? Don’t these expenses each have a dedicated funding source set aside in a lock box? That’s what Al Gore and the Dems have said for years...
These figures look as if they were skewed to make a point.
There is no time period stated so it is impossible to determmine the basis for these calculations.
Estimates for 2011 Government Revenue hover around $4.5 trillion.
Move the active duty military payments to the top chart and we would be good to go.
Much of the expenditure in the bottom chart is for items we would like to see eliminated anyway!
This whole discussion is LONG over due and is a healthy thing.
RE: It is mind boggling that monthly cost of unemployment benefits ($12.8 BILLION) - is over 4 times the monthly budget for active duty military pay ($2.9 BILLION)
We have about 3 million active and reserve military personell, on the other hand we have according tot he Bureau of Labor, 14 Million Unemployed ( those that are counted in the 9.2% unemployment rate ).
Therefore, we have over 4 1/2 times civilian unemployment compared to those in the military.
The cost numbers look proporational in this case.
And when I say “government” checks I’m also talking about all the fed employees. Less than half the people working “feed” the rest. Cut out all the fed employees and all the bennie checks and it’ll be even worse. Where do you think those people will get their needs filled? We all best have a lot of food and a lot of ammo.
In short, there’s nothing that can be done except raise the debt. IT pisses us all off but it’s going to happen.
51% of Medicare expenditures comes from the General Fund. By law, 75% of Medicare Parts B and D (SMI) are funded thru the General Fund. The premiums only cover 25% of the costs. Estimated expenditures for SMI in 2011 is $295 billion, 75% of which comes from the General Fund. The HI trust fund (Medicare Part A) has been cashing in its IOUs since 2008 to make up the shortfall from payroll taxes and payouts. And SS is also in the red cashing in its IOUs to make payments. The bottom line is that receipts are far from adequate to cover Medicare and SS.