Federal Spending Out of Control

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This week, the President gave the “State of the Union” address to Congress.  I don’t watch these as they always sound like campaign speeches.  They are a chance for the President to defend what he has been doing and point at others at their bad ways.

He did though touch on the Federal budget deficit and said what we want to hear.  He said we must cut spending.  He also said though that we must “invest” in infrastructure and in education and in high speed rail.  Well, we can’t afford to have our government “invest” any more.  It’s time to cut spending to be LESS, yes, less, than tax revenue.  I’ve done this before and I’ll do it again.  Below I’ll show you how I’d drastically cut our budget and get spending to 95% of revenue NOW, not later.  Below is our 2010 budget.  2011’s budget breakdown isn’t out yet.

2010 Federal Budget
Mandatory spending: $2.009 trillion (-20.1%)

Cut it by 10%.  Lower payout to recipients.  Elimination of dependent payments to children. Savings of $70 billion

  • $571 billion (−15.2%) – Other mandatory programs

I don’t like “other”.  50% reduction.  Savings of $286 billion

Cut by 10%.  Eliminate Part D (prescription drug plan).  Benefits lowered.  Savings of $45 billion.

Cut by 80%.  This should ONLY be for the poorest of poor.  No more paying people to have babies. Folks need to take personal responsibility for their lives.  This includes asking charities for help who can provide moral guidance, compassion and medical help at a lower cost.  Savings of $232 billion

  • $164 billion (+18.0%) – Interest on National Debt
  • $11 billion (+275%) – Potential disaster costs
  • $0 billion (−100%) – Troubled Asset Relief Program (TARP)
  • $0 billion (−100%) – Financial stabilization efforts

Now, I have carved $633 billion from “mandatory” spending.

Discretionary spending: $1.368 trillion (+13.1%)

I am for defense spending.  But, we have to spend less and get more.  There is so much wasted in DoD spending.  Cut it by 10%.  Savings of $66 billion.

If we’re cutting Medicare and Medicaid, we can cut the folks that manage them (as well as other useless programs.)  Cut by 25%.  Savings $16 billion

Cut by 30%.  They are useless.  $22 billion in Savings

This needs to be stripped by a lot.  It’s gone up too much lately.  40% cut.  $21 billion in savings.

Cut by 60%.  People need to get out there and pay for their own places.  HUD needs to eventually go away.  Savings of $29 billion

This should be a statics agency to aid schools in their effort to standardize.  It shouldn’t be another welfare program nor should it be promoting curriculum and operations and social engineering.  Cut it by 70%.  $28 billion in savings.

This has increased too much.  10% cut.  Savings of $2.6 billion.

Increase of 10%.  Cost of $1.9 billion

This has increased too much.  Cut by 20%.  Savings of $2.8 billion.

Cut 10%.  Savings of $1.3 billion

Cut 10%. Savings of $1.3 billion

Cut 10%.  Savings of $1.3 billion

Cut 20%. Savings of $2 billion

Cut 20%.  Savings of $1.9 billion

Increase 10%.  Cost of $700 million

Eliminate.  Savings of $5 billion

Eliminate.  Savings of $1.1 billion

  • $105 billion – Other

Cut by 50%.  It’s OTHER.  Savings $53 billion.

 

So, how did I do?  I cut $883.7 billion from the budget.  That’s still not enough.  And the 2011 budget adds another $400 billion in spending.

I want our government to spend 95% of taxes, putting 5% towards debt paydown.  I still have to add another $600 billion to reach such a fiscal position.  Can this be done?  Have we dug a trench so deep with welfare that we cannot get out of it without people going nuts?  Have we created a country of non-producers?  Best that we do 2 things at the same time.  Balance the budget (or spend slightly lower than expenditure) and implement a tax system that encourages inward investment in business.  The FairTax would be ideal.

 

 

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