Posts Tagged ‘deficit’
–SNIP– But if you are an anti-tax conservative who sincerely believes that you have to cut spending and not “feed the beast” with more revenues, then one approach on spending cuts for the super committee to consider is the simple and creative “Penny Plan” introduced by Rep. Connie Mack, R-Fla.
Mr. Mack’s bill, H.R. 1848, would cut one penny out of every dollar actually spent by the federal government from year to year for the next six years, from FY 2012-FY 2017.
Beginning in FY 2018, there would be a budget cap of 18 percent of GDP (the average federal revenue as a percentage of GDP over the past 30 years). And by FY 2019, America would finally have a balanced budget — that is, assuming revenues naturally increase from the current 14.8 percent of GDP to 18 percent of GDP by 2019, after which the budget would be in surplus.
There is an automatic spending cut “trigger” under Mack’s plan — one he came up with well before the trigger used in the recently passed national debt ceiling bill.
If Congress failed to enact a budget implementing the 1 percent actual spending cut required under Mack’s measure, then there would be automatic, across-the-board actual cuts in all federal programs to meet the 1 percent reduction, and that means all: in defense, Social Security, Medicare, Food Stamps, defense, and national security spending. Everything.
Read more by Lanny Davis at NewsMax.com
–SNIP–At his inauguration in January 1961, newly elected President John F. Kennedy issued a famous challenge to his fellow Americans: “Ask not what your country can do for you—ask what you can do for your country.” Sadly, millions have reversed that into “Ask not what you can do for your country—ask what your country can do for you.” And to them the answer is— plenty!
Free food, free housing, free cell phones, free education, free health care, free money, and on it goes. So long as it’s free, why not?
Read more at ucg.org
A satirical short film taking a look at the national debt and how it applies to just one family
Ever hear of the strangler fig? It’s a parasitic tree in tropical forests that grows by wrapping its huge roots ever more tightly around a host tree until the host tree can’t grow anymore and dies (see the video below). It’s what our government in Washington has become.
The slowest postwar economic recovery ever is stalling out. Real (inflation adjusted) median income for American households fell $2,627 during Barack Hussein Obama’s first term, according to a report released last week by the U.S. Bureau of Census. The number of people with incomes below the poverty line rose by 6,667,000 — equivalent to the population of Massachusetts.
Our economic wounds are nearly all the result of government policy. The five worst offenders are:
1. Obamacare. It clobbers employment, as businesses in labor intensive industries shift workers from full to part time to avoid Obamacare mandates.
Read more by Jack Kelly from ToThePointNews.com
In a speech at The Heritage Foundation, House Budget Committee Chairman Paul Ryan (R-WI) spoke about Saving the American Idea. The full text transcript of his remarks as prepared for delivery are below:
“Saving the American Idea: Rejecting Fear, Envy and the Politics of Division”
Thank you so much, Ed, for that kind introduction.
We’re here today to explore the American Idea, and I can’t think of a better venue for this topic. The mission of the Heritage Foundation is to promote the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.
These are the principles that define the American Idea. And this mission has never been timelier, because these principles are very much under threat from policies here in Washington.
The American Idea belongs to all of us – inherited from our nation’s Founders, preserved by the countless sacrifices of our veterans, and advanced by visionary leaders, past and present.
What makes America exceptional – what gives life to the American Idea – is our dedication to the self-evident truth that we are all created equal, giving us equal rights to life, liberty and the pursuit of happiness. And that means opportunity.
Video and transcript of Rep. Paul Ryan’s speech at Heritage.org
The Path to Prosperity (Episode 1): America’s two futures, visualized
The Path to Prosperity (Episode 2): Saving Medicare, Visualized
Path to Prosperity (Episode 3): 3 Steps to Pro-Growth Tax Reform — VISUALIZED
The Trust Fund Myth
When a new bond is issued, it is printed on a laser printer located at the Bureau of the Public Debt’s Martinsburg, WV office. The bond is then carried across the room and put in a fireproof filing cabinet. That filing cabinet is the Social Security trust fund.
People tend to think of their Social Security benefits as an actual account, in their name, which contains cash or investments. In reality, the Social Security trust fund contains nothing more than IOUs that have no value beyond a promise to impose higher taxes on future workers. The annual surpluses that many thought were being used to build up a reserve for Baby Boomers have been spent on other government programs or to reduce government debt.
Social Security is not like a savings account in which payroll taxes are saved for retirement. Social Security is a pay-as-you-go system, meaning that the taxes paid by today’s workers are immediately sent out to pay the benefits of today’s retirees.
The problem with this system is that it only functions when there are a lot of workers paying payroll taxes and just a few retired people getting benefits. This is no longer the case. Our senior population is growing much faster than our working population and this means there are fewer and fewer workers supporting more and more retirees.
No Cash Is Being Saved . . .
Read more from the US Chamber of Commerce
The dividing line in the national debate over the future of public-sector unions can be found between the Land of Lincoln and its neighbor to the north.
The story of Illinois and Wisconsin is a tale of two very different states.
Wisconsin, led by Gov. Scott Walker and majority Republicans, took on public-sector unions and won in the pursuit of balancing a $3.6 billion state budget shortfall in 2011.
Illinois, led by Democrats with a veto-proof supermajority in the Legislature and Democrat Pat Quinn in the governor’s mansion (at least occasionally), have long coddled the public unions to which they and their campaign war chests are beholden. Consequently, the state faces billions of dollars in unpaid bills and unfunded pension liabilities for current public employees of about $130 billion.
Wisconsin’s economic prospects have vastly improved. . . .
Read more by Benjamin Yount and M.D. Kittle at Watchdog.org