Posted by: Debby Durkee | January 28, 2011

Rand Paul’s $500 billion cut.

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Rand Paul’s $500 billion cut.

Newly elected Senator Rand Paul (R-KY) has already taken the Senate by storm. His Tea Party spirit is alive and well as he proposes cutting $500 billion from federal spending this year. Is it all doable? Unfortunately, probably not, but he’s made a bold proposal in a time of either wimpy trimming around the edges or not addressing the problem seriously. This is from David Freddoso of the Washington Examiner.

I’ve copied down the short version of what gets cut from each agency or department, and the percentage cut. Paul offers a more complete explanation of each item here.

LEGISLATIVE BRANCH………………………….$1,283,000,000. (23%)
Notes: The Government Printing Office is abolished.

JUDICIAL BRANCH………………………………..$2,434,000,000. (32%)

AGRICULTURE……………………………………..$42,542,000,000. (30%)
The Agriculture Research Service, National Institute of Food and Agriculture, Resources Conservation Service, and Foreign Agricultural Service are abolished. The Forest Service gets a $1.2 billion haircut.

COMMERCE……………………………………………$5,322,000,000. (54%)
National Oceanic And Atmospheric Administration (NOAA) is cut by $857,000,000.

DEFENSE……………………………………………….$47,500,000,000. (6.5%)

EDUCATION…………………………………………..$78,000,000,000 (83%)
Only the Pell grant program survives.

ENERGY……………………………………………………$44,200,000,000 (100%)
The Defense Department takes over all of Energy’s remaining functions (nuclear waste, for example) and about $18 billion of its budget.

HEALTH AND HUMAN SERVICES…………..$26,510,000,000. (26%)
Notes: FDA is cut by $230,000,000; Indian Health Service is cut by $650 million; CDC is cut by $1.17 billion; NIH by $5.8 billion.

HOMELAND SECURITY……………………………$23,765,000,000. (43%)
Notes: Coast Guard is shifted to Defense. TSA’s funds are cut by $900 million.

HOUSING AND URBAN DEVELOPMENT….$53,100,000,000. (100%)
Notes: Completely eliminated. Veterans’ housing programs are transferred to the VA

INTERIOR………………………………………………..$10,934,000,000. (78%)
Bureau of Reclamation and Bureau of Indian Affairs are abolished.

JUSTICE…………………………………………………….$9,057,000,000. (28%)
Note: Office of Justice Programs is abolished.

LABOR…………………………………………….$2,803,000,000. (2%)
OSHA, MSHA, and the Employment and Training Administration are spared all cuts (no cuts to unemployment benefits)

STATE………………………………………………………….$20,321,000,000. (71%)
Note: Massive foreign aid cuts. All international commissions and organizations are defunded.

TRANSPORTATION……………………………………..$42,810,000,000. (49%)
Notes: Amtrak is completely de-funded.

VETERANS’ AFFAIRS……………………………………No cuts

CORPS OF ENGINEERS.……………………………….$1,854,000,000. (27%)

EPA……………………………………………………..$3,238,000,000. (29%)

GENERAL SERVICES ADMINISTRATION…..$1,936,000,000. (85%)

INTERNATIONAL ASSISTANCE PROGRAMS…$24,300,000,000 (100%)

NASA……………………………………………………………….$4,500,000,000 (25%)

NATIONAL SCIENCE FOUNDATION……………$4,723,000,000. (62%)

OFFICE OF PERSONNEL MANAGEMENT…….$9,070,000,000.

SOCIAL SECURITY ADMINISTRATION………No cuts

FCC…………………………………………………..$2,150,000,000. (22%)

ABOLISH………………………………………………………$2,050,000,000. (100%)

(1) Affordable Housing Program.
(2) Commission on Fine Arts.
(3) Consumer Product Safety Commission.
(4) Corporation for Public Broadcasting.
(5) National Endowment for the Arts.
(6) National Endowment for the Humanities.
(7) State Justice Institute.

MISC

Collect delinquent taxes from Federal Employees……..$3,000,000,000.
Freeze Federal Government employee pay……………….$2,000,000,000.
Reduce Federal Government travel…………………………$7,500,000,000.
Repeal Davis-Bacon…………………………………………….. $6,000,000,000.
Prohibit union project labor agreements………………….$2,000,000,000.
TARP repeal………………………………………………………..$4,481,000,000.
Sell Federal Buildings…………………………………………..$19,000,000,000.
Reduce Federal vehicle budget……………………………………$600,000,000.

I actually looked through the detailed list where he explains why he’s cutting what he’s cutting and how future cuts could also be offered at a later date. Whatever you think of his plan, at least he’s putting it out there for the country to chew on. You can see the detailed report here: http://www.randpaul2010.com/wp-content/uploads/2011/01/Overview-500-billion-cuts-2.pdf

Read all of Freddoso’s article here: http://washingtonexaminer.com/blogs/beltway-confidential/2011/01/detailed-look-rand-paul-spending-bill

Paul to introduce a Social Security bill next.

Rand Paul is not done yet. In addition to his spending cuts, he plans to introduce a Social Security bill in the next few weeks. This is from Chris Moody over at The Daily Caller website.

Paul said Thursday that he will introduce another bill “in the next two or three weeks” that would address the Social Security entitlement program by raising the age of eligibility for younger workers and use “means testing” to determine if a citizen with high income is eligible to receive benefits.

“We are going to propose separate legislation sometime in the next two to three weeks that will gradually raise the age,” Paul said. “The debt commission waits until the year 2050 to begin raising the age. We’re going to do it much quicker, although we have promised near retirees not to do it to them so we are going to try and have a little bit of delay, but then we’re going to try raising the age.” Snip –

“You tell a 25-year-old that he’s going to be 70 when he gets Medicare or Social Security and I think he’ll say, ‘No big deal, I wasn’t positive I was going to get it anyway.’ So I think young people are going to be more than willing to embrace this,” he said. “Young people are more than willing and ready.”

The nonpartisan Congressional Budget Office released a report this week showing that Social Security will face a deficit in 2011, five years earlier than previous estimates.

Read it all here:

http://dailycaller.com/2011/01/27/not-done-yet-sen-rand-paul-to-introduce-social-security-bill-in-the-next-two-to-three-weeks/

Social Security is running deficits now.

With the Congressional Budget Office announcing Wednesday that Social Security is already running a deficit due to a combination of high unemployment and the first wave of Baby Boomers retiring, now might be the right time for Sen. Paul’s ideas. Rep. Paul Ryan (R-WI) has already made a proposal to save our entitlement programs and to save our country from the edge of the cliff with his “Roadmap for America’s Future.” Investor’s Business Daily says it time to put those programs into place because the Ponzi pyramid is nearly upside down. We can no longer kick the can down the road – because we’re at the end of the road.

The Congressional Budget Office says Social Security will begin running deficits this year and every year until it is drained in 2037. The baby boomers who used to pull the wagon are starting to ride it.  Snip –

In a report released Wednesday, the Congressional Budget Office projects that Social Security will pay out $45 billion more than it takes in this year, a figure that rises to $130 billion when the payroll tax cut is included from the Bush rate extension deal. The deficits will continue until Social Security is totally drained, around 2037.

The program first went into deficit last year, but CBO said at the time it wouldn’t go into permanent deficit until 2016. But we are in a jobless recovery coinciding with baby boomer retirements. Tax receipts are lagging in a sluggish economy as demands for benefits are rising rapidly.

“It means that Social Security is increasingly adding to our long-term fiscal problem, and it’s happening now,” said Eugene Steuerle, a former Treasury official who is now a fellow at the Urban Institute.

By 2037, if nothing is done, Social Security would collect enough in payroll taxes to pay out only about 78% of promised benefits, according to the Social Security Administration. Snip –

Of course, Democrats are licking their chops ready to demagogue the issue to paint Republicans as killers of Social Security, when Republicans only want to make a retirement program secure for our children as well as their parents and grandparents.

let younger workers invest their own money in a retirement account with their name on it and real money in it, a real asset that can be used for retirement and passed on to the next generation as an inheritance?

Rep. Paul Ryan’s “roadmap” would let workers 55 and younger invest about a third of their Social Security tax into private accounts similar to the Thrift Savings Plan available to members of Congress. It would include modest adjustments in benefit growth for higher-income Americans and gradual increases in the retirement age to reflect changes in life expectancy.

The nonpartisan Office of the Chief Actuary for the Social Security Administration recently released its official score of the Social Security provisions of “A Roadmap for America’s Future.” They found Ryan’s plan would pay off the long-run actuarial deficit in Social Security while guaranteeing current and future retirees their full promised benefits.

It would also have the benefit of keeping the money in the private sector, where it couldn’t be spent on turtle tunnels but would be available for things like mortgage loans and investment capital for economic and job growth.

It’s time the country and the politicians in Washington, D.C. get real. If, as the president said the other night that we are a nation that “does big things,” then let’s show him that for once he wasn’t just blowing smoke. Let’s drag the Congress and the president along with us if we must. And, if any of these proposals pass the House and the Senate, then let’s dare Obama to veto the bill(s). Let’s take that veto into the 2012 election and see how he stands up. Read it all here:

http://www.investors.com/NewsAndAnalysis/Article/561248/201101271903/The-Third-Rail-Gets-Derailed.aspx

//

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Responses

  1. […] Top 10 Tech Scares of the Decade The past ten years saw some terrifying technology–and we haven’t even faced the Death Star yet. Read more on PC World Make sure to also read: https://politicallyempowered.wordpress.com/2011/01/28/rand-pauls-500-billion-cut/ […]

  2. Thanks for the brief explanation, and link to check for accuracy. Great job.


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