Tag Archives: CBO

News

Republican Paul Ryan proposes over 6 trillion in spending cuts

1 Comment
Rep. Paul Ryan
Rep. Paul Ryan

Finally. From the Wall Street Journal.

Excerpt:

[Tuesday] morning the new House Republican majority will introduce a budget that moves the debate from billions in spending cuts to trillions.

[…]The president’s recent budget proposal would accelerate America’s descent into a debt crisis. It doubles debt held by the public by the end of his first term and triples it by 2021. It imposes $1.5 trillion in new taxes, with spending that never falls below 23% of the economy. His budget permanently enlarges the size of government. It offers no reforms to save government health and retirement programs, and no leadership.

Our budget, which we call The Path to Prosperity, is very different. For starters, it cuts $6.2 trillion in spending from the president’s budget over the next 10 years, reduces the debt as a percentage of the economy, and puts the nation on a path to actually pay off our national debt. Our proposal brings federal spending to below 20% of gross domestic product (GDP), consistent with the postwar average, and reduces deficits by $4.4 trillion.

A study just released by the Heritage Center for Data Analysis projects that The Path to Prosperity will help create nearly one million new private-sector jobs next year, bring the unemployment rate down to 4% by 2015, and result in 2.5 million additional private-sector jobs in the last year of the decade. It spurs economic growth, with $1.5 trillion in additional real GDP over the decade. According to Heritage’s analysis, it would result in $1.1 trillion in higher wages and an average of $1,000 in additional family income each year.

Read the whole article for the details of the budget, which include:

  • Reducing spending
  • Welfare reform
  • Retirement program reform
  • Health care program reform
  • Budget enforcement
  • Tax reform

Here’s the official video:

Here’s the official page for Ryan’s Path to Prosperity budget proposal.

Here’s a little more motivation from the grown-ups at Investors Business Daily.

Excerpt:

By the Social Security and Medicare Trustees’ own estimates, we are running headlong into a fiscal tsunami. All told, the government’s entitlement accountants say, we have roughly $107 trillion in unfunded liabilities — $340,836 and change for every American alive today.

Even if you’re generous and reduce that by the amount of assets the government has, the future red ink at the end of the 2010 fiscal year was still about $57 trillion — $7 trillion for federal pensions, $17 trillion for Social Security, $22 trillion for Medicare, and about $11 trillion or so in debt. That’s $481,000 for every U.S. household.

I am sad because children being born today will have a lower standard of living tomorrow. We are spending away their future and it has got to stop! Why fuss about “saving the planet” when we are saddling the young with hundreds of thousands of dollars in debt?

Related posts

News

CBO finds that Obama understated budget deficits by 2.3 TRILLION

Leave a comment

From the Hill. (H/T Michelle Malkin)

Excerpt:

The Congressional Budget Office on Friday released its analysis of President Obama’s 2012 budget proposal and found it does less to rein in deficits and the debt than the administration had estimated.

CBO estimates Obama’s plan would produce 10 years of deficits totaling $9.5 trillion. By 2021, it would increase the debt held by the public to 87 percent of gross domestic product.

The administration, using different methods, estimated budget deficits would total $7.2 trillion over the next 10 years under the 2012 budget. It forecast that total debt in 2021 would be 77 percent of GDP.

The White House also said total deficits over the next decade would be $1.1 trillion more without the recommendations included in Obama’s budget.

Marc Goldwein, policy director for the Committee for a Responsible Federal Budget, said that CBO has found the effects to be almost nil.

He explained that the difference between the CBO’s $9.5 trillion estimate and OMB’s $7.2 trillion estimate comes from two sources: rosy economic growth assumptions by OMB and offsets for the Medicare doc fix as well as transportation spending OMB did not specify in the budget and which CBO will not factor in.

The most important aspect of CBO’s analysis is that, while OMB claimed the president’s budget “stabilized” the debt at 77 percent of GDP over the 10-year window, CBO estimates the debt will grow throughout the period and end up at 87 percent, he said.

Here’s Michelle Bachmann explaining that since the Democrats took control of the budget in 2007, over 5 trillion dollars has been added to the debt.

The chart Michele is talking about:

Barack Obama Budget Deficit
Barack Obama Budget Deficit

The last Republican budget was in 2006. The recession started in 2007, along with the spending.

Meanwhile, the Obama will attend his fourth party event of the month. It’s party time! Just like in college!

News

Indiana Republicans to introduce right-to-work bill

Leave a comment

From Fox News. (H/T Dad)

Excerpt:

Throngs of union members and supporters gathered in Indianapolis Monday for a protest against a proposed bill in the Indiana House that would restrict collective bargaining rights and make it a misdemeanor to require any employee to join or pay dues to a union.

Republican state Rep. Jerry Torr, the bill’s author, described his proposal as a tool to attract business to Indiana. He told Fox59 in Indianapolis that prospective employers are avoiding the state because they’re worried about its work rules.

“What I’m trying to do is bring jobs to Indiana,” Torr said. “We have lost manufacturing jobs in Indiana because we are not a right-to-work state.”

[…]Currently 22 states have right-to-work laws, according to the National Right to Work Legal Defense Foundation. Research by the National Conference of State Legislatures shows that several states in New England and in the northern Midwest are now considering right-to-work proposals.

Minnesota state Rep. Keith Downey wants right-to-work language enshrined in his state’s constitution — that’s part of a proposal he’s putting forward that would also slash the state work force and freeze pay.

Michigan’s Legislature is also weighing the idea of letting local jurisdictions create right-to-work zones. New Mexico, Connecticut and Alaska, among other states, have right-to-work bills currently in committee.

In Wisconsin, Walker is casting every component of his plan as critical.

He told “Fox News Sunday” that he’s not willing to hammer out a compromise that leaves collective bargaining rights in place — even if the state Senate Democrats who skipped town in order to prevent a vote agree on raising benefits contributions.

Walker said he wants to give local governments “the tools they need to balance the budget now and in the future” by changing the collective bargaining laws. His office released a fact sheet Monday giving examples of benefits won through collective bargaining, including health insurance that covers Viagara.

Plus, Walker said workers must have the “flexibility” to stay out of a union — and in turn avoid dues payments — if they choose.

“For us, if you want to have democracy, if you want to have the American way, which is allowing people to have a choice, that’s exactly what we’re allowing there,” Walker said. “People see the value, they see the work, they can continue to vote to certify that union and they can continue to voluntarily have those union dues, and write the check out and give it to the union to make their case, but they shouldn’t be forced to be a part of this if that’s not what they want to do.”

Teachers, for example, are really expensive… I am not sure we can afford to pay them as much as we do during a recession. (H/T Tina)

We really need to stop overpaying people with guaranteed jobs all these inflated salaries and benefits during a recession. There just aren’t enough of us out here working on goods and services to support the unions.