How the House Budget Committee Aims to Save America’s Future

rp_image0011-300x170.pngThe House Budget Committee released its fiscal year 2016 blueprint, A Balanced Budget for a Stronger America for returning to a balanced federal budget within 10 years. The House annually proposes balancing the budget and this year is no different. What is different, however, is that Republicans now also run the Senate.

The evidence clearly shows that the United States is headed for a fiscal disaster if we don’t balance our budget. So how does the House budget proposal plan to accomplish this?

  • It claims to tackle big challenges while restoring accountability.
  • It balances the federal budget in less than 10 years by reducing $5.5 trillion in spending versus Pres. Obama’s FY 16 budget proposal.
  • It would also stave off a severe fiscal crisis that would certainly hit in the future while reforming vital safety net programs.
  • It claims to provide for the defense of our nation fulfilling the first most critical responsibility of our government.
  • It claims to build a foundation for an economy that rewards hard work ingenuity and entrepreneurship while respecting and restoring the principle of federalism.
  • It also aims to reform the Congressional budgetary process, which is designed to reward spending more instead of spending wisely.
  • It recognizes that interest payments on the current path will swamp other spending priorities in the budget if they are not dealt with.

I’ve shown in previous blogs how massive interest becomes as a part of our federal budget:

Top-10 Winners in President Obama’s FY2016 Budget

More Frightening CBO Forecasts from The Budget and Economic Outlook: 2015 To 2025

US Defense Budget vs Interest on Debt

  • It aims to cut out inefficiencies while keeping interest payments from drowning out key priorities.
  • Obama has presided over nearly $2,000,000,000,000 in tax increases in the past six years. The House plan intends to fix the tax code so it is simplified (currently costing America $160 billion annually to comply) and fair for families and businesses.
  • It means to streamline or repeal inefficient, ineffective or counterproductive regulations pouring from agencies like the Environmental Protection Agency and the National Labor Relations Board.
  • It looks to expand US domestic energy production while stopping wasteful government spending on programs that fail to deliver, like Solyndra, while also addressing some of the worst cases of corporate welfare.
  • Across the board the proposal looks to reduce or eliminate duplication among federal programs. Few Americans know about the most recent federal agency created in 2010 called the Corporation for Travel Promotion. One thing the United States does not need is to advertise how wonderful a country we are in order to get people to come here. Our problem involves slowing down the title wave of people every year who attempt to get into America.
  • It proposes complete repeal of Obamacare while saving, strengthening and securing Medicare, Medicaid and Social Security essential entitlement programs that on their current path will bust the budget and the American taxpayers.

In summary, the House plan is meant to balance the budget, reform the tax code, strengthen defense while reforming and saving the major entitlement programs which constitute the Giants in the federal budget. Failure to address these programs now as wisely suggested in the proposal, will force draconian federal budget cuts down the road and further rob our children of their financial futures and God given freedoms.

Considering the admirable goals of the House Budget Committee proposal, it only makes sense that Democrat politicians hate it. Their alternative, like socialism in general, is completely unaffordable!

Alan Greenspan’s Comments On Exploding Entitlements

Top 10 Winners in President Obama’s FY16 Budget

IMG_0533President Obama unveiled his 2016 BCA busting budget on Monday at the DHS Headquarters. The President extolled the virtues of his budget cutting, stating that he reduced annual deficits by two thirds since coming into office. Let’s examine that statement.

  • President Obama’s starting point was the largest deficit in American, and probably world, history, at over $1.4T in 2009.
  • In absolute terms, he signed the largest tax increase in American History, so he did raise more money by taking it from the American people.
  • Despite the ever-growing threats to our national security, he did substantially cut the US Military.
  • He also increased spending in many social programs and wealth redistribution programs, which more than compensated for defense cuts. The Budget Control Act of 2011 capped his spending increases. The BCA was the real control on spending, and it was thrust upon him when the American voters gave the GOP control of the House.

Now let’s take a look at where the budget increased the most. The Top 10 Largest Increases in FY16 (based upon dollars) – Where possible, color-coding has remained consistent with analysis of Social Programs/Wealth Redistribution.

– The 2015-2016 Delta column is a pure dollar comparison between FY15 and FY16. The % Delta column is added to show the magnitude of the increase compared to total program costs. Similar data is also presented for these same Top Ten comparing growth from 2007 (President Bush’s last pure budget) in purple to President Obama’s 2016 budget. What’s startling is that the combined growth of the top 5 programs in Chart 1 equals nearly $1.1T. That amount of annual growth alone is equal to the entire discretionary portion of the Federal Budget, including the Department of Defense.

2016 Predbud Top 10 Largest Growth Programs

Not surprisingly, the largest FY15 to FY16 increases are, interest and social programs. The defense increase follows two years of significant budget cuts despite an ever more dangerous world.

Also, Immigration Reform (highlighted in Red), totaling $8B, never existed before in the Federal Budget. The President is adding a brand new subfunction, despite the uproar and accusations of illegality over his executive amnesty. Without question it’s an in your face message to the new GOP majority, and unlikely to survive congressional budget hearings.