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

Where are Your Tax Dollars Going?

Do you ever wonder where your tax dollars go? The Office of Manpower and Budget (OMB) uses accounting buckets to aggregate programs and spending. It calls large program groupings “Superfunctions”. The below chart clearly exposes that Superfunction monster. The blue line is the Superfunction named “Human Resources”, and it’s growing at an frightening rate.

US Federal Budget - Human Resources dwarfs the rest of the budget, including National Defense!

US Federal Budget – Human Resources dwarfs the rest of the budget, including National Defense!

The Human Resources Superfunction consists of a number of smaller program groupings called “Functions”. The Functions within it are:

  • Education, Training, Employment, and Social Services
  • Health (Including Obamacare)
  • Medicare
  • Income Security
  • Social Security
  • Veterans Benefits and Services

My next Blog will break out those Functions in another chart, to show the magnitude of each Function. If we are going to solve our unsustainable spending, we all need to understand where the money is going.

Note: The purple line, which is the Superfunction “Interest” (on the National Debt), is growing at nearly the same unsustainable rate as Human Resources.