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  • House Conservatives Offer Bold Proposal to Cut $2.5 Trillion in Federal Spending

    House conservatives are holding firm on their promise to cut federal spending. Speaking this morning at Heritage, Rep. Jim Jordan (R-Ohio) outlined $2.5 trillion worth of cuts between now and 2021 — a bold proposal called the Spending Reduction Act (SRA).

    Jordan, who serves as chairman of the Republican Study Committee, said the SRA would immediately return spending to 2008 levels and eventually cut non-defense discretionary spending to 2006 levels, as well as implement a hard freeze through 2021.

    “I have never seen the American people more ready for the tough-love measures needed to put our country back on a sustainable path,” Jordan said. “The question today is: Will the political class rise to the standard the American people have set the last year and a half? … I think the answer is yes.”

    Jordan authored a Washington Examiner op-ed with Sen. Jim DeMint (R-SC) and Rep. Scott Garrett (R-NJ) detailing the proposal, which also eliminates unused stimulus money and severs the government’s ties to Fannie Mae and Freddie Mac.

    It’s one of several priorities for the RSC this year. Jordan reminded the Heritage audience that the RSC exists to ensure that Republicans act like Republicans.

    Following shortly after the spending proposal, the RSC plans to unveil a Welfare Reform Act — something Jordan said he feels especially strongly about, as he ran for office in large part to strengthen the institution he considers the country’s bedrock: the family.

    “We’ve got to be willing to have the courage to do the right thing,” Jordan said. “Discipline is doing what you don’t want to do when you don’t want to do it. … We are at a point where we can no longer afford to do things the convenient way.”

    The congressman’s speech was cut short because he had to return to the House for voting. The House today debated legislation to replace “the job-killing health care law.”

    “That was probably the shortest political speech you’ll ever hear,” Jordan joked.

    Posted in Economics [slideshow_deploy]

    18 Responses to House Conservatives Offer Bold Proposal to Cut $2.5 Trillion in Federal Spending

    1. George Colgrove, VA says:

      "Even with $2.5 trillion in cuts, the proposal won’t balance the budget. Jordan said forthcoming RSC measure would address that goal — similar to one offered last year that brought the budget into balance within 10 years."

      This as mentioned in the attached articles the $2.5 trillion is not near enough. We need more. Unfortunately, they avoided the DoD. I say add the proposals thet the HF has identified and get the cuts going. In 2001 the DoD budget was just over $300 billion it has nearly tripled to just under $1 trillion.

      We can do better!

      How is this for demonstration?

      The feds have been fairly stable at pilfering only $2.55 trillion from the American Citizens over the last few years.

      The average household income has been static at $50,230 for pretty much the last decade.

      The feds have irresponsibly built up a national debt of $14 trillion.

      In the same ratio, the same level of debt for the average household would have to be $275,772.

      Only Barnie Frank and Chris Dodd think that is a good idea.

      How about this for a demonstration:

      The feds will spend $3.83 trillion this year.

      The average household income would need to spend $75,443 ($25,213 over their income!) at that ratio.

      How is this:

      The only allocation of funds that the feds are applying to the debt is about $200 billion to cover some of the interest payments.

      We are now adding somewhere between $100 to $150 billion to the debt each month and we are being charged over $400 billion for interest annually.

    2. Bobbie says:

      Thank you, Mr Jordan! Fannie and Freddie is a corrupt convenience and because the president influenced everyone to live beyond their means as if to follow the example of his government, people will have to learn or relearn how to be responsible WITHIN THEIR OWN means. Tough love is proper and helps open the mind.

      I think it was Harry Reid that said there was no proof the "affordable health care act" will destroy jobs!!! There is plenty of evidence currently destroying PRIVATE SECTOR jobs and increasing costs due to the deceivingly called "affordable health care act." Specifics must be addressed to THOSE WHO REFUSE TO COMPREHEND!

      The minds of the left show disrespect of private sector jobs. The people working in the private sector will remain working while being infiltrated by government for the sake of being employed! It isn't freedom and it isn't right! WE DON'T WANT GOVERNMENT CONTROLLING OUR LIVES AND FREEDOM!

    3. Mary of New York Cit says:

      I don't have a calculator handy, but I would bet that these cuts are truly

      peanuts in comparison to the cutting that needs to be done to get government out of our lives and our pocketbooks. There must thousands of government programs that need to go!!

    4. Lorita Goza, Oklahom says:

      Cut out all czars! and their money. Can that be done?

    5. Pingback: » Financial News Update – 1/20/11 NoisyRoom.net: The Progressive Hunter

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    7. Tom Beebe, St Louis says:

      Here's a one page plan to address reform of both taxes and entitlements. See how it addresses state budget problems, Medicare, Medicaidm Social Security, Welfare, "flat world" competitiveness, and many more, all by starting with a clean slate and pursuing the principle of Equal Justice Under Law for all.

      1. All persons residing in the U.S. shall come together in households for the purpose of reporting all income from any source, each item to be identified by payer's and payee's tax number, and for receipt of federal and state benefits. Members of a household need not be related, need not reside together, and a household may consist of as few as one person.

      2. Each year congress shall set by legislation a "minimum wage" and a "tax rate".

      3. The following income shall not be subject to taxation:

      • An amount equal to a year's earnings at the minimum wage rate, for each adult (age 20-65) member of the household, decreasing 10% per year to 50% at age 15, and increasing 10% per year to 150% at age 70.

      • All payments for what is classified as necessary health care for all members of the household including medical care, any pharmaceuticals prescribed by a recognized health care professional, vision and hearing aids, and membership fees for health-enhancing entities such as gyms or other exercise facilities. Health care insurance premiums may be deducted but not health care expense paid for by such insurance.

      • All educational expenses including day care for young children or legally incompetent persons, that portion of state and local taxes identified as spent on education, that portion of parochial school tuition, fees and other expenses identified as going for non-sectarian education, tuition, fees and educational materials for private school education at any level, and a per-diem allowance for students traveling more than 50 miles from primary residence for education.

      • All income saved into an identified account from which investments may be made. All withdrawals from this account for the benefit of any member of the household shall be reported as income to that member.

      4. The "tax rate" shall be applied to any income over and above the deductions listed above, regardless of amount.

      5. For households whose deductions exceed total income, the Federal Government shall make payment equal to the tax rate multiplied by the shortfall in income, as shall municipalities and states.

      6. There shall be no federal tax on corporations or other business entities.

      7. The Office of Management and Budget shall compute revenues to be expected using the newly set tax rate and minimum wage, applied to the previous year's reported incomes. No expenses in excess of that amount may be authorized or made by the federal government without approval by 75% of each house of Congress.

      8. At the request, by legislation duly enacted by a municipality having greater than 100,000 inhabitants or a state, a surtax may be imposed on citizens of that municipality or state which shall be applied in a manner exactly as applied for the Federal tax.

    8. Pingback: “House Conservatives Offer Bold Proposal to Cut .5 Trillion in Federal Spending” and related posts « Blog Links « Syndicated Jokers

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    10. Pingback: In The Green Room: Ohio Congressman Jim Jordan Championing Conservatism in the 112th | The Foundry: Conservative Policy News.

    11. Kelly Johnston, Camd says:

      Kudos to my friend Rep. Jim Jordan and the RSC plan. It's a good start. There is one very glaring omission — the failure to include an elimination of $4.6 billion in annual ethanol subsidies, not to mention stiff import tariffs and federal production mandates that raises food prices and harms the environment.

    12. Pingback: “House Conservatives Offer Bold Proposal to Cut .5 Trillion in Federal Spending” and related posts « Blog Links « Syndicated Jokers

    13. cmwillshop says:

      The question is, do our politicians know what ‘the right thing’ is?

    14. John Lawrey, Arizona says:

      This 2.5 Trillion they are talking about is over 10 years so its a mere drop in the bucket. If we dont do something massive now we wont last the 10 years this is going to take. To start to get things back under control here is where we should start.

      1. Get rid of the Department of Education completely and totally. It will save billions. We spend more for each student on education than any country in the world and things are getting worse and worse. The only way to turn this around is to eliminate the Dept. of Education, turn all education back over to the states. Cut out 90% of the education management functions and get back to teaching the basics of how to read, write, and do your math, no more administration crap that takes away from the teaching of the students. Then maybe this will recover. No more unions that make it so bad teachers can't be fired, etc. Start challenging students to do better rather than grading 2+3 = 4 as ok you tried.

      2. Eliminate the EPA. They are totally out of control. Only way to cure this is to eliminate the department.

      3. Eliminate the FDA. The FDA is also out of control. They are going so far as to eliminate peoples ability to buy Vitamin C from companies that are not the BIG Pharma companies, and now with the new food safety bill it is going to be against the law to grow your own garden in your own yard.

      4. Eliminate the FCC. The FCC cannot dictate what is fair on the airwaves (violation of the constitution to even try this for congress, president, senate or FCC) and we have no need for this type of control. The only thing we need is to allow distribution of frequencies for use by the public and this does not require a whole department.

      5. Eliminate ATF (or as its sometimes called the BATF). Alchol, Tobacco and Firearms. None of this is needed and it intrudes on what the FBI and local law enforcement should be doing. The ATF tends to kill more innocent folks than criminals anymore so its time to do away with them.

      6. Eliminate Department of Energy. They do nothing but grow larger and larger and strangle industry with regulations. Eliminate the department and the regulations.

      7. Eliminate Department of Health and Human Services. This department now thinks it can control and regulate our health care and fine us if we dont agree with them. This department needs to be elimnated really badly.

      8. Department of Agriculture also needs to be eliminated. This department is so bad now it rewards huge corporate farms and screws the small family owned farms out of existance. Get rid of this whole corrupt nauseating deparment.

      9. Governement grants to colleges. I've read some of these grants which amount to about a billion dollars each year and I have come to the conclusion that they have one purpose. They allow the colleges to teach what they want and then get a billion from the governement to provide the skills that various professions might need to get a job via extra classes. The problem is the courses they teach should give the group the skills needed to get a job and if those courses dont, those classes should be changed to provide what is needed. Instead they are in bed with a corrupt government (both democrat and republican) to bilk us of billions in chump change as they call it, and then say see this extra money got this group of people from this university a job. Never in my life have I seen something this corrupt at its core.

      10. Eliminate NAFTA, GATT and all those other treaties that suck our jobs out of this country. Start putting tarrifs up on goods coming into the country and removing barriers to keeping industry in the country. This will also start to bring industry back to the country, which we need badly if we are to survive as a nation.

      11. Protect the border and get rid of illegal immigration. I'm all for legal immigration, but what is going on now is just plain criminal.

      12. Get rid of the TSA (transportaion Security Agency) and the Department of Homeland Security. Both these government agencies are completely out of control at this point, putting in controls that remove our freedoms, which needs to be stopped. As an Engineer I can tell you the current airport screening machines will have most fliers down with very bad cases of cancer within 10 years with the amount of X-rays they get with each screening. You folks need to be aware of what those machines actually do, not what they tell you they are doing. Because so far everything TSA has said about their scanning machines has been a total fabrication of the truth.

      13. Now once we eliminate all the above as a starter to get things rolling, we need to make sure no congressman, senator, president, etc. gets any different health care than what everyone else gets period. We need to cut salaries across the board by at least 10% and maybe 15%, then freeze all raises till we have completely recovered even if that takes 20 years. Then limit raises to less than 1% every 5-10 years to reign in growth, maybe even over a longer period. Then we need to eliminate every perk for anyone in congress, senate, president, etc. No special bonuses or perks, this job is a service to the country not a way to get a leg up on everyone else. No retirement plans, no special health care plans, no perks at all!

      14. Then we need to roll back government spending, by at least 60% to start and even more as we go through this bloat of government, no more 3-7% growth rates per year. There should be no growth rate to government spending. No more political types saying I cut 2% off the budget for real spending cuts, when the spending went up 5% (see they cut 2% of the 7% they were planning on growing). Reduce taxes not keep them the same but gut them down as low as we can. Then go through every single law on the books and if it does not meet the constitutional smell test it gets put in the toilet and flushed. Then put in solid term limits. One to two terms then your gone. That would eliminate 90% of the corruption because there would be no incentive to keep seeking re-election. Sure that would get rid of some of the problems we are having now and would get rid of some good congressman and senators, but the corruption up there is so bad now we need to clean the lot of them out.

      15. Thats what I would do the first year. Then from there we can see how much more fat in the government we can eliminate. Bring all our troops home, since its readily obvious the current crop of politcal leaders have no intention of winning, just appeasing, we might as well bring them home and keep them ready to defend this country.

      16. Next get rid of the Federal Reserve. Only congress can print money. Put ourselves back on the gold standard, if we still have any left in the country. Last no more elections for senate. The senators are appointed by the states and their sole goal is to protect each state from Bad Bills. This would create a huge reduction in bills passed as most of them tend to be rather bad. The Constitution originally had senators appointed to protect states by each state and not elected. We need it back in that configuration to reign in the corruption in the Senate.

      17. Put a halt to any new folks going on Social Security, and gradually we will elimanate this ponzi scheme. In addtion we need to go through medicare and all the other similar schemes and start making sure we dont grow these but gradually phase them out. Then put in real reforms that will reduce costs and also get rid of all the crappy lawsuits over hangnails and other things.

      18. Elminate OSHA, this is not a federal mandate, states can handle their own problems in this area.

      19. Repeal 100% of Obamacare and the Food Safety Bill (S510). Obamacare is the biggest tax increase in the history of the US. The food safety bill makes it so home gardens grown in your own yard (vegtables etc) are now illegal. It will put out of buiseness most plant nurseries, unless they start using genetically altered monsanto seeds, and it adds 17,000 new inspectors to cover all this. Defunding these things wont prevent them from coming back. They must be eliminated or we can be screwed again.

      20. Reduce NASA funding by 50%. We only need one thing from NASA, putting a man on mars and colonies on mars and the moon. All other funding needs to be eliminated as it can be done better through private industry.

      Now keep in mind this is a partial list of what we can do to reduce government and save money. We need to go over every single item of spending and start gutting this bloated government down to something that actually works again.

    15. Nani, Honolulu says:

      A huge money drain is in rail transit systems and funding needs to be eliminated. All across America cities are strapped with burdensome costs associated with rail systems that have nothing to do with traffic congestion relief. They are gravy trains for rail contractors, developers, unions, and ultimately politicians through enormous campaign contributions. They are also supported by environmentalist groups who want to get people out of their cars at any expense which of course does not work.

      It is tragic that the FTA has just days ago issued a Record of Decision for a 5.5 billion (and counting) dollar heavy rail project for Honolulu. The story is so long I could not begin to tell it, but one thing you may be interested in is that the City and County of Honolulu states in the FEIS that Honolulu is counting on 1.5 billion federal dollars. With a population of 900,000 this makes no sense whatsoever. The money has not been appropriated yet, and it is important that this project is exposed for what it is. This is Honolulu's "train to nowhere". 1.5 billion is s needle in a haystack these days, but the real disaster is the destruction of one of America's most treasured and beautiful vacation destinations. Not only will the thing suck us dry financially, it will destroy the beauty of the island. We also have recently lost an unrelated lawsuit with the EPA requiring us to upgrade our secondary treatment facilities which has a similar price tag. In the meantime our roads are reminiscent of a third world country.

      Of great concern is very recent comments by Mr. John Mica who heads the Transportation and Infrastructure committee. Mr. Mica is quoted in our local newspaper as being in full suport of this project and says he will do everything possible to be sure things go smoothly with the FTA. Please read today's article in our daily newspaper(link provided) http://www.staradvertiser.com/news/breaking/11433

      This REPUBLICAN needs to be educated about this project and I am hoping Heritage can help educate him. This is an absolute waste of money on all ends. Regarding local support, two years ago the voters voted in favor of building it by a very slim margin. This was prior to the cost surge, and after being brainwashed by a city campaign which spent over 3 million dollars promoting the project. Of course those opposed had very little money to educate the public.

      There is an expert in Honolulu who chronicles and publishes complete details of the entire rail project going back many years. ALL of these planned rail projects across the country need to be exposed for what they are. Ridership estimates are consistently unrealistically optimistic, and maintenance and operating costs are skyrocketing everywhere.

      As our other necessary infrastructure such as roads and bridges crumble, all across America municipalities are spending billions on rail projects which do not ever relieve traffic congestion, then they want more money to maintain them. It is a national scandal.


    16. Pingback: “House Conservatives Offer Bold Proposal to Cut .5 Trillion in Federal Spending” and related posts « Blog Links « Syndicated Jokers

    17. Louise Moncreaff, Ma says:

      Everything needs to be looked at including all subsidies, Congressional pay plus their staff pay and perks, fact finding tours costs, unnecessary depts. within the Federal Government, and unfair tax laws. With all due respect to Congresswoman Giffords who I respect and wish this had never happened to her or any one else, I doubt it any average American would get the same treatment that she has and will receive in the future. I am not talking about the emergency treatment or the care given to her during the very acute phase of the treatment, but the followup. I get the feeling those in the Congress and Senate as well as others in the White House are the kings and queens and we are the subjects or worse.

    18. Gabriel says:


      Why has your beloved 112th House majority not fixed every problem in the country already? Where are the jobs? Why is the deficit not lower? Do you not care about our countries future? Why do you vote for liars?

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