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  • Morning Bell: Another Vision to Solve the Budget Crisis

    While Washington’s eyes are focused on the historic Obamacare hearings at the Supreme Court, work continues across the street in the House of Representatives where some Members of Congress — though not all — are doing their best to clean up Washington’s budgetary mess.

    It has now been 1,064 days since the U.S. Senate passed a budget, the national debt is nearing $16 trillion, and the deficit is at $1 trillion. In the face of this mess, the Republican Study Committee (RSC) yesterday unveiled its plan to balance the budget in five years, and it does so with entitlement reforms, sharp and aggressive spending cuts, avoiding tax hikes, including pro-growth tax reform, and providing for a strong national defense.

    Rep. Jim Jordan (R-OH), RSC Chairman, and Rep Scott Garrett (R-NJ), also of the committee, issued a statement saying that their plan is a clear, practical way to cut spending and balance the budget — and that leadership is needed in Washington’s budgetless vacuum:

    Our country’s spiraling debt crisis has reached a tipping point. We need a plan that makes the hard decisions now, not later, to solve our spiraling debt crisis. In the absence of President Obama coming forward to lead our country on the most pressing issue of our time, the RSC stepped up to the plate today by putting forward a bold solution to balance the budget in five years.

    The RSC’s budget proposal follows the one issued by House Budget Committee Chairman Paul Ryan (R-WI), which cuts spending in budget year 2013 and into the future, includes market-based reforms to health entitlements, and features a solid, growth-oriented tax plan. Contrast those plans with President Obama’s FY 2013 budget, which delivers a fourth consecutive annual deficit exceeding $1 trillion with spending that rises from $3.8 trillion to $5.8 trillion in 2022.

    Or just pause for a moment to consider the Senate’s non-efforts. Though it would take Senate Majority Leader Harry Reid (D-NV) only 51 votes to pass a budget resolution, he is instead opting for inaction. As The Wall Street Journal‘s Stephen Moore writes, “The reality is that Mr. Reid has made a calculation that Democrats are better off with no budget at all. This allows them to attack Mr. Ryan’s cuts to programs like Medicare without Democrats having to show their own hand.”

    The RSC’s plan isn’t perfect — Heritage’s Patrick Knudsen says it “falls short in substantiating many of its significant spending cuts with adequate policy detail.” Those details are necessary because budgets should be policy driven, not numbers driven. But Knudsen explains that it is, nevertheless, an “ambitious effort aimed at solving the twin crises of spending and debt.” Among the plan’s features, it contains $3.4 trillion in entitlement savings, repeals Obamacare, includes a solid (though very basic) step for Social Security by gradually raising the retirement age, and adopts Ryan’s plan to boldly transform Medicare into a premium support program. Knudsen concludes, “Notwithstanding its limitations, the aims and convictions behind this plan should not be ignored.”

    Among some quarters, aims and convictions are lacking on Capitol Hill, and leadership on the left is taking a pass on doing anything to get spending under control. And while everyone pays a price for higher debt, including slower economic growth, higher taxes and a lack of entrepreneurial independence, there is one group of Americans much worse off than the rest. America’s Debt-Paying Generation — those who are under 30 — will struggle throughout their lives to pay down the debt we’re racking up today.

    Heritage’s Saving the American Dream plan offers a fiscal blueprint that all budget proposals should follow — change and simplify the tax code, cut bureaucratic and regulatory spending, and begin reforming Medicare, Social Security and Medicaid so that those who need it most can count on them. It’s a good sign that conservative voices in Washington are offering ideas to help avert America’s fiscal disaster. Now it’s time for Congress to act on them.


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    Posted in Economics [slideshow_deploy]

    29 Responses to Morning Bell: Another Vision to Solve the Budget Crisis

    1. Ken Jarvis says:

      Every Car – in the World – New or Used – has a Spare Tire.
      Why? For Insurance. Have YOU ever had a spare tire?
      Of course, you could – as Scalia said, – Buy it when you need it,
      “JUSTICE SCALIA: We’re not stupid. They’re going to buy insurance later. They’re young and — and need the money now.”

      I would be willing to bet, that every one of the Supreme Court Judges takes Blood Pressure and Cholesterol medication – How do they get it? With a Prescription from a Doctor.

      “JUSTICE SCALIA: We’re not stupid. They’re going to buy insurance later. They’re young and — and need the money now.”
      Yes, Judge Scalia – they are Stupid.

    2. Frank says:

      "Another Vision to Solve the Budget Crisis"

      You need to look no further than Ron Paul's proposed budget that will balance the Federal Government's budget in 3 years & start out with a $1 trillion cut the first year!

    3. Mickie says:

      Yes, good plan, Mr. Ryan but will the Republicans and John Boehner 'fight to the death' to get it passed, harry reid or no harry reid. Don't tell me they can't sway democrat senators to see the value in the absolute necessity to cut spending. It's the economy Stupid!

    4. Mary......WI says:

      Republicans in both the House and Senate MUST be persuasive when presenting the debt crisis this country is facing and the consequences if spending is NOT brought under control. This is a time when Republicans MUST abandon their "nice guy" attitude and be persistent! Show Americans the courage and stamina to face up against the liberals….explain EVERYTHING so Americans clearly understand what will happen to this country if spending is NOT controlled. Americans that voted you in office are depending on you! As I've told the Republican Party when they call for donations…..until Republicans show me some real backbone and FIGHT for the American people you won't get a cent from me. "Get er done"! :o)

    5. clarenceswinney says:

      Who Dug the Deep Hole? Who Fumbled the ball?
      Numbers rounded

      Clinton left Bush 5,700B of Debt
      Bush left Obama 11,800B of Debt

      Clinton left Bush a 237,000 net new jobs created per month
      Bush left Obama a 31,000 lowest number since Hoover.

      Clinton left Bush 17 Million Manufacturing Jobs
      Bush left Obama 11 Million Manufacturing Jobs

      Clinton left Bush a 10,800 Dow
      Bush left Obama an 8028 Dow

      Clinton left Bush Peace on Earth Good Will From Most Men
      Bush left Obama Hell on Earth Two disastrous wars. Enmity of 1500 Million Muslims

    6. clarenceswinney says:

      Ruined our great Savings and Loan Industry
      Closed Fairness Doctrine that has allowed Mush Dimbaugh types on our public airwaves
      Closed Revenue Sharing
      Since 1980, initiated our involvement in 10 foreign conflicts
      Repealed Glass Steagall—took deposits in 7000 banks and put 80% in (10) Too Big To Fail
      Modernization of Commodities Market—from Investment to Casino Derivative Of America
      2 very dumb invasions of two of most poor -most unarmed nations on earth=OIL OIL OIL
      Ruined our International Reputation as a Do Good Christian nation to Big Bully Devil.
      Stood by as Freak Marketeers ruined our Housing Industry.
      Stood by as Casino Derivative of America ruined the World Financial Industry.
      Impeached a Great President for petty political gains that created long term animosity between two parties.
      Attempted to destroy Safety Nets that make America great middle class
      Implemented Tax Codes that permitted redistribution of Wealth to top (10%) who now own (73%) of all Net Wealth and (83%) of all Financial Wealth and take home (50%) of all individual income.

      • Bobbie says:

        you have conservatives confused with government controlling your ability to think for yourself!

    7. clarenceswinney says:

      Today, they have taken America to ranking in oecd nations as (# 2) as Least Taxed—(# 2) as least taxed corporations and horror horror (# 4) on Inequality from bottom 5 in 1980.
      Since 1980, their Spend & Borrow policies are, mainly, responsible for adding 14,000 Billion to a 1000 Billion debt
      Fought the great GI Bill.
      Fought the WWII Draft
      Installed strict laws which created 57 % of prison inmates on Marijuana use charges which make us lead the world in prison population.
      Refuse to control the drug Beer.
      There are many many more baddies.
      REPUBLICAN CONSERVATIVES AS WAS DONE IN 2001-2002-2003-2004-2005-2006.

      • T. W. Peterson says:

        Actually the years 2003 until September 2008 were pretty good years for business. If you readjusted your numbers above to September 2008, you would find a significant difference for the Bush results. The catastrophe that occurred beginning in September 2008 is rooted in a number of different causes that implicate both Democrats and Republicans. And, by the way, Glass Steagall was repealed during the Clinton administration.

    8. milton ingerman says:

      May I suggest to all who refer to our debt and deficit to cite the actual numerical figure indicating the actual number (12 ! ) of 0's involved: e.g. $1,000,000,000,000 !!!

    9. clarenceswinney says:

      1945-1980 were 35 years of great growth and equality
      1980-2009 gave us 3 Conservative presidents who:
      took 600 budget to 3500
      took 1000 debt to 10,000
      took surplus to 1400 deficit as far as eye can see
      took 218,000 net new jobs per month to 99.000
      Took Peace on Earth
      to Hell On Earth with two horrid unneeded wars killing hundreds of thousands of innocents
      smashed our housing industry
      smashed our financial industry
      took us to #2 Least Taxed in Oecd nations but on borrowed money that enriched the rich
      took us to #2 LeAst taxed corporations who pay 10% of income on a 35% tax rate
      Took us to #4 on Inequality where 10% own almost 80% of wealth and get 50% of income
      Where 70,000,000 get about 10% of individual income

      • Bobbie says:

        gee, I feel sorry for you who can't see beyond government or make the difference between freedom and government control.

    10. John C. Davidson says:

      It is all the true Americans can hope to do while combating the Socialist movement now moving through the Congress. We've compromised with them far too long and the result is we have already lost most of the freedoms the constitution provided for us.

    11. Larry W says:

      What happened to Heritage's count up on Our Senate's record-breaking days without a Budget? How about adding another tracking number:
      Number of bills / budgets passed by Our House of Representatives vs Number of THOSE BILLS passed by the Senate…
      It is time we take our language back, with or without The LIBERAL PRESS. It is not a "Do Nothing Congress." IT is a DO NOTHING SENATE!
      Thanks Heritage.

    12. Lloyd Scallan says:

      We still don't understand that the House can stand on there heads and spit nickels, but until we rid the Senate of Reid and majority Dem control and the White House of Obama, there will never be any plan accepted that could help save our nation's economy. Over and over again, Obama has shown us his plan to force the American people into his idea of a socialist utopia. Yet not enough of us are willing to accpt that a president of this nation could do this. Well wake up America and realize this is happening, in the wide open, right under our noses.

    13. Mark Simmons says:

      These folks working on the budget are the only adults in the room. It certainly isn't the Democrats in the Senate, who continue to ignore the problem and just want to keep their toys (power). Nor is it the Obama Administration that continues to blame everyone else for the debt while proposing their agenda to transform us into a third world socialist state with a budget so outrageous, even the Democrats won't touch it with a 10 foot pole.

    14. Sondra says:

      No more subsidies to the military industrial complex through the misnomer called "aid". 3 billion a year to israel-for one. hillary is giving 1.3 billion to US companies helping Egypts military=for what? Can anybody show where in the Constitution it is OK to take money from WE the People and send it to another country-for any reason? A vote for Dr. Ron Paul is avote for the Constitution.

    15. Jules says:

      The lack of a serious budget being proposed by the Democrats for the last three years needs to be made into an ad by the Republicans prior to the election in November. Reid's inaction on the budgets put forth by the Republicans also needs to be exploited for all its worth. This should, along with all the liberty robbing policies of the current administration, make up the base for ads to defeat the left. If the RNC is not too timid to make it happen.

    16. TheSchaper says:

      Wake up! America is going down and if you belong to the Lord then you are safe by His grace. The money, power, and greed of both parties is in charge.
      This is the way it is supposed to be according to the Word of God.

    17. TonyM says:

      Last year IBM made a proposal to Obama to develop a system for Medicare that would reduce costs of operating Medicare by $900 billion, by significantly reducing fraud, and dramitaically increasing efficiency. Furthermore, the Chairman of IBM, Palisamo, said IBM would develop the system at their own cost – zero cost to the taxpayers. Obama turned down the offer. Why has no one pursued this with the Obama Administration? Has Obama ever been asked why he turned this down? Why isn't this part of Ryan's plan?

    18. tucanofulano says:

      Here's a plan to quadruple the Trillions of debt – Obama's "game plan" = wind up expanding Medicare to cover everyone, "womb to tomb" and increase Social Security taxes 500% on everyone "womb to tomb". The gambit = get "Obamacare" in front of the Supremes in order to get it declared unConstitutional (which it is) in order to create support/demand for his single-payor "Womb to Tomb" universal Medicare plan (which as executive He will control).

    19. Ron W. Smith says:

      It's nice to know we all agree on a "strong national defense." It's unfortunate, though, that "the devil is in the details." Once the topic is broadened to include foreign policy decisions that have caused our hegemonic reach to exceed just national defense and have caused our National Security spending to top the $1,000,000,000,000 mark annually the result of foreign policy decisions that keep us expensively busy in too many places around the world, the matter of how to reduce the national debt through spending cuts takes on a whole new light. Solutions from the Right dance around that one while threatening mayhem to what they like to call "entitlements," choosing to underfund National Parks and a host of programs and institutions that benefit our citizens, and deferring yet again big funding of much-needed maintenance and development of infrastructure around the country. Conflating "strong national defense" and the international projection of American power is a tactic wearing thin as recent books like Washington Rules and The State of Emergency clearly show. Maintaining a strong national defense is not overly expensive. However, endlessly paying for Nation Building, Foreign Aid Designed to Gain the Cooperation of Foreign Countries, Homeland Security (clearly necessitated by our foreign policy stance), and Veterans Affairs (whose costs rise daily with the growing number of veterans seriously in need) IS overly expensive.
      When do we wake up to how hegemonic zeal, affordable in flush times but budget busting in lean times, is the main driver of our national debt, now over $16 trillion. When do we stop running our extravagant foreign policy on borrowed money, the debt service on which alone costs us over $300,000,000,000 a year?

    20. Dan E. Boyd says:

      When are we going to realize that our efforts to solve the budget crisis/financial mess that we have is in vain! The president of the United States INTENDS to bankrupt out country and our out-of-control congress is his assistant and the liberal news media is doing all it can to help the problem along. It's the socialist game – - create a serious problem and then the government can solve it.
      Dan E,. Boyd

    21. RennyG says:

      As the O says, he doesn't need the constitution, just do what you want. It seems like "everyone" agrees with him because "NO ONE" is trying to stop him!!!! So sad we have 500+ congressmen/women out there with nothing to do but talk about the infringes to our constitution!!!!

    22. stephen says:

      Why don't we create a war tax and pay it backwards for the cost of years of unfunded war, calculate how that would affect the debt?

    23. Blair Franconia, NH says:

      The Ryan budget's better than the Democrats' budget, which is nonexistent.

    24. Mike in NC says:

      Both the plan of Congressman Ryan, and the plan of Congressmen Jordan and Garrett, present some sanity in the face of morally and fiscally bankrupt and bankrupting, destructive, unconscionable, irresponsible, unsustainable Statist insanity, and thus also at least a brave ray of hope for saving instead of costing more of the freedoms, power, and resources of both current and subsequent generations of us, the people.
      Sure, there's a better plan, which is, in short, to return to our founding principles and documents, such as our Constitution, as written, which would make necessary drastically reducing the size and power of a decreasingly limited republican (small r) "federal" and increasingly unlimited Statist Marxist centralized "national" government. However, at least until better is presented, the Ryan, Jordan, and Garrett plans do present at least some responsible, sustainable sanity in the face of irresponsible, unsustainable insanity.

    25. Frank Z says:

      Once again, I'm not sure which planet Pat Knudsen is on; but raising the retirement age is kicking the can down the road again. Let's lower the ss rate and tax all payroll, not the ever changing ceiling. Ask Pat just how a bricklayer or mechanic can fruitfully perform beyond 65; it's barbaric to assume we can make people work forever while letting many freeloaders abuse the system. There is a solution to many of our problems, but both parties continue to avoid dealing with the problems except by cutting the benefits people have worked for as well as paid for.

    26. Jose Luis Lira says:

      I have a proposal that may help in reducing our national debt + the economic crisis: Minimum wage for all of congress, and the president .. until we're out of the red.

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