RSC Budget: Cut, Cap, and Balance is Back – And Here to Stay

Last year, we were proud to be one of the first websites to publicly promote the Republican Study Committee’s Cut, Cap and Balance (CCB) plan.  What started out as an idea hatched by a few principled conservatives grew into a unifying rallying cry for the entire conservative movement.  Sadly, GOP leadership jettisoned the universally-heralded CCB plan in favor of the Budget [Out of] Control Act, which gave Obama another $2.1 trillion in debt authority, while cutting nothing significantly except for defense.

Now, thanks to the indefatigable work of Reps. Jim Jordan, Scott Garrett, Mick Mulvaney, Tom McClintock, and Tim Huelskamp, CCB is back in the form of the annual RSC budget – and it’s here to stay.  The RSC budget – Cut, Cap, and Balance – immediately cuts discretionary spending in FY 2013 by $112 billion from last year’s spending levels, caps future spending at 18-18.7% of GDP, and balances the budget in just 5 years!  Overall, the RSC budget will cut $7.6 trillion relative to Obama’s budget and even $2.3 trillion more than the Ryan budget.

The amazing thing is that the balanced budget is achieved without accounting for the reforms to the biggest drivers of the deficits; Social Security and Medicare.  The budget proposal includes Paul Ryan’s Medicare premium support plan, and even adds Social Security reform (unlike the Ryan budget).  However, those changes don’t begin until after the 10-year budget frame.  As such, none of the savings are included in the budget.

While it is clear that those two leviathans must be reformed in order to maintain a balanced budget in the long-run, this budget illustrates something unique in budget land.  It is the first proposal that shows how to balance the budget in 5 years, even without reforming SS and Medicare immediately.  This does not diminish the importance of reforming those programs; rather it shows how much dead wood is lodged into the rest of the budget – an observation that is often overlooked.

Here is a detailed breakdown of the budget proposal:

Discretionary Spending: This budget sets the FY 2013 discretionary spending cap at $931 billion,roughly equal to 2008 levels.  That’s hardly too much to ask for.  It takes the $1.028 trillion level established in the Ryan budget and bakes in the $97 billion of impending sequester cuts (slated to begin on January 2) into the budget from the beginning of the year.  Specifically, it parries away the cuts from defense spending and directs it to the harmful, wasteful, and unconstitutional government programs and agencies.  The list of programs that will be terminated includes the National Labor Relations Board, Trade Adjustment Assistance, the Presidential Campaign Fund, the Legal Services Corporation, the Corporation for Public Broadcasting, the Universal Service Fund, the Economic Development Agency, and the National Endowment for the Arts.

Here is the key point: All discretionary spending is frozen at the $931 billion level until the budget balances in FY 2017.  From FY 2018-2022, growth of discretionary spending is capped to inflation.  Moreover, in order to keep total discretionary spending at this level, while simultaneously providing for our national security needs, the sub-category of defense spending is allowed to rise gradually (the same levels as the Ryan budget), as non-defense discretionary spending actually declines every year until FY 2018.  Overall, the RSC budget saves about $750 billion more in discretionary spending than the Ryan budget.

Medicaid and Welfare: The paramount entitlement reform of the budget is Medicaid reform.  The proposal incorporates the recently-introduced State Health Flexibility Act (H.R. 4160), which combines Medicaid and SCHIP into one block grant to the states, allowing them to do with it whatever they deem prudent.  Unlike the Ryan plan, this proposal would freeze the block grant at FY 2012 levels (in nominal dollars) for ten years. Overall, the RSC budget saves $760 billion more than the Ryan budget from Medicaid/CHIP proposal and over $2 trillion from the current baseline.

For other mandatory programs, the budget incorporates the RSC’s Welfare Reform Act of 2011 (H.R. 1167).  Once unemployment dips below 6.5%, this bill would freeze all spending on the 77 means-tested programs at 2007 levels (pre-recession welfare payments), rising only with inflation.  It would also place some budget constraints on these “mandatory” programs, and subject the Food Stamp program to the same work requirements that were placed on TANF under the 1996 welfare reform bill.  Total savings from welfare reform will be $260 billion over 10 years.

Other reforms include:

Requiring current federal workers to contribute more to their pensions and health benefits, while limiting the rate of growth of federal pensions to the “Chained-CPI.”Cutting agriculture subsidies by abolishing the Direct Payment farm subsidy, the Foreign Market Development Program, and the Market Access Program.Privatizing Freddie and FannieEliminating all mandatory spending for Pell Grants, subjecting 100% of price tag to the annual budget process.

Taxes:  In addition to balancing the budget in 5 years, the RSC plan would also enact pro-growth tax reform, “The Jobs Through Growth Act,” aiming for the same revenue baseline as the Ryan budget.  It would offer an optional transition to a new, flatter system that contains just two rates: 15% (first $50,000 taxable income for single filers, $100,000 for joint filers) and 25% (taxable income above that).  In order to ensure that there is no increased burden on middle-income families with several children; couples would get a $25,000 standard deduction and an additional $12,500 deduction for each dependent.  After this generous pro-family deduction, all other credits and deductions are eliminated, thereby putting an end to market distortions through the tax system.

The bill further calls for abolishing the death tax and AMT.  The corporate tax would be lowered to 25% and transformed to a territorial system.  Capital Gains taxes would be capped at 15% and indexed for inflation, so only the amount of gains beyond the level of inflation would be taxed.  Some other tax proposals offer slightly bolder plans for the capgains and corporate taxes, but the beauty of this plan is that it facilitates a balanced budget, even working with the inaccurate static scoring of the CBO.

In conclusion, this budget offers the broad contours for any serious plan to balance the budget, and more importantly, shrink the size of government.  On Thursday, the Cut, Cap, and Balance budget will be proposed as a floor amendment (H. Con. Res. 113) to the Ryan budget.  This will be one of those votes that shows who is willing to substantiate their commitments to spending cuts and limited government with real action.  It will also grant those who voted to kill CCB last year a second chance to right the ship.

Long live Cut Cap and Balance!

View the original article here

Morning Briefing for March 26, 2012

RedState Morning Briefing  March 26, 2012Go to www.RedStateMB.com to get
the Morning Briefing every morning at no charge.

Workforce Fairness is releasing a series of videos chronicling left-wing intimidation, including showing up at people’s houses to harass them and their families. We’re pleased to debut the first of the videos here at RedState. The videos document a growing trend in American civic discourse — the use of intimidation against private citizens to punish dissent.

Listen to Media Matters For America and other outlets on the left and they claim they are outraged at Rush Limbaugh for using the word “slut.”

They’re OK with it when the left does it. Routinely, conservative activists are targeted for harassment, subject to degrading comments, etc. from the left and they are okay with that. Bill Maher gets invited to keynote Democratic dinners.

Archbishop Chaput of Philadelphia, in a Lenten Letter to his pastoral flock, said that evil preaches tolerance until it is dominant and then tries to silence good. The secular left, having preached tolerance for years, is proving the Archbishop true with their new found intolerance for opposing views. Witness opponents to Proposition 8 in California actively targeting for harassment supporters of Proposition 8. Witness union goons showing up on the doorsteps of private citizens to scare them into submission. Witness Media Matters For America targeting American supporters of Israel and attacking them as “Israel Firsters,” questioning their loyalty to the United States.

The left is trying to shut down the opposition. When they were out of power, dissent was patriotic. Now that they are in power, they want to use both the state and intimidate in the public square to shut down opposing views. It goes beyond boycotts to financially intimate those who disagree with them. Now, the left is showing up at the private homes of American citizens they disagree with to intimidate them, threaten them, harass them, and make them pay for daring to have a different view.

The only time anyone wants to shut down opposing views is when the opposing views are winning. And that is the left’s problem. Rush Limbaugh, the free market, the right to work states, etc. are all winning. And it is not just that the right is winning, the left is losing.

Please click here for the rest of the post.

Trayvon Martin’s death in Florida is a terrible tragedy made even worse by a police department that seemingly bungled the investigation. There are multiple eyewitnesses, some who saw the shooter, George Zimmerman, yelling for help. Others saw Trayvon Martin yelling for help.

It shouldn’t be a partisan issue.

But MSNBC decided to make it one. According to Karen Finney on MSNBC, the Koch Brothers, NRA, and other conservatives are responsible for Trayvon Martin’s death.

Please click here for the rest of the post.

As a mother of four, the first of which entered public school last year, keeping up with my children’s education is extremely important to me. I’ve heard the stories of children fearing the end of the world due to global warming and seen the history books that exclude any Republican or Conservative from the important events that have shaped our country. My husband and I moved to a small town in South Carolina due in part to the notoriety of the schools. I immediately joined the PTA, looking forward to communicating and working with other parents to help our children achieve the high standards to which we hold them accountable.

Unfortunately, as is so often the case, this PTA had an agenda and used its access to my email address to push that agenda.

Please click here for the rest of the post.

It’s another week in Washington, and it’s yet another bailout. This time, taxpayers will be tapped for another $41 billion to subsidize the healthcare retirement benefits of postal workers – benefits that are quite scarce in the private sector.

Democrats have a serious problem with creative destruction and advancements in technology. For self-described progressives, they are quite regressive when it comes to efficiency in markets and use of technology. They exhibit nostalgia for 14th century energy technology and 20th century banking technology. Hence, they don’t care too much for market progression. In concerted drives to hold back the tide of technology, they are quick to offer a helping hand to a dying industry. One such industry is the mail delivery.

It’s no secret that the United States Postal Service is on its way out. The transition to electronic communication, in conjunction with the success of private mail carriers, has dramatically reduced the demand for their service. Consequently, they no longer generate enough revenue to function as a self-sufficient entity, particularly when it comes to paying employee retirement benefits. In recent years, the USPS has patched the annual losses with borrowed money from the Treasury. However, it is now in such dire straits that it’s expected to hit the $15 billion borrowing cap later this year. It needs extra taxpayer cash to fill in the gaps.

Please click here for the rest of the post.

The Republican Primary in Pennsylvania is one month away. I have documented just how terrible Congressman Tim Murphy is.

I’d like to encourage you to support his opponent, Evan Feinberg. Evan is endorsed by Senators Tom Coburn and Rand Paul. He is a solid conservative and a great fit for Tim Murphy’s district. Conservatives lost a primary with Don Manzullo’s defeat last week. What conservatives are seeing is conservative activists not opening their checkbooks. I realize people don’t have a lot of money to give these days, but the cruel reality is that conservatives need money to get elected and our opponents are opening their checkbooks up while we are not.

So do what you can for Evan Feinberg. We need him in Congress.

Please click here for the rest of the post.

View the original article here

Daily Links – March 26, 2012

Today is March 26th. On this date, in 1827, classical composer Ludwig van Beethoven died in Vienna, Austria. He was, of course, one of history’s greatest composers. (I think my personal Beethoven favorite is probably Moonlight Sonata.) If he were alive today, he would probably say “Hi, I’m Gary Oldman.” Also on this date, in 2000, Vladimir Putin was elected President of Russia, thereby laying the groundwork for the earth-shaking Tumblr that is Uncomfortable Moments With Putin. On the same day in 2000, the Seattle Kingdome was imploded, resulting in this awesome video. As a conservative, I just want to say that explosions, or in this case, implosions, rule. And finally, today is Make Your Own Holiday Day, which is why I’m declaring today International Celebrate Bloggers Day. So pour a bowl of cereal, take off your pants, and go watch some cat videos! Consider this an Open Thread.

Obama to Russia: ‘After My Election I Have More Flexibility’ | Weekly Standard
“President Obama got caught in private conversation with a hot mic today in Seoul, South Korea”

Judges discarded impartiality by signing recall petitions, say journalists who signed recall petitions | Daily Caller
“A Gannett Media executive was red-faced this weekend after nine of her employees were caught doing exactly what their paper had exposed 29 circuit judges for doing: trying to bring down Republican Gov. Scott Walker.”

Deficits do matter | Human Events
“The fact of the matter is that the estimated $15.6 trillion in debt is a hidden tax on future generations. It needs to be attacked.”

House Democrats’ New Spokesman: 9/11 Truther Martin Sheen | Weasel Zippers
“You’d think after the Van Jones fiasco the Dems would think twice about joining forces with a truther, and you’d be wrong.”

Today’s Word of the Day comes via Merriam-Webster.
hebdomadal (heb-DAH-muh-dul): adjective occurring, appearing, or done every week : weekly

View the original article here

The Left No Longer Finds Dissent Patriotic

Workforce Fairness is releasing a series of videos chronicling left-wing intimidation, including showing up at people’s houses to harass them and their families. We’re pleased to debut the first of the videos here at RedState. The videos document a growing trend in American civic discourse — the use of intimidation against private citizens to punish dissent.

Listen to Media Matters For America and other outlets on the left and they claim they are outraged at Rush Limbaugh for using the word “slut.”

They’re OK with it when the left does it. Routinely, conservative activists are targeted for harassment, subject to degrading comments, etc. from the left and they are okay with that. Bill Maher gets invited to keynote Democratic dinners.

Archbishop Chaput of Philadelphia, in a Lenten Letter to his pastoral flock, said that evil preaches tolerance until it is dominant and then tries to silence good. The secular left, having preached tolerance for years, is proving the Archbishop true with their new found intolerance for opposing views. Witness opponents to Proposition 8 in California actively targeting for harassment supporters of Proposition 8. Witness union goons showing up on the doorsteps of private citizens to scare them into submission. Witness Media Matters For America targeting American supporters of Israel and attacking them as “Israel Firsters,” questioning their loyalty to the United States.

The left is trying to shut down the opposition. When they were out of power, dissent was patriotic. Now that they are in power, they want to use both the state and intimidation in the public square to shut down opposing views. It goes beyond boycotts to financially intimidate those who disagree with them. Now, the left is showing up at the private homes of American citizens they disagree with to intimidate them, threaten them, harass them, and make them pay for daring to have a different view.

The only time anyone wants to shut down opposing views is when the opposing views are winning. And that is the left’s problem. Rush Limbaugh, the free market, the right to work states, etc. are all winning. And it is not just that the right is winning, the left is losing.

David Brock of Media Matters, for example, took the desperate act of spending $850,000.00 to buy his ex-boyfriend’s silence about Media Matters. He only spent $100,000.00 to try to silence Rush Limbaugh, by comparison. Media Matters has been subjected to two months of revelations that raise questions about their tax exempt status and coordination with the Democratic Party.

But it is not just Media Matters. It is unions too.

Like Media Matters, the unions are threatening and bullying businesses. They are threatening private citizens. Threatening the livelihood of businesses and individuals, unions, Media Matters, and the left are intending to shut down the opposition through fear of a loss of livelihood.

What is most appalling to me, however, is how the right has failed to counter this bullying with an aggressive adverttising campaign showing what is happening — showing the gay rights protestors in California targeting donors to the Proposition 8 campaign, showing Media Matters targeting businesses that support free speech, showing unions targeting small businesses that won’t give in to union demands, showing union thugs showing up at the private residences of individuals to silence and intimidate them, etc.

That may be changing. Workforce Fairness is releasing a series of videos chronicling left-wing intimidation, including showing up at people’s houses to harass them and their families. We’re pleased to debut the first of the videos here at RedState.

View the original article here