By Alden L. Benton
In yesterday’s post, I reported on recommendations by The Cato Institute and Downsizing Government that would trim $772.8 billion dollars a year from the federal budget. Over a decade, this totals more than $7.2 trillion in savings.
The Office of Management and Budget projects a $1.3 trillion budget deficit for fiscal year 2012. In this scenario, the cuts recommended by Downsizing Government would cut the deficit to approximately $404 billion, 4.4 per cent of the estimated 2012 gross domestic product (GDP)
However, according to a Wall Street Journal article last February, “The deficit would decline in fiscal year 2012 to $1.1 trillion, or 7% of gross domestic product, under Mr. Obama’s plan, as a year-long payroll tax holiday and an extension of federal jobless benefits expired, administration officials said.”
According to the Bureau of Labor Statistics, the unemployment rate dropped to 8.6 per cent in November. Despite this decrease, millions of Americans will start losing their unemployment benefits beginning next year as the extension expires. Those fortunate enough to be working will pay higher payroll taxes as their “holiday” ends.
Congress is discussing whether to continue to extend unemployment benefits and whether to continue the payroll tax “holiday,” key elements in the presidents’ deficit plan that will increase the cost of government and increase taxes during an economic train wreck.
It should be painfully obvious by now, to all but the most deluded sycophantic idolater, that the president’s policies are not working. It is time to stop rehashing the same tired, unworkable economic theories (Keynes), and return to what works: Less tax, less regulation. The policies of Ronald Reagan (with a Democratic Congress) and continued by Bill Clinton (with a Republican Congress), ushered in an unprecedented era of posterity.
We must cut more from federal spending to avoid the stifling effects tax increases will have on economic recovery for it is economic recovery, not tax increases, that will bring more revenues to the federal coffer.
The best place to begin additional cuts is the thousands of agencies that micromanage the lives of every citizen. These agencies represent a shadow government that operates by its own rules, not by the rule of law, and are unaccountable to Congress or the public.
Message to Congress: Stop spending. Take a wrecking ball to government. Butcher your pet pork. Burn the tax code and federal regulations. Slash the budget to the bone.
There are only 337 days until Election Day. We are watching.
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