I have been asked to provide specifics as to what adjustments I would suggest in the Federal Budget to get it towards balance.  Here are my suggestions.  But first, let me predicate my suggestions with a basic philosophical comment.  The U. S. Economic System is predicated on the concept that people are responsible to participate in the economic system by getting a job, and earning a wage in order to reap the rewards of consuming goods and services.  The government cannot afford to destroy this concept by destroying the incentive to work.  Thus, any government program that frustrates or destroys the incentive for people to work for their income to be able to consume is a program that needs to die.  My suggested budget cuts are as follows:

     1. Delete the Elementary and Secondary Scool Improvement Program (Dept of Education) with a savings of $5.4B

     2.  Delete the Offices of Innovation and Improvement, Safety and Drug Free Schools, and English Language Acquisition (Dept of Education) with a savings of $2.2B

     3.  under the Depart of of Health and Human Services, delete The State Childrens Health Insurance Fund (savings of $6.9B), and reduce Medicaid by 75% (a savings of $150B) based on the concept that people should earn income for health care, not live off the American taxpayer to receive it.  The 25% remaining would be for those who truly cannot work due to disability.  Additionally the program under the Administration for Childrens and Families could be cut in half (a savings of $10B) by setting a limit for families or individuals to be beneficiaries of these programs to four years maximum during their entire lifetime.

     4.  Under the Department of Housing and Urban Development, cut the Housing Assistance programs by 1/3 (a saving of $10B) setting a limit for families or individual to be beneficiaries of these programs to a maximum of 4 years for their entire lives.

     5.  Under the Department of the Treasury, delete the Earned Income Tax Credit program (saving of $40.6B), the Child Care Credit subsidy (saving of $34.0B), and the IRS as an agency (saving of $31.1 B, including tax rebates).  IRS can go because the Federal Government adopts the Fair Tax as a replacement of the current income tax system.

     6.  Cut Social Security by 20% (saving of $100B) by restructuring it to include pensions, interest income, IRA distributions, interest, 401K distributions and all other sources of wealth generation during retirement.  The goal is to prevent anyone with retirement income from virtually all sources of $100 Thousand per year from collecting any Social Security.  Additionally, the ceiling for paying into Social Security should be lifted completely, and should also be collected from all wage/salary/bonus payment sources such as stock, stock options, or all other wealth generating payments to an employee (including directors on corporate boards).

     7.  Finally, I would adjust the newly established drug program for seniors under Medicare/Social Security to make the program voluntary and reduce participation to only those who need it.  Cost savings may or may not accrue to a program revision. 

One final comment.  I talk to a large number of taxpaying Americans as part of my life’s work.  Most of them are appauled and angry that they work hard to earn money for their family’s needs and they also work to improve their skills to increase their earning potential only to watch this Congress of the United States pay more money to people who act irresponsibly.

First, I thank those who responded to my  blog on the new Republican Contract with America.  Second, my comments will be generic to comments made on each item rather than specific to a person.  Third, thanks for your patience in awaiting my comments.  I don’t spend a lot of time on the author side of RedState.  So here goes for a response to the first item of the contract.  I agree that the 16th Amendment to the U. S. Constitution would have to be repealed.  I also believe that it could be repealed only with a large outcry of the American public.  As for that, I urge us all to get the word to the American public that this tax system is both exceedingly anti-American and anti-capitalist.  Our current Federal Income Tax System grossly violates all four of Adam Smith’s maxims on taxation.  Adam Smith, of course, is the architect of our American capitalist economic system.  Adam Smith says that a tax system shold be proportional in impact to all payers, certain as to time, place, and amount, convenient for the taxpayer to pay, and inexpensive for the Government to collect and the taxpayer to pay.  Our current income tax system violates all four maxims significantly.  If you wish more details on this topic, please read my book, “Of Political Correctness, Leading to Economic Insanity–Both, Needing God with author as Dr. John C. Bredfeldt.  Again, once we get the word out to the American public as to just how bad this tax system is for American taxpayers and the U. S. Economic system, enough voters may tell their friendly neighborhood Congressmen that they can vote a national sales tax in or be voted out of office.

I believe now is the time for the Republican Party, inspired by its conservative base, to establish a new “Contract with America.”  The Republicans in the 111th Congress, and the Republican Party leadership needs to create a consensus on the 10 items to be included in the contract and begin implementation immediately.  Here’s my list:

1.  Get rid of the current Federal Income Tax System and replace it with the Fair Tax.

2.  Go to a Federal Budget surplus within 3 years and stay with it.

3.  Get rid of welfare and generate a “workfare” program.

4.  Reinvigorate the Defense Department through a major weapons replacement program.

5.  Re-establish a disciplined financial system in the U. S. which segregates the financial opportunities and responsibilities among the various elements.   Essentially, greatly limit cross-fertilization of financial assets and transactions. 

6.  Reduce the cost of healthcare in the U. S. with the goal to limit the total cost of healthcare to no greater than 12% of the GDP (versus the 18% or so today) within 8 years.

7.  Overhaul Social Security to at least rid it of its regressive tax impacts on the American public.

8.  Embrace Supply-side economics as our economic policy “school of thought.”

9.  Ensure the “fairness doctrine” does not return to the radio and television air waves.

10.  Develop a comprehensive energy policy that balances exploitation of the U. S. developing the technology for new energy creation alternatives,and the discovery, development, and production of U. S. energy creating resources on our soil.  The goal is to reduce U. S. import of all energy resources by 50% in 8 years and for the U. S. to be 100% energy self-sufficient in 15 years.

That’s all for now folks!!!

We have now had 3 terms of a supposedly (conservative) democrat representing the 8th Congressional District in Georgia–Jim Marshall. The Republican Party has finally found someone who has the personal stature to beat Jim Marshall this fall and swing the pendulum one vote away from the liberal democratic domestic policies. That man is Rick Goddard. I recommend we all rally round Rick with our votes and our dollars to help him defeat Jim Marshall. Rick is a proven leader in that he retired in the Macon area from being the Commander of the Warner Robins Air Logistics Center. His strong conservative values will be a breath of fresh air from the 8th. Go Rick.