From the diaries by Erick

The Republican Study Committee, the conservative House caucus, released a bill this week to cut $2.5 trillion in spending over the next 10 years.  This plan, which is summarized in a two page document, includes cuts in specific Obama programs, as well as the elimination of old programs and subsidies.

The main objective of the RSC plan is to pass a CR that caps non defense/security discretionary spending for the remainder of FY 2011 to 2008 spending levels.  Then, beginning in 2012, this bill would slash discretionary spending to 2006 levels and would eliminate automatic increases for inflation.  The Spending Reduction Act of 2011 also calls for cuts in federal employees and their salaries, the privatization of Freddie Mac and Fannie Mae, and the sequestering of the remaining stimulus funds.  Finally, the plan calls for the elimination of 56 programs, mandates, or subsidies that will save an additional $330 billion over 10 years.

While the RSC plan is a bold and prudent beginning, there is much more work to be done.  It’s important to note that recent budget deficits have skyrocketed to a gargantuan $1.3-$1.4 trillion.  This budget plan would only shave off an average of $100 billion per year.  Here are some other programs that should be eliminated as we aim for a balanced budget.  Many of these cuts will probably be included in the new Welfare Reform Act that the RSC plans to unveil in the coming days.

These figures represent annual budget cuts from eliminating or restructuring programs that were identified and compiled by Brian Riedl of the Heritage Foundation.  I highlighted the suggestions that were already adopted by the RSC in their Spending Reduction Act.

As you can see, the Republican plan has touched upon many of the suggested cuts by the Heritage Foundation.  There are also some cuts that are mentioned in the RSC plan that generally cover some other programs that are listed above.  However, there are still billions of dollars in cuts that need to be made, especially in the realm of welfare and “tax credit” handouts to those who don’t pay taxes.  There are also several agencies in the Departments of Agriculture, Education, Energy, and Labor that need to be ameliorated or eliminated.  We look forward to RSC Chairman Jim Jordan’s welfare reform bill which promises to be a second act of this budget proposal.

Unfortunately, even if we take the scythe to every gratuitous component of discretionary spending, we will never balance the budget unless we enact entitlement reform.  Discretionary spending will only account for $1.3-$1.4 trillion of the estimated $3.7 trillion in total FY 2011 outlays.  In other words, the budget deficit is roughly as large as the sum total of all discretionary spending including defense, homeland security, and veterans expenses.  We simply must deal with the $2.3 trillion in annual entitlement spending if we are going to achieve any budget solvency.

Although many Republicans blithely shy away from entitlement reform, now is the time to push for privatization of Social Security and Medicare and the complete overhaul of Medicaid.  We need to stop the left and the media from framing it as “cuts in SS and Medicare”.  That disingenuous portrayal of entitlement reform  implies that seniors will be denied a percentage of their benefits even while contributing the same amount.  Instead, we need to advocate the empowerment of the individual through private ownership of their own destiny.  We must certainly honor all of the obligations to those who paid into the system.  But there must be a way out of this government control of retirement for younger workers.  When an American worker keeps, controls, and invests 100% of his retirement money at his own discretion, it is not a cut in benefits.  It is a restoration of private property to its rightful owner.

There is no better time to enact entitlement reform than now.  Here are the latest polling numbers from Rasmussen on all of the major policy issues:

I don’t recall a time when Republicans were leading Democrats on issues such as Social Security, Health Care, and Education.  If we are not willing to tackle entitlement spending (which cuts to the core of our constitutional belief in private ownership), then we will never balance the budget.  If we fail to do it now, we will never have the intransigence to implement such reforms in the future.  Godspeed, House conservatives!

Cross-posted to Red Meat Conservative