Government Taking Money

GOP Counters with $800 Billion Tax Hike

Today, House Republican leaders cited Bill Clinton’s former chief of staff Erskine Bowles while offering up $800 billion in tax increases.  The Heritage Foundation said, the offer “appears little more than categorical, pre-emptive capitulation.”

Not only does the offer place tax increases squarely on the table, but also it completely abandons much-needed entitlement reform, saying, “we recognize it would be counterproductive to publicly or privately propose entitlement reforms that you and the leaders of your party appear unwilling to support.”

Heritage’s Alison Acosta Fraser and J.D. Foster, Ph.D. go on to say, “rarely in modern American politics have more counterproductive, more foolish words been set to paper.

Indeed.  The proposal is bad policy, bad politics and a highly questionable negotiating tactic.

Tell your Representative to fight for entitlement reform and reject tax increases.

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3 thoughts on “GOP Counters with $800 Billion Tax Hike

  1. Pingback: MisplacedNews » Conservative ire against Boehner hits boiling point

  2. I believe the Speaker of the House is making two serious
    errors regarding the financial cliff. 1. He is starting to sound more and more
    like an “establishment Republican” with each additional press
    conference. 2. He is not offering up specific proposals to cut spending.

    There are numerous examples in the press over the last
    couple of years where citing reductions in those program or operational cost
    areas would be legitimate and resonate well with the public, who basically
    mistrust government spending. This is not a partisan issue, it is a public
    issue. As a former federal employee I can speak first hand to how agencies
    operate to protect their self-interest over the public interest and they will
    spend every dime you give them and not look for ways to do things more
    effectively unless they are forced to do so by cutting their budgets. It is the
    only language they understand. They are also slow in figuring out and
    implementing cost savings, even when they are trying to. Here is the “White
    Plan” for whatever it is worth.

    Operational Budgets of agencies, Executive Offices, Commissions, Departments and offices, including the White House and Congress:
    Effective start date is 2013. In each succeeding budget year cut 10 % in the
    first year and 5% each year thereafter until 2008 levels are reached.
    Exceptions: CIA, cut 5% in the first year and reassess. EPA and Dept. of
    Energy, cut 15% in the first year and 10% each year thereafter, or a higher
    percentage if needed to get to 2008 levels. Dept. of Education, mandate combining
    the 8 overlapping programs and reduce staff impacted in additional to general
    cut listed above. GSA, cut 20% in the first year (2013) and 8 % each year
    thereafter until 2008 levels are reached. Force them to sell 25% of excess
    government real estate in 2013 and the money goes to the Treasury rather than a
    departmental slush fund. Staff savings will not count as part of the 20%. Sales
    will continue until no property is on the books as surplus longer than 18
    months. Any department or agency of the government that can demonstrate the
    ability to operate internally any function performed for them by GSA at the
    same or lower cost, shall be able to be able to subsume that function once
    again. Any subsequent reductions in GSA staffing may be counted as part of their
    operational cost reductions.

    Grant Programs of any Federal organization: Eliminate all grant programs that do not fall under the historical usage for R&D and construction (transportation programs). Exceptions: Education, 50% reduction in Pell Grants to foreign students, spread over three years starting in 2013. Pell grant programs to US students, 15% in the first year and 5% in each succeeding year starting in 2013, for 4 years.

    Class C (Political Appointees) Reduce the number of political appointees in all areas by 20% in 2013 and 10% each succeeding year, starting in 2013, for the next 4 years. The vacant positions may be totally eliminated or filled by the organization with a qualified career employee. Elimination of the position may be counted as a savings.

    Bonuses and special awards for federal employees other than normal performance award procedures available to all employees of a department or agency shall be eliminated.

    I am sure I missed several areas because I don’t know all the nooks and crannies in our governmental systems, but this approach could be used as a model for a total effort in cost reduction and make our government more cost conscience and effective. Earlier I mentioned that I was once a Federal Employee but I did not stay until full retirement. I was offered an early retirement at age 44, with 25 years of service, or a transfer. I chose to retire early and started a consulting business in the same technical areas, so I could do what needed to be done and do it correctly. I have no regrets.

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