We Need Employment Benefits, Not Another Permanent Welfare Program

Force Democrats to pay unemployment reparations from their own coffers 

Here we go again.  After a full year of grandstanding against another extension of unemployment benefits, some Republicans are ready to cave.

“do we believe in free-market doctrine, which suggests that extended UI hurts the economy, or the Keynesian multiplier, which suggests that UI helps the economy?”

If you ever wondered why it is so hard to cut spending, and more importantly, to downsize government, look no further than the fight over extending unemployment benefits.

Despite a year full of political parlance concerning budget austerity, many have forgotten that we have only cut $6.67 billion from the FY 2011 $1.049 trillion discretionary budget authority.  Even this miniscule cut might be cancelled out by up to $11 billion in emergency disaster spending, which is not subject to the spending caps.  Moreover, after just one year of cuts, discretionary spending will steadily rise during each subsequent year, albeit at a slower rate than originally proposed by Obama.

But there is a more salient observation that must be publicized.  These miniscule cuts, including the faux baseline cuts, are only applied to 28% of the budget – the part that is funded through the congressional appropriations process.  The other parts of the budget are virtually unscathed, even from baseline cuts.  To that end, even as we cut a few billion from baseline discretionary spending, we will still add hundreds of billions more in mandatory spending for each subsequent year.

These mandatory programs have created such inveterate dependency constituencies that nobody wants to touch them with a ten-foot pole.  Even if we exclude Social Security, Medicare, and veteran’s benefits, there are still almost $800 billion in other mandatory programs, most of which is spent on welfare.  This has become the fastest growing part of the budget, yet it will remain completely fortified from any budget control mechanisms.

The Unemployment Insurance (UI) program has been one of the biggest drivers of increased ‘other mandatory spending’.  Over the past two years, due to unprecedented 99 weeks of unemployment benefits and bankrupt state unemployment programs, the UI program has cost between $130-160 billion per year, rapidly becoming the fourth largest expenditure (behind Medicaid) in the budget.

Are we prepared to eschew free-market principles, and permanently enshrine UI as part of the entitlement state?

Republicans Should Stop Reauthorizing Stuff they Denounced

There is an old adage that defines insanity as “doing the same thing over and over again but expecting different results.”  What’s worse than insanity is hypocritical insanity, which may be defined as doing the same thing that your opponent did over and over again, while expecting different results.  Unfortunately, that is an apt description of the House GOP leadership of late.

During the 2010 elections, Republicans railed against profligate spending, Obamacare, and growing dependency from things like the Stimulus.  Now, they are extending and reauthorizing many of those offensive policies.  Last April, they continued the entire Democrat 2010 budget with a CR for FY2011 that cut outlays by a miniscule $352 million.  This week, they plan to pass a continuing resolution for FY2012 that will authorize more discretionary spending than their own “Ryan budget” by $24 billion.  This will pave the road for passage of an omnibus mega-bill in November – the very sort of reckless budgeting that they lampooned throughout the Pelosi years.

Last week, Republicans passed the 22nd short-term extension of surface transportation funding and the 8th stop-gap FAA reauthorization bill.  Their tepidness to pick a fight over their own transportation bills has led them to reauthorize Pelosi-era spending levels, along with wasteful public transit and beautification projects that are forced upon the states.  Additionally, they are on the cusp of paying Obama ransom for holding three free trade agreements hostage, by reauthorizing the Trade Adjustment Assistance – a superfluous unemployment handout to Big Labor.  We must also be vigilant of attempts by leadership to pass parts of Obama’s Stimulus 2.0.

On Wednesday, Republicans will be confronted with another opportunity to reauthorize a welfare program at current levels.  Sadly, it appears that leadership will pass it under suspension – without firing a shot.

We the People: A Constitutional Republic, Not a Democracy

Today, we celebrate the 224th anniversary of the signing of the United States Constitution (September 17 falls out over the weekend this year).  On this day, it is imperative that we reflect on the importance of our constitution and celebrate the roots of our founding.  As our nation comes under attack from the forces of tyranny within, we must reaffirm our commitment to the ideals of our founders and founding documents.

Most people often mistakenly refer to our nation as the greatest democracy on earth.  They are mistaken because we are not an absolute democracy; we are a constitutional republic.  That is what makes our nation great, for if we were merely a democracy, we would be anything but great.  And to the extent that we no longer function as a constitutional republic, that greatness is rapidly ebbing away.

Why did we need a constitution?  Why are popular elections not a sufficient means of preserving liberty?

Heritage Action's Legislative Scorecard

Not all tea is created equal

Well, the first comprehensive conservative report card of Congress is out, and we can now determine which members of the “Tea Party Congress” drink a hardcore brew.

Today, Heritage Action for America released their legislative scorecard for the pre-recess 1st session of the 112th Congress.  Unlike most other scorecards, this one was designed to separate the men from the boys.  Most traditional scorecards, and most prominently, the ACU annual report, tend to focus primarily on those votes which fundamentally divide the two parties.  They fail to probe some of the more courageous conservative votes against party leadership.

To that end, any Republican who is even minimally conservative is expected to score at or near 100%.  After all, at a minimum, any Republican should oppose Obamacare, vote down tax increases, and support the Republican annual budget.  This is how the likes of McCain, Graham, and Chambliss have been able to achieve stellar scores.  Except for those like Olympia Snowe, Susan Collins, and Dick Lugar, most Republicans will vote with their party on the final roll call of major bills.  In fact, anyone who is not on the list of 100% is someone who has voted with the Democrats in contravention to fundamental Republican values.  A perfect ACU score should be the floor, not the ceiling, for a conservative voting record.

The Heritage Action scorecard digs much deeper.

Thank You Congressman Andy Harris

It is quite inspiring to have such an unvarnished conservative like Andy Harris representing Maryland.  In this blue oligarchy, we are lucky to elect any Republican, let a along a true conservative.  Yesterday, Congressman Harris opposed his own leadership and joined 65 other members in opposing the bill to raise the debt ceiling.  This bill handed Obama his full lifeline until after the election, without imposing any enforceable and transformational change (other than cutting defense and creating a 19th debt commission).

Most people don't appreciate how hard it is to oppose one's leadership, especially at such a pivotal time.  It is all the more inspiring that Harris is a freshman member who is willing to expend his political capital standing on principle.  Harris was also part of the select group of congressmen that opposed the CR deal in April.  Keep fighting on, Congressman Harris.

Now, if only we had people in leadership who exhibited such intrepid determination to limit the size of government!

The Palestinian Accountability Act

 The 'Oslo Accords' is not too big to fail.

 

One of the more intractable components of our foreign policy dating back to the Clinton years has been the obsession of creating a Palestinian state.  The career egghead diplomats in the State Department believed that if we would only send billions in aid to the venerable leaders of the Palestinian Authority and grant them statehood, they would put down their terror toys and sing kumbaya.  To that end, we have given them billions in aid and provided them with military training during the past two decades.

Those of us who lack the credulity of a toddler understand that Mahmoud Abbas is not a dulcet freedom-lover, and the PA/Fatah is not a moderate Muslim boys’ club.  It's time to end the good cop/bad cop charade between the "extremist" Hamas and the "moderate" Fatah – by treating them as co-equal perpetrators of terror.  Abbas has repeatedly called for armed struggle against Israel (in Arabic, of course), glorified suicide bombers, and is closely linked with the Al Aqsa Martyrs Brigades, an Iranian-funded terror group that rivals Hamas in its ferocity in recent years.

Congressman Joe Walsh (R-IL) is introducing legislation today that will finally halt the open-ended commitment to the Palestinians.  No, a few hundred million dollars in cuts will not balance the budget; however, we should not be sending one red cent to terrorists anywhere in the world.

Here are some details of the bill from a Dear Colleague letter sent by Congressman Walsh:

Proclaim Liberty Throughout the Land on this Independence Day

As Benjamin Franklin left Independence Hall after the Constitutional Convention, he was reportedly asked by a lady, "well doctor, what have we got, a republic or a monarchy?"  He famously replied, "a republic, if you can keep it.”

Today, more than ever before, is a time to celebrate the roots of our founding - and resolve to preserve this republic as a paragon of liberty that we may bequeath to future generations.  As our nation comes under attack from the forces of tyranny within, we must reaffirm our commitment to the ideals of our founders and founding documents.

How unique that we celebrate our national holiday not on the day of our government's founding, nor the day on which the constitution was ratified, but on the day we became independent from tyranny and an over-imposing government.  On this day 235 years ago, the Continental Congress adopted the 1338-word Declaration of Independence in which we declared, "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."

235 years later, we find all of our founding principles under assault.  Many prominent political leaders in both parties seek to destroy our free markets, infringe upon our personal liberties, and abrogate our social values. Unfortunately, they have accrued a high level of success.

Michele Bachmann: Don't Forget Obamacare

The clock is ticking and our options are shrinking

The most effective proposal for dealing with the debt ceiling vote that has the backing of conservatives is the Cut, Cap, and Balance plan brought forth by the RSC.  Accordingly, virtually every major conservative organization has coalesced around a pledge forcing all members of Congress to support the plan as a condition to raising the debt ceiling.  The presidential candidates are also being recruited to sign the pledge, with Jim DeMint promising to support only those who sign to it.

Yesterday, Mitt Romney announced his support for the pledge, joining every other announced Republican candidate except Jon Huntsman and ….Michele Bachmann?

While Bachmann is a strong supporter of the RSC plan, she is still tepid about signing the pledge.  CNN is reporting that Bachmann told DeMint she is still contemplating her support for the pledge because she wants it “to go a little further.”  Bachmann said at a town hall in South Carolina that she would like to add the defunding of Obamacare to the pledge as another precondition to raising the debt ceiling.

While it is probably a good idea for Bachmann to sign the pledge despite her reservation, she should be applauded for refocusing attention on Obamacare.  We all agree that our long-term budget crisis, including reform of the existing entitlements, should be our paramount concern.  However, we must not lose focus of the urgent need to defund the newest entitlement, Obamacare, precluding it from being enshrined as the entitlement to end all entitlements.

Rep. Akin: 'At the Heart of Liberalism is a Hatred of God'

We need more people like Congressman Todd Akin in office.  The Missouri Congressman and Senate candidate recently said the following in an interview with Family Research Council director Tony Perkins regarding NBC's omission of "under God" from the Pledge of Allegiance:

Well, I think NBC has a long record of being very liberal and at the heart of liberalism really is a hatred for God and a belief that government should replace God. And so they’ve had a long history of not being at all favorable toward many of things that have been such a blessing to our country.These powerful works have liberals enraged. (HT: The Blaze) 

The Missouri Senate race is still under the radar of most politicos, as it is being overshadowed by some of the bigger contests.  However, we must begin choosing sides in some of the Senate primaries.  It was already becoming clear to me that Akin is the tested conservative in the race.  His perspicuous understanding of liberalism seals the deal with me.

Repeal Dodd-Frank

While most people focus on the Obamacare behemoth, conservatives need to expend more effort into repealing the other monstrosity of the 111th Congress; the Dodd-Frank Financial takeover.  This bill will do to the financial services sector what Obamacare will do to the healthcare sector.  It will also enshrine a permanent bailout culture into law.  As such, we need to push harder for Republicans to repeal the bill.  Later today, the House appropriations committee is planning to mark up the annual appropriations bill dealing with financial issues.

Congressman Joe Walsh has been advocating that we defund the provisions from Dodd-Frank in the annual approps bill.  Here is a summary video that was put out by his office:

60 Plus Association TV Ad Defending Ryan's Medicare Reform Plan

It's quite arduous to articulate the problems and solutions for medicare in a 30-second TV ad.  It is much easier to demagogue the issue with fallacious bromides about throwing granny off the cliff.  Nonetheless, the good folks at 60 Plus are trying:

Time to Opt Out of the Social Security Ponzi Scheme

The Mediscare demagogues should heed their own advice for Social Security.
The Social Security Ponzi scheme is perhaps the most consequential government infringement upon our lives.  Conservatives are justifiably outraged that Obama egregiously mandated that we purchase health insurance.  However, the individual mandate is not nearly as meddlesome and tyrannical as the government's complete control over our retirement security.  The only reason why these two programs are regarded differently by the public, is because Social Security has been around for 75 years.  Consequently, most Americans are conditioned to believe that a person's retirement is indissolubly tied to government-run Social Security.

Now that Social Security is running a perennial deficit and is facing insolvency, conservatives have an opportunity to reverse one of the most flagrant violations of our property rights, by offering workers the option to opt out of the Madoff-style program.

As the unfunded liability for Social Security balloons to $21.4 trillion over the next 20 years, it is painfully obvious to young workers that they will not enjoy much retirement security, if any, from the government program.  Democrats are totally apathetic to their grim future; they will be long retired by then, enjoying the full array of government benefits that they secured for themselves.  Meanwhile, they would rather demagogue the issue, using fallacious scare tactics to stir up current retirees.  Accordingly, we should harness the Democrats' Mediscare demagoguery towards seniors, and direct it towards younger Americans.  If Paul Ryan's Medicare plan will push granny over the hill, the status quo of the Democrats' Ponzi scheme will prevent the grandchild from making it up the hill.

Congressman Walsh Responds to Obama's Debt Ceiling Demand

Congressman Joe Walsh (R-IL), sponsor of the House Balanced Budget Amendment bill, is drawing a line in the sand and refusing to raise the debt limit.  He has sent out another video message to Obama evincing his unequivocal rejection of Tim Geithner's fallacious fear-mongering .  As some members of leadership go wobbly on the Balanced Budget Amendment, we must remind them why they obtained their leadership positions last November.  Today, the RSC hand delivered a letter to John Boehner essentially saying Cut, Cap, Balance - or bust.

Key votes on Abortion, DADT, START, and Gitmo This Week

Today's House Action Alerts.

Today, the House will consider two bills with some amendments that are important to conservatives.

 Abortion

After a period of morning speeches, the House will finish work on H.R. 1216- the fourth bill brought to the floor that defunds mandatory appropriations for an Obamacare program.  This bill rescinds all unobligated funds for graduate medical training programs created under Obamacare.  It also subjects the remaining appropriations to the annual discretionary spending process.  This will prevent the program from becoming a mandatory slush fund for Democrat special interests.

The critical vote on this bill is the Foxx Amendment (H. AMDT. 298, which prohibits funding for graduate medical institutions to be used for the purpose of training medical residents in abortion procedures.  Please call you member of Congress and request a yes vote on the Foxx anti-abortion Amendment. 

Defense

After work on H.R. 1216 is complete, the House will begin debating the FY 2012 Defense Authorization Act (H.R. 1540); along with a marathon amendment process which calls for votes on 152 amendments.  That means that we must watch the floor vigilantly.

RSC Debt Limit Plan: Cut, Cap, and Balance

Here is a cap and trade plan we can support. 

The political world has been waiting with alacrity to hear the details of the GOP demand for raising the debt ceiling. The Republican Study Committee is wasting no time in publicizing their overarching condition for raising the debt ceiling; lowering the spending floor.  You might think of it as the preeminent ‘cap and trade’ program.

We have long railed against an incremental approach to the battle for limited government and spending cuts. The reality is that Republicans don’t have the requisite political power to statutorily roll back big government policies through the front door. They probably won’t for some time. Consequently, their only recourse to impel meaningful and perennial change is to use the budget process to force the issue.

Republicans will have the opportunity to deny the issuance of any more debt as the debt limit fight reaches its crescendo towards the end of the spring. In September, they will have another opportunity to force the Democrats’ hand by refusing to budge from the fundamentals of their FY 2012 budget, even if the Democrats threaten to shut down the government. Yes, even with control of “just one half of one third of government,” the GOP can prevail in a budget fight with the support of the public.

The RSC is proposing a three-pronged plan that would attack all of the pressure points of the big government beast.

1. Implement immediate spending cuts for FY 2012 that would reduce the deficit by 50%, roughly $700 billion from this year’s estimated $1.4 trillion deficit. Accounting for roughly $320 billion in expected revenue gains from growing tax receipts, they would propose roughly $380 billion in spending cuts to achieve that goal.
2. Impose permanent statutory spending caps to reduce federal spending to 18% of GDP, providing for automatic spending reductions if caps are breached.

3. Demand the passage of the Balanced Budget Amendment sponsored by Senator Mike Lee and Congressman Joe Walsh (H.J.Res. 56/S.J.Res. 10).

Support Bob Latta's Comprehensive Energy Production Bill

The Republican Study Committee has struck again.  While Republican House leaders are tepidly tiptoeing around energy policy with an incremental approach, RSC Energy Task Force Chairman Bob Latta (R-OH) is pushing a comprehensive energy production bill.  The Consumer Relief for Pain at the Pump Act, H.R. 1777, would open up thousands of acres worth of drilling fields, extirpate onerous regulations from the backs of our energy producers, strike out at the heart of the domestic environmental legal defense fiscal terrorist community, expedite the oil refinery application process, and streamline the land leasing process.

This bill directly addresses all of the obstacles to oil, gas, and shale exploration; it would create thousands of real jobs, and reduce the cost of energy to consumers.  Being that oil is the lifeblood of the economy and is used for so many vital products and services, this bill would help reduce production and delivery costs of virtually every durable good, spawning unprecedented economic growth.  As an added bonus, it would eliminate many jobs of Democrat environmental agitators and oil rig-chasing attorneys.

Most importantly, this legislation would open up 2,000 acres of ANWR for development of its estimated 10 billion barrels of oil and 35 trillion cubic feet of natural gas.  This is something that other Republican leaders have abdicated in the face of visceral opposition from the left.  In light of record gas prices and other residual inflationary pains to consumers, this is not a time to go wobbly on ANWR.

Here are some of the key proposals in H.R. 1777 from Congressman Latta's press release:

McConnell Should Appoint DeMint to Finance Committee

Last week, Nevada Senator John Ensign resigned his seat, creating a vacancy on several Senate committees.  While Congressman Dean Heller will fill Ensign's Senate seat, a member with more seniority will be appointed to his coveted slot on the Senate Finance Committee.  The Finance Committee is considered a prized "Super-A committee" due to the extent and relevance of its jurisdiction, which includes trade, taxes, Social Security, Medicare, and Medicaid.  Unlike its House counterpart, the Senate Finance Committee also encompasses the jurisdiction of the House Ways and Means Committee.  This panel is clearly the most important Senate committee in the realm of domestic policy.  Who better to sit on that committee than Jim DeMint?

Senator DeMint has been implored to run for all sorts of leadership roles, ranging from President to Senate Leader, but has firmly declined.  Fortunately, this is a position that he is openly embracing.  A DeMint spokesman told Roll Call that he is throwing his hat into the ring for the seat on the Finance Committee:

"Senator DeMint is very interested in serving on the Finance Committee and has requested it every time since he was elected," said his spokesman, Wesley Denton. "This is where entitlement reform will be written to balance the budget, it's where Obamacare will be repealed, and it's where our tax laws will be reformed to ensure that America remains the best place in the world to do business. ... He understands the seat will be filled by the Republican Leader and Senator DeMint will respect his decision."

DeMint has attempted to obtain a seat on the committee in the past, only to be passed over for those with more seniority.  Now, DeMint is the one with the seniority.  The other announced candidate for the position is Nebraska Senator Mike Johanns, a more junior member.  In addition, Mike Johanns has not been at the forefront of the battle for liberty and constitutional government in the same way as DeMint.  Just last year, Johanns voted for START and the FDA food takeover, while opposing efforts to reign in the Federal Reserve, Freddie and Fannie, and the Justice Department's lawsuit against Arizona. 

McConnell has already denied DeMint a seat on the Finance Committee due to a lack of seniority in 2008.  Now is the time for McConnell to show that he is consistent and serious about cutting spending by appointing Jim DeMint to the Senate Finance Committee.  Surely, seniority applies to conservatives too, doesn't it?

Please call Senate Minority Leader Mitch McConnell and request that he put Senator DeMint on the Finance Committee.  (202) 224-2541

Support the RSC Budget Along with Ryan's Budget Today

Yesterday, Congress voted for the final continuing budget resolution of FY 2011.  The House vote was 260-167 and the Senate vote was 81-19.  Due to the meager cuts provided in this convoluted budget deal and the fact that it failed to defund Obamacare and Planned Parenthood, 59 Republican congressmen and 15 senators indomitably opposed their leadership and voted against the bill.  Republican leadership offered wild gyrations and employed arm twisting to ensure that there wasn't too much dissent.  They even solicited the help of Steny Hoyer to whip up enough Democrats in support of the budget.  Nonetheless, enough conservative House members opposed the bill that its final passage was secured only with Democrat support.

Clearly, there are more than 59 unvarnished conservatives in the House who intuitively know that this was a bad deal.  Unfortunately, yet understandably, many of them were tepid about undermining their leaders in the last hours of debate.  They were all eager to move onto the "real fight", the 2012 budget.  Well, today is their chance to show that they are serious about repudiating the past 80 years of socialism and profligate spending, by voting for the Republican Study Committee budget.

Later today, the House will vote to adopt Paul Ryan's FY 2012 budget; the first step of the budgetary process-a concurrent budget resolution (H.Con.Res. 34).  Unlike the Democrats who failed to pass a budget resolution in 2011, Ryan will pass his budget on the exact date, April 15, which is prescribed in the 1974 Budget Act.

The Concurrent Budget Resolution provides a blueprint for the entire congressional budget for the next fiscal year, as well as a plan for the 10-year budget frame.  Additionally, the resolution, if adopted, provides a top-line cap-known as a 302(a) allocation-on all discretionary spending, and an individual spending limit on all appropriations subcommittees-know as 302(b) allocations.  Ryan's top-line figure for FY 2012 is $1.019 trillion.

While Ryan's budget is a great start, it doesn't cut enough discretionary spending and fails to balance the budget for another 26 years.  The RSC, under the leadership of Congressman Jim Jordan, will submit its budget, Honest Solutions, as an amendment to the budget resolution.  Their plan will cut $9.1 trillion and balance the budget in 9 years (see our full report here).  Every conservative should support this amendment.  Call your congressman today and request that they draw a line in the sand and prove that they are worthy of holding public office.  Tell them to vote for the RSC budget amendment!  After all, this is the real fight, isn't it?

Exclusive Report: RSC Budget, Honest Solutions, Builds Upon Ryan's Blueprint

While Obama was rubbing shoulders with noted bigot Al Sharpton, House conservatives have been working arduously to formulate a coherent budget and stave off the impending debt crisis.  Earlier this week, Paul Ryan bravely offered the first steps toward achieving fiscal solvency and vitiating dependency on government.  Ryan’s diligence has provided the groundwork for a debate among conservatives as to how best reinstate the ideals of limited government and free market capitalism.   

Today, the conservative Republican Study Committee (RSC), under the strong leadership of Congressmen Jim Jordan, Scott Garrett, Mick Mulvaney, and Tom McClintock, expanded upon Ryan’s work by offering their budget blueprint, Honest Solutions.  This proposal will be introduced as a floor amendment to Ryan's budget resolution next week.

On Tuesday, we posted an analysis of Ryan's budget from a conservative perspective, noting that it was an excellent first step; however, there were some modifications that were needed.  The RSC budget includes many of those imperative changes.  It also touches the holy grail of Social Security and offers serious reforms for the ever growing litany of "other mandatory spending".  In addition, this plan calls for larger savings in Medicaid and steeper cuts in non-defense discretionary spending.

Overall, the RSC budget cuts $9.078 trillion over the next decade compared to the CBO baseline, or $3.3 trillion more than Ryan's plan.  Due in large part to its heavier cuts in discretionary spending, the RSC budget cuts an additional $207 billion from the FY 2012 budget compared to Ryan's budget.  The RSC budget uses the same baseline assumptions from the CBO in ascertaining revenue levels and future economic conditions.

Here is a summary of differences between Ryan's Pathway to Prosperity and the RSC's Honest Solutions.

• Discretionary Spending: The RSC proposal would trim FY 2012 total discretionary spending down to 2006 levels-a $141 billion cut from the last budget passed in 2010.  The subsequent 9 years of total discretionary spending would be frozen at 2008 levels-$933 billion annually.

Defense Spending (which is the largest share of discretionary spending) would be $696 billion in 2012 and gradually increase to $747 billion in 2021.  This is comparable to the spending levels in Ryan's budget.  Put another way, non-defense discretionary spending would be reduced from $409 billion in 2012 to $218 billion in 2021.  Much of these sharper cuts in non-defense discretionary spending would be based off of the specific cuts that were proposed in the RSC Spending Reduction Act introduced in January.  That bill contained $2.5 trillion in spending cuts over the next decade.  Other cuts would be achieved by reducing the federal workforce by 15%.

Ryan's Budget: A Conservative View-The Excellent, the Good, and the Need for Improvement

Republicans should build upon Ryan's diligence to end Democrats' profligate socialism and expose them for the true extremists that they are.

The moment we have been anticipating has finally arrived.  House Budget Committee Chairman has released his budget for FY 2012, along with his blueprint for tax and entitlement reform over the next decade.  This budget proposal, which would cut $5.8 trillion from the CBO baseline over the next decade, is a mature and well balanced plan emanating from a city full of fatuous demagoguery.

It is important to note that this is just the preliminary proposal of the very first step of the congressional budget process; the Concurrent Budget Resolution.  There will be ample time to sort through all of the components of this plan and provide the appropriate changes as needed.  Nonetheless, it is a laudable first step that has come to fruition through the assiduous work of Paul Ryan and his Republican colleagues on the Budget Committee.  It is a fresh breath of moderation and seriousness amidst the extremism that is so endemic in Washington among the Democrats.  Here is a cursory breakdown of some of the major provisions of the Ryan plan, categorized by the excellent, the good, and the need for improvement.

The Excellent

• Medicaid: The budget proposes a transformational change to Medicaid by converting it to a block grant program which would give states more flexibility in how to spend their Medicaid dollars.  There would also be an overall cap placed on the block grants.  This would encourage states to innovate and formulate the best ideas for reducing dependency, instead of exacerbating it through an open ended entitlement program.  The plan would trim the cost of Medicaid by $771 billion from the CBO baseline over the next decade.
• Corporate Welfare/Ethanol/Farm Subsidies: Ryan's proposal repeals the odious ethanol subsidies lock, stock and barrel.  It also reforms farm subsidies by trimming farm/corporate welfare from its current level of $25 billion.  This is especially prescient given the record high food prices that have been spurred in part by these market-distorting subsidies.  To address the record high energy prices, the proposal calls for an end to tax cuts for the rich- no more green subsidies!
• Obamacare: It defunds Obamacare lock, stock and barrel.  While much of the budget is driven by choices between several evils in order to reform existing Democrat entitlement programs, this proposal prevents ObamaCare from becoming another Medicare/Medicaid disaster.
• Taxes: The proposal reduces the highest corporate and personal income tax rates to 25%.
• Earmarks:  The ban on earmarks is made permanent.
• Freddie Mac and Fannie Mae:  The budget plan cancels these economic destructive government entities and calls for their privatization.  The resolution also calls for an end to corporate bailouts that were enshrined in the Dodd-Frank financial takeover bill.
• Pell Grants:  All of the exorbitant increases in Pell Grants that were a part of the stimulus bill would be defunded.  This will help slow rising tuition inflation that has been generated as a result of these interventionist programs.