This last week the Super Committee made up of Republicans and Democrats surprised no one at their failure to identify revenue and cost cutting measures that would create a more responsible fiscal federal budget for the coming decade. I was disgusted and greatly disappointed that these politicians chose to risk the poor, the elderly, and families for the traditional political football of special interests.
In an effort to identify places savings and revenue for a more balanced approach, I challenged myself to identify areas where a majority of Americans would agree to take action. I avoided the issue of Social Security entitlements. I ignored the argument about the Bush tax cuts, because with a do nothing Congress, I want to consider the elimination of this tax break for more wealthy Americans a strategy for 2012, and more of a bonus. I avoided discussion of an income tax deduction on the top 1% of Americans, or an increase on the bottom 99%. These three strategic discussions would create a budgetary impasse rather than a budgetary impact. Each of these topics could individually be addressed in future blogs.
Yet, if I can identify over $1.2 Trillion in an evening, I reason, shouldn’t our elected leaders be accomplish the same in a few weeks? My only requirement is that these items must be acceptable to at least 60% of the American Public. My secret goal was $4 trillion.
My strategy included a time limit. I would begin after enjoying a holiday movie with my sister and my mother. This would assure that I would have a heart full of cheer and avoid the spirit of Scrooge. As I saw “The End” on the flat screen, I started my endeavor. I leapt to the internet and typed “Super Committee suggested cuts.” I reviewed three different groups and their suggestions, writing down the reports and proposals from the White House, the House of Representatives, the Office of Management and Budget, the US Treasury, the IRS, The Department of Defense, the General Accounting Office, to name a few.
While the numbers in these reports may only address one year of savings, or perhaps a four year stretch, I identify already reported amounts to be considered. I used basic arithmetic (addition and subtraction). In order to assure accurate savings over the next decade, I used basic multiplication to complete a 10 year savings or revenue stream. So as not to confuse or use political fuzzy math, I did not use a net present value calculation or a future value calculation. If that calculation was used in the original report, it is not corrected in my report.
To my surprise, I even identified a potential revenue stream under the EPA, a department Governor Perry could not even name in a national debate. But, then again, I am for breathing clean air, having pothole free roads, and food that doesn’t kill you. I like to consider myself a common sense American.
All of the subsidies, loopholes, and ‘deals’ eliminated are calculated over 10 years unless it was a lesser number of years, or a one time cost cutting. It is assumed that if these expenses are currently being spent that it is likely the cost would be continued through the next 10 years, whether currently expected to be dropped or not, due to the impasse in Congress. Please see the web site footnotes for further information… And, I hope you will forgive the lack of professional columns. I did have a time limit!
And in three hours, this is what I found I could either raise or reduce!
Federal Trade Commission – Eliminate pay-for-delay drug deals - $ 2.67 billion
Defense –
Reduce the Use of High-Risk Contracts, Increase Competition and Improve Contract Oversight per the White House $400 Billion
End Orders for Obsolete Spare Parts and Supplies as determined by the GAO for:
The Defense Logistics Agency and the Armed Forces $ 70 Billion
The Army $ 36 Billion
The Navy $ 74 Billion
The Air Force $ 186 Billion
Defense Savings $776 Billion
Medicare & Medicaid -
Eliminate Payment Errors $ 65 Billion Savings
Reduce Geographic Disparities in Medicare Provider Payments
$ 11 Billion Savings
Better Align Payments to Teaching Hospitals Based on Actual Costs
$ 48 Billion Savings
Implement Information Technology Solutions
$ 14 Billion Savings
Allow Medicare to Pay Medicaid Prescription Drug Rates
$100 Billion Savings
Medicare & Medicaid Savings $ 238 Billion
EPA
Reinstate Superfund Fee on Polluters $ 8 billion in Revenues
Homeland Security
Reduce the Use of Offshore Tax Havens for Tax Avoidance and Evasion
$ 1 trillion Revenue (That’s a “T” for Tea Party)
Eliminate Homeland Security Contracts Already Identified as Wasteful by the House
$ 340 Billion
Homeland Security Savings $ 1,340 Billion
Department Energy
Eliminate Oil & Gas Subsidies $ 38 billion
Tax Savings
Close Carried Interest Loophole $ 31 billion
International Tax Reforms $ 557 billion
Delinquent Taxes from Contractors $ 38 billion
Other Tax Savings $ 626 billion
Total Savings in first two hours of research
$3 Trillion Dollars over the next decade!
http://www.gao.gov/products/GAO-10-469
http://www.gao.gov/new.items/d09199.pdf
http://www.gao.gov/new.items/d09103.pdf
http://www.gao.gov/new.items/d07232.pdf
http://www.ustreas.gov/press/releases/tg506.htm
http://www.cepr.net/documents/publications/ftt-revenue-2009-12.pdf
http://www.whitehouse.gov/omb/budget/fy2011/assets/tables.pdf
http://www.gao.gov/new.items/d08617.pdf
http://www.gao.gov/new.items/d07742t.pdf
http://www.whitehouse.gov/omb/budget/fy2011/assets/tables.pdf
http://levin.senate.gov/newsroom/supporting/2008/071708PSIReport.pdf
http://www.whitehouse.gov/omb/blog/10/06/18/Do-Not-Pay-Do-Read-This-Post/
http://www.cbo.gov/doc.cfm?index=9925
http://oversight.house.gov/index.php?option=com_content&view=article&id=2507&catid=44:legislation
