Daniel Lewis

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Spending Cuts

The Adventures of Rich & Dick

The first thing the U.S. Senate must do to fix our budget is control spending. The Best way to do that is to understand what is being spent and how money can be saved. The President's budget for 2009 totals $3.1 trillion. Red are not authorized by the Constitution and should be changed over to a non-government function. Orange items are authorized to a limited extent by the Constitution, but currently are being executed in broader terms than is desirable. The scope of these items should be reduced. Green items are Constitutionally authorized and should be continued.

Most of the functions currently being carried out by the Federal government are not authorized by the Constitution for the United States of America. These functions would be better carried out by the free market rather than the government. The Senate should lead the way in privatizing these functions over a period of seven years. Each year an additional one seventh of the budget allocations and operations should be assumed by the private sector and removed from the Federal budget. The budget items are broken down by the following expenditures:

Amount

Designation

Proposal

$644 billion

Social Security

Social Security is not authorized by the Constitution
Convert to Private Retirement Accounts
Remove this item from the budget

Operation Pyramid Securities

$408 billion

Medicare

Medicare is not authorized by the Constitution
Convert to Private Insurance Accounts
Remove this item from the budget

$224 billion

Medicare and the State
Children's Health Insurance Program
(SCHIP)

SCHIP is not authorized by the Constitution
Convert to Private Insurance Accounts
Remove this item from the budget

$360 billion

Unemployment/Welfare/Other mandatory spending

Unemployment/Welfare/Other mandatory
spending is not authorized by the Constitution
Convert to Private Charity Accounts
Remove this item from the budget

$260 billion

Interest on National Debt

This is interest owed on funds borrowed from the
Federal Reserve. We should abolish the Federal Reserve
Pay off the National debt and work to Remove this item from the budget

$515.4 billion

United States Department of Defense

Reduce and eliminate most overseas deployment of U.S. troops. Shift mission to defense rather than offense and acting as world’s police force. The amount listed could be greatly reduced.

$145.2 billion

Global War on Terror

Reducing U.S. military presence overseas, especially in the Middle East, will do more to reduce the risk of terrorism than anything else. Naom Chompsky’s Pirates and Emperors is recommended reading on this topic. The remaining efforts should be part of the DOD budget. This item should be eliminated.

$70.4 billion

Health and Human Services

Health and Human Services is not authorized by the Constitution. The Department of Health and Human Services should be abolished. This item should be eliminated.

$59.2 billion

United States Department of Education

United States Department of Education is not authorized by the Constitution. The should United States Department of Education be abolished. This item should be eliminated.

$44.8 billion

United States Department of Veterans Affairs

United States Department of Veterans Affairs is an important part of our budget. We cannot do enough for those who served our country. This Department should be reduced to paying for services needed by Veterans. The actual services, like healthcare, should be provided in the market sector. The cost will be lower and the quality better. For the same amount of spending our Veterans will get more. Additionally our Veterans should have a complete choice of service providers.

$38.5 billion

US Department of Housing and Urban Development

US Department of Housing and Urban Development is not authorized by the Constitution. This item should be eliminated.

$38.3 billion

Department of State and Other International Programs

The Department of State has a legitimate function in Constitutional government. For example we should have embassies overseas. Article II, Section 2 authorizes the President to with the consent of the Senate appoint ambassadors. However, the Presidents stated goals to:
Enhance global security and combat terrorism;
Spread hope and freedom by promoting democratic ideals;
Help reduce global poverty and facilitate free enterprise;
and Respond to global challenges and humanitarian crises.
These are not authorized by the Constitution. America should have nothing to do with promoting “democratic ideals.” In The Federalist Papers #10 Madison expressed his distrust in Democracies. Article IV, Section 4 guarantees to every state a “Republican” form of government. These high and lofty goals are not authorized by the Constitution and should be eliminated. This budget item should be reduced to one-half of it's current value.

$37.6 billion

Department of Homeland Security

Homeland Security is the job of the department of defense. The Department of Homeland Security is not authorized by the Constitution. It should be eliminated. Under the Posse Comitatus Act, United States federal law (18 U.S.C. § 1385) passed on June 16, 1878, the military is limited in what it may do within the United States. The restrictions of Posse Comitatus should be maintained, and any functions related to prevented terrorism within the United States, must e restricted to non-military-civilian departments. These duties would probably be best carried out by the states.

$25.0 billion

U.S. Department of Energy

The Department of Energy is not authorized by the Constitution. It should be eliminated.

$20.3 billion

Department of Justice

The Department of Justice is a Constitutional function of the Federal government. However Congress is limited by Article I, Section 8:
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States
To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations
All other “Federal Crimes” are not authorized by the Constitution. For most “Federal Crimes” the states already have similar laws on the books. The Senate should work to eliminate all this duplicate legislation. Also many of the functions of administering justice could be contracted to private companies and performed at a lower cost and more efficiently. This item could be greatly reduced.

$20.8 billion

Department of Agriculture

The Department of Agriculture is not authorized by the Constitution. This item should be eliminated and the department abolished.

$17.6 billion

National Aeronautics and Space Administration

The National Aeronautics and Space Administration is not authorized by the Constitution. Space travel and exploration is and can be privately accomplished. This item should be eliminated and the department abolished.

$11.5 billion

U.S. Department of Transportation

The Department of Transportation is not authorized by the Constitution. This item should be eliminated and the department abolished.

$12.5 billion

U.S. Department of Treasury

Of this budget of $12.5 Billion about $11.4 billion is being spent running the Internal Revenue Service. Elimination of the IRS would significantly reduce the budget of the Department of the Treasury. Changing to a gold/silver based monetary system would further reduce costs for the treasury. Congress would be fulfilling its duty by coining money and regulating the value thereof. A small premium can be charged for coining money from ore. Metal coins are more durable than paper money. Private companies could issue notes redeemable in gold and silver at no cost to taxpayers. The treasury should be self sufficient.

$10.6 billion

United States Department of the Interior

The U.S. Department of the Interior is not authorized by the Constitution. All public land should be sold to land trusts and the Department of the Interior should be abolished.

$10.5 billion

United States Department of Labor

The U.S. Department of the Labor is not authorized by the Constitution. The Department of the Interior should be abolished.

$8.4 billion

Social Security Administration

The Social Security Administrationis is not authorized by the Constitution (Article I, Section 8). Convert to Private Retirement Accounts Remove this item from the budget

$7.1 billion

United States Environmental Protection Agency

The United States Environmental Protection Agency is not authorized by the Constitution (Article I, Section 8). The EPA will not stop government pollution (like TVA). Convert to Private Environmental Protection group. Remove this item from the budget

$6.9 billion

National Science Foundation

The National Science Foundation is not authorized by the Constitution (Article I, Section 8). Use Existing Private Science Foundations. Remove this item from the budget

$6.3 billion

Judicial branch (United States federal courts)

Limiting the United States federal courts to the jurisdiction granted by Constitution could reduce this amount. A restitution program could be used to replace the current ineffective program of incarceration. Convicts should have to cover most if not all of their trial expenses.

$4.7 billion

Legislative branch (United States Congress)

Limiting the United States Congress to the powers granted by Constitution in Article I, Section 8 could reduce this amount. Congress must begin cutting the budget by brining their spending under control. The total spending for Congress should be lowered to $700 million a year.

$4.7 billion

United States Army Corps of Engineers

The United States Army Corps of Engineersis not authorized by the Constitution (Article I, Section 8). The functions of the United States Army Corps of Engineersis should be moved to the private sector and taken out of the budget.

$0.4 billion

Executive Office of the President

Limiting the President to the powers granted by Constitution in could reduce this amount. The Senate should take an active role in reducing spending in the Executive Branch.

$0.7 billion

Small Business Administration

The Small Business Administration is not authorized by the Constitution (Article I, Section 8). This should be a private function. The item should be removed from the budget.

$7.2 billion

Other agencies

Unless specifically authorized by the Constitution (Article I, Section 8). Spending for other agencies should be moved to the private sector and cut from the budget.

$39.0 billion

Other off-budget Discretionary Spending

Unless specifically authorized by the Constitution (Article I, Section 8). off-budget Discretionary Spending should be cut from the budget.

The President's budget for 2009 totals $3.1 trillion. If the red items were removed from the budget and converted to a market sector activity this would reduce the Federal budget by $1.98 trillion or nearly 64%. Implementing the additional cuts recommended in orange categories will produce another $663.7 billion in budget reductions. This bring total proposed budget cuts to $2.64 trillion or 85%, and leaving a Federal budget of $460 billion.

The 2009 budget estimated receipts totaling $2.7 trillion from the following sources:

$1.25 trillion - Individual income tax
$949.4 billion - Social Security and other payroll taxes
$339.2 billion - Corporate income tax
$68.9 billion - Excise taxes
$29.1 billion - Customs duties
$26.3 billion - Estate and gift taxes
$47.9 billion – Other

All of the red taxes could be eliminated and the government would still colelct $485.1 in revenue, leaving an annual surplus of $25.1 billion. By January 2010 the national debt is predicted to reach the $10 trillion dollar mark. The United States could use the Fair Tax to help pay down the national debt, and end the tax once the debt is paid.

Orange items are authorized to a limited extent by the Constitution, but currently are being executed in broader terms than is desirable. The scope of these items should be reduced. Many of the functions within these items could be turned over to private contractors and be accomplished at less cost and with better efficiency. Excluding payment of interest on the national debt Orange items total $846.5 billion dollars. Spending on Green items should probably be maintained at present levels. Contracting to private providers could reduce costs and improve services offered.

All contents copyright, 2008 Daniel Towers Lewis for U.S. Senate

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Last updated on February 6, 2008 by lewisdt.com.