Here's How To Cut $2.5 Trillion In Spending: Start With $1 Million In Mohair Subsidies

Tyler Durden's picture

Today the republicans have proposed an amusing list of items to be cut from the Federal Budget, whose total amounts to just over $2.5 trillion over the next 10 years: an admirable if futile and pointless gesture. After all, never in the history of US government has spending been actually cut. And while among the proposals are such rhetorically pleasing if practically unfeasible suggestions as "Eliminate automatic increases for inflation from CBO baseline projections for future discretionary appropriations" and "Eliminate automatic pay increases for civilian federal workers for five years", some things the market may frown upon include: "Eliminate all remaining "stimulus" funding. $45 billion total savings" which means the Fed will once again be forced to pick up the slack, which it can courtesy of its recently disclosed third mandate. Yet what is shocking is the list of sundry token programs to be eliminated: we wonder just how many American are aware that currently the government's mohair subsidies amount to $1 million, that in addition to ECB FX swaps, the US actually has an international fund for Ireland (costing $17 million per year), that the USDA's sugar program whatever that is costs $17 million per year, or that apparently the US government spends hundreds of millions for not collecting unpaid taxes by Federal employees. One thing is certain: these cuts, if even implemented even one tenth of the way, will result in massive federal worker layoffs: probably not what the country needs as it scrambles to come up with every possible way to present data in a way showing the unemployment rate is tumbling.

Via US News:

FY 2011 CR Amendment: Replace the spending levels in the FY 2011 continuing resolution (NYSE: CR - News) with non-defense, non-homeland security, non-veterans spending at FY 2008 levels. The legislation will further prohibit any FY 2011 funding from being used to carry out any provision of the Democrat government takeover of health care, or to defend the health care law against any lawsuit challenging any provision of the act. $80 billion savings.

Discretionary Spending Limit, FY 2012-2021: Eliminate automatic increases for inflation from CBO baseline projections for future discretionary appropriations. Further, impose discretionary spending limits through 2021 at 2006 levels on the non-defense portion of the discretionary budget. $2.29 trillion savings over ten years.

Federal Workforce Reforms: Eliminate automatic pay increases for civilian federal workers for five years. Additionally, cut the civilian workforce by a total of 15 percent through attrition. Allow the hiring of only one new worker for every two workers who leave federal employment until the reduction target has been met. (Savings included in above discretionary savings figure).

"Stimulus" Repeal: Eliminate all remaining "stimulus" funding. $45 billion total savings.

Eliminate federal control of Fannie Mae and Freddie Mac. $30 billion total savings.

Repeal the Medicaid FMAP increase in the "State Bailout" (Senate amendments to S. 1586). $16.1 billion total savings.

More than 100 specific program eliminations and spending reductions listed below: $330 billion savings over ten years (included in above discretionary savings figure).

Here is the full list of cuts:

  • Additional Program Eliminations/Spending Reforms
  • Corporation for Public Broadcasting Subsidy. $445 million annual savings.
  • Save America's Treasures Program. $25 million annual savings.
  • International Fund for Ireland. $17 million annual savings.
  • Legal Services Corporation. $420 million annual savings.
  • National Endowment for the Arts. $167.5 million annual savings.
  • National Endowment for the Humanities. $167.5 million annual savings.
  • Hope VI Program. $250 million annual savings.
  • Amtrak Subsidies. $1.565 billion annual savings.
  • Eliminate
    duplicative education programs. H.R. 2274 (in last Congress), authored
    by Rep. McKeon, eliminates 68 at a savings of $1.3 billion annually.
  • U.S. Trade Development Agency. $55 million annual savings.
  • Woodrow Wilson Center Subsidy. $20 million annual savings.
  • Cut in half funding for congressional printing and binding. $47 million annual savings.
  • John C. Stennis Center Subsidy. $430,000 annual savings.
  • Community Development Fund. $4.5 billion annual savings.
  • Heritage Area Grants and Statutory Aid. $24 million annual savings.
  • Cut Federal Travel Budget in Half. $7.5 billion annual savings.
  • Trim Federal Vehicle Budget by 20%. $600 million annual savings.
  • Essential Air Service. $150 million annual savings.
  • Technology Innovation Program. $70 million annual savings.
  • Manufacturing Extension Partnership (MEP) Program. $125 million annual savings.
  • Department of Energy Grants to States for Weatherization. $530 million annual savings.
  • Beach Replenishment. $95 million annual savings.
  • New Starts Transit. $2 billion annual savings.
  • Exchange
    Programs for Alaska, Natives Native Hawaiians, and Their Historical
    Trading Partners in Massachusetts. $9 million annual savings.
  • Intercity and High Speed Rail Grants. $2.5 billion annual savings.
  • Title X Family Planning. $318 million annual savings.
  • Appalachian Regional Commission. $76 million annual savings.
  • Economic Development Administration. $293 million annual savings.
  • Programs under the National and Community Services Act. $1.15 billion annual savings.
  • Applied Research at Department of Energy. $1.27 billion annual savings.
  • FreedomCAR and Fuel Partnership. $200 million annual savings.
  • Energy Star Program. $52 million annual savings.
  • Economic Assistance to Egypt. $250 million annually.
  • U.S. Agency for International Development. $1.39 billion annual savings.
  • General Assistance to District of Columbia. $210 million annual savings.
  • Subsidy for Washington Metropolitan Area Transit Authority. $150 million annual savings.
  • Presidential Campaign Fund. $775 million savings over ten years.
  • No funding for federal office space acquisition. $864 million annual savings.
  • End prohibitions on competitive sourcing of government services.
  • Repeal the Davis-Bacon Act. More than $1 billion annually.
  • IRS
    Direct Deposit: Require the IRS to deposit fees for some services it
    offers (such as processing payment plans for taxpayers) to the Treasury,
    instead of allowing it to remain as part of its budget. $1.8 billion
    savings over ten years.
  • Require collection of unpaid taxes by federal employees. $1 billion total savings.
  • Prohibit taxpayer funded union activities by federal employees. $1.2 billion savings over ten years.
  • Sell excess federal properties the government does not make use of. $15 billion total savings.
  • Eliminate death gratuity for Members of Congress.
  • Eliminate Mohair Subsidies. $1 million annual savings.
  • Eliminate taxpayer subsidies to the United Nations Intergovernmental Panel on Climate Change. $12.5 million annual savings.
  • Eliminate Market Access Program. $200 million annual savings.
  • USDA Sugar Program. $14 million annual savings.
  • Subsidy to Organisation for Economic Co-operation and Development (OECD). $93 million annual savings.
  • Eliminate the National Organic Certification Cost-Share Program. $56.2 million annual savings.
  • Eliminate fund for Obamacare administrative costs. $900 million savings.
  • Ready to Learn TV Program. $27 million savings.
  • HUD Ph.D. Program.
  • Deficit Reduction Check-Off Act.
  • TOTAL SAVINGS: $2.5 Trillion over Ten Years

h/t Bruce Krasting