Thompson's Plan to Reduce Federal Government Spending

Summary of Fred Thompson's plan to reduce Federal Government spending.

In 2007, federal government's spending -- $2.8 trillion-- equivalent of $22,000 per household. . . . Federal government loses billions every year due to ineffective programs, poor management, waste, and fraud. And, the problem is getting worse. Within five years, federal spending is expected to reach more than $3.2 trillion, or about 20% of our economy; more than half of this amount is mandatory spending for entitlements. Increasing government spending is not the answer . . . time to get it under control with better solutions and better management of our federal government.

Balance the Budget and Eliminate Underperforming Programs
Congress has consistently refused to balance the budget and address the deficit. In fact, federal spending continues to grow at rates double inflation. This rate of growth in federal spending is not sustainable and must be brought under control. The following actions will result in better control of the growth of non-defense discretionary spending:

1. Limit Non-Defense Federal Spending to Inflation.
2. Implement a One-Year Hiring Freeze Pending Completion of Federal Government Strategic Assessment.
3. Conduct a Comprehensive Cost-Benefit Analysis of All Federal Programs.

Enact Meaningful Earmark Reform
1. Provide President with Line-Item Veto Authority.
2. Direct Agencies to Ignore "Soft" Earmarks.
3. Propose Legislation on Earmark Procedures.

Eliminate Improper Government Payments and Prosecute Fraud
1. Eliminate Improper Payments.
2. Increase the Prosecution of Fraud.
3. Hold Executives Accountable.
4. Propose Regulatory Improvement Legislation.

Reform Entitlement Programs
1. Save and Protect Social Security.
· Providing Voluntary Personal Retirement "Add-On" Accounts to Supplement Benefits. These accounts would act like a private-sector employer 401 (k) plan and provide government matching funds for every contribution made by the participant.
· Indexing the Social Security Benefit Formula for Prices, Not Wages. This action would go a long way toward resolving the impending bankruptcy of Social Security while ensuring fairness by making sure future retirees receive the same amount as current retirees in real terms.

Ensure Future Viability of Medicare and Medicaid.
· Provide more choice and efficiencies by introducing new competitive features, similar to the Medicare prescription drug benefit (Part D) and the Medicare Advantage Program (Part C), to all parts of the program. Medicare must be moved away from price controls and government planning to a free-market system in order to reduce costs.
· Expand Means-testing of Medicare. Requiring wealthier seniors to pay more through higher premiums, increased co-pays, and higher deductibles is a reasonable and equitable approach that would go a long way to reducing Medicare costs.
· Shift Medicare to a prevention and chronic-care management approach. Establish new models of care that make health and wellness a priority so as to reduce the more expensive care that is required once one becomes ill.
· Medicaid costs have also been increasing dramatically. Providing tax credits to Medicaid-eligible individuals and families to allow them to purchase private insurance will increase the options for low-income individuals, expand personal choice, and should reduce costs as well.
[Read More Detailed Plan]

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Tags: Economics, Election 2008, federal spending, Fred Thompson, Lowering Taxes, presidential candidate, Reform To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!