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Ernest Istook

Ernest Istook

Posted: August 19, 2010 12:49 PM

"Solutions for America" Offered

What's Your Reaction:

Consistently, the political Left insists that conservatives have no solutions to offer. It's not true, of course. Still, liberals cling to this mantra.

Undeterred, The Heritage Foundation is weighing in with a 54-page outline of "Solutions for America," covering the gamut from job creation to economic stimulus, entitlement reform, national security and legal reform. Its 128 specific recommendations will be detailed further in forthcoming policy papers from Heritage.

Suggestions include:

  • Reducing the overly-generous compensation packages of federal employees,
  • Requiring budget limits for entitlements such as Medicare, Medicaid and Social Security,
  • Consolidating and reforming the 71 separate federal welfare programs that form the nucleus of a nearly $1-trillion-a-year welfare industry
  • Changing the tax code to stimulate business investment and job creation immediately, and
  • Returning major decision-making authority in areas like education and transportation to the state and local level.

Heritage's President, Dr. Edwin Feulner, noted a common goal of the proposals: They return power to the people rather than government. And, as reflected by the examples above, many of them call for bold steps rather than incremental change.

"While these policy prescriptions are bold," Feulner said, "they're also politically viable. Collectively, they will put America back on the track to prosperity and greatness."

The quickest economic boost might be from the two-pronged plan to encourage companies to use their $1.8-trillion cash reserves for expanding and creating jobs. The first prong is lowering America's corporate tax rate--now the second-highest in the developed world--to no more than the average rate of 26%. This reform would encourage U.S. companies to expand at home and international companies to expand in the USA. The second prong is to let businesses to deduct their tax-deductible investments right away, rather than using multi-year depreciation. (Heritage also opposes the scheduled January 1st tax increases.)

The plan also calls for less regulation--especially repealing the new regulatory costs embodied in President Obama's health care and financial regulation bills-- as another key to unlocking growth by the private sector. (House Republican Leader John Boehner (R, OH) recently wrote President Obama to complain that the government now has in the pipeline 191 new rules, each of them entailing more than $100-million in compliance costs.)

"Solutions for America" also proposes major change in public assistance. A Heritage study highlights how over $1-trillion annually (including the required state and local contributions) is spent on 71 means-tested federal welfare programs. Heritage recommends that these should be consolidated, plus have work and partial repayment obligations added for able-bodied adults.

Federal workers are over-compensated, the Heritage report notes. (USA Today reported their average total package is $123,000--twice the private sector average.) Heritage calculates that for comparable jobs and experience, the federal package is 30-40% too high, with a $47-billion annual savings to taxpayers if pay is brought into line with the private sector.

The collective package of proposals will be distributed by The Heritage Foundation to lawmakers and opinion leaders, and is publicly available at its website.

As Feulner noted, the ideas are not all new. But neither are Obama's big government proposals. The notion that only "new" ideas have merit is a myth; otherwise enduring standards such as honesty, civility, and freedom itself would be deemed "old" and therefore invalid.

Heritage has compiled comprehensive policy proposals for Presidents and Congress for over three decades. Its 1980 "Mandate for Leadership" became a policy bible for the incoming administration of Ronald Reagan. Reagan distributed copies at the initial meeting of his Cabinet and Heritage calculated that nearly two-thirds of its 2,000 recommendations were adopted by the Reagan Administration.

Liberal critics will doubtlessly assail Heritage's latest 128 recommendations. But nobody should pretend that conservatives are devoid of good ideas. And America would be better by listening to them.

Former Congressman Ernest Istook is a Distinguished Fellow at The Heritage Foundation.

 

Follow Ernest Istook on Twitter: www.twitter.com/Ernest_Istook

 
 
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HUFFPOST SUPER USER
mummblemouth
Liberals: the only true fiscal conservatives.
10:25 AM on 08/20/2010
You are still offering the same ideas. Less regulation, less domestic support for our citizens, reduced taxes for those who make the most, and drowning the American government in a bathtub. So while we'd all like to 'stimulate business investment and job creation immediately,' history has proved that your 'solutions' are really the problem. So go back to the Bush age and stay the fck away from the rest of us.
nothingchanges
too soon old, too late smart
09:50 AM on 08/20/2010
I don't claim to be liberal, I try to be rational. Some questions need to be asked.

"Reducing the overly-generous compensation packages of federal employees,"

The President of the United States makes $400,000 a year, The CEO of Oracle made $56.8 million last year. Who has the more important job? Executive compensation in the US has become obscene, why is that not a concern of your organization?

"Requiring budget limits for entitlements such as Medicare, Medicaid and Social Security"

The total budget for Social Security in 2009 is projected at just under 696 Billion dollars. Social Security's budget is separate from the general Federal budget, since it is supposed to be self financed. The cost to the US of the wars in the middle east will eclipse 1.082 Trillion this year. (Not taking into account the "human" costs, death, dismemberment, lives destroyed and life time disabilities) A recent study put the total costs of the Middle East wars at 12 Trillion dollars worldwide. Which benefits the US more, taking care of it's elderly and disabled, or fighting 1/2 a world away to profit the oil industry?

These are just two examples. (The first two). "Solutions for America" should benefit the majority of Americans, not just the wealthiest. If the money spent on those wars had been invested in making America energy independent, the whole world would be better off.

I (for one) want rational "solutions", not political ones.
10:32 AM on 08/24/2010
The big salaries of CEOs take away from those who invest in the companies. It seems the more daring CEOs are and the more dishonest they are the more they are paid. The owners and Wall Street sure don't want to lose that kind of CEO.

Could it be that they have the CEOs salary that high, too, so it will raise the average wage of private sector workers?
09:50 AM on 08/20/2010
greetings....Ernie....here's a new idea that is guarenteed to put America "back on track to prosperity and greatness"...CANCEL ALL INTEREST DEBT AND ABOLISH USURY FROM THE FACE OF THE EARTH.......
09:03 AM on 08/20/2010
After reading the 54-page outline of "Solutions for America," I am hard-pressed to find any new ideas, merely a rehashing of the same polemic against moderate or progressive ideas. What truly would be refreshing is if the Foundation released an inventory of where both sides find common ground. It is so tiring to see such political thumb-wrestling again-and-again.
HUFFPOST SUPER USER
Dnlmsstch
too much for so few words
09:02 AM on 08/20/2010
Ok you are not devoid of "good ideas" you are devoid of new ideas. The "good" iseas have been proposed in the past enacted and proven unworthy.
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HUFFPOST COMMUNITY MODERATOR
Skepticat
Supporting skeptical felines everywhere
08:05 AM on 08/20/2010
There's nothing pretentious at all about stating current conservatives are devoid of good ideas.
Given that 30 years of reduction of real income and benefits to the middle and working class by conservative economic policies has NOT benefitted these folks continuation of polices ensuring they will have even less money and benefits in the future so the rich will have more simply doesn't play outside the echo chamber. Conservatives have had 30 years of changing the tax codes so where is this great stimulus already - please pardon my skepticism about your future efforts. As to more control of education and transportation to the state levels. Given a global economy, having 50 weaker fiefdoms determining education and transportation policies without co-ordination of common objectives for a national strategy doesn't treally make that much sense either - unless the real conservative objective is to perpetuate a race to the bottom in giveaways to rapacious corporations by playing the states off against eachother.
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HUFFPOST SUPER USER
mummblemouth
Liberals: the only true fiscal conservatives.
10:27 AM on 08/20/2010
We don't get stimulated until the 1% controls everything. Then the stimulation comes from their whips and chains as they make us turn the treadmill of industry.
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HUFFPOST SUPER USER
Russell Masingale
weary I am of the Astroturf.
01:12 AM on 09/12/2010
dont forget the cattle prods. on the bottom of their stillito heels.
HUFFPOST SUPER USER
Shashi0224
07:35 AM on 08/20/2010
The heritage foundation....cut everything going to the middle class and give more tax cuts to the wealthy. In a nutshell that is what their suggestions add up to. After all, those ideas did so well under bush.
Epic fail.
05:44 AM on 08/20/2010
First of all, I am familiar of the heritage foundation (notice the lower case letters).

Second of all, I don't categorize myself as a Liberal and there are many who categorize themselves as Liberals who are eager to agree.

The argument that Liberals should be familiar with the heritage foundations' suggestions as a matter of discourse is presumptuous.

I believe it is the heritage foundation that should be understanding of non-heritage originated ideas that is a more pressing topic of concern.

This may sound extreme for an analogy, but, I suppose there could be debate as to whether serial killers have not been given enough praise for their contributions to the science of forensics.

If the heritage foundation discovered a cure for cancer, I would be more inclined to second guess whether this foundation would use the cure to further the election of partisan officials into government offices and neglect using the cure to heal those who are actually suffering from the disease.

The heritage foundation's foundation, as far as my research is concerned, is as unstable and suspect as a pool of quicksand.

It's members and reputation is politically biased and the attempt to convince "Liberals" to offer a benefit of the doubt for it's updated commandments only suggests that their ideas do not have strong enough knees to stand on their own.

With all do respect, sound ideas prove themselves by themselves and are hardly dependent on a plea for objectivity from an opposing ideological demographic.
05:16 AM on 08/20/2010
"America's corporate tax rate--now the second-highest in the developed world--to no more than the average rate of 26%."

Flat 26% no write offs and no subsidies deal. 2 consecutive years with losses CEO, CBO, CFO are forever banned from running a public corporation again(Yes licensure for executives just like lawyers engineers doctors etc...). Likewise the median senior management salary can be no more than 15 times higher than the median employee salary. We all know they don't pay the existing rate. Also end the offshoring tax games. Most companies don't pay under the corporate tax code we do know this but I'll sock it to wall street.

Likewise any corporation accepting government subsidies taxed at a flat 36% along with any company where 60% of their business was from government contracts or didn't want to live under above salary strucure. Still under 2 years of losses managment loses right to manage. Live of the small business and individual income tax pay more corporate tax. I'll be happy to push defense contractors to diversify their technologies into the private sector creating jobs etc...

Simplified the tax code as well.
HUFFPOST SUPER USER
jmwtex
09:50 AM on 08/20/2010
Exactly, did you see my posts below? Now this an idea I can get behind!!
12:17 PM on 08/20/2010
Yeah I'm sure his proposal would just about eliminate the corporate tax with all the write offs available but since they've sold conservatives on how wonderful flat taxes are I figure 26% corporate flat tax sounds pretty good. Judo works.

Then they have to defend by talking about all the kickbacks in the corporate code and even their low income base will realize hey they don't pay taxes.
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04:53 AM on 08/20/2010
Heritage Foundation is positively giddy over Ryan's "Roadmap for America's Future":

http://blog.heritage.org/2010/03/11/tpc%E2%80%99s-hits-and-misses-on-ryan%E2%80%99s-roadmap/

"Republican Tea Party Contract on America" a.k.a. "Solutions for America"

http://my.democrats.org/page/content/tpgop
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HUFFPOST SUPER USER
mummblemouth
Liberals: the only true fiscal conservatives.
10:31 AM on 08/20/2010
Old Paul 'Who needs numbers' Ryan? Yeah, he's a real financial wizard. These people are nuts.
This user has chosen to opt out of the Badges program
04:44 AM on 08/20/2010
Did anyone NOT expect the right-wing Heritage Foundation to slither out from under a rock and start pimping Republican Paul Ryan's “Roadmap to Nowhere"?

http://www.roadmap.republicans.budget.house.gov/

Funny… the U.S, Chamber of Commerce recently demanded our surrender in its "Open Letter to the President of the United States, the United States Congress, and the American People"

http://rncnyc2004.blogspot.com/2010/07/us-chamber-of-commerce-open-letter-to.html

...which happens to sound suspiciously like the fiscal plan touted by the Heritage Foundation... which, in turn sounds exactly like Ryan's "Roadmap.”

It's almost incestuous.

But let's be clear, GOP lawmakers say they don't embrace the plan [publically]
03:04 AM on 08/20/2010
Yeah we've already seen your great ideas. Cut taxes for the rich, who turned around and took their newly achieved gains and immediately invested, via their stock brokers in overseas companies. In the meantime, they want to cut benefits to those who are the most needy and will return every last cent back into OUR economy. Eight years of tax heaven for a bunch of sell-outs who only care about busting unions and living large, while the country goes down the tubes!!!
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BBackSoon
Hello, I must be going.
11:27 PM on 08/19/2010
Let me paraphrase.

Tax cuts or incentives for the Rich.

Cuts to anything that help regular people.

Less federal government.

Government workers are overpaid.

Why yes those are great ideas. But I don't know where I have heard them before?
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HUFFPOST SUPER USER
mummblemouth
Liberals: the only true fiscal conservatives.
10:32 AM on 08/20/2010
Exactly. They are still proposing the same thing.

Sorry, cons, changing the pitch doesn't change the melody.
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HUFFPOST SUPER USER
BearIy Here
10:08 PM on 08/19/2010
A lot of folks want to call names, but not many want to address the issues. Our economy is tanking under Obama's big government interventionist agenda, so those who want even more of it would just make the nosedive worse. Is businesses don't create jobs, do you honestly think we can or should all go to work for the government? We need a U-turn, not a crash.
03:07 AM on 08/20/2010
Thanks, but we had 8 years of that kind of thinking and now we can't dig ourselves out. I guess you think they should come back and finish us off for good.
07:33 AM on 08/20/2010
Your comment about Obama's Economy tanking because of big Government interventionist agenda is POOP! Obama is fixing the Tanked Economy left to him by the Republicans. I most assuredly want more of it. Keep going until the Economy is back to normal. The Republicans stripped out the Jobs portion of the Stimulus Bill and replaced it with Tax Cuts. Other-wise, they would not have passed it through the Senate. How you can listen to Republican BS and then, actually believe it, is beyond me.
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HUFFPOST SUPER USER
BearIy Here
09:28 AM on 08/20/2010
Obama is killing the economy and mortgaging the future--and his deficits are more damaging than any subprime mortgage. Inheriting a down economy is no excuse for making it even worse.
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leftLibertarian
Don't vote for Obama or Romney
10:03 PM on 08/19/2010
My solutions for America:

Shut down all US military bases outside our borders. Let those nations defend themselves.

End the Iraq and Afghanistan war now, bring ALL US troops home NOW.

End the war on drugs - haven't we learned that alcohol prohibition made criminals out of ordinary citizens, created a black market which created a violent criminal class.

Prosecute Bush and Cheney for crimes against the US Constitution.

Set up an independent prosecutor to investigate Wall Street Fraud.
05:38 AM on 08/20/2010
I agree with 1.2.3. points, excellent ideas! And yes I am a lifelong republican.

#4.... well unless we do the same for all POTUS's and their VP's, if not , then no.
#5 is also a good idea.

Allow me to add an investigation into Fannie Mae and Freddie Mac, and any and all former Goldman Sacs employees who now work in the administration. If I remember right Rahm was on the board of Fannie Mae and made a lot of money there.
10:19 AM on 08/20/2010
I am a conservative/libertarian as well. I agree with most of your ideas and have thought they are good ideas for quite some time now. However, your point on prosecution will do nothing to help America. It will only further divide this country. Leave the past in the past. Learn from it but leave it be. Not to mention if you prosecuted Bush/Cheney you would also need to investigate the current administration. I also saw a proposal the other day in a comment on this site that I agreed with. Basically, it called for decreasing the tax on capital gains by a certain percentage for those with less than "x" amount of dollars and increasing the tax on the sale of investments (i.e. stocks/bonds) to promote long-term investment and discourage companies from trying to make their books look good for short term profits. Of course the post this person presented, better articulated the idea and seemed fair to me.
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BBackSoon
Hello, I must be going.
12:56 PM on 08/20/2010
Personally, I think that so far, this admin while no slouch is posting nothing like the numbers Bushco posted on illegal activities. But all should be investigated.

Part of the problem is the 'Gentleman's Agreement' that the next admin will not go after the previous one. That being said I don't think the Repubs will honor that agreement the next time they get into power.

Perhaps every admin needs to know that once out of power they will be held accountable for their actions, and no one is above the law.