US

Tea Party Plan to Cut the Deficit

While the bipartisan Congressional Super Committee sits behind closed doors trying to figure out how to cut to the federal deficit, the Tea Party says it has a plan...and it's offering details. We spoke to Matt Kibee, the President & CEO of FreedomWorks, a conservative non-profit organization that works closely with the Tea Party.

So what's his group's plan? Leave your comments on the plan in our LIVE chat.

Expected Results:

o

Balance the budget in 4 years (2015), and keeps it balanced - without

tax hikes.

o

Saves $9.7 trillion over the next 10 years, $500 billion in 1st year.

o

Size of government: Shrinks it from 24% of GDP to about 16%.

o

Taxes: Makes Bush tax cuts and AMT relief permanent.

How to achieve its goals:

o

Eliminates 4 Cabinet agencies: Commerce, HUD, Energy, Education.

o

Repeals the health care reform law.

o

Ends farm subsidies, government student loans, & foreign aid to

countries that don't support us.

o

Social Security: Saves it and improves benefits via personal accounts:

Doesn't raise retirement age, cut benefits, or increase payroll taxes.

o

Medicare: Gives Medicare seniors the right to opt into the Congressional

health care plan.

How to convince Americans to get on board:

o

Pay for performance: Suspends pension contributions and COLAs for

Members of Congress, whenever the budget is in deficit.

o

Crowd-source government: New "designated tax allotment" allows

taxpayers to vote for best agencies with up to 10% of their tax payment.