The Heritage Foundation today released a report on federal compensation which calls for drastic cuts in most federal salaries. Heritage concluded that when benefits are factored in, feds earn 30 percent to 40 percent more on average than their private-sector counterparts. Bringing federal salaries in line with market rates would save $47 billion in 2011 alone, Heritage said in its report, “Inflated Federal Pay: How Americans Are Overtaxed to Overpay the Civil Service.” Heritage also calls for abolishing the General Schedule, with its longevity-based raises, and establishing a pay-for-performance system with broad pay bands, cutting leave and other generous federal…