America’s Fiscal Future: Paul Ryan’s budget plan dramatically slows spending growth, gets entitlements under control and begins the arduous task of easing the nation’s crippling debt load. So what’s not to like?
As Congress argues over a measly $33 billion in cuts to the 2011 budget to keep the government from shutting down, the plan by House Budget Chairman Ryan for 2012 and beyond not only reverses the Democrats’ profligacy but returns the U.S. to a path of fiscal responsibility.
The plan trims $6.2 trillion from President Obama’s budget (see chart), driving outlays back below 20% of GDP, their historic average, and well below the 25% in Obama’s budget.
As for the squealing of the Democrats over vicious “cuts,” spending actually grows from 2011 to 2021 under Ryan’s plan by $1.12 trillion — an increase of 31%, or 3.1% a year. So those who say government is being “slashed” are being disingenuous.
In contrast, since Democrats took over Congress in 2006, spending has risen $1.2 trillion, or 44%. That amounts to a yearly gain of 9% that has pushed us to the brink of insolvency.
One thing that Ryan does slash is the deficit — by $4.4 trillion over 10 years. That’s $4.4 trillion less for our children and grandchildren to repay. More importantly, debt peaks at a projected 74.5% of GDP in 2013, then recedes to 67.5% by 2021 — vs. 87.4% under Obama’s budget.
This is accomplished mainly by reforming entitlement and welfare spending in ways that lower costs while giving people more choices.
Ryan starts by overturning ObamaCare, saving hundreds of billions of dollars in higher taxes. Then, for the first time ever, he proposes serious reforms for Medicare, the greatest danger to America’s fiscal health.
Instead of government paying providers directly and deciding what their services are worth, new retirees would receive “premium support” to help them buy insurance on the open market — similar to the much-envied plan that Congress itself has now.
Ryan also reforms the welfare system, giving block grants to states for both Medicaid and food stamps. This gets the federal government out of the business of micromanaging Americans’ choices and puts states in charge, as it should be.
None of this, of course, works without a healthy economy. To that end, following President Reagan’s notably successful lead, Ryan proposes a bold tax reform — one that reduces the top corporate and individual tax rates from 36% and 39.6%, respectively, to 25%, and gets rid of many of what Ryan calls “deductions and loopholes” that make our tax code hideously complex and costly.
This is a great plan. And it’s one that Americans, weary of the Big Government meddling of recent years, are ready to embrace. The only question is: Can Democrats muster the political wisdom and courage to support something from the opposition that would work?
The main reason the dems won’t go for it. It repeals ObamaCare. Can’t have that now can they. If they did it would be an admission that ObamaCare was a bad idea and would have ultimately been a failure that would have completed the job of bankrupting a nation.
Posts Tagged ‘obamacare’
Tags: budget deficit, governement spending, obamacare, paul ryan, president obama
If you thought that the change in the house to a GOP majority meant that companies were suddenly going to start shitting out new jobs, then you need a reality check. The economy is still a mess and that isn’t going to change just because of an election. It’s going to be a mess for years to come.
FACT: Unemployment is down… BUT that is because of an increase in companies like Wal-mart needing low paid part time workers and many other people just giving up on finding a job and their unemployment running out.
In spite of what some people think you can not feed a family of four and keep a roof over your head on a minimum wage part time job. 20 hours a week @ 7.50 and hour is not enough to live on.
FACT: The government can’t employ everyone. Unless you want one of those sixteen thousand new IRS jobs that will be created by Obamacare. Which in and of itself is a complete joke.
FACT: Companies won’t be hiring en-mass until they know what the ramifications of hiring large numbers of employees under Obama’s ill advised health care plan. Many companies are trying to find ways to pay for the employees they have now. This will surely lead to higher prices on many services or goods. Are you an AT&T customer? Most of us are… Get ready for rate increases. AT&T alone figures it will cost them one billion to cover all their employees. Who do you think is gonna pay for that?
So again those of you who are already jumping up and down about the jobs promises that were made, shuddup it took almost eight years to get into this mess (longer really) it’s going to take a lot more than two months to get out of it
Tags: obamacare, President Barak Obama, waivers
The strings attached to President Barack Obama’s Monday offer to allow state waivers out of certain Obamacare requirements are designed to earn Obama political credit for appearing flexible while restraining states from actually implementing any programs that might avoid the fiscal train wreck imposed on them by Obamacare
President Barack Obama suggested that he is willing to give states a way out of some of Obamacare’s most onerous requirements in 2014, three years earlier than allowed under an existing provision in the law. But much like the Obama administration’s refusal to move for expedited Supreme Court review of his signature “achievement,” the president’s offer to the National Governor’s Association, “If you have a better way of doing it, help yourself,” is a ploy to gain time for his federal takeover of the health insurance industry to become so ingrained within the federal government’s power that it becomes all but impossible to eliminate.