Congressman Paul Ryan’s (R-WI) “Path to Prosperity” budget is not easy to understand in detail, so I’ve attempted to write down the bones. The following is taken from two articles, Paul Ryan’s op-ed today in the Wall Street Journal and a piece by Tim Fernholz at the National Journal. Information from the two are melded together. NOTE: if I understand No. 28 below, the “enforceable spendng tax” means a cap on spending will be written into law, as Ryan said on Fox News Sunday.
Finally, this budget recognizes that the best welfare program is one that ends with a job—it consolidates dozens of duplicative job-training programs into more accessible, accountable career scholarships that will better serve people looking for work. ~ Paul Ryan
1) Ryan’s budget will cost taxpayers $6.2 TRILLION less over ten years than Obama’s budget.
2) Initial deficit of $950 BILLION next year
3) After 2012, the deficit declines along with debt.
4) Ryan’s budget the same as Obama’s on National Security spending
5) Cuts $923 BILLION from discretionary spending over ten years
6) Eliminates $72 BILLION in 2012 alone.
7) Calls for 2008 spending levels
8) Repeals ObamaCare with a savings of $1.4 TRILION
9) $1.8 TRILLION in cuts from mandatory spending (not related to health care and Social Security) (theorizing the cuts come from unemployment funding, food stamps, agricultural subsidies).
10) Medicaid becomes a block grant program (lets states create a range of options and gives Medicaid patients access to better care)
11) The new Medicaid program saves $735 BILLION more than Obama’s proposal
12) No changes to Social Security at this time, as it is solvent through 2037 (but requires that work to reform SS begins and ends in reform)
13) Advocates for Rep. David Camp’s (R-MI) tax reform, which lowers the top corporate and individual tax rates to 25% by closing loopholes.
14) Brings federal spending to below 20% of gross domestic product (GDP) over ten years, inline with the postwar average, and reduces deficits by $4.4 TRILLION.
15) According to the Heritage Foundation, Ryan’s budget creates 1 MILLION new private-sector jobs in 2012.
16) Brings unemployment rate down to 4% by 2015, and adds 2.5 MILLION additional private-sector jobs in “the last year of the decade” (I’m not sure what year that is – 2019?).
17) Spurs economic growth with $1.5 TRILLION in additional Gross Domestic Product (GDP)
18) Heritage estimates a result in $1.1 TRILLION in higher wages
19) Heritage estimates an average of $1,000 in additional family income each year
Remarks quoted from Ryan:
20) …this budget recognizes that the best welfare program is one that ends with a job
21) …it consolidates dozens of duplicative job-training programs into more accessible, accountable career scholarships that will better serve people looking for work.
22) …budget targets corporate welfare, starting by ending the conservatorship of Fannie Mae and Freddie Mac that is costing taxpayers hundreds of billions of dollars.
23) …gets rid of the permanent Wall Street bailout authority that Congress created last year.
24) …rolls back expensive handouts for uncompetitive sources of energy, calling instead for a free and open marketplace for energy development, innovation and exploration.
25) …will protect health and retirement security
26) …saving Medicare. The open-ended, blank-check nature of the Medicare subsidy threatens the solvency of this critical program and creates inexcusable levels of waste. This budget takes action where others have ducked. But because government should not force people to reorganize their lives, its reforms will not affect those in or near retirement in any way.
27) Starting in 2022, new Medicare beneficiaries will be enrolled in the same kind of health-care program that members of Congress enjoy. Future Medicare recipients will be able to choose a plan that works best for them from a list of guaranteed coverage options. This is not a voucher program but rather a premium-support model. A Medicare premium-support payment would be paid, by Medicare, to the plan chosen by the beneficiary, subsidizing its cost.
…Medicare will provide increased assistance for lower- income beneficiaries and those with greater health risks
29) …focus on growth by reforming the nation’s outdated tax code, consolidating brackets, lowering tax rates, and assuming top individual and corporate rates of 25%.
30) …maintains a revenue-neutral approach by clearing out a burdensome tangle of deductions and loopholes that distort economic activity and leave some corporations paying no income taxes at all.
Both articles have much more. Please follow the links above to read them in their entirety.