Ryan proposes balancing the budget by repealing the Obama health care law and a voucher plan to overhaul Medicare.
WASHINGTON—(ENEWSPF)—March 12, 2013. House Republicans released a budget today entitled “The Pathway to Prosperity.” The Republican proposal would eliminate the United States’ $4.6 trillion deficit without raising taxes. The House Republican budget would accomplish their budget objectives by eliminating President Obama’s health care law, overhauling Medicare for future retirees and creating just two tax brackets for individuals — 10% and 25%.
Senate Democrats are expected to unveil a competing budget on Wednesday.
Key elements of the Republican budget include:
- A balanced budget achieved in a decade by not allowing the government to spend more than it collects in revenue, which Republicans set at 19.1% of gross domestic product. By their measure, the federal government will spend $4.6 trillion less over the next 10 years.
- A 3.4% annual increase in spending each year, but Republicans estimate the economy will grow by a faster margin to help balance the books.
- Authorizes construction of the Keystone XL pipeline.
- A full repeal of President Obama’s health care law.
- Enact new laws to limit medical malpractice liabilities.
- Overhaul Medicare for future retirees. Starting in 2024, seniors would be given a federal subsidy to purchase health care from the private market, instead of the guaranteed benefit system that currently exists. It also calls for wealthy seniors to pay more for premiums.
- A transfer of power to states to determine how Medicaid and other funds should be spent on programs, including food stamps.
- An increase in defense spending over current law.
- A plan to transform the tax code to simplify it from seven individual tax brackets to two, as well as a repeal of the Alternative Minimum Tax and a 25% corporate tax rate.
- A requirement that the president and Congress offer respective proposals for the long-term solvency of Social Security.
The House Republican budget proposal can be viewed at: http://budget.house.gov/uploadedfiles/fy14budget.pdf