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GOP budget cuts spending, changes Medicare and kicks off fresh budget battles

rep paul ryan holding budget
REUTERS/Gary Cameron
U.S. Rep. Paul Ryan’s budget balances in 10 years, thanks to both $4.6 trillion in spending cuts (out of $46 trillion-worth of spending over 10-year budget, he said) and by accepting the new revenue that came from January’s fiscal cliff deal.
  • The budget repeals the Affordable Care Act, though it keeps in place more than $700 billion in cuts to Medicare enacted under the law.
  • It would make the customary structural changes to Medicare, in which the government would subsidize the premiums individuals pay for private insurance while making traditional Medicare available as an option (such a plan would begin for retirees in 2024).
  • The budget would simplify the tax code by creating just two tax rates: 10 percent and 25 percent for individuals and 25 percent for corporations. Ryan said lawmakers would have to end certain tax breaks and deductions to make up for the lost revenue under these lower rates. Such tax reform would be even more difficult given the $600 billion tax hike Congress approved in January.

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Comments (8)

Since the House of Representatives

is the only institution that can initiate revenue bills it seems like they are entirely responsible for the budget not balancing. Seems they need to stop spouting off and to to start finding things that the other two branches will accept or own the deficit.

I am totally puzzled as to why the President is so weak on this issue. But then again he is a weak President.

Ayn Rand Wrote Fiction

Paul Ryan - an avowed Ayn Rand disciple - believes that government is useful only to protect the interests of most privileged and that the "general welfare" of the nation is of little concern. Since military power is necessary to provide that security blanket and it is the source of great wealth for some of its contractors, it must protected at all costs in the Rand/Ryan ideology.

That Paul Ryan has any credibility in the Republican Party demonstrates how demented the once honorable GOP has become.

Didn't they just run on this plan and lose?

How does Paul Ryan's budget with a new picture on the cover qualify as "news"?

Tellingly (on a few levels)

Mr. Ryan had a major Freudian slip, saying "we're not going to give up on destroying the health care plan for the american people." Oo la!

It's been said before

…and probably more eloquently, but while the "new" Ryan budget may differ in detail from the "old" Ryan budget, it's still a new coat of paint on the same rusted-out clunker they tried to sell us last year.

Once more, the package consists of socialism for the rich, capitalism for the poor. It's morally bankrupt besides, and as we've seen in Europe and elsewhere, the notion that "austerity" somehow benefits the society as a whole is a chimera. The "new" Ryan budget, much like the "old" Ryan budget, is based on ideology, not fiscal reality.

Those that have, get. Those that don't, dont.

Paul Ryan change agent

If the Republican Party is trying to change its image, Paul Ryan is not the person to put forth. This guy reaks the GOP and what it stands for. How many elections is the GOP willing to lose before they make meaningful changes that will appeal to the electorate?

Anyone...

can balance a budget based on unspecified cuts in loopholes and deductions. And, irony upon irony, it keeps the so-called $700m cut in Medicare for which he blasted Obama.

By staking out an extreme position, it's another squandered opportunity to enact meaningful, if somewhat painful, spending cuts.

War Mongers

When will the GOP wake up great idea lets reduce money from what we give our people while increasing a millitary budget that is al ready 7 times larger then the next xclosest budget, I hope America wakes up soon and we get ride of these war mongers for good