Paul Ryan Budget Won't Solve Deficit Crisis

Steve of MA _ New material about Ryan plan will be coming out online.

The Ryan plan is still in the infant stage because revisions will be made if it is to be passed. That’s DC. However there are some preliminary answers to your questions. In it’s raw form CBO has made a introductory examination. Many times a bill gets more than one CBO report. Gives Congress idea of bill’s impact:

CBO report on Ryan's budget bill:

http://blog.american.com/2012/03/cbo-report-shows-how-new-ryan-budget-plan-puts-u-s-on-path-to-solvency/

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“House GOP unveils budget blueprint”

03/20/2012

“The GOP plan doesn’t have a chance of becoming law this year — the Democratic-controlled Senate has no plans to even take it up — but it provides a sharp election-season contrast to the budget released by Obama last month. His proposal would rely on tax increases on the wealthy to curb trillion-dollar-plus deficits but for the most part would leave alone key benefit programs such as Medicare”

“The Republican proposal, released by House Budget Committee Chairman Paul Ryan, would wrestle the federal spending deficit to a manageable size in short order, but only by cutting Medicaid, food stamps, Pell Grants and a host of other programs that Obama and other Democrats have promised to defend."

“The plan calls for steep drops in personal and corporate tax rates in exchange for clearing away hundreds of tax deductions and preferences. It would eliminate oft-criticized corporate tax boondoggles but also tax deductions and credits claimed by the poor and middle class."

“To cope with the unsustainable growth of Medicare and the influx of retiring baby boomers, the GOP budget reprises a controversial approach that would switch the program — for those under 55 today — from a traditional “fee for service” framework in which the government pays doctor and hospital bills to a voucherlike “premium support” approach in which the government subsidizes purchases of health insurance."

“Republicans say the new approach would force competition upon a wasteful health care system, lowering cost increases and giving seniors more options. But Democratic opponents of the idea say the proposed system — designed by Ryan and liberal Sen. Ron Wyden of Oregon — would cut costs too steeply and would provide the elderly with both a shrinking menu of options and higher out-of-pocket costs. Starting in 10 years, the plan also calls for gradually raising the Medicare retirement age from 65 to 67.”

http://dailycaller.com/2012/03/20/house-gop-to-unveil-budget-blueprint/#ixzz1pk8Qyv9G

Bill Hedges of MO 1:13PM March 22, 2012

I don't see how any meaningful mathematical analysis can be done on Ryan's plan, at least not the 99 page version that was available on-line, as it lacks specifics in many areas. For example, when describing the 10% and 25% personal income tax rates, the plan does not mention the AGI levels associated for both tiers. When does the 25% rate start? $100k? $200k? For all we are told you could even assume (probably falsely) that the 25% rate is only for the first $50k, and everything beyond that is at 10%. There's no way to know.

Also, the plan makes no mention of such basics as the tax rate for capital gains, either short term or long term. Are they now simply considered income?

I'm sure there are many more examples of missing data that prevent any meaningful analysis of this plan.

Steve of MA 11:00AM March 22, 2012

His budget doesn't even talk about the huge amount of money we spend in foreign aid every year. We dont need to fund Pakistan, Arab Spring or any other middle eastern country. We should also scale back the millitary and immediately withdraw from all wars. We need to limit non essential government spending. Medicare is an essential government program. Social Security is unneceessary. I could make better retirement savings investments with my money than the government and believe I should have that option. Of course, people making over 1 million dollars a year should pay more taxer. As a 50 year old, I am concerned about not having adequete health coverage as I age. I have paid into the medicare and social security system through out my life. Every year the government removes tens of thousands of dollars from my paycheck for these programs. Frankly, I would like my money back. Im sure that myself and other older Americans like me who may have voted republican in the past, may now switch their political affiliation. The only candidate I will vote for in the upcoming election is Ron Paul. He is a candidate who will stand by his principals.

Phil of CA 8:40AM March 22, 2012