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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?
Economy: President Obama may meet at last with Colombia's President Juan Manuel Santos in Washington Thursday. If so, good. But if it's not to announce a free-trade treaty, a huge and maybe final opportunity will be blown. Colombia's leader is in New York this week as the new president of ...
Mideast: Mohamed ElBaradei, Nobel Peace Prize winner and Egyptian presidential candidate, says if Israel attacks Gaza, Egypt would declare war. The U.N. nuclear peacenik takes the "blessed are the warmongers" approach. If you thought the peace prize was a joke after it was given on spec ...
Energy Policy: Gasoline prices are punitively high, and many blame the administration. But prices could be lower and approval ratings higher if the president got behind an important pipeline project. The Keystone XL pipeline, proposed six years ago, is a 36-inch feed linking Alberta's oil ...
If you're in college to get teacher certification, you'll probably be required to attend classes on "multicultural education." This is supposed to bring diversity to the classroom and prepare teachers to teach pupils of various ethnic or national backgrounds. The textbooks in these courses ...
It's jump ball on the federal budget — and America's future is up for grabs. Although often cast in numerical terms involving trillions of dollars, the real budget battle is about human dignity, freedom and progress. Can we preserve these and other bedrock characteristics of American ...
Posted By: DOLPHINS440(240) on 4/5/2011 | 10:45 PM ET
Hey cnptnow. I guess that the Foundong Fathers were "ridiculously radical" too in expecting a small govt. We need something radical to fix the govt.'s financial mess after all the radical spending they've been doing these last several decades.
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Posted By: cnptnow(2585) on 4/5/2011 | 10:13 PM ET
Dolphins: What are you saying? Asking for the moon and expecting some cheese? Paul Ryan has introduced something reasonable. Your statement is ridiculously radical and impossible by any stretch of imagination, except maybe yours. I suppose we could eliminate all defense spending. You could head up a civilian or private army to keep our predators at bay.
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Posted By: DOLPHINS440(240) on 4/5/2011 | 10:05 PM ET
While I appluad Rep. Ryan for coming out with a plan that is far better than anything offered so far, it still falls woefully short. Even his plan does not balance the budget or payoff the debt anytime soon. We need to balance the budget NOW and the debt should be paid off within a reasonable timeframe, say 5-10 years. No more deficit spending from here on out. All these welfare programs(Medicare and Medicaid) should be outright abolished, not simply reformed. No more govt. handouts.
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Posted By: singray2301(340) on 4/5/2011 | 8:51 PM ET
Cutting has to be done and it also has to be done right. The Gov'ts payroll has to be cut, but you know how tough that will be. The workers (Unions) will have benefits cut to the poor and disabled rather thean a cut in their pay. They prefer it also to downsizing. We are in for a real Battle. Every cut will affect someone and that someone will suffer also. Shared sacrafice is going to be the only way out but I fear that the Special Interest Groups will make sure only those they will share.
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Posted By: Cindy059(10) on 4/5/2011 | 8:34 PM ET
Finally, congressman who steps up to the plate and suggests a plan and just doesn't use scare tactics. I think there is hope!
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