Ryan Unveils His Balanced Budget Plan

March 15, 2013

House Budget Committee Chairman Paul Ryan recently unveiled his new budget plan that balances the budget by 2023. The plan would repeal almost all of the Affordable Care Act ("ObamaCare"), overhaul Medicare and Medicaid and cut government spending by $4.6 trillion in 10 years, says the Fiscal Times.

Entitlements:

  • Repeals ObamaCare's expansion of Medicaid to millions of uninsured low-income Americans.
  • Transforms the open-ended entitlement Medicaid program for the poor into a block grant for the states.
  • Repeals ObamaCare's insurance exchange subsidies.
  • States would be able to customize a smaller, $25 billion food stamp program.
  • People age 54 or younger must choose from private health care plans in a voucher style premium support Medicare exchange.
  • Creates Medicare premiums for higher-income seniors.
  • Gets rid of the 15 member Independent Payment Advisory Board that oversees Medicare costs.
  • Requires the president and Congress to submit a plan to shore up the Social Security Trust Fund.
  • Requires federal employees to make greater contributions to their retirement.

Taxes:

  • Removes loopholes and deductions.
  • Lowers tax rates for individuals.
  • Only the 10 percent and 25 percent tax brackets exist.
  • Repeals the Alternative Minimum Tax.
  • Marginal corporate tax rate drops to 25 percent.

Education:

  • Maintains a maximum award level for Pell Grants at $5,645 for the next 10 years.
  • Makes it harder for families to hide their assets by changing the calculation of financial need formula.
  • Eliminates duplicate K-12 educational programs.
  • Streamlines job training programs and improves their accountability by tracking career placements and costs per trainee.

Military:

  • Eliminates the automatic sequestration cuts for the military.
  • The Defense Department receives an extra $500 billion in funding over the next 10 years.
  • Adds $9 billion more to Veterans Administration programs.

Energy: Approves the Keystone XL Pipeline project.

Housing:

  • Scales down both Fannie Mae and Freddie Mac.
  • Revises the Federal Credit Reform Act.

Source: Eric Pianin and Josh Boak, "How Paul Ryan Would Erase Obama's Social Contract," Fiscal Times, March 13, 2013.

 

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