The House Republican Budget Alternative (PDF) Summary of the Republican Budget Alternative Two Budgets: A Comparison (PDF) At first glance, the stuff I thought was interesting included the simplification of the tax code, the fact that this budget creates $6 trillion in deficits over the next 10 years, and what seems to be a focus on 10, 20 and 50 years down the line in contrasting this budget to Obama's. Thoughts?
I actually stopped reading on the first page. It promises to reduce the deficit while stopping the 2001/03 tax cuts for the wealthiest from expiring. That's laughable. The reason why the 01/03 tax cuts expired at all was because the CBO showed that they would create massive deficits if they persisted. So in order to pretend that they were responsible, these cuts were allowed to expire in 2010. Same old story - tax cuts tax cuts and more tax cuts, pitched as the solution to everything. For those of us in the real world this is not a serious proposition. For the monkeys at the Heritage foundation who prepared it (yes, that's who the Republicans used for their economic projections, read the notes), including the charts of mega-awesome growth into 2080 or whatever, iIt was probably a good way to waste a few weeks.
The reason for the 50-yr timeline is that you can make small adjustments and get big differences out that far. That seems to be what they've done, primarily by saying "we'll fix entitlements!" Here's their plan to fix entitlements, according to Rep. Ryan. Can anyone tell me where the cost savings come from? - Entitlements. Our budget also takes steps toward fulfilling the mission of health and retirement security, in part by making these programs fiscally sustainable. The budget moves toward making quality health care affordable and accessible to all Americans by strengthening the relationship between patients and their doctors, not the dictates of government bureaucrats. We preserve the existing Medicare program for all those 55 or older; and then, to make the program sustainable and dependable, those 54 and younger will enter a Medicare program reformed to work like the health plan members of Congress and federal employees now enjoy. Starting in 2021, seniors would receive a premium support payment equal to 100% of the Medicare benefit on average. This would be income related, so low-income seniors receive extra support, and high-income seniors receive support relative to their incomes -- along the same lines as the president's Medicare Part D proposal. We strengthen the Medicaid safety net by converting the federal share of Medicaid payments into an allotment tailored for each state's low-income population. This will enhance state flexibility and sensitivity to spending growth. In one of the most valued government programs -- Social Security -- our budget begins to develop a bipartisan solution to the program's pending bankruptcy by incorporating some of the reforms advocated by the president's budget director. Specifically, we provide for a trigger that would make small adjustments in the benefits for higher-income beneficiaries if the Social Security Administration determines the Social Security Trust Fund cannot meet its obligations. This is a modest but serious proposal which would not affect those in or near retirement, but is aimed at helping develop a consensus, across party lines, toward saving this important retirement program. We also assure that benefits for lower-income recipients are large enough to keep them out of poverty. From what I gather, the only specifics they provide to fix Medicare and SS are the same ones that Obama supports. Hmm.
Yeah... it shows some small but real differences at first, and then starting 20 years from now the lines go crazy apart. I'm honestly not sure what to make of that. I seem to recall part of Obama's reasoning on the current spending is to promote growth and so that the numbers for 10 to 20 years down the line don't turn out like the ones shown in the graph above. I also find it hard to believe that if things do head in that direction that things won't be done to change it.
Oh, now this is funny, a liberal taking the moral high ground on the issue of deficits. Welcome to the real world, Sam, where your party just proposed the LARGEST BUDGET DEFICIT OF ALL TIME. Ouch, that stings. Most of the money is on unnecessary spending projects that provide neither stimulus nor jobs. Another sting. NO CRED The truth about tax cuts is that they expand the pie, and have a history of leading to economic growth. Tax hikes, on the other hand, shrink the pie by crowding out private investment. So you take your pick. What people need to realize is that Obama's budget is not intended to grow the economy, or shrink the debt. It's intended to increase the size and scope of government and advance Democratic social issues, like global warming, welfare programs, and unions. Is anyone willing to pay $1,600 more per year in taxes, during this recession, to fight 'global warming'? I'm not, despite my vast wealth.
What you say is true, but Fox News and the average American will look at that chart and see a ridiculous future. Excellent Republican propaganda creating an image of Obama as an out-of-control spending maniac. You can practically see the 2012 Republican platform.
Also of note - the Democratic line is based on CBO out-year projections. The Republican line is conveniently based on GOP projections, from what I can tell.
This part made me LOL. Perhaps if you chose to word that last sentence differently you wouldn't come across as a liar
Which is the same as the one in 2008, 2004, 2000..... Fox News and the "average Americans" who watch it appear to be confined to a small pocket of the country stretching roughly from Dallas to Jacksonville and extending as far north as Topeka and Lexington - enjoy your averageness. The rest of us will be busy.
You misread me. Either way, I just wish that, as a nation, we can stop being so "read and react" when it comes to politics. It seems that the party platform is always 180 degrees away from what the incumbent party is pushing. I'm sorry but just because you claim it is best for America doesn't make it true. Its pretty obvious that the "about face" platform is just there to win more votes rather than do what needs to be done. Its pathetic, its disgusting, its un-American
I don't think anyone is going to fall for the "republicans are the party of less spending" line anymore.
Just read that summary. What a complete farce. They just took every Republican talking point from the election and threw them into a budget bill. A complete spending freeze except defense spending and veterans health care spending. Clearly that'll get the economy moving again when we target two areas that form the basis of our economy. Energy independence by drilling for more oil. mmhmm.. clearly a way to solve our economic woes and inject growth. Keeping the Bush tax cuts alive, cutting corporate taxes to 25% and eliminating a whole slew of other taxes. Clearly awesome ways to inject immediate growth. BTW "simplifying the tax code" has honestly become code for more tax cuts. It's not even about simplifying the income tax process, streamlining deductions, and just making filing taxes less ridiculous. (which probably would save the government and the taxpayer money) Simplifying the code means making it more complicated by adding more tax credits and tax cuts without cleaning up the ones we have now. That's not to say that the Democratic plan is perfect. But it seems like the Republicans keep promising a make over of their party but its the same old platform and positions regurgitated to us as usual.
As a side note, I do remember some talk from the Obama camp of actually simplifying the income tax code, so keep your fingers crossed for that.
Apparently another nice little perk of the Republican budget proposal calls for the abolition of Medicare. Bonus!
What the hell did you expect? For Obama to balance the budget in the first 100 days? Look what he inherited from your boy! http://www.msnbc.msn.com/id/27188415/ Budget deficit surges to all-time high The federal red ink rises to $454.8 billion as economic woes mount The Associated Press updated 7:56 p.m. CT, Tues., Oct. 14, 2008 WASHINGTON - The federal budget deficit soared to $454.8 billion in 2008 as a housing collapse and efforts to combat the economic slowdown pushed the tide of government red ink to the highest level in history. The Bush administration said Tuesday the deficit for the budget year that ended Sept. 30 was more than double the $161.5 billion recorded in 2007. It surpassed the previous record of $413 billion set in 2004. Economists predicted a far worse number next year as the costs of the government's rescue of the financial system and the economic hard times hit the nation's balance sheet. Some analysts believe that next year's deficit could easily top $700 billion, giving the next president a formidable challenge. Litany of economic woes The administration blamed this year's record deficit on a litany of economic woes. The prolonged housing slump sharply reduced economic growth and has sent the unemployment rate rising, developments that reduce tax revenues. "This year's budget results reflect the ongoing housing correction and the manifestation of that in strained capital markets and slower growth," Treasury Secretary Henry Paulson said in a statement accompanying the deficit report. "While it will take time to work through this period, we will overcome the current challenges facing our nation." Democrats said the administration's economic policies were responsible for the growing deficit. They noted that when Bush took office in 2001, the budget was in surplus with projections that total surpluses over the next decade would reach $5.6 trillion. Those surpluses never materialized. The economy fell into a recession and then faced unexpected costs such as fighting wars in Afghanistan and Iraq and dealing with the aftermaths of Hurricane Katrina. Democrats also cite the costs of Bush's 2001 and 2003 tax cuts as further reasons for the budget imbalances. "The eight years of this administration will include the five biggest budget deficits in history," said House Budget Committee Chairman John Spratt, D-S.C. "The resulting debt will be passed to our children and grandchildren." Senate Budget Committee Chairman Kent Conrad, D-N.D., said the national debt had climbed by more than $1 trillion while Bush was in office and "the next president will inheriting a fiscal and economic mess of historic proportions." Costs to increase significantly The credit crisis that has swamped the financial system is boosting outlays because of the costs of protecting the depositors of failed banks. Those costs will increase significantly in coming years. The government faces the prospects of paying for the $700 billion rescue plan that will boost spending as the government spends $250 billion in coming months to buy stock from banks to bolster their balance sheets and also buys up bad assets currently on banks' books. Both of those programs are aimed at relieving strains on banks so they can resume more normal lending and ease a credit crisis that is threatening to push the country into a severe recession. Many private economists believe the country will not be able to escape a recession even if the rescue program is successful at getting banks to resume lending. The Bush administration is projecting that the deficit in the current budget year will rise to $482 billion, but that estimate made in the summer does not include the costs of the rescue program passed by Congress on Oct. 3. The deficit for 2008 reflected the costs incurred in recent months for a $168 billion economic stimulus program that Congress passed at the beginning of this year in an effort to combat the economic slowdown. Those checks did give the economy a boost in the late spring and early summer. That impact has now faded leading many analysts to project that the current quarter and the first three months of next year will show declines in overall input. Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. URL: http://www.msnbc.msn.com/id/27188415/ MSN Privacy . Legal © 2009 MSNBC.com
