Skip to comments.Paul Ryan: The GOP Plan to Balance the Budget by 2023
Posted on 03/12/2013 7:12:49 AM PDT by SeekAndFind
The goal can be reached, with no new taxes, while increasing spending 3.4% annually instead of the current 5%.
America's national debt is over $16 trillion. Yet Washington can't figure out how to cut $85 billionor just 2% of the federal budgetwithout resorting to arbitrary, across-the-board cuts. Clearly, the budget process is broken. In four of the past five years, the president has missed his budget deadline. Senate Democrats haven't passed a budget in over 1,400 days. By refusing to tackle the drivers of the nation's debtor simply to write a budgetWashington lurches from crisis to crisis.
House Republicans have a plan to change course. On Tuesday, we're introducing a budget that balances in 10 yearswithout raising taxes. How do we do it? We stop spending money the government doesn't have. Historically, Americans have paid a little less than one-fifth of their income in taxes to the federal government each year. But the government has spent more.
So our budget matches spending with income. Under our proposal, the government spends no more than it collects in revenueor 19.1% of gross domestic product each year. As a result, we'll spend $4.6 trillion less over the next decade.
Our opponents will shout austerity, but let's put this in perspective. On the current path, we'll spend $46 trillion over the next 10 years. Under our proposal, we'll spend $41 trillion. On the current path, spending will increase by 5% each year. Under our proposal, it will increase by 3.4%. Because the U.S. economy will grow faster than spending, the budget will balance by 2023, and debt held by the public will drop to just over half the size of the economy.
Yet the most important question isn't how we balance the budget. It's why.
(Excerpt) Read more at online.wsj.com ...
I like Ryan, but ...
these kinds of budget proposals [Plan to Balance the Budget by 2023] are just pie-in-the-sky.
One Congress cannot impose on future Congresses. Although this budget plan may look good on paper, the next Congress is not bound by it.
Instead of 10-year or 5-year plans, try cutting the CURRENT spending. Then, maybe, we will believe ...
People in WI outside his district must not be impressed by Ryan either. They were Biden voters in WI.
How about by 2013? I had to adjust my budget in one day.
I'm afraid he lost me right there.
how can anyone take this clown and his 10 yr plans seriously ???
not only does this first line of drivel smell bad...the reality of holding the next 5 CONgresses to *his* *plan* is laughable...
Ryan is presenting his plan on CSPAN 1 now
The “pie in the sky” aspect is that it requires future Congresses to have the political will to stick with a sound plan over several years. Unfortunately, it is an institution designed to avoid adherence to any sound plan, even if only for a day, much less a decade.
But I don’t really blame Congressmen as much as I blame the idiots who put them there. Why expect Congress to exercise critical thinking skills when the public won’t?
All these plans are a joke for two reasons....they do not take into consideration the legislated inflation increases which are automatic AND they all assume a growing economy, growing far more than it has over the past 4 years.
Happy days are not here again, they need to get rid of programs, not keep them. Where to start, well, I’d take a look at a few departments we don’t need beginning with the Education and energy departments and get rid of the EITC which is nothing but national welfare.
As I recall his original medicare reform plan didnt start saving a dime for the first 10 years, at which point anyone turning 65 would have their medicare 'saved' by having it replaced by them (seniors) buying insurance companies private insurance instead. (will insurance companies even be around in 10 years?)
Ryan now:”I want Medicare to be there for my kidsjust as it's there for my mom today. But Medicare is going broke. Under our proposal, those in or near retirement will see no changes, and future beneficiaries will inherit a program they can count on. Starting in 2024, we'll offer eligible seniors a range of insurance plans from which they can chooseincluding traditional Medicareand help them pay the premiums. “
2024 is 11 years away, but it balances the budget in 10 years before this even cuts a dime ?? Gilb, I have to share your cynicism here.
RE: I could get the budget back to break-even in a week.
I’d like to see anyone do it with no political consequences.
So, the economy is going to average > 3.4% growth / yr for the next decade? GIGO.
>>I could get the budget back to break-even in a week.
Ditto. Make me absolute ruler for the next ten years and the country would be astronomically better off. The people would be more free, confident, better edjimacated, and better off financially.
Only if the Ryan plan passes, which it has zero chance. That would be like Pop-eye and that can of spinach to the economy, esp those medicare changes starting in 2024. :)
Didnt Obama give all sorts of rosy predictions to the CBO similarly?
If the GOP was smart they would revive those and use it in their talking points against Obama.
I cant help Paul Ryan though, he is on his own.
The only way out is economic growth.
Ryan is right.
If the economy grows we can reverse the deficit and debt.
Bush proved it. Deficit was declining in 2006 and 2007. It was less than 200 billion when dems began the war on capitalism.
If govt grows less than economy the fix becomes easy.
$10 trilllion spending increase over 10 years yet will be decried as ‘cuts’ and ‘austerity’ by the statists on the left and right.
If Ryan was the least bit serious he would propose changes to medicare starting now (like the dual system he now proposes) and then setup some metrics so we can see how its working over the years,
... because as you pointed out, there is no guarantee that insurance companies will turn out any cheaper than government price controls for seniors health care, given the same care.
I suggested this back in early 2011 when he first started on the idea.
But his 10-11 year delay before doing anything is a cheap political gimmick that never worked (to convince anyone) and it never will work. Its so obvious.
This budget plan is better than the Democrats’ “plans”, but it’s still madness. The only way that our wealth will “grow” over the next decade will be to crash our currency. And we’re well on our way. Ryan’s projections are embarrassing, frankly. Bob
Reducing the spending increases from 5 to 3.4 is 1.6 percent. That Balances in 2023.
How about another 1.6 percent reduction? Taking it down from 5 to 1.8. Would that take it down to 2018? How about another 1.6? Taking the yearly increases to .2 percent. Would that balance the Budget in2016? I down with that.
I concluded long ago that Ryan is not the least bit serious about this issue (hell he voted to expand Medicare benefits under GWB), this resolution is just for the gullible.
The Dems will make fun of it as it is full of holes and like a dog whistle the gullible will get the idea that it is brilliant, while they pass the CR funding Obama-care.
-His growth predictions on the economy have always been wrong. Especially considering that the only reason we have been 'growing' is with debt, inflation, and bubbles.
Thanks for posting this.
Very few people know this; the MSM of course never reported it.
Pelosi got in and began her attack on the economy shortly after this occurred. The Dems are truly evil.
Ryan IS a joke. Your right.
How can they talk about ten year plans when we can’t even get a one year budget. Rand Paul is the only one who will balance this budget.
Does anyone know if this is true: Ryan plan assumes Obamacare is killed, but the increased Obamacare taxes are kept?