Paul Ryan: The GOP Plan to Balance the Budget by 2023

Wall Street Journal ^ | 03/12/2013 | Paul Ryan

[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 billion—or just 2% of the federal budget—without 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 debt—or simply to write a budget—Washington lurches from crisis to crisis.

House Republicans have a plan to change course. On Tuesday, we're introducing a budget that balances in 10 years—without 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 revenue—or 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.

[TomasUSMC]

So......
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.

[sickoflibs]

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.

[Theoria]

Ryan's plan is a joke. All of his *plans* have been jokes.

-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.

[what's up]

Bush proved it. Deficit was declining in 2006 and 2007. It was less than 200 billion when dems began the war on capitalism.

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.

[TomasUSMC]

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.

[PghBaldy]

Does anyone know if this is true: Ryan plan assumes Obamacare is killed, but the increased Obamacare taxes are kept?