Sean Hannity is talking about reducing our budget with The Penny Plan on his radio show right now!
Monday, 8/1/2011 3:13 EST / 2:13 CST
Rob,
I’m replying to your mail here so everyone can see the response.
“can you help me understand this plan ?
If the 1% reduction is completed for 6 years from a starting point of approx $3.6 T and is reduced to $3.4T but we are only collecting $2.2T or $2.5 T, how does this budget get balanced. Aren’t you still short $900 B to get to $3.4 T?
You must have some growth assumptions built in here that are not noted. Right?”
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The Penny Plan will cap spending at 18% GDP.
The Ryan Budget will cap taxes at 18% GDP.
So when the two are combined, the income = expense, so it is balanced.
That is the short answer.
I have not reviewed the Ryan Budget, but I’ve heard it mentioned that 18% GDP was our historical average for income.