Ten Myths of Ryan’s House Budget Plan

Heritage Foundation ^ | May 13, 2011 | Brian Riedl , Robert Moffit, Ph.D. and Romina Boccia

[csmusaret]

Any budget proposal should include broadening the tax base. I am tired of hearing that 45-51% of all workers pay zero income tax. Everyone needs to have some skin in the game. Create a 5% tax bracket and tax all income even if it is a benefit check. Start with the first dollar. As it is half of America always favors tax increases and more spending because it doesn’t cost them a dime. Of course a Fair Tax would also solve this problem, but either way, the time has come for drastic change.

[57 Red States]

Create a 5% tax bracket and tax all income

We already have a universal tax bracket, higher than that. It's called FICA.

[dalebert]

well how about cutting all the crap congress tosses down a rat hole first. no one has mentioned cutting highways to nowhere or any of their slush fund projects..foreign aid, providing medical care to illegals. Any one of us could fix this mess in a day..without SS or Medicare..this is all bs

[csmusaret]

We already have a universal tax bracket, higher than that. It’s called FICA.

Which has absolutely nothing to do with income taxes.

[57 Red States]

So what? The same Men With Guns will eventually show up if you don’t pay it.

[magellan]

Those currently older than age 55 would be exempt from any future changes to their Social Security and Medicare benefits.

The problem is, the baby boomers who reached aged 62 in 2008, and age 65 in 2011, will live on average after reaching age 65, five years longer than the first recipients of Social Security who reached age 65 in 1940.

The only way to "solve" the Social Security/Medicare disaster was to raise the retirement age of baby boomers to age 70 and eliminate early retirement at age 62 (or raise it to age 67).

Since the Social Security reform in the 1980s intentionally protected the baby boomers, we sealed our fate. Social Security has been running in the red for over a year now, due to lower payroll taxes collected (due unemployment and underemployment), and baby boomers taking early Social Security due to unemployment.

But in 2011, the main wave of baby boomers will really hit, and that wave will last about 15 years.

Protecting those over 55 will ensure we have the vast majority of the baby boomers in the legacy Social Security system.

[sickoflibs]

RE :”The problem is, the baby boomers who reached aged 62 in 2008, and age 65 in 2011, will live on average after reaching age 65, five years longer than the first recipients of Social Security who reached age 65 in 1940...But in 2011, the main wave of baby boomers will really hit, and that wave will last about 15 years.
Protecting those over 55 will ensure we have the vast majority of the baby boomers in the legacy Social Security system. “

Thanks. Well thought out ideas I always appreciate.

The single 55 threshold is just political gimmick that is easily seen through. It makes no practical sense.

If you want a real reform it must me phased, for SS it is much easier : move retirement X years ahead for every Y years under 65 years old. That way you dont create a Berlin wall separating a clear group of winners and another of losers, except unfortunately those already on the public dole. Trying to take it away once they get it would cause a senior uprising like that South Park episode where they all armed themselves and attacked the town, revenge because the Town revoked their drivers licenses.

Will this sell to most voters? At this point it doesn't really matter, but least it makes some sense.

[Marine_Uncle]

Understand. Regardless of what combo they use, the wave is going to be big. And if our economy does not recover on a very large grand scale, well, think Greece.

[Marine_Uncle]

It's probably impossible. But the huge abuse the system has allowed in the way of free handouts and waste could help a little bit. But the problem is the Gov let the whole system go to pot, and as I indicated in post #28, unless America can somehow recover big time from the economic multiple disaster we are now faced with all bets are off in the future for any form of partial SS recovery. It along with the Health Care system will simply break the system.
I see a real downgrading of the Government AAA ratings take place in the near future. China and others are already in the mode to divert their money elsewhere.

[sickoflibs]

You ever see the German movie Downfall?? It's a classic. The German officers/soldiers are drinking smoking and fornicating before the Russians/Soviets get there to either shoot them or send them to Siberia to die. What the hell? Call it the End of World party.

[Marine_Uncle]

Did not see the movie, but of course can image up the scenes. Your analogy is more then adequate to describe the current state of sad affairs.

[ding_dong_daddy_from_dumas]

I was saying changing the threshold to 30 was a better political gimmick than 55, not that it was a plan to solve anything.

I think we agree that the GOP walked into an Obama trap by proposing Ryan's plan before Obama proposed any real plan. My personal opinion is that any proposal to reform entitlements would invite some kind of attack, but the 55-year-old threshold had a particularly obvious bullseye on it.

On the other hand, if the GOP never proposed a budget, they would have invited the charge of hypocrisy, because they repeated the charge that the Dems did not pass a budget. And obviously, proposing a budget which excluded entitlements would allow the debt to continue out of control.

[Sun]

The clip you might have seen with someone pushing granny over the cliff doesn’t tell you that it is Obama pushing granny over that cliff. OBAMAcare cut Medicare one-half TRILLION dollars, and that is for the seniors who are on it NOW!

On Fox News Sunday they played that clip while McConnell was on Fox, and I can’t understand why he didn’t strongly say the Ryan Plan does not affect Americans over 55.