By now, the Mainstream Liberal media has begun to label Congressman Ryan’s fiscal 2013 budget as extreme and the progressives are making new commercials showing the Wisconsin Rep. pushing his grandmother off the cliff. Liberal hyperbole aside, this plan takes bold and necessary steps to get this country back on a firm economic footing. It simplifies the tax code, moves spending back into line and reduces the deficit.
First of all Ryan uses real numbers, in other words he does not exploit the gimmicks used in the President’s plan:
The Looming Tax Hike: A similar situation arises with tax policy. Some may compare the House Republican budget to the current law baseline and charge that it is producing large tax reductions, when in fact revenues under the House Republican budget rise every year and return to their historical average of between 18 and 19 percent of the economy. The House Budget proposes to avoid the huge tax increase that is scheduled under current law at the end of 2012, advancing instead a framework for revenue-neutral tax reform.
Tax Revenue Targets: Traditionally tax revenues have represented somewhere around 18-19% of GDP. The Paul plan calls for the House Ways and Means Committee to produce a tax reform package with a tax revenue target of between 18 and 19 percent of GDP. This is in line with historical revenue figures.
Tax Simplification: The Ryan budget replaces the current six-rate personal income tax structure (10, 15, 25, 28, 33, and 35 percent) with a two-rate system of 10 and 25 percent. Resulting lower tax rate on the majority of small business profits, from 33 or 35 percent down to 25 percent.
Bye Bye Obamacare. The Ryan budget eliminates the entire Obamacare law. This includes repealing the 20 new or higher taxes which have taken or are about to take effect from that law, and the deficits that come Obama’s signature plan.
Eliminate the AMT. Alternative Minimum Tax has to be the tool of evil. High income households must figure out their taxes two different prescribed ways and pay the larger amount.The Ryan budget eliminates the AMT. The plan has more people paying taxes at lower rates with fewer deductions.
Lowers Corporate Tax Rate. The present 35% tax rate is the highest in the western world. The Ryan plan reduces it to 25% still a little on the high side but making American corporations more competitive on a world-wide basis.
Removal of deductions, credits and adjustments. In order to target revenues at 18-19 percent of GDP with tax rates no higher than 25 percent, the Ways and Means Committee will have to curtail or eliminate most tax exclusions, adjustments, deductions, and credits. That means that all consumed income will be taxed once and only once. No longer will the tax code favor one type of economic behavior over another.
Priorizes Federal Spending. For example it it rolls back the green-energy/Solyndra type subsidy programs and ends our bailouts of Fannie and Freddie and finally kills TARP.
The plan also calls for the federal government to get rid of unneeded assets, such as selling off federal lands (calm down progressives Yellowstone etc will remain national parks). Recommendations by the GAO to eliminate duplication and save billions dollars will be implemented.
Fixing Entitlements: Here comes the granny off the cliff charges.
The Ryan plan converts the federal spending on medicaid to a block grant program, where the money is given to the states to manage. This will not only save money, but even more importantly it will provide for better care. If you believe Obamacare should be eliminated because it takes the decision away from the doctor/patient relationship and moves it to DC, than you should like the block grant program because it moves it from DC and much closer to the doctor/patient. Additionally it allows medicaid to be adjusted for local conditions. The progressives who want all of the power centralized and controlled within the beltway will hate (and lie) about this element of the plan.
Medicare. This will not change the plans of anyone on medicare or about to be on medicare. (did I mention that people in the program or about to be in the program will not be effected?).
Under the Ryan plan Medicare recipients will be able to choose their health care plan (with in a structured list) and the federal government will subsidize part of the cost of the chosen plan (kind of like when your employer pays for part of the plan).
Why will this save money? First of all there will be competition between the offered plans (and to get on the approved plan list), competition brings better service and lower prices. The other way it will save money is by bringing the consumer into the process.
Have you ever been in the hospital and a doctor you don’t know sticks his head in and says hi? And when you get your bill you find out the doctor charged you $200 dollars for that wave? With today’s medicare system, that bill goes straight to the government. But with the Ryan plan patients will see and able to contest those needless charges.
This is just a summary of what is in the plan (albeit a long summary) there are so many more elements which you should read for yourself. The bottom line is this plan detailed by Congressman Ryan takes bold steps toward restoring this country to its number one position in the world economy. Do not believe what you read in the media—read the plan and make your own decision.
The sad part if it all is America needs a plan like this very badly, but as long as the Democrats control the Senate and the White House, nothing like this will ever get implemented.