We all know that the Budget is under a lot of debate over allocation,
disaportionments and cuts. The deadline is tomorrow at midnight which
many do not seem optimistic about obtaining an approved 2011 budget.
(Government operates on a fiscal year but they are down to the wire on
this one.)
In the wake of all this, the House Republicans have unveiled extensive
and bold proposals for entitlement and tax reform that will likely define
the 2012 budget debate in the months ahead.
Paul Ryan (R-Wis), the Chairman of the House Budget Committee,
presented at the AEI after the offical release of the "Path to Prosperity"
the offical 2012 Republican budget proposal.)
The budget focuses heavily on spending cuts including entitlements.
Medicare and Medicaid, as well as Social Security, are the largest drivers
of the national debt, but they are also areas where Americans consistently
resist cuts.
The president's 2012 budget was criticized on its release date in February
specifically for excluding entitlement reform, although the President
expressed that he was open to discussing it with members of Congress.
Ryan and other Republicans have accused the president of failing to take
action to bring down the debt. Without it, they say another debt crisis
is inevitable, as higher interest rates in the future would would cause
government debt payments to sky rocket to unsustainable levels.
Ryan's budget proposal focuses on and aims to achieve as much of $6.2
trillion in spending cuts relative to the Congressional Budget Office's
current baseline level.
A large portion of the savings would come from health care reform, which
begins with capping the government's Medicaid coverage and bundling
payments in the form of grants issued to states.
The assumption is that the increased flexibility accorded to the states
under such an arrangement would allow governors to tailor programs to
local needs but critics warn that free from federal program restrictions,
the policy change would likely result in millions of uninsured and
underinsured Americans going without needed care.
Stay tuned. There is much,much more to follow......
Sheila McKinney
