Rep. Paul Ryan (R-Wis.), House Budget Committee Chair, proposed the
2012 Republican budget called a "Path to Prosperity". Some of the
budget basics were presented in my prior post. This posting
addresses that budget approach to Medicare, Social Security, and
Spending Cuts.
For MEDICARE, the proposal calls for a system of premium payments,
determined on a sliding scale based on individual's income levels.
Only Americans currently under the age of 55 would be affected.
Americans with more wealth would qualify for less, while individuals
with less income would be subsidized more. Insurance companies,
rather than health care providers, would receive the premiums.
Ryan says the plan's policies reflect free market principles for
health care with 300 million people acting as consumers to drive
innovation.
On SOCIAL SECURITY, the other major entitlement, the Path to Prosperity
calls for proposals from the president and others on how to restore
the government's trust fund and make the program solvent, while
leaving a House Republican alternative for another day.
SPENDING CUTS - The GOP plan is heavy on spending cuts (versus
increases to tax revenue). Under this plan, the Bush tax cuts are
made permanent and the top rate for individuals and businesses is
reduced from 35 percent to 25 percent. Reduced revenue is offset
with the elimination of corporate tax loop holes. Farm subsidies,
including corn, would also be up for expiration.
On EDUCATION - Dozens of job training programs would be consoldiated
into a career scholarship plan.
On DEFENSE - Secretary Robert Gates's defense budget request would
be supported without modifications.
On ENERGY - Traditional energy producers would see a boost, with the
pull back on moratoriums on domestic oil expoloration and drilling
and the elimination of greenenergy subsidies.
Agency budgets would be lowered to 2008 levels and kept there for
five years and under a mandate of "Focusing Agencies on Core Missions"
implementation of the new health care law would be curbed, as would
the EPA's controversial work on greenhouse gas regulations.
You can be sure that there will be much much more to follow.......
