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GOP Introduces Budget to Cut Spending, Reform the Tax Code & Save Medicare

Rep. Paul Ryan, the Chairman of the House Budget Committee, outlined the House GOP’s “Path to Prosperity” Budget today in an op-ed published in the Wall Street Journal. The House GOP Budget calls for pro-growth tax reform, and protects and preserves Medicare for current and future retirees – a stark contrast to the policies of President Obama and Washington Democrats. 

 

Key excerpts of Chairman Ryan’s op-ed follow: 

 
“Like last year, our budget delivers real spending discipline. It does this not through indiscriminate cuts that endanger our military, but by ending the epidemic of crony politics and government overreach that has weakened confidence in the nation's institutions and its economy. And it strengthens the safety net by returning power to the states, which are in the best position to tailor assistance to their specific populations.
 
“More important, it tackles the drivers of our debt and averts the fiscal crisis ahead. This year, our nation's publicly held debt is projected to reach 73% of the economy—a dangerously high level that, according to leading economists, puts the nation at risk of a panicked run on its finances.
 
“As shown in the nearby chart, our budget tackles this crisis head-on by cutting debt as a share of the economy by roughly 15% over the next decade, putting the nation's finances on a path to balance, and paying off the debt....
 
“Our budget's Medicare reforms make no changes for those in or near retirement. For those who will retire a decade from now, our plan provides guaranteed coverage options financed by a premium-support payment. And this year, our budget adds even more choices for seniors, including a traditional fee-for-service Medicare option....
 
“Our budget also spurs economic growth with bold tax reform—eliminating complexity for individuals and families and boosting competitiveness for American job creators. Led by House Ways and Means Committee Chairman Dave Camp, our budget consolidates the current six individual income tax brackets into just two brackets of 10% and 25%.
 
“We propose to reduce the corporate tax rate of 35%, which will soon be the highest rate in the developed world, to a much more competitive 25%. Our budget also shifts to a "territorial" tax system to end the practice of hitting businesses with extra taxes when they invest profits earned abroad in jobs and factories here at home.
 
“We reject calls to raise taxes, but revenue nevertheless remains steady under our budget because we close special-interest loopholes. More important, our reforms will grow the economy—and the faster the economy grows, the more revenue the government will have to meet its priorities and start paying down the debt....
 
“The contrast with our budget couldn't be clearer: We put our trust in citizens, not government. Our budget returns power to individuals, families and communities. It draws inspiration from the Founders' belief that all people are born with an unalienable right to the pursuit of happiness. Protecting this right means trusting citizens, not nameless government officials, to decide what is in their best interests and make the right choice about our nation's future.”
 
Read the whole op-ed here