The large budget figures Paul Ryan: It will reduce spending by 6.2 trillion over the next decade and to reduce the deficit by 4.4 billion dollars. It also reduces the maximum rate of income tax by nearly one third, from 35 to 25 percent.
Much of the plan the House Budget Chairman assumes the right to attend Barack Obama's health will be repealed. During the next decade, which would be reduced from 1.4 trillion in spending alone, according to Ryan's budget. These savings, however, would not go to deficit reduction, as Ryan also repeal elements of health reform designed to increase revenue or cut costs.
Wisconsin Republican budget spends less on almost all major budget categories. Over the next decade, Ryan (R-Wis.) wants to cut 389 billion U.S. dollars from Medicare, public health insurance program for seniors. During the same period, Ryan's budget to 735 billion U.S. dollars less than Medicaid, which benefits the Americans too poor to afford private insurance. discretionary spending programs are also reduced by $ 923 million.
Two exceptions are spending on security and defense and social security spending, public pensions for the elderly. The two are held constant and relatively unchanged from the draft budget for Mr. Obama.
Draft proposal for Ryan's House Budget Committee, said that his plan, the Treasury would have $ 1100000000000 less than it would in the next five years, the budget of Obama, and I would like to debit $ 3000000000000 less than the budget proposal of Obama the next decade. Ryan's budget proposal would bring the public debt was 13.9 trillion dollars by 2016 and $ 16 billion by 2021, compared with 15 trillion in 2016 and $ 19 billion in 2021 according to the proposal of the President. (The entire debt amounted to just over $ 14 billion in funds for Social Security and Medicare funds, but the public image that is commonly used for budget projections.)
Ryan plans $ 40 billion in spending over the next 10 years compared to 34.9 billion dollars in revenue. Obama will spend $ 46 billion over the next decade, while bringing to 38.8 trillion dollars in revenue. So the plan is still Ryan government spends more than 5.1 trillion dollars over the next ten years, which brings, but less than $ 7.2 billion in deficit spending Obama has proposed.
The main difference between the competing budget proposals, seeing as how they imagine the size of the government run the economy in terms of revenue and expenses as a percentage of GDP.
Obama's plan would take the budget expenditure as a percentage of gross domestic product (GDP), the entire economic output of the U.S. economy from 25.3 percent this year, 22 percent for the range a lot in next decade. But by the end of a period of 10 years, he returned to his plan to spend 23 per cent. Proceeds from the vault, which are currently in an anemic 14.4 percent, were hiding up to 19 percent by 2015 and then hit a 20 per cent in 2021.
This would be the highest amount of public spending since the Second World War. During the 12-year presidency of Franklin Delano Roosevelt, from 8 percent of GDP expenditure to 41 percent, led by Roosevelt's New Deal, but even more by the war expenditures.
During the administration costs of Harry Truman has been halved from 41 per cent of GDP to 20 per cent and declined further to 18 percent under Dwight Eisenhower. It was 18 per cent of GDP by John F. Kennedy presidency, has risen to 19 percent under Lyndon Johnson, and then to 20 percent while Richard Nixon was in the White House. Gerald Ford has costs 19 per cent of GDP, it rose to 22 percent during the term of Jimmy Carter, down 21 percent under Ronald Reagan's two terms and George HW Bush's four years as commander in chief. Bill Clinton brought the cost to 18 percent of the U.S. economy.
No president since Roosevelt has increased spending as a percentage of GDP over George W. Bush to raise it from 18.4 per cent of GDP to 22.8 percent.
Obama's budget does not show what is happening outside the window of 10 years. Thus, compared to expenses of George W. Bush, he seems almost on an equal footing. See, however, the projections of the Congressional Budget Office (CBO) cost increases at the current rate will increase to over 26 per cent of GDP in 2022, over 32 percent of GDP in 2030, 38 percent of GDP in 2040, and 45 per cent of GDP in 2050, with most of these costs due to the rising costs of health care.
Turnover in CBO's projections would not move more than 19 percent of GDP, leading to a gap between spending and revenues that would be difficult to maintain.
Ryan said that a simulation of what would happen in the future "accidents in 2037, because he can not conceive of any way that the U.S. economy may continue because of the crushing burden of debt."
Ryan's plan would shift costs to historical levels maintained at 20 per cent of GDP until 2030 and is reduced to less than 19 per cent in 2040. Ryan plan predicts revenue amounting to 19 per cent of GDP in 2040, so that the national debt should be reduced over time.
The proposal landed in the middle of a busy news cycle in which Washington is to eat a battle of the budget expenditure for the current year, a much smaller part of public spending, which, however, the federal government goes if not resolved on Friday.
Reaction to Ryan's plan was divided into ideological lines, as expected, although there are also those who supported the general thrust of the plan is not Ryan take it in detail.
John Irons, director of policy research and Left Economic Policy Institute, told Ryan Budget Plan "is impressive in its ability not only to inflict maximum damage on the economy, but to focus on most of those damages need. "
"This will not only cost the economy hundreds of thousands (perhaps millions) of jobs in the next five years, will also destroy the social safety net and undermine policies that support the class average," said Irons.
But, said David Walker, former Comptroller General of the United States and founder of America's Comeback Initiative, Ryan should be congratulated for having the courage to take the lead in our country's deficit and debt challenges. "
"His budget proposal recognizes that the restoration of the difficult fiscal sustainability will require a transformational change in many areas, including spending programs and tax policies," said Walker.
Among the 2012 Republican presidential candidates, former Minnesota Gov. Tim Pawlenty, was quick to comment on Ryan's plan.
"Thanks to Paul Ryan in Congress, the American people finally have someone with real leadership in Washington," Pawlenty said, but otherwise avoided the details and focused on the struggle to get into the top of the debt.
"President Obama failed to lead and make difficult choices in his entire time in the White House. The budget will be debated for months to come, the most immediate problem before us is a President Obama plans to raise the debt ceiling the following month. It 's a bad idea, "Pawlenty said in a statement.
"More than $ 14 billion in debt, we must not allow Washington and continue to go in the hole. We need real tax status of real spending cuts and structural reforms that stops the transfer market before the failure of our country," said .