PAUL RYAN DISSECTS THE GANG OF SIX PLAN
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As for the negatives, Ryan blasts the plan, which “appears to increase revenues by $2.8 trillion,” for relying far too heavily on tax increases. He also raises concerns over the composition of the proposed spending cuts in the plan, which appear to achieve most of their “savings” through cuts to the defense budget — for example, a $890 billion reduction to “security programs.” And last but not least, Ryan is not pleased with the plan’s failure to address the budget-busting consequences of Obamacare, which was a primary reason why he opposed the deficit commission’s recommendations
Ryan Dissects the Gang of Six Plan
Posted on July 20, 2011 9:41 AM
House Budget Committee chairman Paul Ryan (R., Wis.), who also sat on President Obama’s deficit commission (and voted against its final report), has released an initial analysis of the $3.7 trillion deficit-reduction proposal unveiled by the Gang of Six on Tuesday. The plan, which Ryan points out “is not a budget,” is woefully short on details (e.g., it instructs Congress to “encourage greater economic growth” and “spend health care dollars more efficiently”), but the House Budget chair does his best to tease out the plan’s shortcomings and unanswered questions, as well as its “potential for worthwhile budget and tax reforms.” On the positive side, Ryan praises the plan for acknowledging the need for tax reform and he approves of many of its recommendations, for example: lowering the top marginal tax rate to 29 percent, transitioning to a territorial tax system, and requiring any unexpected surplus in revenue be used to further reduce rates, rather than fuel new spending. However, Ryan argues that the latter proposal, while “laudable,” falls short because it appears to lack an enforcement mechanism, such as a firm cap on total spending and revenue. Ryan also points to proposed caps on discretionary spending and the plan’s requirement that committees come up with significant savings in the mandatory portion of the budget or face automatic spending reductions as promising elements. Other positive signs: repeals of the CLASS act included in the health-care law; calls for medical malpractice reform; and reforming the “emergency spending” process. As for the negatives, Ryan blasts the plan, which “appears to increase revenues by $2.8 trillion,” for relying far too heavily on tax increases. He also raises concerns over the composition of the proposed spending cuts in the plan, which appear to achieve most of their “savings” through cuts to the defense budget — for example, a $890 billion reduction to “security programs.” And last but not least, Ryan is not pleased with the plan’s failure to address the budget-busting consequences of Obamacare, which was a primary reason why he opposed the deficit commission’s recommendations. Additionally, Ryan raises the following questions:
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