March 21, 2012
On Tuesday, House Budget Committee Chairman Rep. Paul Ryan (R-WI) released his budget for the federal government in 2013. Dubbed the Path to Prosperity, the plan trims spending, reforms taxes and looks to market-based reforms to health care entitlement programs—all key elements of The Heritage Foundation’s Saving the American Dream budget plan.
The Ryan budget is a tremendous improvement over liberal plans, including President Obama’s 2013 proposal, say Alison Fraser, who directs Heritage’s Roe Institute for Economic Policy Studies, and Patrick Louis Knudsen, a senior Heritage budget expert. The Senate has not released a budget proposal in several years.
» Ryan will be speaking about his plan at The Heritage Foundation on Thursday morning at 9:00 a.m. Eastern. Watch live online.
A successful federal budget, Fraser and Knudsen argue, should:
- Cut spending sharply and quickly
- Begin decisive entitlement reform
- Avoid tax hikes
- Ensure a strong national defense
- Include pro-growth tax reforms
- Move swiftly towards a balanced budget
According to Fraser and Knudsen, “Ryan’s budget is not perfect. Few consensus political documents can be.”
Nonetheless, the plan includes several strong elements and provides a stark contrast with the liberal alternatives, Fraser and Knudsen write:
President Obama’s budget, which relies on enormous tax hikes, shirks any solutions to the twin crises of excessive spending and soaring debt, and never comes close to balance.
Ryan has put forth a serious plan worthy of serious consideration. His budget lays out substantive policy choices, cutting spending, reforming entitlements, and avoiding tax hikes. It also outlines a tax reform that would strengthen the economy and by implication further strengthen government finances through organic revenue growth. It represents real progress toward tackling the nation’s fiscal and economic challenges. Congress and the President should now move toward a real consensus that achieves all the Ryan plan suggests and more.
Ryan’s budget, they continue, “shares the same basic philosophy of The Heritage Foundation’s budget plan, Saving the American Dream.” Our plan cuts spending and balances the budget in ten years—and not at the expense of our men and women in uniform. Moreover, it implements neededed reforms to entitlement programs and updates the tax code to make it simple and fair.
Tell us in the comments: What do you think of Paul Ryan’s budget proposal?
David - March 22, 2012
Would this budget plan actually reduce spending, or just reduce the projected increases in the baseline like his last budget proposal would have. He started out promising $100 billion in “cuts” by which he meant reducing the projected baseline increase of $155 billion to an increase of “only” $55 billion. Then he compromised the $100 billion down to $50 billion, which by various analyses slowed the projected $155 billion increase anywhere from only $35 billion to only $15 billion, so at best he allowed spending to increase $155 billion – $35 billion = $120 billion, and he might have allowed spending to increase as much as $155 billion – $15 billion = $140 billion. While that’s doubtless better than what the Democrats would have preferred, reducing the speed at which you’re doing in the wrong direction still leaves you going in the wrong direction.