By Committee for a Responsible Federal Budget
Today, Congressman Paul Ryan (R-WI), chairman of the House Budget Committee, released his FY 2012 budget proposal. Overall, his budget would reduce debt to 67.5 percent of GDP by 2021 and would save approximately the same amount as what the White House Fiscal Commission proposed. The budget would reduce projected deficits by over $1.6 trillion compared to CBO's current law projections and by $4.4 trillion when compared to CBO's score of the President's budget.
In particular, Ryan's budget proposes steep non-security discretionary spending cuts along with substantial reductions in federal health spending, including block-granting Medicaid, repealing the coverage provisions from the health care reform law, and reforming Medicare by introducing a "defined contribution" program. He also proposes significant cuts to other mandatory programs, overhauling the tax system, putting in place a mechanism for requiring a fix for Social Security, and budget process reforms.
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This is a bold budget, and Congressman Ryan should be congratulated for putting forward structural budget reforms to address our unsustainable debt path," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "However, while the proposal deserves praise for being bold, the national discussion has moved beyond just finding a plan with sufficient savings to finding one that can generate enough support to move forward."
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We hope that Congressman Ryan's proposal will not generate attacks but rather lead to a larger discussion over how to move forward with a comprehensive solution. With lawmakers overly focused on a very small part of the budget, this is an important reminder of the tremendous fiscal challenges the country faces and that we should be looking to save not just billions, but trillions. Now that both the White House and House Republicans have made their opening bids, this continues to reinforce our belief that a comprehensive plan to fix the budget like the one the Fiscal Commission recommended has the best hope of moving forward.
moreDear Americans, please discuss the merits of "
gutting Medicaid, taking away health coverage for millions of struggling Americans, and lavishing tax breaks on millionaires and billionaires."