Last Thursday the House of Representatives approved a $3.5 trillion budget plan proposed by Rep. Paul Ryan (R-WI) on a 228 to 191 vote, largely along party lines. The House vote breakdown was 228 Republicans in favor, 181 Democrats and 10 Republicans opposed. The plan will fail to pass the Democratically controlled Senate, but what is behind this vision for America the GOP affectionately calls "The Path To Prosperity"? Lets look at three keys provisions.
Health Care: Repeal the Affordable Health Care Act of 2010, or as the GOP likes to call it Obamacare. They raise $725 Billion dollars that would otherwise go to help people get, or keep, health insurance. Beginning in 2023 Medicare eligibility would rise from 65 to 67. Instead of the government reimbursing doctors and hospitals for certain medical services, seniors would purchase a private health care plan among numerous options on an exchange. The government would then pay the private insurer in the form of a subsidy up to a specified amount. Seniors would be given government assistance to purchase private health-insurance plans, or could continue to take part in the current fee-for-service model. However, spending would be capped, meaning risks and costs could shift to seniors as health-care costs rise. Changes to Medicare in the plan would not affect those currently age 55 and over. As for Medicaid, House Republicans would overhaul Medicaid by changing the way the federal government finances the program. Today, it is a matching program which means if a state adds more Medicaid recipients to the rolls in the case of a recession, the federal government helps with that cost by matching a certain percentage. The GOP plan would change the program by block granting it - which means giving a set number of funds to the states. Proponents of this plan say it will give governors the flexibility to administer the Medicaid program as they see fit while giving the federal government some control over the cost, but if your grant money dries up your S.O.L.
Social Security: "In the event that the Social Security Program is not sustainable" the GOP budget plan would require the president and the House and Senate to all come up with ideas to ensure the program's solvency. But Ryan does not offer his own plan on how to ensure Social Security's long-term viability. The buzz word here has been "Individual Health Savings Accounts" meaning, dismantle the government program in favor of individual responsibility. It's like telling an 18 year old to start saving for your retirement, here's how, "good luck with that." Pretty much the same battle we have raging in the Supreme Court with freedom vs. freeloaders. The problem is the same, and the results just as disastrous should such a system go in place. Would you like to be part of the generation that has to provide for your own retirement, if you live check to check, and consistently struggle to make ends meet?
Taxes: Details are still murky -- The "Path to Prosperity" does propose collapsing the six individual tax brackets into just two brackets, taxed at 10 and 25 percent. This would cut taxes on the rich from 25% to 35%, he also suggests closing loopholes and ending subsidies, but doesn't give specifics. To make up for that revenue they propose closing tax loopholes, eliminating special carve outs, and tax credits. They also argue that allowing individuals and businesses that can keep more money will help grow the economy at a faster rate. But the report does not get into specific tax credits, and carve outs, that would be eliminated? Some analyses suggest the only way to generate that kind of revenue would mean raising the tax burden on middle-income earners to pay for the lowered tax rate for the wealthy. Republicans insist wealthy taxpayers benefit disproportionately from loopholes, (even though they can't tell us which ones they'll eliminate?), and they are committed to a progressive code with lower rates for the rich. Ryan’s budget would cut $5.3 trillion from deficits over the next decade, bringing deficits down from more than 8 percent of gross domestic product to 1.2 percent by 2022. It would not balance the budget, however, until 2040. Once again the majority of his plan hinges on budget cuts, and a bigger burden on the poor, and middle class.
Republican presidential contender Mitt Romney endorses this plan, but why wouldn't he? It helps the rich at the expense of the middle class. The man has houses with car elevators to build. Democrats critical of the plan said it would cut deficits by hitting programs relied on by the poor and vulnerable, like Medicaid, food stamps, education and other programs. “Because our Republican colleagues refuse to ask millionaires to contribute one cent to deficit reduction, they hit everyone and everything else,” said Rep. Chris Van Hollen (D-MD) during House debate. White House spokesman Jay Carney said Thursday that the Ryan plan would create “a segmented replacement for Medicare that would burden seniors and end the program as we know it.”
So there you have it, an unyielding assault from the "Haves" on the "Have Nots". A hard nosed, often vague vision of what Republicans want their America to look like. I don't know about you, but for me, it doesn't paint a pretty picture.
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