Paul Ryan to unveil budget proposal with $4 trillion in spending cuts
The Republicans have recently come under fire by conservative voters–myself included–for what is perceived as their mishandling of the current budget negotiations after having failed to live up to their proposal to cut $100 billion in spending from the current budget, but are the Republicans finally beginning to get serious about this issue?
While the current budget negotiations are underway Paul Ryan is working on a budget for the next fiscal year which he is set to unveil on Tuesday. This budget would include a cut in federal spending of $4 trillion over the next decade. The details are still not available, but here is what we know so far:
A “premium support system” for Medicare. In the future, older people would choose plans in the marketplace and the government would subsidize those plans. Ryan said that would differ from the voucher system he has proposed in the past. Those 55 and older would remain under the present Medicare system. Ryan acknowledged that the “premium support system” would shift more costs to Medicare recipients, especially what he called “wealthy seniors.” He did not define at what level someone would be considered wealthy.
-Block grants to states for Medicaid, the health program for the poor. Ryan disputed reports that the plan would seek savings of $1 trillion over 10 years from Medicaid, but would say only that the details would be in the plan.”Medicare and Medicaid spending will go up every single year under our budget. They don’t just go up as much as they’re going right now,” he said. Ryan said governors have told members of Congress they want “the freedom to customize our Medicaid programs. … We want to get governors freedom to do that.”
-A statutory cap on actual discretionary spending as a percentage of the economy. While Ryan did not specify the amount during the interview, he said it would be at a lower level than proposed by Obama and would return the government to its “historic size.”
-Pro-growth tax changes, including lower tax rates and broadening the tax base. Ryan said overhauling taxes would boost the economy. The plan will not propose tax increases.
Basically this plan would return federal spending to 2008 levels. Here is what Paul Ryan had to say about his plan:
We’re not going to go down the path of raising taxes on people and raising taxes on the economy. We want to go after the source of the problem, and that is spending
I am glad to see that Paul Ryan recognizes that the federal government does not have a revenue problem, but rather a spending problem, and I hope that there are enough members in the Congress who are finally going to be willing to reign in the out of control spending.
However, in my opinion the spending levels in 2008 were also too high, so to return to those levels over the course of ten years is equal to a good start. But it will be just that–a beginning. Until we know more about this proposal it is hard to determine whether or not this is a legitimate proposal or just pandering, but maybe–just maybe–this is a signal to us that the Republicans are about to get serious about this issue.
America's Watchtower 
I’d like to say I’m optimistic. But our boys and girls in Washington don’t have a very goo track record. As you say, Steve, $4 trillion over ten tears is only a start. By the time that number gets negotiated down, it won’t even be a good start.
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I am afraid that you are probably right, we are getting used to being let down at this point. Maybe they will surprise us this time.
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He didn’t mention if these cost savings were adjusted for inflation. If not, they will fall short of the $4 trillion he’s proposing. I again have to bring up the CBO report? What about that? Those are permanent reductions in government spending.
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We don’t have much info on this proposal yet, hopefully we will know more tomorrow. I just don’t understand why everyone is ignoring the CBO report but I an beginning to think that the duplicate programs that this uncovered were being used as cover for more spending (a way to hide the money) and maybe they are afraid to open that can of worms.
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Republican¬s are quite clever. The Republican¬s divide the American people on social issues so that the American workers do not speak with one voice. We must come together on these economic issues and let our Voice be heard. That is the greatest fear of those who would balance the budget on the backs of the American people – that the American workers speak with one voice. Republican¬s know if they repeat something often enough, people will believe it is true. The huge budget deficit is because corporatio¬ns and the wealthy are not paying their share of taxes. Bring back the Excess Profit Tax and see how quickly our budget deficit disappears¬.
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Uhm… ‘scuse me, did you get lost? Daily Kos is down the road a bit, and Democratic Underground is a bit further down…
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LOL. I wasn’t even going to bother responding, thank you for filling in. 🙂
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All I can say is Go Ryan Go! But as has been mentioned in previous comments 4 trillion over the next decade, doesn’t seem like a whole lot. When I first read the headline I thought they were cutting 4 trillion from next years budget (drastic I know lol), but still a start is a start so I commend Mr. Ryan for at least pursuing this path. And hopefully there will be more cuts in the future.
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Four trillion over ten years can hardly be considered drastic, but that is how the left is going to spin this. Kudos to Ryan for going for it, and hopefully this will be the beginning, but the Republicans will have to hold firm if we are ever to accomplish anything close to this.
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I am dissapointed at the roll out. He should have rolled it out the same day he was talking about it. This gives the Dems two days to present their negative spin on it, with no one on the right having specifics in order to defend. It should have been a massive ad campaign, with all the ducks lined up. The first impression is always want matters. It fell far short in my mind. He should have had the Tea Party folks all lined up to promote. Boo hiss.
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An interesting point as Democrats have already started attacking it before we have a chance to defend it.
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All I can say is, faster please.
Here’s what we know in a nutshell. There is a significant segment of voters who understand that our spending is unsustainable. And that which cannot be sustained, will eventually collapse.
Therefore, this segment of voters will not give up attempts to change this unsustainable course. But we don’t know when it will collapse. We don’t know how fast and how drastic the cuts must be to avoid collapse. We’d rather play it safe and cut drastically.
Is Rand Paul’s proposal enough of a start? Hell if I know. Interesting times, these.
PS Must . . . resist . . . urge to engage your troll . . .
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There is a certain segment of voters and politicians who do understand how dire this situation is and are willing to do something about it but the question is, is this segment large enough? I fear it still isn’t and because of this Ryan’s attempt is probably going to fail.
Please feel free to engage.
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I hope he runs for prez!
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Now he would be someone I could take a serious look at if he were to announce!
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I’ve been down on this ever since Limbaugh talked it up. It’s a nice start, but comes nowhere near what is needed. An ax needs to be taken to the budget. Maybe we’ll get more after 2012.
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It is a start, but at least someone is finally getting serious about the entitlement programs. Nobody else seems willing to touch them.
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I have read some of the comments and feel this, the GOP and big business interests want us all to pay the taxes, fight the wars, work for nothing and leave them alone so that can run the country into the ground and live the American Dream. Congressman with signs” pays my way and I will screw the people in every way possible”
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