Rep. Paul Ryan proposes $6 trillion in spending cuts

[Playinghardball]

Source: Reuters

WASHINGTON (Reuters) - Government spending would plummet by nearly $6 trillion over the coming decade under a Republican plan due to be unveiled on Tuesday, in a sharp contrast to President Barack Obama's fiscal plan.

The plan, crafted by House Budget Committee Chairman Paul Ryan, envisions a total spending cut of $5.8 trillion over the coming decade, according to an aide.

That's well beyond the $4 trillion in savings envisioned by an Obama task force last year, and roughly six times the savings that Obama's own budget plan would generate.

Ryan's plan, which would take effect when the next fiscal year starts on October 1, is expected to propose sweeping changes to the Medicare and Medicaid health programs, as well as hard caps on government spending and tax cuts.

Read more at: http://www.rawstory.com/rs/2011/04/05/rep-paul-ryan-proposes-6-trillion-in-spending-cuts/

[jtown1123]

1. Let's be honest. His plan gives seniors coupons to pay for their own health insurance.

[DrDan]

2. and hence subsidize the profits of the insurers

[TheCowsCameHome]

4. More reason for concern.

I like the system just as it is, thank you.

[Liberal_Stalwart71]

3. And the Corporate Media will fawn over Ryan, treating him like a hero!

And sadly, most Americans will, too!!

They just believe that Republicans have all the right answers, and that's because cowardly Democrats simply refuse to fight back.

[Botany]

5. And the debt comes from where Paul?

Gotta cut that medicare and social security.

[WatsonT]

6. But can we continue to start a new war every few years?

Please!

[Bonhomme Richard]

7. Hey, we can't let the boomers escape the clutches of the insurance industry

when they will be moving into medicare. The industry has done such a great job covering the masses with good, reasonably priced health care then, why not?
Bizarro World.

[KamaAina]

8. So I take it about $3 trillion of that is from the military?

:sarcasm: :sarcasm: :sarcasm:

[erpowers]

9. Problem: What About the Debt?

One of the major problems I have with the media coverage of Ryan's budgets is that the mainstream media either does not talk about, or only mentions late in the game the amount of debt caused by his budgets. A budget will not bring about balance if more debt is added than the amount of spending that is cut. In Ryan's budget for last year more debt was added to the budget than the amount of spending cut. The budget was not brought into balance until about the 2060s. In the years between the present and that time, about $1 trillion in debt was added to the budget each year. So, in a ten year period $10 trillion would have been added to U.S. debt even after Ryan's policy would have raised taxes on 90% of the U.S. population.

Therefore, I would like the mainstream media to answer a few questions regarding Ryan's latest budget. Over the course of ten years will this budget add debt to the balance sheet of the United States? If so, how much debt will be added to the balance sheet of the nation? Will Ryan's budget raise taxes on individuals in the low income and middle income tax brackets? If so, by how much will taxes be raised on low income and middle income individuals and under what method? If the taxes will be raised through a new consumption tax or value added tax which could raise sales taxes up to the 25% mark does Ryan forsee a drop in demand that could lead to job losses or slow job creation? If Ryan does not forsee a drop in demand what method does he plan to use to prevent a drop in demand?

Some might argue that my concerns about a value added tax are overblown. However, I think it is reasonable to ask what effect creating a consumption/value added tax would have on the U.S. economy. It is reasonable to ask whether or not Ryan's policies would cause problems for job creation.