“Honest Solutions” From the Republican Study Committee

Representative Jim Jordan and The Republican Study Committee have published a budget proposal that balances the Federal Budget in nine years. This is obviously a faster more aggressive solution to out of control Federal spending than Budget Chairman Paul Ryan’s Path to Prosperity. Some were quick to charge that the RSC plan undercuts Chairman Ryan. On the contrary, this strengthens the Path to Prosperity.

The political reality hit President Obama last week. He is scrambling to become a deficit reducer. (I know. Go ahead and laugh.) The President will unveil his plan in a speech Wednesday. He will talk about “compromise” and “middle ground” But the middle is already occupied by Chairman Ryan and “The Path to Prosperity” budget. No question, Jordan and the 173 member Republican Study Committee have already positioned “The Path to Prosperity” firmly in the middle ground.

Don’t be confused, these following 4 graphs mix defitits and accumulated national debt. 

Here is the President’s Budget

Here is the President’s Budget Thirty Years Out

Here is the “Path to Prosperity”

Here is the “Honest Solutions” 10 Years Our

REPUBLICAN STUDY COMMITTEE

Rep. Scott Garrett, Chairman, RSC Budget and Spending Task Force

HONEST SOLUTIONS

April 2011

HONEST SOLUTIONS PRINCIPLES. The Republican Study Committee’s budget is based upon the following common‐sense principles:

• The budget should balance by a date certain within the ten years.
  • Our proposal balances the federal budget in 2020
• The budget should provide for real improvements in Medicare, Medicaid, and Social Security to ensure their long‐term sustainability.
  • Our proposal puts forward common‐sense reforms to improve Medicare and Medicaid by offering increased choices and improved services, and takes steps to save Social Security by strengthening the program’s bank account.

   

• The budget should reduce spending and trim down the size of government in Washington, D.C. to make government more effective and efficient.
  • Our proposal gets government out of the way so America’s businesses have the ability to grow and create jobs.

   

• The budget should provide for the termination of many federal programs that are unconstitutional, duplicative, or harmful to the free enterprise system in America.
  • Our proposal does what American families across the country have been required to do in these tough economic times—do more with less.

   

• The budget should prohibit earmarks.
  • Our proposal prohibits earmarks and eliminates pork‐barrel spending.
• The budget should reform the federal budget process so it is easier to reduce spending than it is to increase spending.
  • Our proposal puts fair rules in place to prevent out‐of‐control Washington spending that stifles private‐sector job creation.

   

• The budget should keep taxes low and provide for pro‐growth tax reform to help Americans save, invest, and create jobs.
  • Our proposal prevents tax increases, repeals the tax increases in ObamaCare, keeps the tax burden from increasing beyond its historic average, and provides for pro‐growth tax reform.

Specifically, this proposal addresses the following areas to meet the Republican Study Committee’s budget principles and reflect the values of most Americans.

REDUCE SPENDING.

• Repeal ObamaCare to eliminate $677 billion in additional spending over ten years.
• Ensure that our nation spends responsibly by freezing total discretionary spending at 2008 level ($933 billion) beginning in 2013.
• Ensure our nation’s national security by meeting Defense Secretary Robert Gates’ defense request.
• Defense spending would total $696 billion in 2012 and would increase to $747 billion in 2021.
• Reduce non‐defense discretionary spending from $409 billion in 2012 to $218 billion in 2021.
• Reduce unnecessary mandatory spending—other than Medicare, Medicaid, and Social Security—by $1.9 trillion between 2012 and 2021.

SAVE MEDICARE.

• Strengthen Medicare’s long‐term finances. This budget would slowly phase‐in an increase in the Medicare eligibility age for those born in 1952 and after.
• Provide improved healthcare choices for individuals at or near retirement. The RSC believes thacurrent Medicare beneficiaries should have the option to voluntarily opt‐in to a menu of private health insurance plans. This optional “premium‐support” system would be structured much like the health insurance that Members of Congress receive. Over time, Medicare would transition to a solvent premium‐support system.

REFORM MEDICAID.

• Block‐grant Medicaid and remove Washington D.C.’s burdensome red tape. This budget would empower the states with the appropriate flexibility to determine Medicaid eligibility and benefits, thereby improving the quality of care and access to vital services for the neediest and most vulnerable Americans.

SAFEGUARD SOCIAL SECURITY.

• Strengthen Social Security’s long‐term finances. This budget would slowly phase‐in an increase in the Social Security full retirement age for individuals born in 1952 and after.

ENACT PROGROWTH TAX REFORM.

• Prevent any new tax increases on the American people and repeal the unaffordable $813 billion tax increase included in ObamaCare. This budget proposes a smarter tax code that would lower rates while broadening the tax base.

Specifically, this proposal addresses the following areas to meet the Republican Study Committee’s budget principles and reflect the values of most Americans.

REDUCE SPENDING.

• Repeal ObamaCare to eliminate $677 billion in additional spending over ten years.
• Ensure that our nation spends responsibly by freezing total discretionary spending at 2008 levels ($933 billion) beginning in 2013.
• Ensure our nation’s national security by meeting Defense Secretary Robert Gates’ defense request. Defense spending would total $696 billion in 2012 and would increase to $747 billion in 2021.
• Reduce non‐defense discretionary spending from $409 billion in 2012 to $218 billion in 2021.
• Reduce unnecessary mandatory spending—other than Medicare, Medicaid, and Social Security—by $1.9 trillion between 2012 and 2021.

SAVE MEDICARE.

•  Strengthen Medicare’s long‐term finances. This budget would slowly phase‐in an increase in the Medicare eligibility age for those born in 1952 and after.
• Provide improved healthcare choices for individuals at or near retirement. The RSC believes that current Medicare beneficiaries should have the option to voluntarily opt‐in to a menu of private health insurance plans. This optional “premium‐support” system would be structured much like the health insurance that Members of Congress receive. Over time, Medicare would transition to a solvent premium‐support system.

REFORM MEDICAID.

• Block‐grant Medicaid and remove Washington D.C.’s burdensome red tape. This budget would empower the states with the appropriate flexibility to determine Medicaid eligibility and benefits, thereby improving the quality of care and access to vital services for the neediest and most vulnerable Americans.

SAFEGUARD SOCIAL SECURITY.

• Strengthen Social Security’s long‐term finances. This budget would slowly phase‐in an increase in the Social Security full retirement age for individuals born in 1952 and after.

ENACT PROGROWTH TAX REFORM.

• Prevent any new tax increases on the American people and repeal the unaffordable $813 billion tax increase included in ObamaCare. This budget proposes a smarter tax code that would lower rateswhile broadening the tax base.