Tuesday, April 05, 2011

The Path to Prosperity - Unveiled

House Republican are supposed to share their ambitious vision today of the fiscal 2012 budget plan that would cut $6.2 trillion in spending over the next decade, by overhauling Medicare and Medicaid, and restructuring individual and business taxes.  

The new plan, constructed by Paul Ryan, House Budget Committee Chairman, became a struggle for the Republicans and Democrats to reach a consensus over how to cut spending over the remaining six months of the current fiscal year.  This will remain a separate issue from what is announced today for the 2012 budget.

"The Path to Prosperity," will be formally unveiled later this morning.  It is said to cut $4.4 trillion from deficits over the next 10 years.  The details of the plan will be shared roughly at the same time President Barack Obama meets with congressional leaders to discuss the current year's budget.  If decisions are not made and enacted this week, federal funding runs out Friday which could lead to a government shutdown effective Saturday.

Sneak peak of some of the details to be shared today:
  • Spending - Will cut domestic spending below 2008 levels and freeze the budgets for five years.
  • Help for the Poor - Will take the federal share of Medicaid, the joint state-federal health program for lower income people, and convert it to a grant to states.  States would then have more say over how the money is used.  Similar changes will be made to the food stamp program and consolidation of many job training programs.
  • Health Care - After 2022, Medicare beneficiaries would be enrolled in the same type of health care program as members of Congress.  Future beneficiaries could choose from a variety of plans.
  • Social Security - This part is vague, it is proposed that consumers be allowed to put their Social Security tax money into private accounts.

Facts courtesy of the Wall Street Journal.

Read more: http://www.miamiherald.com/2011/04/05/2151303/house-republicans-ready-to-unveil.html#ixzz1IehFNL52

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