Ryan’s budget proposal

Paul Ryan’s budget is an update to the same fiscal plan Americans rejected last election.

Daily Editorial Board

 

This week, House Budget Chair Rep. Paul Ryan, R-Wis., issued his proposal to counter the upcoming proposals by the president and the Democratic-controlled Senate. While the document released is a weighty treatise — coming in at 98 pages — full of graphs and explanations on the benefits, it is simply a restatement of the same proposals Americans rejected in the presidential election. It largely maintains military funding and makes deep cuts to health care, social programs and discretionary spending.

However, despite the length of the document, few details are presented on how such cuts will be implemented. Instead, it outlines the case for deficit reduction — repeatedly. It explains how the budget presented will balance the budget in 10 years, something that Ryan only achieves through new estimates from the Congressional Budget Office based on the revenues from the additional taxes of the fiscal cliff despite proposing comprehensive tax reform.

The plan outlines a new tax system, which would create two tax brackets for individuals — 10 and 25 percent. The top corporate tax rate would be 25 percent.

The proposal would also shift the U.S. to a territorial tax system where only domestic profits are taxed of the multinational corporations based in the U.S.

With the ease of “offshoring” profits, the plan will inevitably give a huge tax cut for corporations. The Washington Post’s Ezra Klein estimates that it could actually cost some $5 trillion, eliminating any shot at Ryan’s proposal balancing the budget as he claims.