This past Tuesday (March 12), Paul Ryan introduced a new budget to the House of Representatives. Some of the proposals in the budget include tax code reforms, reduction in the rate of spending, and repeal of the Patient Protection and Affordable Care Act (PPACA). In his introduction, Ryan stated, “The House Republican budget reduces deficits by $4.6 trillion over the next ten years. It targets wasteful Washington spending and reforms the drivers of the debt. This budget stops spending money we don’t have.” By slowing the rate of federal spending from 4.9 percent to 3.4 percent, Ryan hopes that in 10 years (by 2023), the federal government will have its budget balanced, rather than in 25 years, in the previous budget.
A key part of the new House budget plan is reforming the broken welfare system to make sure only those who really need aid will be receiving. The fact that nearly 50 million people are on food stamps and 46 million people live in poverty shows both the failure of this administration to boost the economy and failure on the welfare system to give aid only to those who absolutely need it. Another key area addressed in the new budget involves the PPACA. It repeals the expansion of Medicaid and the exchange subsidies under the new law. The budget itself claims that the new law will add over $1.2 trillion in new spending to the budget sheet, a price which the federal government simply cannot afford. The budget also cites how the new health-care law will damage private insurance companies ability to provide coverage for their customers.
On page 32 of the budget, the following is stated: “This budget repeals the President’s onerous health-care law. Instead of putting healthcare decisions into the hands of bureaucrats, Congress should pursue patient-centered healthcare reforms that actually bring down the cost of care by empowering consumers.” The negative effects of the healthcare law are already being felt, as companies have started to lay off workers so they can be below the 50 worker threshold put forth by the healthcare mandate; companies are also reducing hours for many employees, demoting them from full-time to part-time. This budget repeals the most dangerous part of this new healthcare law: the never-ending deficit spending.
With just the few parts of this budget that I saw, I am very hopeful that this is a great way to slowly, but surely, decrease federal jurisdiction, deficit, and keep people from becoming dependent on welfare from the federal government. There is no doubt that damage has been done to our economy, but this budget put forward by Paul Ryan is a great step to putting the United States back on the path to prosperity.