Budgets, Budgets, Budgets

     Last week Congressman Paul Ryan, representative of Wisconsin's 1st district released the Republican "Roadmap for America's Future,"  what has become the Republican House long term budget plan.  In the last week this budget has been picked apart and written about ad nauseam.  Details of the plan are found here.  In short his plan cuts taxes on the rich, replaces the current Medicaid system, with a system of block grants to states, and gives seniors vouchers (which will decrease in buying power over time) to purchase health insurance rather than the current Medicare program, and severely cuts social programs and safety net spending.  
    This plan will reduce the deficit, but it will also decimate the poor and elderly among us.  Ryan proposed drastic cutting to the discretionary non-military portion of the budget.  (See earlier post as to how small a portion of the budget this is.)  Such drastic reductions in domestic spending, (of which Ryan is very vague on actual details)  coupled with the proposed changes in Medicare, will essentially eliminate any security or safety net for the poor or elderly.  Healthcare is the largest single variable in retirement planning, and the current Medicare system allows for seniors to be much more sure and secure about the cost of that care.  However, Ryan's vouchers will eliminate most of this security.

The very Handsome, Brave, and Bold Paul Ryan

   After looking beyond the basic fundamental problem that Ryan's plan punishes seniors and the poor in order to tackle the deficit while asking nothing of the rich, it becomes clear that Ryan's math just does not work out.  Ryan proposes reducing the top tax rate to 25%, and reducing tax rates for those under $100,000 to 10%.  He also eliminates all capital gains taxes, taxes on interest, and the estate tax.  He proposes to completely change the corporate income tax and replace it with a business consumption tax of 8.5% which greatly reduce corporate taxes.
   Somehow after all this tax reduction, Ryan still believes that tax revenue will increase.  Stop me if you've heard this before, we decrease taxes rates and tax revenue goes up?  Mmmm, may math must be off, because I believe we tried that in the 80's with Reagan and trickle down economics and then again with Bush and his recent tax cuts for the rich, and both times deficits exploded.  How many times will we replay the same story?  If you reduce tax rates revenue will decrease.  Simple enough.  Ryan also claimed that unemployment would hit 2.8% with his plan.  Yes, that is correct 2.8%. See here to see how crazy the 2.8% number is, and of course he uses the Heritage Foundation to back up his numbers, the ultra conservative and ideological think tank which seems to value ideology much more than basic math or reality.  (to be fair the 2.8% number once questioned has been largely removed from much of the plan.  Funny how Republicans feel free to lie until caught and then just act like it never happened.  See:  Jon Kyl's recent flub.)
  And yet despite all the problems with Ryan's plan, the media seems to be in love with Paul Ryan.  After all, he has boyish good looks, works out everyday, has two first names and has proposed a bold plan to reduce the deficit.  Once again our media has failed to actually look at the actual proposal and instead just analyzed what two sides say about the proposal and the political ramifications of Ryan's proposal.  (remember this is his third try at getting a plan people will actually take seriously.)
   So while the media may portray Ryan as bold and brave for releasing an unrealistic, unbalanced and unfair plan to reduce the deficit, that has no possibility to be passed, I will commend him for continuing the conversation.  The Simpson-Bowles deficit reduction commission was the first step, and gained little traction, and now Ryan has continued to push the need to reduce the deficit.
      This gives President Obama the perfect stage to truly lead in the way of deficit reduction.  It gives him the opportunity to fix his disastrous tax deal with republicans he made in December to extend the Bush tax cuts.  (we cannot pretend to be able to reduce the deficit without some tax increases)  Obama, very shortly will make a speech on his proposal for reducing the deficit.  I just hope he decides to lead on the issue.  He must be specific, realistic, and progressive to conquer such a huge problem.  He must frame the issue as more than just an issue of spending but an issue of values and priorities.  Budgets are moral documents and reflect our values.  Obama must be a leader and be more than a compromiser or negotiator between the two parties.  If he can embrace and lead on this issue, he may be able to remind us of the inspirational candidate that had so many of us chanting, "Yes We Can."