So now that Paul Ryan is the GOP nominee for veep, has anyone read his budget resolution, Path to Prosperity
and what it does to the National Debt?
At the outset, I was glad that Ryan had been nominated, because I thought it would focus the election on issues instead of personalities. Ryan has a reputation as a tightfisted fiscal conservative and a policy wonk. Then I read his budget and I'm shocked. I'd never bothered to read that budget before since there was no chance of it being signed into law.
LA Times wrote:The Ryan plan would not balance the federal budget for another 28 years at least, according to an analysis by the nonpartisan Congressional Budget Office. That means the federal debt would continue to rise. That's partly because the tax cuts take effect right away while the Medicare cuts kick in later, as people now 55 hit retirement age. It's also partly because Ryan's proposed tax cuts considerably outweigh even his ambitious spending reductions.
Ryan himself concedes that his plan would not balance the budget this decade, predicting it could be balanced by the "mid-to-early 2020s" because his plan would ignite rapid economic growth. [snip]
"Growth is the key to fiscal sustainability — and low rates are the key to growth," he said.
But even if low tax rates spur the economy — a debatable point among economists — a balanced budget will depend on wiping enough tax breaks off the books to offset the new tax cuts.
In the more than two years since his budget was unveiled, Ryan has not specified any tax breaks he would eliminate. Independent analyses have shown that offsetting the tax cuts would require changing things such as the mortgage interest deduction, the tax exclusion for employer-financed health insurance or other popular tax preferences widely used by middle-income households.
Does anyone else have a take on this budget? Having read the thing, and having seen what tax cuts do to the debt (see the chart in the original post of this thread), I have huge doubts as to its viability.