(Image Source: Politico

BY VICTORIA CRAIG

While the U.S. racks up record-breaking debt figures, the House GOP looks to do something to stop the number from growing. Tuesday, House Budget Chairman Paul Ryan released his 2013 budget plan — just in time for election season. Fox Business outlines the details of the plan: cuts, cuts, and more cuts.

“Two individual tax rates are expected to be proposed: 10 percent and 25 percent. That’s down from the current six. Also, a lower corporate tax rate of 25 percent, that’s 10 percent lower than the current rate. And the elimination of the alternative minimum tax.

The New York Times explains how the Republican tax cuts would impact the national debt. It says the Republican plan would slash the deficit by 180  billion dollars more than President Obama’s plan.

“Under the House plan ... By 2016, the deficit would fall to $241 billion by Republican estimates. The Congressional Budget Office estimated last week that Mr. Obama’s budget would still have a $529 billion deficit in 2016.”

In addition to making changes to the tax code, the GOP’s plan would also include deep spending cuts and changes to Medicare. It’s that last provision Democrats say is the worst part of the plan. Democratic Congressman Chris Van Hollen tells Bloomberg a simpler tax code shouldn’t be at the expense of some Americans.

“Tax simplification just becomes code for providing tax breaks again for folks at the very top and taking it out in other places...hitting programs that benefit seniors and middle income Americans.”

This isn’t the first time the GOP released what many are calling a bold and likely controversial budget plan. Republicans did the same thing last year — only to be met with heavy criticism from Democrats. So will this year be any different? Politico reports Republicans hope this time around they can paint themselves as more fiscally responsible than President Obama.

“The GOP believes that crucial independent voters will reward them for being willing tackle the nation’s faltering finances. If Republicans can show they are a party of ideas and solutions and that Democrats don’t have the guts to make the tough calls, the risk, they believe, will be worth it.”

Fox Business’ Stuart Varney says the Republicans’ plan isn’t much different from last year, but the it packs a political punch that would be beneficial come November.

“Go for short term growth and long-term reform of entitlements. And use competition within Medicare to lower prices and raise the quality of service.”

Still, a columnist for the Washington Post says this budget plan is just bad politics.

“There is no expectation on the part of the American people that Republicans provide any sweeping vision of what they would do if they are in power. By offering one, all Ryan is doing is giving Democrats something to shoot at, politically speaking. And that takes away from GOP attempts to keep the 2012 election spotlight shining brightly on President Obama.”

The House is expected to vote on the Republican budget Wednesday. To check it out for yourself, follow the link in our transcript section.

House GOP Introduces Election Year Budget Plan

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Transcript
Mar 20, 2012

House GOP Introduces Election Year Budget Plan

 

(Image Source: Politico

BY VICTORIA CRAIG

While the U.S. racks up record-breaking debt figures, the House GOP looks to do something to stop the number from growing. Tuesday, House Budget Chairman Paul Ryan released his 2013 budget plan — just in time for election season. Fox Business outlines the details of the plan: cuts, cuts, and more cuts.

“Two individual tax rates are expected to be proposed: 10 percent and 25 percent. That’s down from the current six. Also, a lower corporate tax rate of 25 percent, that’s 10 percent lower than the current rate. And the elimination of the alternative minimum tax.

The New York Times explains how the Republican tax cuts would impact the national debt. It says the Republican plan would slash the deficit by 180  billion dollars more than President Obama’s plan.

“Under the House plan ... By 2016, the deficit would fall to $241 billion by Republican estimates. The Congressional Budget Office estimated last week that Mr. Obama’s budget would still have a $529 billion deficit in 2016.”

In addition to making changes to the tax code, the GOP’s plan would also include deep spending cuts and changes to Medicare. It’s that last provision Democrats say is the worst part of the plan. Democratic Congressman Chris Van Hollen tells Bloomberg a simpler tax code shouldn’t be at the expense of some Americans.

“Tax simplification just becomes code for providing tax breaks again for folks at the very top and taking it out in other places...hitting programs that benefit seniors and middle income Americans.”

This isn’t the first time the GOP released what many are calling a bold and likely controversial budget plan. Republicans did the same thing last year — only to be met with heavy criticism from Democrats. So will this year be any different? Politico reports Republicans hope this time around they can paint themselves as more fiscally responsible than President Obama.

“The GOP believes that crucial independent voters will reward them for being willing tackle the nation’s faltering finances. If Republicans can show they are a party of ideas and solutions and that Democrats don’t have the guts to make the tough calls, the risk, they believe, will be worth it.”

Fox Business’ Stuart Varney says the Republicans’ plan isn’t much different from last year, but the it packs a political punch that would be beneficial come November.

“Go for short term growth and long-term reform of entitlements. And use competition within Medicare to lower prices and raise the quality of service.”

Still, a columnist for the Washington Post says this budget plan is just bad politics.

“There is no expectation on the part of the American people that Republicans provide any sweeping vision of what they would do if they are in power. By offering one, all Ryan is doing is giving Democrats something to shoot at, politically speaking. And that takes away from GOP attempts to keep the 2012 election spotlight shining brightly on President Obama.”

The House is expected to vote on the Republican budget Wednesday. To check it out for yourself, follow the link in our transcript section.

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