March 12, 2013
The federal budget for 2014 should accomplish six things, Heritage Foundation experts explain. These are laid out in our Saving the American Dream plan:
- Balance the budget in less than 10 years, without raising taxes, and keep the budget in balance thereafter;
- Swiftly overhaul entitlement programs, including Social Security, to guarantee economic security to seniors while making the programs affordable;
- Repeal Obamacare in its entirety;
- Fully fund defense;
- Cut discretionary spending; and
- Roll back recent tax increases with a sweeping, growth-oriented tax reform plan and caps taxes at the historical average of 18.5 percent.
So does Rep. Paul Ryan’s (R-WI) new budget proposal, released today, measure up? Heritage’s Alison Fraser takes an early look. The Ryan budget:
- Gets to balance in ten years;
- Includes important reforms to Medicare, though enacts them slowly, and does nothing at all to strengthen Social Security;
- Repeals Obamacare spending, though keeps the Obamacare taxes;
- Protects defense from the sequester cuts, though does less than is required.
- Makes important cuts to non-defense discretionary spending; and
- Includes strong, growth-oriented tax reforms.
The bottom line, according to Fraser?
The Ryan budget delivers on its new promise this year—to balance the budget within the decade. Unfortunately, it does use higher taxes to help achieve this. It maintains Ryan’s signature reform to Medicare, which will go far toward reining in unaffordable entitlement spending.
While it could do more to align with the principles laid out in Saving the American Dream, Ryan’s budget proposal is good first step in reining in spending and reforming entitlements.
What do you think of Paul Ryan’s budget?