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Paul Ryan Budget: House Passes Plan 228-191

By ALAN FRAM 03/29/12 05:36 PM ET AP

Paul Ryan Budget

WASHINGTON — A divided House approved a $3.6 trillion Republican budget on Thursday recasting Medicare and imposing sweeping cuts in domestic programs, capping a battle that gave both political parties a campaign-season stage to spotlight their warring deficit-cutting priorities.

But the partisan divisions over the measure, which is dead on arrival in the Democratic-led Senate, also underscores how tough it will be for lawmakers to achieve the cooperation needed to contend with a tsunami of tax and spending decisions that will engulf Congress right after this fall's elections.

"This is very easy," Robert Bixby, executive director of the Concord Coalition, a bipartisan group that advocates debt reduction, said of House passage of a budget that will go no further in Congress. "When you get to the budget bomb at the end of the year, it's for real. You're going to actually have to pass something."

The fiscal plan the House passed Thursday by a near party-line 228-191 vote would reshape and squeeze savings out of Medicare and Medicaid, the federal health insurance programs for the elderly and poor. It would force deep cuts in a wide range of spending, including rail projects, research and Pell Grants for low-income college students.

It would block President Barack Obama's plans to raise taxes on couples earning above $250,000 a year. Instead, it would collapse the current six income tax rates into just two, with a top rate of 25 percent – well below the current 35 percent ceiling – while erasing tax deductions and other breaks that the GOP plan failed to specify.

Overall, the GOP budget would cut spending $5.3 trillion more deeply over the next decade than Obama would – out of more than $40 trillion that would be spent. It would cut taxes by $2 trillion more than the president's plan. That leaves Republicans seeking a hefty $3.3 trillion in deeper deficit reduction than Obama.

The measure immediately became grist for the presidential campaign.

"House Republicans today banded together to shower millionaires and billionaires with a massive tax cut paid for by ending Medicare as we know it and making extremely deep cuts to critical programs needed to create jobs and strengthen the middle class," White House press secretary Jay Carney said in a written statement.

At nearly the same time, GOP presidential front-runner Mitt Romney issued a statement of his own.

"The House budget and my own plan share the same path forward: pro-growth tax cuts, getting federal spending under control and strengthening entitlement programs for future generations," Romney said.

With such stark differences over what to do about huge federal budget shortfalls, it was easy to predict that the two parties would disagree vehemently over the House plan.

It was also easy for the two sides to remain divided because there is little practical consequence if Congress' budget is ignored or, like this year, if a final version is never approved. That's because the budget is a non-binding blueprint that legislators are supposed to follow as they work on spending and revenue bills later in the year, but don't really have to.

Come January, though, a series of potentially cataclysmic fiscal events will occur almost simultaneously that lawmakers and the new president will have to confront and agree to do something about, one way or another.

Tax cuts first approved under President George W. Bush will expire, imposing tax increases on virtually every working American. Billions of dollars in spending cuts to defense and domestic programs, triggered by the failure of Congress' debt-cutting super committee, will start taking effect unless legislators block them.

Right around that time, the government should hit its debt limit and need renewed borrowing authority to avoid a federal default. A new limit will be required from lawmakers who fought right to the brink in a similar battle last summer.

Congressional gridlock on spending bills, always a likelihood, may be threatening a federal shutdown. And a payroll tax cut, extra unemployment benefits and a host of temporary tax breaks for businesses will all be about to expire.

"You've got a budget just about to blow up. There's never been anything like this," Bixby said of the intersecting decisions that will have to be made.

Work on those problems could well start in a postelection session of Congress. Whether either party has more leverage than it does in today's stalemated Washington will depend on how the congressional and presidential elections are decided.

In one indication of the pressures that will face lawmakers seeking middle ground, a coalition of both parties' moderates offered a compromise budget this week that combined tax increases with spending cuts in an attempt to curb federal deficits. It lost resoundingly on Wednesday, garnering only 38 votes.

That measure's two leading sponsors, Reps. Steve LaTourette, R-Ohio, and Jim Cooper, D-Tenn., said in separate interviews that 100 or more lawmakers had told them they would support the bipartisan proposal or were leaning toward doing so.

But then came a flood of lobbying. Conservative groups like the anti-tax Americans for Tax Reform and the Club for Growth pushed Republicans to oppose the bipartisan plan, while the AFL-CIO, the National Committee to Preserve Social Security and Medicare, and other groups brought pressure from the left.

"A vote for Cooper-LaTourette is a vote for deep cuts in Social Security benefits, cuts in Medicare benefits and Medicaid" and tax breaks for the wealthy and for U.S. firms shipping jobs abroad, said a letter the AFL-CIO sent lawmakers.

"People are afraid of campaign money drying up, they're afraid of being attacked by ads on TV, they're afraid of losing goodwill, especially if they see you're not going to win," said Cooper, explaining the clout opposition groups had with lawmakers facing re-election this fall.

LaTourette said that after the bipartisan plan failed, he telephoned Erskine Bowles to apologize "for damaging his hard work." Bowles, a former White House chief of staff to President Bill Clinton, was a leader of Obama's bipartisan deficit-reduction commission along with former Wyoming GOP Sen. Alan Simpson. LaTourette and Cooper used the commission's debt-reduction plan as a model.

"I wasn't surprised that both the right and the left came at us," LaTourette said. "I was surprised at the ferocity of the attacks."

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WASHINGTON — A divided House approved a $3.6 trillion Republican budget on Thursday recasting Medicare and imposing sweeping cuts in domestic programs, capping a battle that gave both political ...
WASHINGTON — A divided House approved a $3.6 trillion Republican budget on Thursday recasting Medicare and imposing sweeping cuts in domestic programs, capping a battle that gave both political ...
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This user has chosen to opt out of the Badges program
09:09 AM on 04/22/2012
Who is running against Paul Ryan in Wisconsin?

"This country has come to feel the same when Congress is in session as when a baby gets hold of a hammer." Will Rogers
07:39 PM on 04/19/2012
If you vote republican now, you must be married to your sister. Do visit http://www.nucow.com/JYC.htm This tells the entire story..........
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Steven Kippel
02:20 PM on 04/02/2012
The Republicans laughed when Pelosi said "you have to pass the bill to see what's in it." This bill the GOP House passed virtually says the same thing in the text of the law under Title V - Policy

There are Assumptions in this section such as: "For future generations, when they reach eligibility, Medicare is reformed to provide a premium support payment and a selection of guaranteed health coverage options from which recipients can choose a plan that best suits their needs."

What does that mean? It's a budget based on assumptions that future changes will be made or we'll end up with even greater deficits.

And then this terrifically specific assumption, "Medicare spending is put on a sustainable path and the Medicare program becomes solvent over the long-term." There is no definition of "sustainable" and it assumes that Medicare is now unsustainable and insolvent, and neither of these things are true.

The whole bill is "pass this bill and we'll see what happens."
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Louis Ruoti
Prejudices are what fools use for reason
03:47 AM on 04/01/2012
Thanks for passing this budget, Republican congressional majority. You are my heroes. It's typical of your party to think that in some way shape or form the American electorate is ignorant enough to think this is good for them, or our country. This will be a huge selling point for us leftward leaning folks in November.
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Thisboy
12:14 AM on 04/01/2012
We've seen how BP, Goldman Sachs, Bank America and all the great financial giants have watched out for this country. How they have always put the U.S.'s needs and interests first.
Enough Congressmen stood by and allowed taxpayers money to bail out Wall St so they could pay lobbyist to make sure The GOP and a few Dem Congressmen created and halted legislation that might prevent these moneyed hucksters from continuing the money games . Not only that but lets make sure subsidies continue and the Bush Tax Cuts remain in place to add a little chump change to this year's bonus packages.
10:49 PM on 03/31/2012
Ryans in trouble, latest Polls are correct. This budget proposal is his swan dance Ryan's toast, Thank God.
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cqwnurs
05:08 PM on 03/31/2012
Insanity; Doing the same thing over and over again trying to get a different result!
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zooks1
03:17 PM on 03/31/2012
Funny you mock the Ryan budget passing. How did Obamas budget go over with democrats?. It was on Wednesday last week,
www.washingtontimes.com/.../2012/.../obama-budget-defeated-414-...
06:34 AM on 04/01/2012
SHhhhhhhhhhhhh zook,,,,,, the left just Hates facts
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Steven Kippel
02:22 PM on 04/02/2012
The fact that this wasn't a real vote?
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pmoschetta
Where are the Jobs, Speaker Boehner?
08:40 AM on 04/04/2012
DUH

This article isn't about Obama's budget it's about the Ryan Plan

Diversion:
When things don't look good, republistooges change the subject
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HUFFPOST COMMUNITY MODERATOR
4 EYES
I SEE YOU...and right through your words....8-)
02:58 PM on 03/31/2012
Paul Ryan is MY Congressgrunt, a water boy for the 0.1%ers. Rob Zerban is ready to take his job this fall:
http://www.robzerban.com/
8-)
01:44 PM on 03/31/2012
Ryan is in the business to make money. He isn't there to build a good country for everyone that he can.

What does he think people will do if they become disabled or elderly? Pay $10,000 medical costs out of their Social Security?

Cut people like Alian Simpson And Usrkin Bowells' pensions.

I would bet that 90% in this country are smarter than the 1% and their enablers. The 1% won't stop until they destroy Social Security and Medicare. The 1% and those they own are just conniving and sneaky. The end game is to put the money in the market and we will have to depend on the same 1% to pay our retirement. About time to retire, the market will be wiped out by malfeasance.

It is sad that we have a government that doesn't want to keep their word.

Obama isn't a bit better. He already has offered to make painful cuts to Social Security and Medicare.
Why isn't he primaried?
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99er2049er
Democrats create jobs and build strong economies
01:51 PM on 03/31/2012
I can see how republicans watch Fox News and listen to Rush and Hannity and have been programmed to buy into the concept that democrats are bad people and Obama is bad for the country. But eventually after seeing the evidence that this parties policies have clearly failed and when they are talking about giving massive more tax breaks to the wealthy and oil companies, yet are going to take away all of our social security and medicare, it should finally reach the republican voters, that this is unacceptable.

Republican voters, you are going to lose your social security and medicare if you vote republican. Stop and protect your retirement.
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Thisboy
11:56 PM on 03/31/2012
Unfortunately the hate for a Fictional character complete with socialistic views,Anti-Colonial tendencies , Kenyan mindset and an Islamic faith makes it hard for teabaggers and wobbleheads to imagine that Obama just might be trying to save the benefits they have and save them from ever being left with no health care.
02:33 PM on 04/01/2012
No one should have to build a good country. We are a good country. I might use "rebuild" our once grand country and that's what Paul Ryan is trying to do. He's also trying to save us from going bankrupt.

You need to read the plan, it's nothing like you are describing. This plan actually avoids making changes to SS, unlike his first budget plan. This plan contains a mechanism to trigger refoms, though, but only if SS were in jeopardy.
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Steven Kippel
02:25 PM on 04/02/2012
This plan doesn't make changes because all it does is make policy suggestions for future perusal.
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pmoschetta
Where are the Jobs, Speaker Boehner?
08:53 AM on 04/04/2012
try again, conservgirl8

http://www.strengthensocialsecurity.org/sites/default/files/Ryan%20Budget%20Fact%20Sheet%20(Shortened).pdf
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demandhonesty
10:17 AM on 03/31/2012
Big Victory? he tailored the plan to his fellow republicans and tea partiers in the house and they passed it. Big wup
Chinawanderer
A biography should never be micro
07:59 AM on 03/31/2012
The Ryan budget brings together two recent trends in American life that need to be repudiated.

The first is the belief that the uber rich are somehow better than, both materially and, to some extent, morally better than the rest of us and therefore should be rewarded.

The second is short-term thinking. It cuts all those things that invest in our future like education, health and infrastructure. It is akin to people eating their seed corn; a practice that meets a short-term need by ensuring starvation in the future. The corollary is the destruction of the social contract with our seniors and our most vulnerable.

The really ironic part of all this is that despite all their bluster on the subject, the GOP/Tea Party is not now, never has been and will never been really interested in balancing the budget. They use the issue as a club for their real goal which seems to be overturning modernity.
11:56 PM on 03/30/2012
Dead on arrival in the Democratic Senate. This is the reason every single Democrat should vote in November. This plan is heartless to seniors who rely on Medicaid. There are many Republics who also depend on Medicaid. How they can be persuaded to vote against their own needs and interests -- baffles me.
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99er2049er
Democrats create jobs and build strong economies
01:53 PM on 03/31/2012
And the saddest part is this will effect everyone of us on this board. We are all going to retire and I expect to have the social security system and medicare I paid into my entire life. Don't republicans ever think they will retire and need social security and medicare? Or do they believe the corporations will look out for them?
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Sherrie Heckendorn
11:01 PM on 03/30/2012
This kind of outright in your face, we only support the 1% at the expense of the 99%, should make every american angry. What they never want to admit,is that ss and medicare are solvent, which makes sense when you consider that everyone pays into these two programs. What does need to be done is to cancel the ceiling on the income thats taxed. Why do you think they want to get rid of them, but have you ever noticed that they will still expect those taxes to be paid for the people. We need to all raise our voice and let these cretins know, that american's are not stupid and we are watching everything they do. We will have to vote out everyone that voted in favor of that budget plan,because its clear that they have become nothing more than a mouthpiece for the parasitic 1%, So its up to the 99% to show them what happens when the 99% raise their voice and vote them out of office
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10:52 PM on 03/30/2012
Can we PLEASE put aside party lines and ideology just for a minute. If we were all on the Titanic, none of us would ever get off the ship, we'd be too busy blaming each other for the iceberg, the hole in the ship, ect. ect. Is this our America? Where it's more important to win some intellectual argument than it is to address the problem?. The fact is that we are in serious financial trouble and all of us, right and left need to come together on this issue. For the first time ever, our debt has exceeded our GDP...last year alone we spent $454billion dollars, just on the interest on our debt...the current budget adds a trillion dollars a year through 2016...that would leave us with 20 trillion dollars...no matter what your party affiliation is, no matter how much we tax the rich, that type of debt is going to financially destroy our country....left, right, middle..PLEASE...do not ignore this issue...just think, if we can eliminate all debt, that would leave us with 454 billion a year for healthcare...with 20 trillion in debt...there is no doubt, we will lose all of our leverage, power for good around the world, and our ability to fund any of the entitlement programs to a fraction of where they are today.....we will be Greece.
Chinawanderer
A biography should never be micro
08:04 AM on 03/31/2012
But the problem is that the modern GOP, meaning since Reagan, has never been interested in balancing the budget and they really are not now. Instead they are only interested in it when the other party is in power to score political points and to use it to try to overturn the twentieth and twenty-first centuries.

Ryan's budget just confirms this with its lack of cuts to the most bloated part of the budget--defense--and tax cuts.
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11:43 AM on 03/31/2012
There we go again, pointing fingers and taking sides instead of focusing on the hole in the boat...why can't anyone see we're chest deep right now....more debt is going to cause serious problems ..we have to cut, cut , cut.
S M V
Give me your tired, your poor, Your huddled masses
05:29 PM on 04/01/2012
I agree that no political party is really interested in cutting spending. That should be no surprise. Spending allows them to do favors for their supporters.

Unfortunately research of south and central America shows that deficits are only successfully addressed when spending is cut. Politicians can not resist spend the money that higher taxes brings in. They know if they don't spend it the other side will.
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99er2049er
Democrats create jobs and build strong economies
02:02 PM on 03/31/2012
Clinton left us with a lovely surplus to make your vision come true, but republicans like deficits. Reagan started that concept. Bush took the surplus and thriving economy clinton left and turned it into a massive deficit and recession. He said it was the peoples money not the government, and with this concept gave the rich far too much money, that we are all paying for today.

Obama is repairing the recession bush left for us and has turned 750,000 jobs lost a month into 2 years straight of 250,000 jobs created a month and this number will grow. Plus saved a million jobs and the American auto industry which is even planning on opening 17 new plants.

Democrats have shown they are better at helping the economy and getting out of unnecessary wars than republicans. And the democrats are fighting for our social security and medicare, while helping the poor and unemployed.

Obama 2012