House Republican FY 2014 Budget Released
House Budget Chairman Paul Ryan (R-WI) released his budget for FY
2014 this week. The Ryan FY 2014 budget is very similar to his budget
proposals from years past and recommends significant reforms to Medicare and
Medicaid. The proposal would balance the budget by 2023, cut $4.6 trillion in a
decade, and leaves the sequester in place. The Ryan Budget recommends spending
$41 trillion over the next decade, which is approximately $5 trillion less than
would be spent under the current Obama Administration policies.
Congressman Ryan proposes to “simplify the tax code to make it
fairer to American families and businesses” by lowering tax rates for
individuals, consolidating the current seven individual income tax brackets
into two brackets, repealing the Alternative Minimum Tax, and by reducing
the corporate tax rate to 25 percent.
Included in the Ryan Budget is a heavy focus on entitlement
reform. Approximately 70 percent of the Ryan Budget’s spending cuts are from
cuts to health programs. His budget repeals the Affordable Care Act (including
Medicaid expansion and the exchange subsidies), which accounts for $1.84
trillion of his proposed deficit reduction plan. His plans would also block
grant Medicaid. Congressman Ryan includes a plan to means test Medicare
premiums for high income seniors. Beginning in 2024, for workers born in 1959
or later, Medicare will be offered as a premium support system. Meaning,
Congressman Ryan will offer older Americans a voucher to purchase a private
plan. The budget proposal also requires that both the President and Congress
submit plans on how to protect the Social Security Trust Fund.