Yesterday, House Budget Committee Chairman Paul Ryan (R-WI) introduced the Republican budget proposal for Fiscal Year 2012.
Key facts (as stated by the Ryan Budget) are:
- Over the next ten years, Ryan’s proposed budget would cut $6.2 trillion more in government spending than the President’s budget.
- By eliminating hundreds of (“duplicative”) discretionary programs, banning earmarks, and curbing corporate tax breaks, it would bring non-security discretionary spending to below 2008 levels.
- Brings government spending to below 20 percent of the economy (Ryan states the President’s budget never gets spending below 23 percent of GDP over the next decade).
- Improves Federal deficit reduction (over the next decade) by $4.4 trillion more than the President’s budget.
- Reaches balanced budgets by 2015
- Puts the budget on the path to balance and pays off the debt.
The proposed program promises to keep taxes low. It would eliminate roughly $800 billion in tax increases imposed by
the health care law. While eliminating many of the tax “loopholes” it would also reduce tax rates, setting top rates for individuals and businesses at 25 percent. It is hard to say without further analysis whether this simplification would result in net increases or net decreases for most aviation businesses.
The bill’s summary explains its key objectives
ECONOMIC GROWTH AND JOB CREATION: Fosters a better environment for private-sector job creation
by lifting debt-fueled uncertainty and advancing pro-growth tax reforms.
SPENDING CUTS AND CONTROLS: Stops Washington from spending money it does not have on
government programs that do not work. Locks in spending cuts with spending controls.
REAL SECURITY: Fulfills the mission of health and retirement security for all Americans by making the
tough decisions necessary to save critical health and retirement programs.
PATIENT-CENTERED HEALTH CARE: Repeals and defunds the President’s health care law, advancing instead
common-sense solutions focused on lowering costs, expanding access and protecting the doctor-patient
RESTORING AMERICA’S EXCEPTIONAL PROMISE: Tackles the existential threat posed by rapidly
growing government and debt, applying the nation’s timeless principles to this generation’s
greatest challenge. Ensures that the next generation inherits a stronger, more prosperous America.”
You can find a copy of this “Path to Prosperity” Budget Proposal online.
This is only the beginning of a months-long process which could result in adoption of a Congressional budget resolution. The budget resolution is only a blueprint – Ryan’s program appears to require substantial additional legislation in order to meet its lofty goals.
We can applaud Mr. Ryan’s Committee for their efforts to put the country back on firm financial ground. We hope to bring the aviation community more information about what the proposal would mean to them in the future. Whether the proposal succeeds – and whether it succeeds without substantial revision – remain to be seen.