Committee on the Budget

Paul Ryan

The President’s Budget Keeps Getting Worse

2014/04/17

WASHINGTON­—Today, the Congressional Budget Office released its analysis of the President’s fiscal year 2015 budget. Based on CBO’s analysis, the President’s plan would increase spending by $1.1 trillion and raise taxes by almost $1.4 trillion over the next ten years. And unlike the House Republican plan, his budget would never balance—ever. Instead, it would run a $746 billion deficit in fiscal year 2024. Under CBO’s revised estimate, the President’s budget deficits would be $1.6 trillion higher than what he presented to Congress last month.

Upon release of the CBO report, House Budget Committee Chairman Paul Ryan of Wisconsin issued the following statement: 

“This new report is just more confirmation: The President’s budget would take us in the wrong direction. It would take more from families to spend more in Washington. It would hollow out our national defense. It would weaken key priorities like Medicare. And it would never balance the budget—ever.

“That’s why I’m proud that the House passed the Republican budget. Our plan would balance the budget in just ten years and help grow the economy. By getting our debt under control and advancing other pro-growth policies, it would strengthen our economy and help create jobs. The people deserve a government that works for them, not one that buries them in more debt.”

Contrast in visions

    Spending

    • After removing gimmicks, the President’s budget increases spending by $1.1 trillion.

    • The House-passed budget cuts spending by $5.1 trillion. 

    Taxes

    • President’s budget increases taxes by $1.4 trillion.

    • The House-passed budget calls for revenue-neutral tax reform.

    Balance

    • The President’s budget never balances—ever.

    • The House-passed budget reaches balance in 2024. 

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    Ryan: A Budget That Trusts the American People

    2014/04/10

    WASHINGTON—Today, the House of Representatives passed the fiscal year 2015 budget, The Path to Prosperity. Before the vote, House Budget Committee Chairman Paul Ryan of Wisconsin delivered the following remarks on the House floor:

    “Mr. Chairman, what this debate comes down to is a question of trust.

    “We’ve offered a budget because we trust the American people. Unlike the Senate Democrats who have once again punted and not even offered a budget this year, we trust the people to make an honest assessment. We trust them to make the right choice for their future.

    “Now, to their credit, the House Democrats have offered budgets as well. The problem is, they put their trust in Washington. Every time you hear the word 'investments' just know what that means—take from hardworking taxpayers, borrow more money from our next generations and from other countries, and spend it in Washington.

    “Time and again, they are proposing to put government in the driver’s seat.  They’ve already engineered a takeover of our entire health-care sector. They’re over-regulated our energy sector. They’re depriving us of jobs, and they won’t even give us the Keystone Pipeline. They’re proposing new taxes—another $1.8 trillion tax increase. They’re proposing more cronyism. They’re proposing more control from Washington, which is less control of our communities, less control over our businesses, less control over our lives, less control over our futures.

    “In my respectful opinion, it is a vision that is paternalistic, arrogant, and downright condescending. You know, big government in theory—it sounds compelling. In practice, it’s totally different. Remember if you like your doctor, you can keep your doctor? Remember if you like your health-care plan you can keep your healthcare plan? Remember if government takes over this sector it will lower your costs? Big government in practice is so different than the theory. The results have nothing to do with the rhetoric.

    “We, on the other hand, trust the people. We are offering a balanced budget that pays down the debt. We are offering patient-centered solutions, so that patients are the nucleus of the health-care system, not the government. We’re offering a plan to save Medicare now and for future generations. We’re offering a stronger safety net with state flexibility, to help meet people’s needs and to help people get from welfare to work to make the most of their lives. We’re offering pro-growth tax code. We’re offering more energy jobs.

    “You can boil the differences down to one question: Who knows better? The people or Washington? We have made our choice with this budget. I trust the American people to make theirs.

    “Mr. Chairman, let’s call the vote.”

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    The House GOP Budget Trusts the American People

    2014/04/10

    For the fourth year in a row, House Republicans have passed a balanced budget.

    Each time, we've put forward a plan that stops spending money we don't have, creates jobs with pro-growth reforms, strengthens the safety net, and expands opportunity for all. And each time we've learned a little bit more about where the two parties stand.

    If you look at President Barack Obama's budget -- Senate Democrats refused to write one this year -- it's clear where he and his party place their trust: Washington.

    He wants to raise taxes by $1.8 trillion -- on top of the $1.7 trillion he's already raised. He wants to increase spending by $791 billion. And he never balances the budget -- ever.

    Time and again, the President and his party put government in the driver's seat. They want to take more from families to spend more in Washington. Whether it's health care, energy, or taxes, Democrats want the federal government to play a bigger role in the lives of Americans and our economy.

    And that's great for Washington; it thrives on more power. But the American people will lose out. They'll face less opportunity, more debt, and fewer jobs.

    By contrast, House Republicans have put forward a plan that puts our trust in the people. Our plan balances the budget in just 10 years. We cut $5.1 trillion in spending over the next decade by eliminating waste and making much-needed reforms.

    To read the full op-ed: http://www.cnn.com/2014/04/10/opinion/ryan-republican-budget/index.html

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    A Clear Choice on Defense

    2014/04/09

    The world is less safe when America doesn’t lead. But for President Obama, this lesson has yet to sink in. In February, he offered a budget that would cut crucial funding for our national security. So tomorrow, House Republicans will pass a budget that would give our troops the funding they need.

    First, let’s put things in perspective: For decades, defense spending made up roughly 50 percent of the federal budget. Today, it’s just 18 percent. And if we stay on the current path, the Congressional Budget Office estimates that defense will fall below 10 percent by 2024.

    The reason? Entitlement programs and interest payments are growing out of control. Government spending on health care is set to skyrocket. Interest payments are projected to quadruple over the next decade.

    But the Obama administration sees no need for alarm. Year after year, his administration has cut defense spending, all while the world has grown more dangerous. And rather than confront the entitlement challenge, he’s creating new open-ended spending programs and attacking our good-faith reform efforts.

    To read the full op-ed: http://www.realcleardefense.com/articles/2014/04/09/paul_ryan_a_clear_choice_on_defense_spending_107176.html

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    House Passes the Baseline Reform Act

    2014/04/08

    WASHINGTON—Today, the House of Representatives passed H.R. 1871, the Baseline Reform Act, sponsored by Congressman Rob Woodall of Texas and Congressman Louie Gohmert of Texas. The legislation fixes a flaw in our budget process. Today, the Congressional Budget Office assumes every discretionary account rises every year to keep up with inflation. Instead of moving the starting line forward every year, this bill would keep the baseline at the previous year’s funding level. 

    Upon passage of the legislation, House Budget Committee Chairman Paul Ryan of Wisconsin issued the following statement:

    “I want to thank Congressmen Woodall and Gohmert for offering this bill. We should write the federal budget the same way that a family writes its own budget. You don’t just assume you will spend more on the same item every year. You figure out what works and what needs fixing. It’s our job to set priorities and to assess the results. And that’s why I’m proud to support this bill.”

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    President Obama’s Tax-Hike Hypocrisy

    2014/04/08

    In Brief:

    • President Obama proposed a $1.8 trillion tax increase on hardworking families.

    • House Republicans proposed revenue-neutral tax reform to create jobs.

    • President Obama invents phony statistics to mask his tax-hike hypocrisy.

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    The President claims the House Republican budget hands out “massive tax cuts to households making more than $1 million a year.” But that’s simply not true.

    This budget calls for revenue-neutral tax reform that both broadens the tax base and lowers tax rates for all Americans. Under our budget, the tax code would raise the same amount of revenue as we’re taking in today, but in fairer, simpler, more competitive way.

    The President and his allies say there’s no way we can lower rates without making the middle class pay more. But the tax code is littered with special preferences, exclusions and deductions that add up to more than $1 trillion per year—or over $10 trillion over a decade. Upper-income households are much more likely to use these preferences. [1]

    For instance, the top 1 percent of taxpayers reap about three times as much benefit from tax preferences (excluding refundable credits) as the middle class.[2] So this budget calls for tax reform that would curb or eliminate these special preferences.

    The majority of non-corporate small businesses pay taxes under the individual-income-tax system. According to the U.S. Treasury Department, over 60 percent of non-corporate businesses have profits in excess of $1 million.[3]

    Small businesses generate 60 to 80 percent of net new jobs annually and employ about half of all private-sector employees, according to the Small Business Administration (SBA).[4]

    So raising the individual-income-tax rate hurts successful small businesses that are the engines of job creation in our economy. 

    It’s also worth pointing out that only the President’s budget calls for more revenue. In fact, his budget would raise taxes by $1.8 trillion over the next ten years.

    It’s more than possible to reform the tax code without hurting middle-class families. In fact, tax reform is one of the best ways to get our economy growing again—if only the President would cooperate.



    [1] "National Taxpayer Advocate 2012 Annual Report to Congress, Volume One" Internal Revenue Service

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    Responsible Spending Restraint and Reform

    2014/04/07

    In Brief

    • A smaller increase is not a spending cut.

    • Under this budget, spending will grow, on average, by 3.5 percent a year over the next decade—on the current path, it will grow by 5.2 percent.

    • This budget spends $3.5 trillion on Medicaid over the next ten years. We increase spending every year from fiscal year 2016 onward.

    • This budget spends $600 billion on food stamps over the next decade. And it does not convert SNAP into a block grant until 2019, when the economy will have recovered.

    • This budget maintains the current maximum Pell award ($5,730) throughout each of the next ten years of the budget.

    The Center on Budget and Policy Priorities claims the House Republican budget “gets 69 percent of its cuts from low-income programs.” Instead, the House GOP budget grows them at a more sustainable rate.

    • On the current path, the federal government will spend roughly $48 trillion over the next ten years. By contrast, this budget will spend nearly $43 trillion.

    • On the current path, spending will grow, on average, by 5.2 percent a year over the next decade. Under this budget, spending will grow, on average, by 3.5 percent a year.

    • Nearly $43 trillion is enough. Increasing spending by 3.5 percent instead of 5.2 percent is hardly draconian.

    President Obama and his party have made promises they can’t keep—they’ve promised huge expansions to safety-net programs that ultimately would bankrupt them.

    • Medicaid: This budget repeals Obamacare—including the law’s massive expansions of Medicaid, which are unsustainable. Instead, this budget spends $3.5 trillion on Medicaid over the next ten years. We grow the program every year from fiscal year 2016 onward. We simply slow the rate of growth and give states the flexibility to meet the unique needs of their people.

    • SNAP: This budget spends $600 billion on food stamps over the next decade. By capping open-ended federal subsidies and allowing states to develop new, innovative methods, the budget’s gradual reforms encourage states to reduce rolls and help recipients find work. The budget also doesn’t covert SNAP into a block grant until 2019, when the economy will have fully recovered. The budget also calls for time limits and work requirements like the reforms that helped reduce poverty nationwide in the mid-1990s.

    • Pell Grants: Congressional Democrats and the President have pushed Pell Grant spending to unsustainable rates. The Congressional Budget Office reports the program will face fiscal shortfalls starting in 2016 and continuing through each year of the budget window. We need to reform the program so it can keep its promises. This budget brings Pell spending under control and makes sure aid helps the truly needy, not university administrators. At the same time, this budget maintains the current maximum Pell award ($5,730) throughout each of the next ten years of the budget.

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    House Passes the Budget and Accounting Transparency Act

    2014/04/07

    WASHINGTON—Today, the House of Representatives passed H.R. 1872, the Budget and Accounting Transparency Act of 2014, sponsored by Congressman Scott Garrett of New Jersey. This bill would require the Congressional Budget Office to use fair-value accounting for government loans and federal credit programs so taxpayers can better understand the risks behind Washington’s decisions. The bill would also require the Office of Management and Budget to be more honest about the costs associated with Fannie Mae and Freddie Mac.
    Upon passage of the legislation, House Budget Committee Chairman Paul Ryan of Wisconsin.

    Upon passage of the legislation, House Budget Committee Chairman Paul Ryan of Wisconsin issued the following statement:

    “The Budget and Accounting Transparency Act would force Washington to be upfront about the cost of its decisions. I want to thank Congressman Garrett for sponsoring this bill. Thanks to his hard work, we will make sure that Washington spends taxpayers’ money wisely. Today’s vote is just one more sign that House Republicans are committed to fixing the broken budget process.”

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    House Passes Pro-Growth Budgeting Act

    2014/04/04

    WASHINGTON—Today, the House of Representatives passed H.R. 1874, the Pro-Growth Budget Act, sponsored by House Budget Committee Vice-Chairman Tom Price of Georgia. This bill would require the Congressional Budget Office to provide a long-term, macroeconomic analysis of economically significant legislation. Upon passage of the legislation, House Budget Committee Chairman Paul Ryan of Wisconsin issued the following statement:

    “Federal policy has a big impact on the economy, and when policymakers have more information, they can make better decisions. The Pro-Growth Budgeting Act will help Congress understand the economic effects of proposed legislation. This bill takes nothing away; it adds to lawmakers’ tool kit, so they can better understand and debate public policy.
     
    “So I want to thank Vice-Chairman Tom Price for sponsoring this bill. He and the rest of our committee are committed to fixing Washington’s broken budget process.”

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    Ryan's Opening Statement: Markup of the Fiscal Year 2015 Path to Prosperity

    2014/04/02

    I want to start by thanking the members of this committee. This is our fourth budget in four years. Each one has been on time and in balance. And though we haven’t always agreed on every detail, we’ve worked through the tough issues on behalf of our constituents.  

    I also want to thank the ranking member, Mr. Van Hollen. I expect we’ll have a lot to talk about today. And we won’t always see eye to eye. But he and his staff have done their part to uphold this committee’s long tradition of bipartisan cooperation. Our debates have always been spirited but civil. So I want to thank them all as well.

    Now, we passed the Bipartisan Budget Act just a few months ago. So some people might be wondering, “Why even do a budget?” Well, here’s how I see it: That agreement was the bare minimum. Before then, the Senate hadn’t passed a budget in nearly four years. Talks had broken down. So Senator Murray and I tried to change that. And we found some common ground: a modest, two-year agreement to fulfill our most basic responsibilities. We spared our military from arbitrary, across-the-board cuts. We returned the power of the purse to Congress. And we reduced the deficit—all without raising taxes.

    So the agreement was a step in the right direction. But it didn’t go far enough. It didn’t do enough to address the driver of our debt: autopilot spending. And it didn’t do enough to get our economy growing again. Nearly five years after the recession, many families still haven’t recovered. Over the past five years, economic growth has consistently failed to meet expectations. In fact, the Congressional Budget Office has consistently lowered its economic forecast.

    The budget and the economy are closely linked. Just as a weak economy can drag the budget into the red, a responsible budget can help propel the economy forward. So if Washington is serious about helping working families—or serious about getting families out of work back to work—then it needs to get serious about the national debt.

    And if recent events are any indication, we also need to get serious about our national defense. The world has only gotten more dangerous. And yet the President wants to cut defense spending even further. Under his budget, the Army would shrink to pre–WWII levels, the Navy to pre–WWI levels, and the Air Force to its smallest size ever. Half the cruiser fleet would be in dry dock. We would retire both the A-10 and U-2. And we would have just ten carrier strike groups.

    If we stay on the current path, we’ll put both our economy and our national security at risk. That’s why we wrote this budget—because we owe it to the country to lay out an alternative. We believe every person deserves a fair shot at a brighter future—everyone deserves an America that works. We owe the American people a responsible, balanced budget—because a balanced budget will expand opportunity by creating jobs and, by supporting our military, it will keep our country safe.

    The President’s budget never balances—ever. Our budget, on the other hand, balances in ten years. And it puts us on the path to pay off our debt. How do we do it? We stop spending money we don’t have. We cut waste and make much-needed reforms to save $5.1 trillion over the next ten years. Our critics might call this steep. But look at it at this way: On the current path, the federal government will spend roughly $48 trillion over the next ten years. By contrast, this budget will spend nearly $43 trillion.

    On the current path, spending will grow, on average, by 5.2 percent a year. Under our budget, spending will grow, on average, by 3.5 percent a year. Nearly $43 trillion is enough. Increasing spending by 3.5 percent instead of 5.2 percent is hardly draconian.

    Under this plan, we will expand opportunity by growing the economy. We will provide families with a fair, simple tax code to boost wages and create jobs. We will restore fairness by cutting spending and combatting cronyism. We will strengthen the safety net and help people get back on their feet. And we will secure seniors’ retirement by strengthening Medicare and other vital programs.

    I know our friends on the other side might dispute this point. But remember: It was Obamacare that ended Medicare as we know it. It was Obamacare that cut $700 billion from Medicare. It was Obamacare that set up a board of 15 unelected bureaucrats to ration care for seniors. And that’s why this budget will repeal Obamacare in its entirety. We will end the raid on Medicare. We will make no changes for those in or near retirement. And as for the next generation, they will get to choose from a number of plans—including a traditional Medicare option—so they can find a plan that works best for them. CBO says such an approach could lower costs both for taxpayers and for seniors. It’s a win-win.

    Finally, this budget will protect our national security. It will provide our troops the training, equipment, and compensation they need.

    The budget resolution rejects the President’s budget and adds $274 billion more to our military. Under our plan, the army will maintain its current strength. We will have eleven carriers and a full cruiser fleet. Key modernization programs—like the Joint Strike Fighter—will stay on track. And we will fully fund the President’s request for veterans’ affairs.

    This budget will keep our national security strong—and make our economy even stronger. CBO says that the deficit reduction in this budget will produce stronger and stronger economic growth over time. By 2024, real economic output will be 1.8 percent higher than it otherwise would be—or about $1,100 per person. And that will continue to grow going forward.

    After five years of big spending and little results, we think it’s irresponsible to take more from hardworking families to spend more in Washington. Every family must balance its budget. Washington should do the same. And with the right reforms in place, we can strengthen our national security, foster a healthier economy, create jobs, and raise take-home pay.

    And with that, I’d like to recognize the ranking member for his opening remarks. Read More

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    Contact Information

    207 Cannon HOB
    Washington, DC 20515
    Phone 202-226-7270
    Fax 202-226-7174
    budget.house.gov


    Membership

    Diane Black

    TENNESSEE's 6th DISTRICT

    Marsha Blackburn

    TENNESSEE's 7th DISTRICT

    Ken Calvert

    CALIFORNIA's 42nd DISTRICT

    John Campbell

    CALIFORNIA's 45th DISTRICT

    Tom Cole

    OKLAHOMA's 4th DISTRICT

    Sean Duffy

    WISCONSIN's 7th DISTRICT

    Bill Flores

    TEXAS' 17th DISTRICT

    Scott Garrett

    NEW JERSEY's 5th DISTRICT

    Vicky Hartzler

    MISSOURI's 4th DISTRICT

    James Lankford

    OKLAHOMA's 5th DISTRICT

    Tom McClintock

    CALIFORNIA's 4th DISTRICT

    Luke Messer

    INDIANA's 6th DISTRICT

    Alan Nunnelee

    MISSISSIPPI's 1st DISTRICT

    Tom Price

    GEORGIA's 6th DISTRICT

    Reid Ribble

    WISCONSIN's 8th DISTRICT

    Tom Rice

    SOUTH CAROLINA's 7th DISTRICT

    Scott Rigell

    VIRGINIA's 2nd DISTRICT

    Todd Rokita

    INDIANA's 4th DISTRICT

    Paul Ryan

    WISCONSIN's 1st DISTRICT

    Jackie Walorski

    INDIANA's 2nd DISTRICT

    Roger Williams

    TEXAS' 25th DISTRICT

    Rob Woodall

    GEORGIA's 7th DISTRICT