The Ryan Budget Spends $5.3 Trillion Less Than The Obama Budget Over The Next Decade


Here’s a chart, via James Pethokoukis, comparing the debt trajectories for the Obama budget and the Paul Ryan budget, which was just released this morning:

Most of the debt savings come from Medicare reforms, which Pethokoukis explains:

Where Obamacare relies on unelected bureaucrats to keep costs down, the Ryan path uses competition. Under Ryan’s revised “premium support” plan – essentially the Wyden-Ryan proposal — seniors beginning in 2023 could use their Medicare dollars to choose from a menu of private plans, along with Medicare’s traditional fee-for-service system. Every year there would be a competitive bidding process among all plans to determine the dollar amount of the federal contribution that seniors would use to purchase coverage. (The benefits in the private plans would have to be as least as good as Medicare.) The second least-expensive approved plan or Medicare, whichever is least expensive, would establish the benchmark that determines the premium support amount.

Seniors who prefer pricier plans would have to pay the difference between the premium subsidy and the monthly premium. Seniors who choose a less expensive plan could pocket the difference. As a backup — and so CBO could score the plan — per capita costs could not exceed nominal GDP growth plus 0.5%.

The Ryan budget also has massive tax reform, going to a two-rate system for individuals: 25% for the upper tax brackets, and 10% for the lower tax brackets. It also sets a flat rate for corporate taxes at 25% (the top tax rate is currently 35%). These tax reforms are likely to inspire a good deal of economic growth, though the tax revenues for that growth (per CBO rules) aren’t calculated for. So when you see numbers for revenues and deficits under Paul Ryan, you can assume that the real numbers if the policies are implemented would be even better.

There are some problems with the plan, though. It doesn’t address Social Security. It doesn’t get specific on which tax deductions/credits go and which stay. But as a place to start a debate over the nation’s budget, it’s better than where Obama and the Democrats are at.

Here’s Ryan making the pitch for his budget in video:

Rob Port is the editor of In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters.

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  • Captornado

    “We have no idea how to fix the debt, we just know that we don’t like your idea.”

    • Sparkie Arbuckle

      How could GOPs fix a debt?  They haven’t tried and succeeded at that for what, more than forty years?


  • sbark

    Does it include fundamental reforms needed like Zero Based budgeting……………

    This language change and vodoo acounting of automatic increases annually have to be removed from DC (and Bismarcks) mentallity.

  • Gern Blanston

    He no-doubt will be forcing the seniors to eat dog food while giving his 1% buddies big tax breaks. We need to maintain unsustainable spending – for the little guy!

    • Sparkie Arbuckle

      And by ‘he’ you mean Ryan.

      • Gern Blanston

        No, I mean Republicans – they’re all rich, white, men – except for ‘women’ like Palin and Coulter, but they really aren’t women so it is not misogynistic to call tehm sluts and whores… and obviously Clarence Thomas doesn’t count as a real black man…but I digress…

  • WOOF

     Keep Your Hands Off My Medicare.
    Ain’t Paul Ryan gonna turn them around.

    • Gern Blanston

      Precisely why we must kill The Affordable Care Act (why does it reference ‘care’ when all that is affordable about it is the insurance – and that is only true to the individual, not the ones actually paying for the insurance, The Public).

  • Tea Party Patriot

    Ignoring Rand Paul’s Budget –

  • SigFan

    Not perfect – but it is a good start.  And we shouldn’t let perfect be the enemy of the good.  If we wait for the perfect plan we’ll be waiting a long time – like forever.

  • mickey_moussaoui

    Obama can’t even provide a budget in three years on the job and Rhyan comes along with a plan that does many things that voters wanted in the 2010 midterm election AND it reduces the deficit. The obama budget team are epic failures.

    Obama = NO budget
    Rhyan = a REAL Budget

    Do the math, subtract obama from office

    • Buffalo Bob

       Rob- Somebody  please!
      Is  it  true  or  false  that  Congress (House & Senate) already  approved  the  2013  Budget  which  is  now  guiding Congresses  work.

      If  its  untrue, tell  me!

      If  Congress  already  has adopted  the  2013 budget,  why  would Paul  Ryan   announce  another  2013  budget  with  such  hoopla?

      just  asking…

  • Hannitized, Proofs obsession

    The only thing Ryan has accomplished is put people out of work, which cons then blame on Obama. 

    If America accepts anything Ryan has to offer, they can expect the middle-class and working-class Americans to suffer as a result. 

    • two_amber_lamps

       If you and your tax dodging ilk would pay their bills then maybe we could afford your leftist-wastrel rate of spending…

      But deadbeats defraud the government…  did you fix that tax lien yet?

    • HG

      Spoken like an ignorant Obama groupie.

      • Hannitized, Proofs obsession

        Speaking of ignorant groupies, how’s your buddy Santorum coming along with his wack-a-doodle campaign?  Still supporting that whack-nut?

  • Brenarlo

    Paul Ryan’s budget balances in 2040… Rand Paul’s budget balances in 5 years… Ron Paul’s budget balances in 3.  

    • Rob

      I’m for whichever one of those three we can actually get passed through Congress.  Reality is, we won’t get any of them.

      • Sparkie Arbuckle

        So why doesn’t your party draft something feasible and stop this grandstanding which is, ultimately, f*cking your party?

  • Grandd231

    This is the problem, Ryan’s budget is a joke. It does absolutely nothing except cut from future expected growth. This is defined as business as usual. It’s either Ron or Rand’s plan. Ron’s cuts, real cuts of $1 trillion the first year. You want fixes? That’s a good start the rest are nothing but window dressing.