• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • First Reactions to Ryan's Path to Prosperity Budget

    There are six key elements to a successful federal government budget, including the plan released today by House Budget Committee chairman Paul Ryan (R—WI):

    1. Does it cut spending sharply and quickly?
    2. Does it begin decisive entitlement reform?
    3. Does it avoid any tax hikes?
    4. Does it ensure a strong national defense?
    5. Does it contain pro-growth tax reforms?
    6. Does it move swiftly and surely to a balanced budget?

    Spending has soared under President Obama, so cutting spending is indispensable to resolving the nation’s unsustainable budget practices. But establishing lower spending numbers alone will not get the job done. Each element of the budget should stand as an integral component of a comprehensive, transformative budget backed by specific policies achieving lower spending. Ryan’s budget should be evaluated on how well it delivers on getting to balance swiftly without relying on budget gimmicks or tax hikes and backed by clearly described policy reforms.

    The Ryan budget—titled The Path to Prosperity: A Blueprint for American Renewal—features strong, substantive, market-based reforms to the health entitlements and a solid, growth-oriented tax plan. It cuts spending, in the budget year of 2013 and into the future, from both discretionary accounts and entitlements.

    This budget is not perfect. Few consensus political documents can be. It should be bolder in implementing its entitlement reforms. It should strive for more aggressive spending reductions. It is slow to reach balance, largely the consequence of avoiding Social Security reforms and slowly phasing in health entitlement reforms. But like its predecessor a year ago, the Ryan budget substantially advances the serious and necessary conversation about securing America’s future and its great legacy of freedom, opportunity, and self government.

    The Ryan budget shares the basic philosophy of The Heritage Foundation’s plan, Saving the American Dream. Ryan’s plan is a vast improvement over the situation in the Senate, where Majority Leader Harry Reid (D–NV) has once again refused even to allow a budget on the floor. It is far better than President Obama’s budget, which relies on enormous tax hikes, shirks any solutions to the twin crises of excessive spending and soaring debt, and never comes close to balance.

    Ryan has put forth a serious plan worthy of serious consideration. His budget lays out substantive policy choices, cutting spending, reforming entitlements, and avoiding tax hikes. It also outlines a tax reform that would strengthen the economy and by implication further strengthen government finances through organic revenue growth. It represents real progress toward tackling the nation’s fiscal and economic challenges. Congress and the President should now move toward a real consensus that achieves all the Ryan plan suggests and more.

    Posted in Economics [slideshow_deploy]

    14 Responses to First Reactions to Ryan's Path to Prosperity Budget

    1. Mark Simmons says:

      Necessarily this is a bit off topic, but while we're discussing basic principles…

      There is one I don't think I've seen Heritage talk about, probably because our violation of it is so far from the Founder's plan that it wouldn't occur. This is the principle that the regulator of an industry should not also be the provider of products and services in that industry.

      Ask anyone if they think it would be a good or a bad idea for the regulation of the health insurance industry to be turned over to the insurance companies, and everyone is strongly against such an idea. The pitfalls of doing so are readily apparent to everyone, regardless of their political leanings. But then point out that is exactly what we have done, except that we've made government the provider as well as the regulator. Now you get some head scratching and have advanced a principle our federal government is EAGER to trample upon, and must be stopped from doing so.

      • Bryan Taplits says:

        Mr. Simmons makes a good point that as far as I know no one has even mentioned (at least specifically): Regarding ObamaCare, the governement is not only the nominal provider (although, like Facism, the government is letting "private" insurers run the show-as long as they do what the government wants them to). And governement is also the regulator.
        This is a nice "Rush Limbaugh-like" insight and a horid precedent to set (like the GM bailout, the Chryser bailout worked-but the Federal Government bailing out a private company set a horrible precedent)!!!

      • Grandpa Dave says:

        First Socialism, then Communism… That is the future of this once great country if "WE THE PEOPLE" do not take the country back. WE have a choice this November… Short and Simple! — Grandpa Dave

    2. Keith Newport says:

      There has to be an "adult in the room". Paul Ryan continually steps up to fill that role. Democrats are only interested in buying votes by granting obscene, foolhardy entitlements to "useful idiots". The useful idiots need to realize that the democrats will quickly change the rules when they no longer need votes to retain power. Read "Rules for Radicals". They are all in an uneasy alliance to gain "power". This election parallels the constitutional battle when our nation was founded.

    3. Bobbie says:

      Paul Ryan and all who respect the peoples constitution have what it takes to stand their American ground and straighten the messes of those responsible for causing, who lack respect in America's decency, who lack self discipline and unfortunately who are in positions to destroy more of the best of America(ns).

      Obama won't show a budget of his own and isn't going to accept or credit the efforts made if it doesn't promote government control or if it does promote the initiative to live free and independently through self government.

    4. Brad says:

      I just finished reviewing the 98-page "Path to Prosperity," which is the title of what some are calling the Paul Ryan budget. Of those 98 pages, only about 5 of them (Appendix I) deal with numbers in any way resembling a budget. Page 88 is the main summary page, and it clearly outlines the path from 2012 through 2022. In this plan, each year's spending (referred to as "Outlays") exceeds that year's revenue, resulting in a deficit. This "Path to Prosperity" plans for "Debt Held by Public" to increase by over $4 TRILLION over the next 10 years. As Dave Ramsey says, "The borrower is servant to the lender." Here is a link to the "Path to Prosperity," which I encourage everyone to read: http://budget.house.gov/UploadedFiles/Pathtoprosp

    5. LukeAppling says:

      God bless Paul Ryan who is the only serious adult in the budget room Obama has not passed a budget in three years and Reid won't even bring it up-cowards all.
      If we are ever to regin our balanced budget we must start somewhere and this is a good effort. Bowles/Simpson would agree with this moreso than others. But we can't take the Obama route of doing nothing but increasing the debt by anoer three trillion dollars with continue lies.
      This is the kind of lies Obama continues to put forth:
      "The Obama 2012 campaign has released a short film called “The Road We’ve Traveled,” detailing the challenges faced by President Barack Obama’s administration from day one through the start of the campaign.

      But it’s not all roses for team Obama: part of the film contains a gross inaccuracy. Specifically, it claims that General Motors (GM) has fully repaid its federal bailout loan. It has not — meaning the documentary contains a $25 billion error."
      This was a fact check after viewing the film others have not commented so Obama contimues his lies.

    6. Perry OK says:

      Here we go again. I wish all of you people in the senate and congress were adults instead of over sized children. DO NOT tell us what you can NOT do but what you CAN do. Anyone can put off what needs to be done we need people who will do what we need and be damned the re election. I really don’t know how you people can sleep at night knowing how screwed up you are and it overflows on to the people of this once fine country. Keep up your acts and we will be like greece with some cuban thrown in.

    7. Gary says:

      I believe that Paul Ryan, Alan West and others who represent a clear and opposite picture to Barrack Obama are really a God-send if we back them in the next election. We need strong leadership in Washington and in our States. We need people who will work to eliminate federal departments and send them back to the States where they belong. There should be only a dept. of defense and commerce. Nothing more. The rest is in the States and lacal communities hands. It will take courage for the people to vote only for Paul Ryans of the world. These are true leaders. Obama, pelosi and Reid are an example of leadership run amok. They are not leaders for prosperity, they are for the heavy hand of a federal government. Will we as voters wake up in november?

    8. Republican Tony says:

      Spending and debt are two different animals even though they are related: http://m.theatlantic.com/business/archive/2012/03

    9. Republican Tony says:

      Spending and debt are two different animals even though they are related: http://m.theatlantic.com/business/archive/2012/03

    10. john uhrhammer says:

      It's depressing! We have so many laws and obstacles in the way that we cannot get out in front of the wave of socialism that is planned to overtake the USA! Even the GOP when it says it will fix the deficit, it mentions "tax relief". Never when I found us over-spending did I seek to reduce our income! We have to spend LESS. First get rid of the overhead regulatory structure over "Obama care" Fire 30% of non-military federal employees. Stop all subsidies. Stop ALL foreign aid and reinstate it on strict evaluation of humanitarian need. One case at a time!
      This administration is out to subvert the "free" America we have fought and died for. We are training a whole generation that what they can get on the dole is actually due them! We are squandering the work ethic that got us to greatness.

    11. Joe Stickney says:

      unbuget?? a new obama-reid vurnacular new in constitution or senate rules

    12. mike says:

      This is not an endorsement of Obama economic policies,but for over ten years,the trickled down economics has failed.Every since Congress adopted global economic policies by becoming a credit based nation,poverty has mulitiplied Instead of creating money making accounts for social security and other commonly funded expenitures,Congress only see cuts.Austerity might sound good ,but coupled with lower wages,lost of job security and higher medical co pay has only led to recession.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.