Email
Password
Remember meForgot password?
    Log in with Twitter

article imageRyan: Obama 'dramatically inaccurate' on debt reduction plan

By Michael Krebs     Apr 14, 2011 in Politics
In what is shaping up to be a difficult chapter in American partisan politics, Congressman Paul Ryan, architect of the Republican debt reduction plan, gave low marks to President Obama's speech on possible alternatives.
Republican Congressman Paul Ryan, a rising star in the Republican Party for his Path to Prosperity debt reduction plan, did not find common ground in President Obama's alternative presentation on Wednesday.
In a statement issued by Congressman Ryan, the Wisconsin Republican found President Obama's speech on how the US federal government could get its debt and deficits in order to be "dramatically inaccurate."
“When the President reached out to ask us to attend his speech, we were expecting an olive branch. Instead, his speech was excessively partisan, dramatically inaccurate, and hopelessly inadequate to address our fiscal crisis. What we heard today was not fiscal leadership from our commander-in-chief; we heard a political broadside from our campaigner-in-chief," Ryan stated, according to the Weekly Standard.
President Obama's speech was largely seen as an opening salvo to the 2012 elections and not a serious attempt to meaningfully tackle the nation's mounting debt crisis.
"Obama’s address left many questions unanswered, but there was no doubt that the president and his White House advisers regarded it as one of the most important political speeches he will make in his second two years in office," Dan Balz wrote in a Washington Post analysis. "It was an effort to regain the offensive in a debate that will dominate budget negotiations for the rest of this year and will probably shape the choices voters will face in the 2012 presidential election."
However, with a US budget ceiling debate taking shape for the very immediate future and with the federal government's 2012 budget needing firm decisions by the early fall, Congressman Ryan outlined in detail his many concerns with President Obama's speech:
"1. Counts unspecified savings over 12 years, not the 10-year window by which serious budget proposals are evaluated.
2. Postpones all savings until 2013 – after his reelection campaign.
3. Runs away from the Fiscal Commission’s recommendations on Social Security – puts forward no specific ideas or even a process to force action.
4. Calls for the appointment of another commission, after mostly omitting from his Fiscal Year 2012 Budget any of proposals submitted by the commission he appointed last year.
5. Non-specific framework fails to meet his Fiscal Commission's own deficit-reduction goals.
Taxes:
1. Proposes to raise taxes on the American people by more than $1 trillion, devastating our fragile economy and stifling job creation.
2. Endorsed the Fiscal Commission’s ideas on taxes, which specifically called for lower tax rates and a broader base, but then called for higher tax rates. Which is it?
3. Government health and retirement programs are growing at more than twice the speed of the economy. At the current rate of spending, revenue would have to rise 'by more than 50 percent' just to keep debt at its current level, according to the Government Accountability Office. That means tax increases across-the-board, now and in the future.
Medicare:
1. Instead of proposing structural reforms that would actually reduce health care costs, the President proposed across-the-board cuts to current seniors’ care.
2. Strictly limits the amount of health care seniors can receive within the existing structure of unsustainable government health care programs.
3. Gives more power to unelected bureaucrats in Washington to determine what treatments seniors should or shouldn’t get, against a backdrop of costs that continue to rise.
4. Conceded that the relentlessly rising cost of health care is the primary reason why the nation is threatened by debt, and implicitly conceded that his health care law failed to solve the problem.
5. Eviscerates the only competitive element anywhere in health-care entitlement programs – the competition amongst Part D prescription-drug plans – which allowed the drug benefit to come in 41 percent under budget.
Medicaid:
1. Acknowledges that the open-ended financing of Medicaid is a crippling financial burden to both states and the federal government, but explicitly rejected the only solution to this problem, which is to give states the freedom they need to design systems that work for the unique needs of their own populations.
Defense:
1. Proposes more cuts on top of $78 billion in cuts included in his own defense budget, which he proposed just two months ago – all at a time when he continues to task the military with new missions.
2. Secretary Gates has said that the military needs 2 percent – 3 percent real growth just to keep executing the missions that DOD has already been assigned.
3. Secretary Gates described deficit reduction plans that let budget targets drive defense policy as 'math, not strategy,'” Ryan outlined, as the Weekly Standard reported.
More about Paul Ryan, Obama, National debt, Budget deficit, Taxes
More news from
Latest News
Top News