House Republican Budget Plan
For several weeks, Republicans in the US House of Representatives have been soundly criticizing President Obama’s proposed FY2010 budget as fiscally irresponsible. But, without a detailed budget plan of their own, Republicans were unable to present a comprehensive alternative. Last week, House Republicans unveiled their alternative, which not surprisingly takes a much different approach than the White House.
Of course, the House and Senate have since passed the Democratic version of the budget and it’s now in conference -- but let's take a look at the House Republican Budget Alternative anyway.
Drafted largely by Rep. Paul Ryan (R-WI), it contends that increased government spending will crowd out private investment, trigger massive tax hikes, and deter American families and businesses from investing to support future growth. It proposes that key Federal priorities, such as national security, continue to receive robust funding. Spending on other domestic discretionary programs will be reduced or remain frozen at current levels until 2014. The plan also calls for permanent extension of the 2001 and 2003 Bush tax cuts, and also proposes a host of other tax cuts, especially affecting corporate income tax rates. For individuals, it introduces two rates: 10% on the first $100,000 of annual income, and 25% on all additional income. In addition, it repeals capital gains taxes for the next two years. With this plan, Republicans have clearly presented a stark choice between their goals and those of the White House.
Report: Report on the Pathway to American Prosperity: The House Republican Budget Alternative