Two Proposals, One Reality: The FY '12 Budget


Do we need a serious solution to fix America’s growing deficit crisis?  Absolutely.

Should it be done on the backs of America’s small business owners?  Absolutely not.

 

The President’s newest proposed spending plan will implement over one trillion dollars worth of new taxes over the next decade.

Those who will be taxed the hardest, the so-called “rich,” are actually America’s small business owners who we’re dependent on to lead us to economic prosperity.  Proposals, such as Congressman Paul Ryan’s Path for Prosperity, aim to prevent tax hikes on small businesses – who file as individuals – so that our nation’s economic recovery isn’t stopped dead in its track.

Don’t take our word for it — even the President’s own Small Business Administration  points out that “75% of small businesses file taxes on individual income tax forms.”

America’s small businesses have generated 64% of net new jobs in this country over the past 15 years — and they employ more than half of all private sector employees.  Raise taxes on employers, and you’ll only diminish job growth.  That means less tax revenue — and an even deeper deficit hole.

It’s time for a serious deficit plan to rein in government waste, reform our entitlement spending, and empower — not burden — our small business owners, much like what Congressman Ryan has proposed we do.

Watch the video below, as Budget Committee Chairman Paul Ryan walks us step by step through his plan for the FY’12 budget, and the consequences of inaction.



Just how does Chairman Ryan’s budget compare to the proposal set forth by the Administration?

The New York Times breaks it down for us:

 
Representative Ryan		  
President Obama
Medicare For people now under 55, the federal government would contribute a specified amount of money toward the premium for private health insurance, turning Medicare into a voucher program.   The proposal seeks to reduce the growth in Medicare spending, including lowering prescription drug spending "by leveraging Medicare’s purchasing power."

 

 

Medicaid Medicaid would be transformed into a block grant, with a lump sum of federal money given to the states to care for low-income people. According the the proposal, federal spending would be $771 billion lower over the next decade, compared with current policy.   President Obama has asked governors to recommend ways to make the program more efficient. Medicaid spending would be cut $100 billion over the next decade.

 

 

Social Security No changes to Social Security are specified, though the proposal would “force policymakers to come to the table and enact common-sense reforms.”   Mr. Obama said that, while Social Security is not a cause of near-term budget problems, "both parties should work together now to strengthen Social Security."

 

 

Military Spending Total military spending would be the same as in President Obama’s 2012 budget proposal.   Military spending would be cut $400 billion over the next 12 years.

 

 

Domestic Discretionary Spending Proposes cutting $1.6 trillion over 10 years.   Mr. Obama proposed cutting $600 billion over 10 years, including $400 billion identified in his 2012 budget proposal.

 

 

Taxes For both corporations and individuals, the top tax rate would be lower, but tax breaks would be eliminated, offsetting these changes.   Mr. Obama endorsed the Fiscal Commission's recommendation to eliminate tax breaks to both lower tax rates and reduce the deficit. He called for allowing the Bush tax cuts to expire for top earners and limiting itemized deductions for them.

 


Though the House voted to pass Ryan’s budget, it is unlikely it will go anywhere in the more divided Senate. Check back for updates.

More Budget Resources: