Today, the House Budget Committee unveiled the House Republicans' FY 2012 Budget, a proposal that spurs job creation today, lifts the crushing burden of debt, and puts our country on a path to prosperity and fiscal responsibility. It comes in stark contrast to President Obama's FY 2012 budget -- a plan to increase taxes by $1.5 trillion, continue Washington's spending binge, and ensure Medicare and Social Security go bankrupt.
"Washington is broke and is facing a debt crisis the likes of which we've never seen before," said Congressman Peter Roskam. "President Obama's own budget proposes trillions in job-crushing new tax increases, ensures the bankruptcy of Medicare and Social Security, and leaves a future of diminished prosperity for generations to come. Republicans are offering a different path forward, one that would free Americans from our impending debt crisis -- and provide future generations with opportunity like Americans have always enjoyed. Our plan forthrightly confronts Washington's spending and debt problem, unleashing our economic potential, significantly cutting spending, and making important reforms to save Social Security, Medicare, and Medicaid. I applaud Chairman Ryan for his work on this important budget."
The Republican budget fundamentally reforms the tax code -- including reducing the top individual and corporate tax rates to 25% -- which will spur significant short-term and long-term job creation. At 35%, the United States has the highest corporate tax rate in the world, causing significant job loss. Additionally under the proposal, Medicare -- the single largest driver of America's debt -- is saved for future generations by making important reforms for those under 55. Individuals 55 and over, including current seniors, would not have any benefit changes or reductions. Those under 55 would now receive a Premium Support System, similar to what Members of Congress have.
You can read the House Budget Committee's key facts on the budget below:
THE PATH TO PROSPERITY -- KEY OBJECTIVES
- ECONOMIC GROWTH AND JOB CREATION: Fosters a better environment for private-sector job creation by lifting debt-fueled uncertainty and advancing pro-growth tax reforms.
- SPENDING CUTS AND CONTROLS: Stops Washington from spending money it does not have on government programs that do not work. Locks in spending cuts with spending controls.
- REAL SECURITY: Fulfills the mission of health and retirement security for all Americans by making the tough decisions necessary to save critical health and retirement programs.
- PATIENT-CENTERED HEALTH CARE: Repeals and defunds the President's health care law, advancing instead common-sense solutions focused on lowering costs, expanding access and protecting the doctor-patient relationship.
- RESTORING AMERICA'S EXCEPTIONAL PROMISE: Tackles the existential threat posed by rapidly growing government and debt, applying the nation's timeless principles to this generation's greatest challenge. Ensures that the next generation inherits a stronger, more prosperous America.
THE PATH TO PROSPERITY -- KEY FACTS
- Cuts $6.2 trillion in government spending over the next decade compared to the President's budget, and $5.8 trillion relative to the current-policy baseline.
- Eliminates hundreds of duplicative programs, reflects the ban on earmarks, and curbs corporate welfare bringing non-security discretionary spending to below 2008 levels.
- Brings government spending to below 20 percent of the economy, a sharp contrast to the President's budget, in which spending never falls below 23 percent of GDP over the next decade.
DEBT AND DEFICITS
- Reduces deficits by $4.4 trillion compared to the President's budget over the next decade.
- Surpasses the President's low benchmark of sustainability -- which his own budget fails to meet -- by reaching primary balance in 2015.
- Puts the budget on the path to balance and pays off the debt.
- Keeps taxes low so the economy can grow. Eliminates roughly $800 billion in tax increases imposed by the President's health care law. Prevents the $1.5 trillion tax increase called for in the President's budget.
- Calls for a simpler, less burdensome tax code for households and small businesses. Lowers tax rates for individuals, businesses and families. Sets top rates for individuals and businesses at 25 percent. Improves incentives for growth, savings, and investment.
GROWTH AND JOBS
- Creates nearly 1 million new private-sector jobs next year, brings the unemployment rate down to 4 percent by 2015, and results in 2.5 million additional private-sector jobs in the last year of the decade.
- Spurs economic growth, increasing real GDP by $1.5 trillion over the decade.
- Unleashes prosperity and economic security, yielding $1.1 trillion in higher wages and an average $1,000 per year in higher income for each family.