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Public Statements

House Republicans Introduce "Path To Prosperity'

Press Release

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Date:
Location: Washington, DC

Led by Budget Committee Chairman Paul D. Ryan (R-WI), House Republicans today unveiled "The Path to Prosperity: Restoring America's Promise" -- the Fiscal Year 2012 Budget Resolution which would cut $6.2 trillion in spending when compared to the President's budget for the same period. Congressman Jack Kingston (R-GA) characterized the proposal as a bold plan of reform.

"The "Path to Prosperity' offers a plan to right the ship," said Kingston. "It is a budget for the next generation, not the next election and puts aside politics to address the challenges we face. I hope that we can come together as Democrats and Republicans to do the best thing for the United States of America. Together, we can do what American families, farmers and small businesses do every day. We can come together to turn this ship around and return our country to the path of fiscal prosperity."

In addition to spending reductions, the budget proposal would put the nation on a path to begin paying down the national debt -- reducing it by $4.7 trillion relative to President Obama's budget proposal. It exceeds the President's deficit reduction targets by $3.4 trillion and those of the Bowles-Simpson National Commission on Fiscal Responsibility and Reform by $400 million.

According to the Heritage Center for Data Analysis, it would create 1 million new private sector jobs next year and bring unemployment down to 4% by 2015. The report found that it would create 2.5 million new jobs in the last year of the decade and grow the economy by $1.5 trillion in additional gross domestic product over the decade. Finally, it would result in $1.1 trillion in higher wages and an average of $1,000 in additional family income each year.

Some of reforms outlined in the plan include:

* a reduction of domestic spending below 2008 levels, then frozen at that level for five years;
* converting Medicaid's Federal share to a block grant program, giving states more flexibility and participants more choices;
* saving Medicare by transitioning future beneficiaries to a premium-support model that allows them to chose a plan that works best for them while providing for no changes for those 55 and over;
* preserving Social Security for current retirees and strengthening it for future generations by building on the ideas offered by the Bowles-Simpson Commission while providing for no changes for those 55 and over;
* implementing budget-process reforms, including enforceable spending caps, so government spends and taxes only as much as it needs to fulfill its constitutionally-defined roles;
* simplifying and reforming the nation's tax code by consolidating brackets, lowering tax rates and eliminating a tangle of deductions and loopholes.

"This is America's moment to advance a plan for prosperity," Congressman Ryan wrote in the Wall Street Journal. "Our budget offers the nation a model of government that is guided by the timeless principles of the American idea: free-market democracy, open competition, a robust private sector bound by the rules of honesty and fairness, a secure safety net, and equal opportunity for all under a limited constitutional government of popular consent."


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