As many of you are aware, House Budget Committee Chairman Paul Ryan (R-WI) has introduced a Fiscal Year 2012 budget proposal, a bold starting point that will evolve in the days and weeks ahead. Make no mistake -- it shows just how serious House Republicans are about tackling out-of-control government spending and getting America's fiscal house in order. The budget proposal that takes effect on October 1, if passed by both chambers, provides a path to prosperity that reduces the debt as a percentage of the economy and puts the nation on a path to actually pay off our national debt.
America's fiscal house is a complete mess, and it is way past time that Washington cuts up the country's credit card, restores fiscal discipline, and works to save and secure the future for our children and grandchildren. Even if we all agree a program is efficient and necessary, I am concerned about spending money we don't have, especially when we have to borrow approximately 40 cents on the dollar to pay for it.
We don't have deficits because we are taxed too little; we have deficits because Washington simply spends too much.
Let me put the fiscal challenges that the nation faces into perspective. Medicare, Medicaid, Social Security and the interest on our debt account for about 58 percent of the entire federal budget. The interest on our debt alone is costing us $1.2 billion a day. The entire Missouri State budget is $23 billion a year, and yet it is taking Washington just three weeks to reach that number. Washington is spending all the money it is taking in and borrowing the rest. In a decade or so, Medicare, Medicaid, Social Security and our debt will absorb the entire budget. Simply put, these programs were created with a 20th century economy in mind. They were not designed for the new demographic and economic challenges of the 21st century.
As it stands, the Republican proposal cuts $6.2 trillion in spending over the next decade compared to the president's budget. It also reduces by $4.4 trillion current deficits, reduces the debt by $4.7 trillion and eliminates $800 billion in tax increases included in Obamacare. Perhaps most significantly to taxpayers, Chairman Ryan's proposal reduces by $1.5 trillion the amount of tax increases included in the president's new budget.
There are five basic tenets of Chairman Ryan's proposal. The proposed budget fosters a better environment for private-sector job creation by lifting debt-fueled uncertainty and advancing pro-growth tax reforms. It locks in spending cuts with spending controls in order to prevent Washington from spending money it does not have on programs that do not work. The proposal also creates real security by fulfilling the mission of health and retirement security for all Americans by making the tough decisions necessary to save these critical health and retirement programs. While repealing and defunding the health-care bill, this proposal advances commonsense solutions focused on lowering costs, expanding access and protecting the doctor-patient relationship. Finally, this budget blueprint tackles the threat posed by rapidly growing government and debt, applying the nation's timeless conservative and entrepreneurial principles to this generation's greatest challenge.
The president's budget spends too much, taxes too much, and borrows too much, stifling job growth today and leaving our children with fewer opportunities tomorrow. In this critical test of leadership, the president has failed to tackle the urgent fiscal and economic threats facing our nation. Where the president has fallen short, my Republican colleagues and I will work to chart a new course, and we must start with Chairman Ryan's budget proposal for 2012. It is a plan that helps spur job creation today, stops spending money we don't have, lifts the crushing burden of debt, and puts the budget on a path to fiscal stability and our country on path to prosperity. I look forward to working with my colleagues to meet the challenges that face our nation in order to improve the quality of life for future generations of Americans.