By Nick Zobel
Contributing Writer
This article is part of a PRO/CON opinion piece on Obama’s budget. To view the opposing side, see here.
For once, Republicans and Democrats alike can agree: our deficit must be controlled.
We’re quickly approaching the debt ceiling of $14.3 trillion and unemployment is still at almost nine percent. Whereas President Obama’s proposed solution is unclear and feeble, House Budget Chairman, Rep. Paul Ryan has produced a deficit-reducing plan that increases efficiencies and curtails the ballooning national debt.
President Obama’s proposal to trim the deficit, which he promises will not leave seniors “at the mercy of the insurance industry,” utilizes the recently-created cost-control board to monitor health care prices for seniors. The board’s price controls actually hurt consumers by restricting them from benefiting from price competition in the insurance industry.
Additionally, Obama plans to cut defense spending by $400 billion, a dangerous and rash move considering the ongoing upheaval in Libya, Syria and Yemen and continued operations in Afghanistan and Iraq.
Most importantly, and the greatest thorn in Republicans’ sides, Obama wants to raise $1 trillion in new taxes from wealthier citizens, which will in fact disrupt the United States’ economic growth.
According to factcheck.org, approximately half of all citizens making more than $200,000 are business owners. Taxing this portion of the population reduces the investments they can make in their businesses, preventing them from expanding production and increasing employment, ultimately keeping the economy stagnant.
Obama also offers no viable alternative to Medicare and Medicaid, only making vague promises that Medicaid spending will somehow be reduced through cooperation with the states. Obama plans to rely on the creation of revenues by tightening federal tax loopholes, but gives no specifics on how to generate these figures.
Ryan’s proposed budget is a superior alternative to Obama’s plan. Ryan’s proposal meets an impressive goal of slashing $4.4 trillion over 10 years, as opposed to Obama’s $4 trillion in 12 years.
The GOP’s “Roadmap for America” plan provides a successful alternative to Obama’s indistinct proposal.
Ryan’s plan proposes a gradual increase in the Medicare eligibility age to restrict Medicare enrollment only to the seniors that need it the most, and offers a Medicare alternative that provides vouchers to subsidize the cost of private insurance plans, reducing administrative costs and allowing citizens to benefit from market competition.
Republicans also plan to regulate the health insurance industry by redistributing surpluses enjoyed by employers that have healthier workers to those with unhealthier workers, and thus, higher insurance costs.
Additionally, the Roadmap offers alternatives such as rainy day funds for emergency medical care and converts Medicaid into state-distributed block grants.
In an attempt to compromise with Democrats, the GOP plan only repeals the most harmful aspects of the 2010 Health Care Bill, including the expansion of Medicaid, penalties for employers who don’t cover their employees and the contentious requirement of all citizens to maintain health insurance.
In fact, according to the Congressional Budget Office, the government’s nonpartisan analysis group, “most of the other changes made to the Medicare program would be retained.”
According to the CBO, the “Roadmap for America” will eliminate annual deficits by 2040. Though this may seem like some time away, it is crucial that we take steps now to secure our futures and those of our children. Our nation is at an imperative economic crossroad, but thankfully, we’re not lost. We have a road map.
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