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View Diary: Oops. Unless Medicare is abolished, GOP budget doesn't eliminate deficit (48 comments)

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  •  I never thought Ryan's plan did balance (1+ / 0-)
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    the budget, so this doesn't surprise me at all. His budget document claims "primary balance" by 2015. This is where we exempt interest payments from the definition of spending. Unfortunately, that's like saying I have enough money to pay my bills except for my mortgage.

    But it doesn't get to "total balance" until the year 2040! In the 10 year horizon used as the time frame of the statutory budget, it never balances.

    brooklynbadboy did a piece on it a while back: It. Does. Not. Balance. This was before the backtracking on the Medicare proposal. I think we need to consider any characterization that the Ryan plan offered a balanced budget as nothing more than VillageSpeak.

    And I can't leave without adding another reason why the Ryan Plan didn't balance:

    If you take Ryan at his word, and assume that the tax-side of his plan is revenue neutral—a big "if"—his plan balances the budget over decades entirely on the spending side of the government's ledger.

    A big if? D'ya think? Of course his tax proposal is not revenue neutral, not compared to the CBO Baseline projection. He is cutting taxes which result in $4.1 trillion less revenue in the ten year period. How can anyone say that's revenue neutral?

    But whatever baseline he's using, the revenue neutrality requires unspecified reductions in popular tax expenditures such as the home mortgage interest deduction, and a pie in the sky unemployment rate of 3% by 2020. Not even the Heritage Foundation from which the 3% projection came will stand by that figure.

    "We are stardust, we are golden, we are caught in the devil's bargain, and we got to get ourselves back to the garden." - Joni Mitchell

    by shaggies2009 on Sat May 07, 2011 at 09:26:00 PM PDT

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