Best of the Week
Most Popular
1.Gold Price Target of USD 2,300 - GoldCore
2.Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - Nadeem_Walayat
3.Why British Muslims Are Leaving Elysium Paradise for Syrian Hell - Nadeem_Walayat
4.Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - Nadeem_Walayat
5.Extreme Gold/Silver Shorting - Zeal_LLC
6.European Empire Strikes Back Against Greek Debt Fantasy, Counting Down to GREXIT - Nadeem_Walayat
7.Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - Michael_Noonan
8.Gold and Silver Price Headed for Breakdown - Jordan_Roy_Byrne
9.Greece Crisis OXI - Raul_I_Meijer
10.Flatline Investing and Dead End Debt Schemes - Doug_Wakefield
Last 5 days
Stock Market Where are we? And where are we Going? - 3rd July 15
Xi’s Anti-Corruption Campaign Is Key to China’s Prospects - 3rd July 15
How the New Iranian Nuclear Deal Will Impact Crude Oil - 3rd July 15
China's Stock Market Rollercoaster Ride Continues - 3rd July 15
Gold Stocks Cheap to Buy but Not for Long - 3rd July 15
Capital Controls and a Bank Holiday in Greece… Here’s How You Can Profit - 3rd July 15
Greece's Varoufakis: I will Resign if there's a 'Yes' Vote - 2nd July 15
The Student Loan Bubble: Gambling with America’s Future - 2nd July 15
Inflation Is Lurking, but This Asset Can Protect You - 2nd July 15
Three Total Wealth Stock Investor Tactics You’ll Need Because Greece Isn’t Over - 2nd July 15
Why This $5.6 Trillion Investor Profit Boom Is Set To Take Off - 2nd July 15
Greek Debt Crisis: "Too late to prepare now" - Video - 2nd July 15
Guaranteed US Dollar Death Dynamics - 2nd July 15
The Greek Stress Test & The Reality Of Incremental Changes - 2nd July 15
Forget Drachmas Greece Syriza Government Could Instruct Central Bank to Print Euros! - 2nd July 15
Greece Debt Crisis Trigger for Stock Market Crash or Bull Rally? Video - 1st July 15
Gold Stocks Break Below 2008 Low - 1st July 15
SPX Stock Market Retracement May be Over - 1st July 15
Silver Tunnel Vision 'Experts' - 1st July 15
Gold And Silver - Monthly, Quarterly Ending Analysis - 1st July 15
Europe’s Controlled Demolition - 1st July 15
The End of Dow 18,000; Bailouts No Longer Extended  - 1st July 15
Athens Mayor: Greek Government Should Resign - 1st July 15
China Stocks - This Is What a Bubble Looks Like - 30th June 15
Stocks Plunge on Greece Euro-Zone Financial Armageddon Blackmail - 30th June 15
Greece Crisis Shows Importance of Gold as Europeans Buy Coins and Bars - 30th June 15
Stock Investors Express Route to Profits in the Healthcare Sector - 30th June 15
Beyond the Greek Impasse - 30th June 15
Gold GDXJ : Impulse Move Pending - 30th June 15
Fed Interest Rate Increase Could Be Best Thing to Happen to Gold - 30th June 15
Marc Faber - Greece is Basically Bankrupt - 30th June 15
Greece - Shoot the Dog and Sell the Farm - 29th June 15
Grexit?, BIS Warning, Chinese Market Crash & Systemic Risk Shake the Global Economy - 29th June 15
The New "Sharing Economy" May Not Be the Profit Bonanza Everyone's Expecting - 29th June 15
Gold and Silver Greece and Short Positions - 29th June 15
Volatility and Sleep-Walking Markets - 29th June 15
Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - 29th June 15
Stock Market More Decline Ahead? - 29th June 15
China Stock Market Crackup - The Final Trap Looms... - 29th June 15
Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - 28th June 15
Investor Stock Play for Two Growing Missile Threats - 28th June 15
Stock Market Uptrend/downtrend Inflection Point - 27th June 15
Greece Crisis OXI - 27th June 15
Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - 27th June 15
It’s Time to Change the Way You Look at Disney Forever - 27th June 15
Flatline Investing and Dead End Debt Schemes - 27th June 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

China Stocks - Where are they going?

The Paul Ryan Magical Mystery Chop, Dice, and Slice Budget

Politics / US Politics Mar 20, 2013 - 03:07 PM GMT

By: Walter_Brasch

Politics

In 2011, before he was the Republican nominee for vice-president, Rep. Paul Ryan (R-Wisc.) proposed a federal budget. He called it, “The Path to Prosperity: Restoring America’s Promise.”

Two years later, now in his second year as chair of the House budget committee, he dusted off and polished his old proposal. He calls this one: “The Path to Prosperity: A Responsible Balanced Budget.” His plan is to cut the federal deficit by $4.6 trillion in four years, reducing the deficit to about $12.1 trillion.


While the Republicans blame President Obama and the Democrats for wild tax-and-spend policies that led to the huge deficit, they conveniently overlook the reality that Bill Clinton left George W. Bush a budget surplus of about $230 billion. By the time President Bush completed his eight years, there was no longer a balanced budget, and the deficit soared another $5 trillion.

Much of the additional deficit created under President Obama was a result of being forced to continue many of the Bush policies that included massive tax cuts and the cost of the wars in Iraq and Afghanistan that cost more than $1.4 trillion and are expected to cost Americans $600 billion–$1 trillion over the next three decades to provide health care and disability benefits for combat soldiers.

President Obama’s stimulus plan was a largely successful program to bring the nation out of a corporate-created, government-neglected Recession that was greater than anything since the 1929 stock market crash that led to the great Depression. This year, because of Obama policies, the stock market is at a record high, and the unemployment rate is now below 8 percent and dropping, with almost all states having lower unemployment rates than a year ago.

It’s been four years since President Bush left office, and the Congressional Republicans who fully embraced the Bush–Cheney policies still haven’t learned anything.

If you’re living comfortably in your upper class lifestyle, you’re going to love Ryan’s proposed budget.

The budget eliminates the graduated income tax—that’s the one with several brackets, increasing the tax upon those with more money.

Under this budget proposal, there will be only two brackets—10 percent and 25 percent. The top rate of 39.6 percent, which multi-millionaires pay, is cut to the 25 percent level.

But if you’re among the rest of us, Paul Ryan’s proposal, endorsed enthusiastically by the Congressional Republicans and their Tea party base, is a disaster.

Under the cover of saying he’s going to balance the budget, Ryan cuts retirement and health benefits for veterans and federal employees. He cuts disaster relief, and the federal role in education and scientific research. He cuts funding for the nation’s infrastructure, leaving our already-neglected highways and bridges to undergo even more deterioration.

He cuts Medicare costs by issuing vouchers—individuals would receive a set amount to buy retirement benefits. This, of course, is on every insurance goliath’s wish list.

While keeping more than $40 billion in corporate subsidies, Paul Ryan cuts Medicaid, food stamps, and unemployment insurance, mostly by having the federal government issue block grants to the states so they can take care of the poor. Thus, we are likely to have 50 separate programs instead of one—with the expected consequence of the poor and disadvantaged moving from state to state to find jobs and better programs.

He cuts more than $1.8 trillion from the Affordable Health Care Act that passed both houses of Congress and was declared constitutional by the Supreme Court. The Republicans have brought more than 30 bills to gut the Act; they lost every time. Ryan’s proposal is the political end run that, if successful, would eliminate critical and necessary health care, while shoving more than 30 million Americans, mostly low-income and the middle-class, back into the unprotected category. Of course, every member of Congress and their staffs have premium health coverage and retirement benefits.

Ryan’s budget, which has the Republicans salivating, would be the lowest in six decades. This doesn’t even take into account there has been significant inflation the past six decades, or that Medicare, Medicaid, NASA, WIC (the women, infant, children nutritional program) and numerous other programs to benefit all Americans didn’t exist six decades ago.

What Ryan’s budget doesn’t include is as much an indication of his hatred for the lower- and middle-classes, and his pandering to the nation’s Luxury Class and corporate monoliths. Unlike the proposed Democrats’ budget, Ryan’s budget doesn’t include closing significant tax loopholes used mostly by the wealthy. That means they can continue to employ an army of accountants and lawyers to find innumerable ways to avoid taxes. And, like Mitt Romney, the wealthy can still hide money in foreign countries and avoid U.S. taxes. The Democrats’ budget raises $1 trillion in revenue by cutting those loopholes.

The Ryan budget also has only minimal and largely cosmetic cuts in military spending. But, in an ironic twist, the Pentagon’s highest officials, both civilian and military, have criticized Congress for keeping certain programs the military believe is wasteful or unproductive—but favored for political reasons by members of Congress.

Although Ryan has a degree in economics, his proposed budget, says Senate majority leader Harry Reid, can not be balanced because it “relies on accounting that’s creative at best and fraudulent at worst.”

The American people broadly rejected Mitt Romney and Paul Ryan in 2010. They need to now reject his so-called new budget that proves the Republicans are nothing more than the lackeys of corporate greed at the expense of the rest of us.

[Walter Brasch’s latest book is Before the First Snow, a fact-based novel that looks at the nuclear industry during its critical building boom in the 1970s and 1980s.]

By Walter M Brasch PhD
http://www.walterbrasch.com

Copyright 2013 Walter M Brasch
Walter Brasch is a university journalism professor, syndicated columnist, and author of 17 books. His current books are America's Unpatriotic Acts , The Federal Response to Hurricane Katrina , and Sex and the Single Beer Can: Probing the Media and American Culture . All are available through amazon.com, bn.com, or other bookstores. You may contact Dr. Brasch at walterbrasch@gmail.com

Walter Brasch Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History