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The Ryan Plan makes no fiscal sense




I challenge anyone to prove otherwise

Actually I charge YOU to prove your accusation first.

Simply put the Ryan Plan lacks the detail and specificity required to be anymore than a blueprint for adhering to far right ideology and its obsession with tax cuts.

This is shown in a number of ways. Foremost is in how the plan outlines how it will offset the reduced revenue from the $4.3 trillion dollars in tax cuts. This figure comes from the “Tax Policy Centre” which has analyzed the plan.

These cuts will supposedly be offset by broadening the tax base, without any explanation for how this broadening is meant to take place or any specific path to this. The Congressional Budget Office (Non Partisan) made this point in their study of this plan.

“The path for revenues as a percentage of GDP was specified by Chairman Ryan’s staff. The path rises steadily from about 15 percent of GDP in 2010 to 19 percent in 2028 and remains at that level thereafter. There were no specifications of particular revenue provisions that would generate that path.”

The most detail comes from the plan to convert Medicaid into a block grant that is meant to cut around $800 billion that is meant to rise only in relation to inflation and population growth. This doesn’t take into account rising costs of health care and an aging population.

Cuts in mandatory and discretionary spending are also meant to offset the costs of these tax cuts but there is no specified path for how these cuts are meant to be achieved. This spending which was 12% in 2010 is meant to be reduced to 6% by 2021 before declining relative to GDP. There aren’t any details about what exactly will be cut, where these drastic cuts will come from or any specific path to declining relative to GDP. If you think this is realistic keep in mind, military spending which is a part of this spending accounts for 4%.

When you put this all together a picture develops of a plan that is very good at portraying a reality in which large scale tax cuts and deficit reduction can coexist. If you look closely however its apparent that too much of the plan is reliant on question marks and unexplained increases in revenue without any evidence to back it up. Several institutions actually believe that for the first ten years, the Ryan Plan would actually increase the U.S deficit by $2.6 trillion.

Sources Provided  Ryan Plan Tax Policy Center Congressional Budget Office

I’m sure my followers would like to deal with this while I work on my research project that’s due tomorrow.

I wonder if you would care to try to find the flaws in ROMNEY’S plan (It was late when I reblogged that original post and I thought it said the ROMNEY plan, not Ryan) since that’s the one they will be using, not Ryan’s.

Just a thought.

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