Experts: Ryan Roadmap Balloons Deficits While Taxing Middle Class, Slashing Entitlements
Brian Beutler
TPM
March 11, 2010
Ever since Rep. Paul Ryan (R-WI), the GOP's top budget guy, unveiled a proposal to slash and privatize entitlements in order to reduce long-term deficits, the media--and even some Democratic politicians--have praised the plan as a serious way to save money. The plan may be conservative, they say, but at least it takes a serious, honest stab at averting fiscal catastrophe. Ryan even had the Congressional Budget Office score the package, and they found that, by mid-century, it would eliminate federal deficits.
But it turns out that's not even close to true.
As we reported a month ago, the CBO's analysis of the Ryan plan was drawn up based upon revenue projections Ryan himself provided. The CBO doesn't analyze the impact of tax policy on revenue, so they were unable to estimate how Ryan's policy prescriptions would actually impact revenues--and just took Ryan's numbers at face value. Turns out, those numbers were pure fantasy.
The Tax Policy Center--a non-partisan think tank--did a thorough analysis on the impact of the tax changes Ryan proposes--a massive tax cut for the wealthy, paired with substantial tax increases on 90 percent of the country--and found that the so-called "Roadmap" would actually leave the federal government desperately starved for funds.
(More here.)
TPM
March 11, 2010
Ever since Rep. Paul Ryan (R-WI), the GOP's top budget guy, unveiled a proposal to slash and privatize entitlements in order to reduce long-term deficits, the media--and even some Democratic politicians--have praised the plan as a serious way to save money. The plan may be conservative, they say, but at least it takes a serious, honest stab at averting fiscal catastrophe. Ryan even had the Congressional Budget Office score the package, and they found that, by mid-century, it would eliminate federal deficits.
But it turns out that's not even close to true.
As we reported a month ago, the CBO's analysis of the Ryan plan was drawn up based upon revenue projections Ryan himself provided. The CBO doesn't analyze the impact of tax policy on revenue, so they were unable to estimate how Ryan's policy prescriptions would actually impact revenues--and just took Ryan's numbers at face value. Turns out, those numbers were pure fantasy.
The Tax Policy Center--a non-partisan think tank--did a thorough analysis on the impact of the tax changes Ryan proposes--a massive tax cut for the wealthy, paired with substantial tax increases on 90 percent of the country--and found that the so-called "Roadmap" would actually leave the federal government desperately starved for funds.
(More here.)
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