Posted 2 years ago on Dec. 2, 2011, 5:34 p.m. EST by Rico
This content is user submitted and not an official statement
I'm just curious.
Congressman Paul Ryan's plan can be reviewed at http://www.roadmap.republicans.budget.house.gov/ and the Congressional Budget Committee (CBO) report indicating it fixes our deficit problem is summarized at http://www.roadmap.republicans.budget.house.gov/News/DocumentSingle.aspx?DocumentID=169718 with links to the actual report itself. For those of you who haven't read the plan, I'll summarize the key points:
Health Care: $2300 per individual / $5700 per family tax credit for health care coverage. As a credit, this figure comes right off whatever tax you owe. The plan also creates state-based health care exchanges, so individuals and families have a one-stop marketplace to purchase affordable health insurance without being discriminated against based on pre-existing conditions.
Medicare: No change to the deal persons aged 55 or older were promised. For those under 55, the plan creates a Medicare payment, initially averaging $11,000, to be used to purchase a Medicare certified plan. The payment is adjusted to reflect medical inflation, and pegged to income, with low-income individuals receiving greater support. The plan also provides risk adjustment, so those with greater medical needs receive a higher payment. As I recall, his plan The CBO says this makes Medicare fully solvent.
Social Security: No change to the deal persons aged 55 or older were promised. For those under 55, the plan provides an option of investing over one third of their current Social Security taxes into personal retirement accounts, similar to the Thrift Savings Plan available to Federal employees. Includes a property right so they can pass on these assets to their heirs, and a guarantee that individuals will not lose a dollar they contribute to their accounts, even after inflation. This makes Social Security fully solvent according to the CBO.
Personal Taxes : Allows people to use the current code or a new two-tiered plan. The two-tiered plan taxes joint income below $100,000 ($50,000 single) at 10% and income above those levels at 25%. All deductions, credits, and loopholes other than the standard deduction and health care credit mentioned above are eliminated. The personal deduction for a family of four would be $39,000, so a middle income family of four earning $50,000 would pay only $1,100 in taxes which would be reduced to zero by the health care credit.
Taxes on the Rich: I believe the rich would be paying more in income taxes due to the base rate of 25% and elimination of their various loop-holes, deductions, and credits. They would, however, pay less on interest, capital gains, and dividends; also eliminates the death tax (some of these benefit the middle class as well, of course). The plan also replaces the corporate income tax – currently the second highest in the industrialized world – with a border-adjustable business consumption tax of 8.5 percent.
You can find more details under each topic at http://www.roadmap.republicans.budget.house.gov/Plan/ . In the details, for example, you will find a notable emphasis on improving entitlement benefits to the needy while compressing those of the well off (like myself). I encourage people to read the detailed descriptions before commenting.
From what I've seen, this is one of the few plans that actually seems to fix the deficit problem while returning the 'entitlement programs' to health. If nothing else, it seems like a good place to start discussion.
What precisely would OWS supporters change to make Paul Ryan's plan more tractable ?
P.S. I posted this not because I endorse it, but because I wanted a specific baseline that people could comment against. As usual, a lot of people have weighed in with good comments (for which I am grateful), and I have learned a lot. For those of you interested, my current opinion regarding how this plan would need to be adjusted to meet my own desires can be read in my comment at http://occupywallst.org/forum/how-would-ows-change-congressman-ryans-plan/#comment-462674 .