The latest Fortune magazine includes a three-page feature on Rep. Paul Ryan?s plan for shoring up the federal government?s finances. While labeling the idea ?radical? in the article?s subheadline, the article generally gives Ryan?s ideas a fair shake:
Ryan got his chance to confront the President at the health-care summit Feb. 25. Seated across from Obama, Ryan addressed him directly with a six-minute, numbers-laden, wonkish analysis of the Senate bill that contradicted the administration’s pledge that the plan wouldn’t add to the mountainous deficit.
Ryan correctly stated that the bill projects that Medicare will lower reimbursements to doctors by $371 billion over the next 10 years, yet Congress would cancel those cuts in a separate bill, all part of an attempt to mask the true size of future deficits through “gimmicks and smoke and mirrors.” Obama steered the discussion away from Ryan’s numbers, and the White House hasn’t challenged his analysis.
What is the Ryan plan , and why is the Obama administration seemingly obsessed with it? Ryan calls his proposal, published in January, the Roadmap for America’s Future. It’s a remarkably comprehensive, daring manifesto that tackles every part of the budget on a presidential scale, from Social Security to tax policy to health-care reform.
The goal is to eliminate the deficit, and eventually all federal debt, without any crippling tax increases. Under Ryan’s plan, for example, federal spending would reach just 24% of GDP in 2035 and then fall, vs. the CBO’s projection of 34% and rising from there. Ryan would make the deficit disappear by mid-century.
Ryan, to be sure, voted for President George W. Bush’s tax cuts, which added to the U.S. deficit, but he blames the current mess on excessive spending, which he proposes to control.
