I am beginning to wonder whether President Obama is so cocky about his 2012 re-election prospects that he thinks he doesnt even have to be serious in his budget plan offerings.
Unfortunately the nations unfunded liabilities arent so casual as the president; they are growing by more than $10 trillion per year which means that our looming debt crisis becomes far more problematic with each passing day.
I invite you to compare Obamas recently submitted plans with either Paul Ryans Path to Prosperity or his own bipartisan deficit commissions recommendations. Or if youre the risk-taking type you may want to wait for the findings of yet another commission that Obama has talked about forming obviously hoping this new commission would dutifully tailor its findings to his policy preferences.
Both Ryans plan and the deficit commissions include specific proposals to achieve what the commission has termed sustainability in our budget and entitlements; Obamas plan is strikingly bereft of specifics.
Ryans plan would reduce the deficit by $5.8 trillion in 10 years mostly with spending cuts and revenue-neutral but growth-oriented tax reforms. Obama claims he would cut $4 trillion in 12 years but his onerous tax hikes might completely negate his spending cuts which he has yet to specify. Ryans plan would begin cuts immediately but the presidents plan would postpone planned cuts and savings until 2013 -- after his re-election campaign.
Ryan would freeze discretionary spending for five years to pre-2008 levels and index it to inflation thereafter. Obamas plan has no such spending caps.
But the major drivers of our fiscal crisis are the big three entitlements -- Medicare Medicaid and Social Security -- which together contain the lions share of the nations $88 trillion in unfunded liabilities. Ryan has offered specific proposals for reform. Obama has resorted to partisanship name-calling and fear-mongering and has offered only generalities.
On Medicaid Ryan proposes a block grant system tailored to meet the varying needs of each state. Obama rejects the block grants approach but has claimed he will achieve unspecified savings.
On Medicare Ryan has proposed a premium support system for those 54 or younger that would provide payments to beneficiaries and a list of guaranteed coverage options from which they could choose to suit their particular needs. This competitive model is similar to the federal employee health plan and is designed to bring costs down through market forces. Obama proposes to save $500 billion from Medicaid and Medicare by 2023 and another $1 trillion in the following decade but again offers no specifics as to how we would achieve those meager goals.
Here with Medicare we see the greatest contrast in their respective approaches. Ryan recognizes that artificial cost containment measures imposed by the government cannot work and have not worked any more than wage and price controls and that in fact they lead to increased costs and rationing.
Obama envisions the government attempting to control the costs bureaucratically by greatly expanding the power of the Independent Payment Advisory Board a 15-member panel appointed by the president that would have final unreviewable authority to impose a one-size-fits-all rate scheme. Only Congress could override the authority of this board by a two-thirds vote.
The reality is that Medicare costs could not be achieved by Obamas plan without severe cost controls and/or rationing. Its a Draconian idea which completely defeats Obamas stated purpose for Obamacare in the first place: to increase medical coverage and contain costs. You cant achieve those goals by legislative fiat.
On top of all those things Obama would continue Obamacare in force which is an open-ended health care entitlement whose costs the Congressional Budget Office confirms he has radically understated. Among other sleights of hand Obama counted dollars from the Medicare fund twice in order to create the illusion that he would be using those funds for Obamacare without raiding the Medicare system.
Perhaps worst of all Obama plans on punitive taxes for the so-called wealthy which would not only not raise revenues but also further smother our anemic economy. Both Ryans plan and the commissions plan would simplify the tax code and reduce top individual and corporate rates.
Ryans plan would seriously steer us back toward economic and financial health. The commissions plan is inferior but vastly superior to Obamas.
Sadly Obama is ideologically committed to essentially ignoring our entitlements crisis Band-Aid approaches to domestic spending reckless military cuts and class warfare-driven growth-stifling tax policies. Obamas latest budget plan would be guaranteed to hurdle this nation toward European-style austerity at best and outright fiscal bankruptcy at worst.
David Limbaugh brother of radio talk-show host Rush Limbaugh is an expert in law and politics and author of new book Crimes Against Liberty the definitive chronicle of Barack Obamas devastating term in office so far.
I am beginning to wonder whether President Obama is so cocky about his 2012 re-election prospects that he thinks he doesnt even have to be serious in his budget plan offerings.
Unfortunately the nations unfunded liabilities arent so casual as the president; they are growing by more than $10 trillion per year which means that our looming debt crisis becomes far more problematic with each passing day.
I invite you to compare Obamas recently submitted plans with either Paul Ryans Path to Prosperity or his own bipartisan deficit commissions recommendations. Or if youre the risk-taking type you may want to wait for the findings of yet another commission that Obama has talked about forming obviously hoping this new commission would dutifully tailor its findings to his policy preferences.
Both Ryans plan and the deficit commissions include specific proposals to achieve what the commission has termed sustainability in our budget and entitlements; Obamas plan is strikingly bereft of specifics.
Ryans plan would reduce the deficit by $5.8 trillion in 10 years mostly with spending cuts and revenue-neutral but growth-oriented tax reforms. Obama claims he would cut $4 trillion in 12 years but his onerous tax hikes might completely negate his spending cuts which he has yet to specify. Ryans plan would begin cuts immediately but the presidents plan would postpone planned cuts and savings until 2013 -- after his re-election campaign.
Ryan would freeze discretionary spending for five years to pre-2008 levels and index it to inflation thereafter. Obamas plan has no such spending caps.
But the major drivers of our fiscal crisis are the big three entitlements -- Medicare Medicaid and Social Security -- which together contain the lions share of the nations $88 trillion in unfunded liabilities. Ryan has offered specific proposals for reform. Obama has resorted to partisanship name-calling and fear-mongering and has offered only generalities.
On Medicaid Ryan proposes a block grant system tailored to meet the varying needs of each state. Obama rejects the block grants approach but has claimed he will achieve unspecified savings.
On Medicare Ryan has proposed a premium support system for those 54 or younger that would provide payments to beneficiaries and a list of guaranteed coverage options from which they could choose to suit their particular needs. This competitive model is similar to the federal employee health plan and is designed to bring costs down through market forces. Obama proposes to save $500 billion from Medicaid and Medicare by 2023 and another $1 trillion in the following decade but again offers no specifics as to how we would achieve those meager goals.
Here with Medicare we see the greatest contrast in their respective approaches. Ryan recognizes that artificial cost containment measures imposed by the government cannot work and have not worked any more than wage and price controls and that in fact they lead to increased costs and rationing.
Obama envisions the government attempting to control the costs bureaucratically by greatly expanding the power of the Independent Payment Advisory Board a 15-member panel appointed by the president that would have final unreviewable authority to impose a one-size-fits-all rate scheme. Only Congress could override the authority of this board by a two-thirds vote.
The reality is that Medicare costs could not be achieved by Obamas plan without severe cost controls and/or rationing. Its a Draconian idea which completely defeats Obamas stated purpose for Obamacare in the first place: to increase medical coverage and contain costs. You cant achieve those goals by legislative fiat.
On top of all those things Obama would continue Obamacare in force which is an open-ended health care entitlement whose costs the Congressional Budget Office confirms he has radically understated. Among other sleights of hand Obama counted dollars from the Medicare fund twice in order to create the illusion that he would be using those funds for Obamacare without raiding the Medicare system.
Perhaps worst of all Obama plans on punitive taxes for the so-called wealthy which would not only not raise revenues but also further smother our anemic economy. Both Ryans plan and the commissions plan would simplify the tax code and reduce top individual and corporate rates.
Ryans plan would seriously steer us back toward economic and financial health. The commissions plan is inferior but vastly superior to Obamas.
Sadly Obama is ideologically committed to essentially ignoring our entitlements crisis Band-Aid approaches to domestic spending reckless military cuts and class warfare-driven growth-stifling tax policies. Obamas latest budget plan would be guaranteed to hurdle this nation toward European-style austerity at best and outright fiscal bankruptcy at worst.
David Limbaugh brother of radio talk-show host Rush Limbaugh is an expert in law and politics and author of new book Crimes Against Liberty the definitive chronicle of Barack Obamas devastating term in office so far.
