By a vote of 228 to 191, the U.S. House of Representatives on Thursday approved a 3.5-trillion dollar budget plan proposed by Representative Paul Ryan of Wisconsin. The plan would set agency budgets for the fiscal year that begins October 1 at $1.028-trillion dollars – 19-billion less than that agreed to in the difficult deal to lift the nation’s debt ceiling over the summer. The plan would curb deficits through deep cuts in domestic programs, while lowering tax rates for individuals and businesses.
Republicans said the budget represented an honest attempt to tackle the nation’s growing trouble with debt. But Democrats said it would cut deficits by hitting programs relied on by the poor and vulnerable, like Medicaid, food stamps, education and other programs. Republicans in the House will now work to design appropriation bills containing line-by-line budgets for federal programs.
Then there is the question of revenue.  The Ryan plan would reduce the six individual tax brackets to two, taxed at 10 and 25 percent. To cut the top rate to that level, from 35 percent, he suggested closing loopholes and ending subsidies. Republicans insist wealthy taxpayers benefit disproportionately from loopholes and they are committed to a progressive code with lower rates.
NAFB News Service