Republicans United on Budget Plan
The House of Representatives agreed on a budget plan last week (at a vote of 235-193) for 2012 which will involve “slashing trillions of dollars in government spending while cutting taxes.” This looks like it’s fantastic news, but since there is no such thing as a free lunch, who is going to pay? According to conservatives, it will be the country’s debt limit that will forge ahead and that’s not good news for Americans. The Bill became law last Friday.
Tough Negotiations Ahead
So it looks like this will just mark the start of tough negotiations ahead vis-à-vis debt and deficits. It is only going to be a matter of weeks as to whether or not there will be permission to increase the roof on the $14.3 trillion debt; a matter for Congress to decide. So even though Ryan’s plan has been passed for the 2012 fiscal year, it is unlikely that it is going to be a smooth ride ahead since this has been rejected by Democrats.
The anger is at the spending cut of nearly $6 trillion over the next 10 years. But in reality, this isn’t going to happen since analysts say that “there is almost no chance” of the Senate to approve the measure as it is. In addition, the White House isn’t happy but will nonetheless will be dedicated to work with the Republicans to reduce deficits that have peaked to record levels that there is no disagreement by anyone which have “imperiled the country’s economic future.”
Same Goal for All
Despite the fact that Republicans and Democrats differ on their approaches, according to Jay Carney, White House spokesman, the “goal remains the same.” Nonetheless, President Obama made a somewhat tough political attack on the Ryan Plan last week. Indeed, third-ranking Republican Kevin McCarthy attacked the part of the Bill which provides government funding until the end of September while at the same time reducing government spending by approximately $38 billion.
An increase to the roof on the country’s debt that needs to be put into place by July 8, has been supported by the Republicans. But this can only happen if there is “substantial progress toward reducing the $1.4 trillion annual deficit.” As well, Obama claimed that if the roof is raised, there would need to be significant Congress support. But this is essential as if America “defaults on its debt” there could be another global economic recession.
How Will Cuts be Made?
Naturally people want to know how these cuts are going to be made. First, there will be a significant decrease in domestic spending and high-end corporate and personal tax rates will go from 35 to 25 percent. But the major cuts will be in a reform of Medicare elderly health care who in future will be receiving a “federal subsidy based on income and health status and would pick private insurers for medical coverage,” in an effort to save it.
Nonetheless, Democrats are arguing that this will end up being disadvantageous to seniors who will end up with raised medical bills (at least $6,000 a year). This has been criticized for not sticking to America’s “promise” to its elderly that “after a lifetime of work they will be able to depend on Medicare to protect them in retirement.”
Budget Cuts Upset Some
At the end of the day no matter where or how the budget cuts are made, someone, somewhere isn’t going to be happy. What has to be agreed upon however, is that such cuts do need to be made for America not to renege on its commitment to the world to take part in ensuring the recovery of the 2008 global economic downturn and a future dedication to prevention of another one.
Republicans United on Budget Plan
The House of Representatives agreed on a budget plan last week (at a vote of 235-193) for 2012 which will involve “slashing trillions of dollars in government spending while cutting taxes.” This looks like it’s fantastic news, but since there is no such thing as a free lunch, who is going to pay? According to conservatives, it will be the country’s debt limit that will forge ahead and that’s not good news for Americans. The Bill became law last Friday.
Tough Negotiations Ahead
So it looks like this will just mark the start of tough negotiations ahead vis-à-vis debt and deficits. It is only going to be a matter of weeks as to whether or not there will be permission to increase the roof on the $14.3 trillion debt; a matter for Congress to decide. So even though Ryan’s plan has been passed for the 2012 fiscal year, it is unlikely that it is going to be a smooth ride ahead since this has been rejected by Democrats.
The anger is at the spending cut of nearly $6 trillion over the next 10 years. But in reality, this isn’t going to happen since analysts say that “there is almost no chance” of the Senate to approve the measure as it is. In addition, the White House isn’t happy but will nonetheless will be dedicated to work with the Republicans to reduce deficits that have peaked to record levels that there is no disagreement by anyone which have “imperiled the country’s economic future.”
Same Goal for All
Despite the fact that Republicans and Democrats differ on their approaches, according to Jay Carney, White House spokesman, the “goal remains the same.” Nonetheless, President Obama made a somewhat tough political attack on the Ryan Plan last week. Indeed, third-ranking Republican Kevin McCarthy attacked the part of the Bill which provides government funding until the end of September while at the same time reducing government spending by approximately $38 billion.
An increase to the roof on the country’s debt that needs to be put into place by July 8, has been supported by the Republicans. But this can only happen if there is “substantial progress toward reducing the $1.4 trillion annual deficit.” As well, Obama claimed that if the roof is raised, there would need to be significant Congress support. But this is essential as if America “defaults on its debt” there could be another global economic recession.
How Will Cuts be Made?
Naturally people want to know how these cuts are going to be made. First, there will be a significant decrease in domestic spending and high-end corporate and personal tax rates will go from 35 to 25 percent. But the major cuts will be in a reform of Medicare elderly health care who in future will be receiving a “federal subsidy based on income and health status and would pick private insurers for medical coverage,” in an effort to save it.
Nonetheless, Democrats are arguing that this will end up being disadvantageous to seniors who will end up with raised medical bills (at least $6,000 a year). This has been criticized for not sticking to America’s “promise” to its elderly that “after a lifetime of work they will be able to depend on Medicare to protect them in retirement.”
Budget Cuts Upset Some
At the end of the day no matter where or how the budget cuts are made, someone, somewhere isn’t going to be happy. What has to be agreed upon however, is that such cuts do need to be made for America not to renege on its commitment to the world to take part in ensuring the recovery of the 2008 global economic downturn and a future dedication to prevention of another one.
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