House Budget Committee Chairman Tom Price, M.D. (R-Ga.) this week released the House's 2017 budget proposal. This budget calls for responsible solutions to the nation’s spending problem by cutting wasteful programs and modernizing entitlement programs, holds the line on taxes, and balances over the ten year window.
The House budget stands in stark contrast to President Obama’s budget which proposes $3.4 trillion in new taxes and never balances.
Members of Congress should have no hesitation supporting the House budget and showing their commitment to responsible, conservative solutions.
Holds the Line on Taxes
The House Budget does not increase taxes on the American people. Instead, it proposes comprehensive pro-growth tax reform that simplifies the existing complex system.
It does so by calling for lower income taxes and reducing the number of brackets, repealing the Alternative Minimum Tax, moving from the outdated worldwide system to a more modern and competitive territorial system, closing special interest loopholes, and broadening the base.
Under this budget, taxes will decrease as a percentage of GDP from 18.3 percent in 2017 to 18.1 percent by 2022.
In contrast, the Obama budget proposes tax hikes totaling $3.4 trillion including a $320 billion energy tax to fund bullet trains and self-driving cars. By the end of the ten year window, Obama’s budget would increase taxes on the American people to 20 percent of GDP, far above historical averages.
Addresses the Nation’s Spending Problem
Under this President, spending has risen to almost $3.7 trillion and reached a high of 24.4 percent of GDP. The House budget reverses this overspending problem and calls for $6.5 trillion in less spending over the ten year window.
One step to doing this is through repeal of Obamacare, which will save taxpayers close to $2 trillion by reducing financial and regulatory burdens on families and businesses. Repealing this law is also the first step toward implementing patient centered healthcare reforms.
In addition, the House budget calls for a reduction of spending of $30 billion over the next two years and cuts funding for wasteful, taxpayer financed corporate welfare programs like the Corporation for Travel Promotion and the National Network for Manufacturing Innovation.
Saves and Strengthens Medicare and Social Security
The Social Security Disability Insurance fund will become insolvent by 2022, followed by Medicare and Social Security, which will become insolvent by 2030 and 2035 respectively. It is imperative that these programs are saved and strengthened and the House Budget does just that.
To address this looming crisis, the House Budget calls for a number of reforms including greater patient choice, fewer mandates and restrictions, incentives for greater efficiency, and increased competition.
Calls for Major Reforms Through Reconciliation
The House Budget again contains reconciliation instructions, which is one of the best ways lawmakers can implement conservative reforms that restrain spending and taxes.
Last year, reconciliation was successfully used to pass a bill out of Congress that repealed key provisions of Obamacare. While President Obama unfortunately vetoed this bill, it would have repealed 16 taxes that hit taxpayers to the tune of $833 billion over ten years.
Using this procedure will again allow Congress to pass major reforms to put the federal budget back on a sustainable path.