Today, the Budget Committee released a follow-up analysis of the spending blueprint marked up earlier this week. This alternative look at the plan produced by Budget Chairman Paul Ryan accounts for the true economic impact of policy decisions made in the budget. As such, the analysis shows that the Ryan plan will balance the budget within ten years.
This is because this estimate, unlike the assessments done by the Congressional Budget Office (CBO), takes into account the real-world effects of pro-growth policy. For instance, the tax reforms the Budget Committee developed in tandem with the Ways and Means Committee would provide a huge boon to economic growth. Simplifying the tax code, lowering the corporate and personal income rates and removing the penalties on companies bringing capital back from overseas would spur productivity and faster economic growth. A larger, more robust economy will result in more jobs, more income and more revenue.
This would lead to far lower deficits and debt as private enterprise is allowed to prosper. Since the Congressional Budget Office does not take into account this exponential growth, its estimate cannot fully articulate the positive impact the Ryan plan could have on American prosperity. Through a real-world lens, the Ryan budget balances in ten years by enacting fundamental reform.