Last week, Republican Study Committee Chairman Bill Flores (R-Texas) and RSC Budget Task Force Chairman Marlin Stutzman (R-Ind.) released the caucus’s 2017 budget proposal, the “Blueprint for A Balanced Budget 2.0.”
Like the budget resolution recently introduced by Chairman Tom Price (R-Ga.) of the Budget Committee, the RSC’s budget is a responsible, conservative proposal that reins in spending, reforms the complex and ineffective tax code, saves unsustainable entitlements, and balances the budget. The RSC should be commended for championing these important, conservative ideas and all Members of Congress should support this proposal.
Tax Reform, not Tax Increases
Importantly, the RSC budget does not raise taxes on American families and small businesses. Instead, the blueprint calls for a fairer and simpler code that encourages investment and saving through pro-family, pro-business tax reform.
Specifically, the budget reduces individual and business income taxes, moves from the outdated worldwide system to a competitive territorial system, reduces capital gains and dividend taxes, repeals the alternative minimum tax and the Death Tax, and calls for ending the IRS.
Repeals and Replaces Obamacare
The RSC budget calls for repealing all of Obamacare, including the 20 tax hikes and trillions in new, unsustainable spending.
In its place, the budget calls for implementation of the American Health Care Reform Act, a plan that replaces Obamacare with a series of patient-centered, free market reforms.
The AHCRA reduces discrepancies and inconsistencies between individuals receiving healthcare from employers and from the individual market, and expands and encourages the use of health savings accounts so individuals are empowered to make choices that best fit their needs.
This plan also ensures the most vulnerable Americans have increased access to healthcare, encourages competition and medical innovation, and reforms medical liability laws that all too often tie the hands of physicians.
Undoubtedly, these reforms will improve healthcare for Americans across the country by replacing crushing Obamacare regulations and replacing them with conservative, patient centered healthcare reforms.
Saves Unsustainable Entitlements
Unless reforms are implemented soon, important programs like Medicare and Social Security will become insolvent within a matter of decades. Further, the unsustainable projected growth of these programs will soon crowd out spending on other important priorities if nothing is done.
The RSC budget proposes transforming Medicare toward a system that provides seniors with more choice starting in 2020, simplifying the program by combining Parts A and B, and promoting the use of tax-free savings accounts.
For Social Security, the budget calls for utilization of the more realistic and sustainable inflation chained CPI, introduces means testing for wealthy retirees, and gradually adjusts the retirement age to better reflect life expectancy.
Restrains Wasteful Spending
The federal government has a spending problem, not a tax problem. To address this, the RSC budget calls for $8.6 trillion in less spending over the next decade through a series of 200 cuts and reforms.
Many of these programs are duplicative, outside the scope of the federal government, or both. With American families across the country having to careful plan their household budgets, it is past time Washington did the same.