Few changes are apparent in the fiscal 2014 budget resolution compared to the fiscal 2013 plan. As was the case last year, it includes a plan to replace the current fee-for-service Medicare system with a voucher-like model, beginning in 2024. No one 55 or older would be affected by the change.
The plan assumes the elimination of the Affordable Care Act (PL 111-148, PL 111-152), something that would be unlikely unless a Republican wins the White House in 2016 and the GOP gains strong control of the House and the Senate.
”We will never be able to balance the budget if you keep Obamacare going because Obamacare is a fiscal train wreck,” Ryan said.
The CBO said in a report last July on a House bill to repeal the health care law that dropping the law would add $109 billion to the deficit over 10 years.
The proposal also recommends turning Medicaid and food stamps into block grants to states, giving local officials more flexibility in designing and administering the programs.
Like his last two budget resolutions, Ryan’s 2014 plan would call for an overhaul of the tax system to reduce the top individual and corporate rates to 25 percent and collapse the current seven tax levels to two, at 25 percent and 10 percent. Ryan said revenue as a percentage of GDP under his plan would reach 19.1 percent in 2023, up from 18 percent in 2014, largely because of economic growth. The deficit as a share of GDP would fall from the estimated 5.3 percent this year to 3.2 percent in 2014 and then slip below 1 percent of U.S. economic output until the budget is balanced in 2023.
Vice President Joe Biden waits to conduct a mock swearing-in ceremony with Sen. Brian Schatz, D-Hawaii, in the Capitol's Old Senate Chamber, December 2, 2014. Schatz was sworn in to serve the remainder of his term since he was appointed to the seat after Sen. Daniel Inouye, D-Hawaii, passed away.