The new budget plan put out by Paul Ryan has all the usual suspects: lower taxes, spending cuts on programs on which middle and lower class people rely, and of course an increase in defense spending. Along with this are a slew of good-sounding policies, which are vague, unspecific and without factual backing – yet they are guaranteed to decrease the debt.
For example, Ryan proposes simplifying the tax code (sounds good) by creating only two income brackets. That being a 10 percent and a 25 percent tax bracket. He does not give specifics as to when income will begin to be taxed at the higher rate. Even without specific information we know one thing: tax revenue will go down – not a good thing if we’re trying to pay down the debt.
So how does Ryan account for the lost revenue? Simple, he will close tax loopholes (sounds good). Which ones? Well he doesn’t tell us, but he assures us it will account for the tax revenue lost from the decreased taxes. However, if Ryan wants to maintain tax revenue at or around 18 or 19 percent of GDP, which he says he does, then enough loopholes will have to be closed in order to generate $6.2 trillion dollars over 10 years. Not an easy task. Without knowing which loopholes will be closed it’s difficult to say if the plan will actually lower deficits or if it is smoke and mirrors aimed at a Republican base who knows only one thing: tax cuts are the solution to any and all problems.
This is consistent with most of the plan. Ryan makes a lot of claims that fire up the base but provides no actual details. It’s difficult to take the plan serious when all we get is cut this program and lower these taxes and bam! just like that, a lower national debt.