I went through Ryan’s budget proposal and there good receipes to tackle the deficits in the short term and address the long term debt. In fact his idea of tackling the medicaid through vouchers is a very good step forward. However, he needs to address the key legitimate issue of what happens if the private insurance companies stop accepting vouchers (even with government assurance on premiums) for the old and the sick ? Isn’t this the fundamental problem in healthcare today with for-profit companies ? Lets be honest. If I were to run an insurance company, my incentive would be to collect maximum premium and pay minumum in claims. My job is NOT to help the old and the sick.
Now with Tax cuts. Why is Ryan hell bent on including tax cuts ? Majority of the budget is focussed on reigning in spending and suddenly out of nowhere, he provides a $2T tax cut ? Why ? In this polarized environment, wouldn’t it be fodder for Democrats ? Our first goal should be to reign in spending to bring down the deficits, if not debt, to manageable levels without tax increases. The fact that he brings tax cuts to the table with the already tough medicine of tough spending cuts makes his budget DOA. Remember, tax cuts are not for the poor but spending cuts are targetted at them.
P.S. Don’t tell me tax cuts promote growth. Out here in the heavily taxed San Francisco bay area, entrepreuners thrive like nowhere else.