As the U.S. reached a $14.3 trillion debt, and is maxed out on its credit limit, both Republicans and Democrats continue to look for ways in negotiating bipartisan proposals to solve our nation’s debt crisis. While the House Republican plan to overhaul Medicare led by Rep. Paul Ryan has been on the table for some time, Democrats are lagging behind in proposing a concrete alternative to make spending cuts on our nation’s entitlement programs. Let’s take a brief look at both parties current proposals starting with Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee:
- Ryan insisted that his plan will “not affect anyone 55 and over,” speaking on NBC’s “Meet the Press” recently.
- Citing that his plan is based on premium support, whereby there are guaranteed coverage options for Medicare where the government subsidizes the poor and the sick a whole lot more than the wealthy and people get to choose,” Ryan said.
Meanwhile, Rep. Chris Van Hollen, D-Md., a ranking minority on the House Budget Committee, sees it the following ways:
- Debt reduction must come from both sides of the ledger, which means increasing revenues.
- He prefers a “broad-based tax” that would increase personal income rates to the level it was during the Clinton administration.
- And by reducing the deficit, that involves spending cuts, it involves the revenue piece.
So while the Democrats have yet to offer a clear proposal on the table, Ryan and company are comfortable on where they stand at press time. But one thing is certain: it’s time for both parties to come to terms and reach a deal in order to avoid another economic meltdown.
Credit source: ‘Ryan Challenges Democrats to Propose Alternative to His Budget’ (Foxnews.com, 5/22/11).