Paul Ryan Responds To "Gang Of Six" "Bipartisan" "Deficit-Cutting" "Plan"

Tyler Durden's picture

When we presented the Gang of Six joke of a deficit-cutting "plan" we called it a "talking point bulletin full of ridiculous fluff with nothing substantial." It appears that at least Paul Ryan seems to agree: "The plan is not a budget.  It is a set of talking points and graphs
that outlines an ambitious proposal that has serious flaws but also the
potential for worthwhile budget and tax reforms." The Wisconsin Congressman has just released a much needed follow up to the 4 page chart book (disclosed previously here), which confirms that the "Compromise" plan is DOA in the Congress.... 48 hours away from D-Day: "The following analysis
examines these problems, raises questions about the lack of detail in
the plan, and notes the areas where there is potential to make progress
on spending restraint and tax reform."

From:

The Gang of Six Budget Effort
Problems, Questions and the Potential for Promising Reforms

Earlier today, a group of U.S. Senators (“Gang of Six”) released “A Bipartisan Plan to Reduce Our Nation’s Deficits.” 
The plan is not a budget.  It is a set of talking points and graphs
that outlines an ambitious proposal that has serious flaws but also the
potential for worthwhile budget and tax reforms.  The following analysis
examines these problems, raises questions about the lack of detail in
the plan, and notes the areas where there is potential to make progress
on spending restraint and tax reform.

Of note, in response to release of the Gang of Six plan, House Budget
Committee Chairman Paul Ryan issued the following statement:

“The proposal put forward by a group of seven senators today is a
useful addition to the budget debate.  I share the frustration that
these senators appear to have with the U.S. Senate’s inability to pass a
budget in over 800 days.  While the proposal lacks detail in many
respects, it includes some reforms that could help put our country on a
sounder fiscal footing.  Most importantly, it reflects a bipartisan
recognition that lower tax rates are essential to help spur economic
growth.  Unfortunately, it increases revenues while failing to seriously
address exploding federal spending on health care, which is the primary
driver of our debt.  There are also serious concerns that the
proposal’s substance on spending falls far short of what is needed to
achieve the savings it claims.  Nevertheless, this effort serves as a
sign that we can work together on a bipartisan basis to make a serious
down payment now to avert the debt-fueled economic crisis before us.”

_______________________________

Problems

Heavy Reliance on Revenues.  The plan claims to increase
revenues by $1.2 trillion relative to a “plausible baseline.”   It also
claims to provide $1.5 trillion in tax relief relative to the CBO March
baseline.  The CBO baseline assumes the expiration of tax relief,
resulting in a $3.5 trillion revenue increase.  As a result, the plan
appears to include a $2 trillion revenue increase relative to a current policy baseline
If the $800 billion in tax increases from the new health care law are
included, the plan appears to increase revenues by $2.8 trillion,
without addressing unsustainable health care spending that is driving
our debt problems. 

Elusive Spending Restraint.  It is unclear how much the plan
achieves in spending savings.  Based on released documents, it appears
to primarily rely on cuts in the defense budget through $886 billion in
reductions from the President’s budget for “security programs.”[1] 

Lack of Entitlement Reform.  The plan does not address the
$1.4 trillion in spending expansions in the new health care law.  The
health care law increases eligibility for the Medicaid program by
one-third and creates a brand new health care entitlement.  It does not
appear to include reforms to the Medicare program.  While it appears to
pursue Social Security reform, it could end up creating barriers to
enactment of these reforms.  

 Questions

Unspecified Savings Relative to What?  The plan is described
as savings relative to a “baseline.”  The plan appears to use three
different baselines for showing savings:  1) CBO’s current law March
baseline; 2) an undefined modification to that baseline (what it calls a
“plausible baseline”); and 3) the Fiscal Commission’s baseline.  It
does not provide annual spending and revenue totals by category, relying
instead on savings relative to three different baselines.  So, it is
unclear what exactly the spending and tax proposals are.

Where Does the Revenue Come From?  It sets a tall order for
tax reform with what appear to be conflicting assumptions: 1) raise $1.2
trillion in revenue; 2) repeal the alternative minimum tax at a cost of
$1.7 trillion; 3) lower tax rates to encourage economic growth (top
rate of no higher than 29%); 4) do not eliminate tax expenditures for
health care, charitable giving, homeownership, retirement, and
low-income workers and families (the largest of the tax expenditures);
5) raise $133 billion in revenue by 2021 for the highway trust fund
without raising gasoline taxes. 

Where Do Health Care Savings Come From?  It claims $117
billion in additional federal health care savings over 10 years by
assuming that health care spending per capita grows no faster than
economic growth (GDP) plus one percent.  The new health care law already
requires the Independent Payment Advisory Board (IPAB) to cut Medicare
spending growth per beneficiary to achieve this growth rate starting in
2020.  CBO currently projects that Medicare spending will stay within
that growth rate through 2021.[2]  Therefore, it is unclear how the savings are derived. 

Also, if there are savings to be achieved, there is no enforcement
mechanism for achieving them since the plan would “require action by
Congress and the President” to limit growth to these levels.  Current
law requires the President to submit a plan and Congress to enact
legislation to make additional savings in Medicare that the President
and Congress have ignored. 

Where are the Missing Mandatory Savings?  The plan lists $516
billion in mandatory savings for Committees to achieve (including
program integrity savings and savings from modifying the CPI), but then
claims $641 billion in mandatory savings, leaving $125 billion in
missing savings.

Pathway or Roadblocks to Social Security Reform?  While the
plan seems to be a well-intentioned effort to move Social Security
reform forward, it sets out procedures that could derail both Social
Security reform and additional spending savings called for in the plan. 
First, it does not allow a Social Security reform bill to proceed until
the Senate has gotten 60 votes to pass additional deficit reduction. 
Second, it blocks the additional deficit reduction bill if the Senate
does not get 60 votes to pass the Social Security bill.

Potential for Promising Reforms

Tax Reform.  It acknowledges the need for tax reform, proposes
a top rate of not more than 29% and as low as 23%.  It calls for the
reduction of the top corporate tax rate to at least 29% and as low as
23%.  It recognizes the current tax code’s complexity and high marginal
tax rates hinders economic and job growth.  It calls for the tax code to
be reformed to move to a territorial system.  It calls for any
unanticipated additional revenues from economic growth to be used to
lower tax rates or deficit reduction, and not used for higher spending. 
While a laudable proposal, it appears to have no mechanism to ensure
this result.   To achieve this objective would require, at a minimum, a
cap on total spending and ideally a cap on revenues as well. 

Spending Caps.  It proposes to reinstate statutory caps on
discretionary spending.  It also sets out a budget reconciliation
process for committees to achieve mandatory spending savings and if
those savings are not achieved, it calls for across-the-board spending
reductions.

Threshold for Waivers of Spending Limits.  It increases the
number of votes necessary to waive the budget from three-fifths to
two-thirds in the Senate and appears to provide a new requirement that
the House gain two-thirds margin to waive spending limits.

Other Positive Signs:

  • It repeals the CLASS Act, a misguided proposal included in the new health care law.

  • It calls for medical malpractice reform.

  • It calls for reforming the current process for “emergency spending” (though the reforms are unspecified).

View as a PDF here.

[1]
In the security category the Gang of Six reduced the security category
by $886 billion.  Department of Defense (DOD) spending comprises
approximately 85% of the security category.  The Gang of Six also
proposes a firewall that requires this $886 billion is cut from security
spending. 

[2] In his April 13th
budget framework, the President has proposed to require the IPAB to
reduce per beneficiary growth to GDP plus 0.5% of GDP beginning in 2018.

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CPL's picture

Doesn't matter they are all getting hooked...by all, I mean in a couple of days by another anon project.  This one...I'm a vulgar man and I find it disgusting on what all of them have done.

 

You will all be speechless, by promise I don't mean by speechless disgusted, by speechless you are all going for pitch forks and guns.

Oh regional Indian's picture

holy Smoke Cpl. Say more Seymore!

Such tension.....

ORI

CPL's picture

Nope another anon has it under control with team Big Bertha.    It involves nukes but not in power generation.  Quick and rapid strike without anyone in the civil servant core of electorate involved in the decision..

 

Think Chernobyl and the complete rejuvenation of the landscape around it.  The animals survived, the trees grow and no humans bitching and complaining.

 

Anyone with a nuke has been studying the area for years and it is a template now, not a study case.

cossack55's picture

I'm looking forward to it.  I grow impatient.

CPL's picture

not for this one...theft and lying easy to handle.  This one, not so much.

 

Closer to batshit crazy with too much money and time on their hands.

Hugh G Rection's picture

on second thought...

 

no comment

GOSPLAN HERO's picture

The USSR is now debt free!

Sudden Debt's picture

The Oligarchs will agree on you with that one.

But I still don't understand how their "democratic" system works...

But the Russians must be satisfied... at least their leaders always get reelected or one of their close friends.

 

 

New_Meat's picture

dude-u gotta change your handle to "PROXIMATE DEBT".

not so sudden so much, but of course, the euro theater will in fact lead.

;-) so do it in anticipation; of course, you could just sign your posts "proxy"

just sayin'

- Ned

Oh regional Indian's picture

Is DeeDay 22nd July or 2nd August or not at all and this is just mere dis-traction for what is coming? Or is already here? How come the Fort Calhoun Story just vanished? What is being hidden? Right hand left hand?

Really a god time to pay attention to the fringes and the dark places.

ORI

http://aadivaahan.wordpress.com/2011/04/15/the-death-of-empathy/

CPL's picture

That was an accident involving old tech that needing funding to keep running.  This is bigger.  Way bigger, to the point a 6 year old can understand bad things were done.

Oh regional Indian's picture

Hmmmmmmm....sounds heavy. I hope we are ready.

ORI

CPL's picture

We're not.  Pills or lead suits.  The understanding is all nukes are aimed into the countries themselves while others hide in bunkers.  Since all have automated defense systems all it would take is a lousy scud with a lot of gas to set them all off.

 

US nominated itself for the false flag since it makes them.  Many good anons were ignored as part of the civil service to obtain this information until they understood they didn't get a walk in place in the bunker.

 

It's all heresay otherwise just like Cairo having a revolution, Wheat supplies being 40% under the human need and corn/bees dying in fields.  yup, we properly shit in the sandbox and the reset button is easy in understand if you rule.

 

Around 18000 nukes in total.  Cherobyl is a good example of how bad things happen, yet life still flourishes.  But the powers that be don't understand the mating cycle of dogs, deer and bugs.  Anycase...doesn't matter enjoy my project on top of the cunt of NOTW for the next couple of days.  Big one is coming, all I can say is anyone that has a pair of nuts left in the government better lock it down and kill them all to the last child.

 

Again, a 6 year old is going to understand how amazingly how fucked up it is.  Sad thing is the mormons have sucked these peoples cocks for decades and they are first on the list for testing in Utah and the leaders there OFFERED THEM.

 

Haven't stopped shaking my head.

 

ElvisDog's picture

CPL, what the holy hell are you talking about? You seem to be batshit crazy as all get out.

Clay Hill's picture

I have to reserve judgement on his sanity...

CPL's picture

End of the month is when your mum has an opinion on the current situation that involves violence.  not kidding.  If I troll and I do.  This isn't it. 

 

Get ammo.

 

When it breaks and your mother tells you to kill evey last mother fucker.  you will, you not doubt, second guess or pass a second thought at it.  Not one.  It won't be for a piece of hopeful honesty, it will be for pure rage.  Anger is a weak human constant because it leaves nothing after it. 

 

once it's broke, giving money away for nothing will seems like a sutble afternoon tea in comparison while men can dance on hookers that charge 10k a wad in their filthy cunts. 

 

Trust me on this.  If you have ball minus tits, your mother will ask you do to one thing.  Kill them, and kill them all.  Because after anger is rage.  Rage has no end and it's coming.

Vic Vinegar's picture

You posted a link today.  I clicked on it and saw Green Man with the twitter logo over his face.

That is all I know to be true.  What you have written above is par for the course on the interwebs daily. 

Not saying it's true or not.  Just saying this kind of stuff is said daily on the web.

CPL's picture

Ummm, I don't post links...ever.  Ever.  Ask around ...well that's not true.  If I'm about to short something to death or back up a claim.  I've been a little busy busting open the whore industry that people invest into as civil servants.

 

Since you have an idea of the link please post it.

 

Anyone else seen me on here for a month?

Vic Vinegar's picture

Sorry dude I might have you confused on the links.  That may be my bad. 

CPL's picture

Thank you.  Now shut up and watch the in box.  If the FBI and CIA wanted a role of hero it's this one.  Or you can give it up to the Homoland Sec.

 

Mum dead or mum alive.  The enemy is in your gate next to you and isn't going to offer the handshake you thought he was.  There aren't enough spaces.

CPL's picture

btw, nothing is being released until the date the project requires.

 

Hookers and money, no issue.  This one, we are mulling on, it's actually bad.  Really bad.

CPL's picture

So if anyone is a project manager that has dealt with mass death versus near extinction I would LOVE to hear from you.

 

Love it....fuck me.

Vic Vinegar's picture

Dude your comments were a real buzz-kill when I was catching up on episodes of Big Brother tonight.  I couldn't even focus on who was getting put up for eviction.

CPL's picture

I suggest you ask your elders to how you are being turned into test subjects.

 

You are the first wave.  At least being Catholic I know my elders are a bunch of cross eyed pussies.  You are just going to accept the rape.

 

btw good luck with that.

Vic Vinegar's picture

I gotta roll...will check back later.

At a bare minimum, thanks for bringing some spice to this thread.  And perhaps a thank you is in order as well for giving us a heads-up on our impending doom. 

CPL's picture

not our impending doom...just most of us.

 

no worries though, you are almost thorough the gate director.  You are not included in the plans.

 

Appearently not blue enough Brian.  Your middle name btw.

CPL's picture

Eric is an awful name unless you have balls to do what needs to be done.  Most Eric's are sword swallowing cunts.

 

but by the end of the month it won't matter.  you aren't included anyway.  LOL  Bring up the bricks or shut up kid.   instead of throwing family out there,  DO YOUR FUCKING JOB DUMBASS.

 

Christ, Jesus would not stop PUKING on the shit done in his name.  Prove me a lier.  PLEASE DO.  Please prove me a lier that we won't be in removal mode, and your family is first to the surface.

 

Do you even know what you've been tested on?

 

is there any weird cancers that required any out of state resources?  Guess what?  It's part of it.

CPL's picture

I'm guessing with the troll accounts then yes.  As mormon's guess which river you've been sold down.

 

The one without a paddle.   Only assholes I can abide are mormon assholes.  So guess what?  Life sucks and you were sold down that river unfortunately to become a template.

 

Again when life releases it.  Your own mother will demand you kill people.

CPL's picture

btw run.  If your are reading this.  You don't get a suit case into Denver.

Clay Hill's picture

CPL, thanks for the heads-up, but I'm covered.

Saw your comments in the other thread, Y2K put off to Ywhenever...

Right now they're running us on Oracle12, and i-fix32... what hiccups am I looking for as a sign to call out that day?

CPL's picture

Don't matter.  the old y2K patches that are rolling...who cares.  honestly...run.  When it hits.  Don't claim that you work for the government.  You ARE long pig at that point.

 

You want to be bacon.  your problem kid.   I've wiped enough asses in my life.  Appearently it's not a problem.

 

Everything under control.  Eat a dick and good luck to some piece of ass that JUST moved from mum's basement on his first time job.  Couldn't quite keep a job otherwise.

 

Do you assholes rake turns for me to explain why you fuck up your mum's lives?

 

Seriously >  prove me different basement assholes.  Could not fight a bath tub battle with any of you.  Christ almighty...

Clay Hill's picture

Sorry mate, mummy's been gone a while an' left me running it.

 

I wanted to stick around for the show. 

CPL's picture

Christ they are still talking about taxes.

 

wow...cattle talking about how the master slaughters them and how little of a fuck is given.

cossack55's picture

Its all they know. They are just actors, after all.

CPL's picture

Wait for it...a lot of people are going to disappear or get caught, some will be thrown on MSM, others will be just removed from the human race.  Not sure which one yet.  Anon is a gamble at all times. 

 

All projects are handed in to the powers that be that aren't in the plan.  Nothing more vicious than a civil servant not included.  With the MSM currently eating the asshole that created the single voice (Foxnews, etc.) as desired...and there is more to come about that fucking pervert..we will pump it out.

 

Assange is not anonymous, never was.

 

My name Is Christopher Lynn and I am Anonymous.  I have worked in 31 government projects to somehow get retards that work in a government to do their job for 27 years.  Hasn't worked.  But it does not matter now at all.  There are other things to deal with like survival.

 

All I can say is run

Vic Vinegar's picture

All I can is you are making Oh Regional Indian very hot right now!

CPL's picture

All I can offer are hints.  I'm not allowed to say anything but hints.  Even then I've been told to shut up.

CPL's picture

Well I've been given the idea to RUN.  That's it.  From the anons I've understood that involves staying away from populated areas.

Vic Vinegar's picture

I'm supposed to fly into NYC on Monday.  Is that going to be a problem?

No sarc here: a) I have to live my life, provide for my family and b) there is what you are carrying on about.

CPL's picture

not my problem.  If you are flying into a major center of people, I would run and enjoy an extended vacation.

 

Civil servant.

 

I can bet on the sun rising a year from now, it'll happen.  Asking any of us if you are running from the fright of the "fed".  Doesn't matter.  It's called one thing.  Due diligence when the governments acted all weird three years ago.

 

At first it was a couple of meetings...why?  Then more...never done.

 

All I can say is the mountains are in your future and anyone that can get behind one.

 

 

If you are in Europe.  Sorry game is over.  China.  Game is over.  India.  Game is over.

 

Picture the longest river and all the money you have.  Now picture never being part of that picture ever.  That's the future if you haven't got a placement in Denver.

CPL's picture

no worries...you can buy a underground condo for yourselves and loved ones.  Show up with a lot of money, cash, no credit.

CPL's picture

backyard mechanic build these....where the fuck is the weeping tile?

 

Well, as normal people lets pretend it's going to work.  LOL.

 

Drop it fuckers.  Drop anything you wish.  See you in hell.

BeerWhisperer's picture

Wow you really don't beat around the bush do you? /sarc off.