House passes FY 2013 federal budget.
The House passed an FY 2013 federal budget, previously reported out of the House Budget Committee, by a margin of 228-191 with all Democrats and 10 Republicans voting no. This budget is commonly referred to as the "Ryan Budget" after House Budget Committee Chairman Paul Ryan (R-WI).
The budget would substantially reduce the federal deficit by reducing federal spending levels compared to FY 2012 in the years FY 2013 -2015 and substantially reducing the growth rate in federal spending thereafter. Federal outlays would stand at $4.9 trillion in FY 2022 compared to $3.6 trillion in FY 2012. The deficit would be $797 billion in FY 2013, $496 billion in FY 2014 and $304 billion in FY 2015.
The plan would reduce out-year Medicare outlays by adopting a premium support program for workers currently under the age of 55. Under the plan, a Medicare Exchange would be established where seniors would purchase private health plans.
The second-least expensive approved plan or fee for service Medicare, whichever is least expensive, would establish the benchmark that determines the premium support amount for the plan chosen by the senior. If a senior chose a costlier plan than the benchmark plan, he or she would be responsible for paying the difference between the premium subsidy and the monthly premium.
Conversely, if that senior chose a plan that cost less than the benchmark, he or she would be given a rebate for the difference. Payments to plans would be risk-adjusted and geographically rated. Private health plans would be required to cover at least the actuarial equivalent of the benefit package provided by fee for-service Medicare. Fee for-service Medicare would remain an option.
The plan contains the outline of a tax reform plan developed by Ways and Means Committee Chairman David Camp (R-Mich.) which would:
* Consolidate the current six individual income tax brackets into just two brackets of 10 and 25 percent;
* Reduce the corporate rate to 25 percent;
* Repeal the Alternative Minimum Tax;
* Broaden the tax base to maintain revenue growth at a level consistent with current tax policy and at a share of the economy consistent with historical norms of 18 to 19 percent in the following decades; and
* Shift to a "territorial" tax system.
It is not specified what "tax subsidies" would be repealed to pay for these initiatives.
The House defeated a budget resolution based on the President's FY 2013 budget with all 414 members voting opposing it. The House also defeated by a margin of 38 to 382 a budget based on the Report of the National Commission on Fiscal Responsibility and Reform (often called the Simpson-Bowles Commission after its two co-chairmen) which was introduced by Rep. Jim Cooper (D-Tenn.) and Rep. Steven LaTourette (R-Ohio). Just 16 Republicans and 22 Democrats voted for this budget.
The House Democratic Alternative Budget offered by Rep. Chris Van Hollen (D-MD) was defeated by a vote of 163-262 with all Republicans and 22 Democrats voting no. Finally, a budget proposal outlined by the Republican Study Committee failed by a margin of 136-285.
To read the House Budget Committee's summary of the House passed budget, click here.
To read five pages of Tables summarizing the House budget, click here.
The 99 page House budget explanation is available here.
To read the budget resolution as passed (H. Con. Res. 112), click here.
The roll call vote on the budget is available here.
The Simpson-Bowles Commission report is available here.
The roll call vote on the Simpson-Bowles budget is available here.
Information about the House Democratic Alternative Budget is available here.
A summary of the Democratic budget is available here.
The roll call vote on the Democratic Alternative budget is available here.
Information regarding the conservative Republican Study Committee budget is available here.
The roll call vote on the RSC budget is available here.
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|Publication:||The Weekly Advocate e-Newsletter|
|Date:||Apr 4, 2012|
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