Road Map toward sustaining our American Way

The congressman to the 1st district in Wisconsin - my congressional district - has offered a plan that by all counts should be taken seriously.  Ryan, a quiet guy, rarely seeming to peek his head into the media glare much less the stratosphere that get's ideas on the table - has thought long and hard about the threat to our future.  Will anyone address the plan with seriousness or will it be criticized with hyperbole?  Hopefully this can be a start toward sanity as it relates to our spending.  We shall see.  This post from The American Mind seems to cover it well. 

By Sean Hackbarth
Today at the Conservative Bloggers Briefing Rep. Paul Ryan (R-WI) talked to us about his “roadmap” that addresses out-of-control spending, entitlement reform, and tax reform in a comprehensive way. He told us the federal government is on a path to taking 40 cents out of every dollar just to pay for all programs. Echoing Fred Thompson during his Presidential run he said that path is unsustainable. It’s a “stagnant path.”


Ryan proposes health care reform with a $2500 refundable tax credit ($5000 for families) to empower people to shop around for the best health insurance value they can find. It would also make health insurance portable no longer forcing people to stay in jobs simply because of the company’s health plan.

Ryan’s plan would establish price data and quality transparency so consumers can make better insurance choices. Ryan also wants Medical Savings Accounts expanded.

For Medicaid users Ryan proposes high-risk pools and letting states have plenty of flexibility in finding their own solutions. For Medicare users 55 and older nothing would change. For those under 55 when they become Medicare-eligible they would receive a base payment of $9500. That payment would be means tested and risk-adjusted.

Like with Medicare, those 55 and older would see no changes to their Social Security. Those under 55 would have the choice to invest a third of their SS contributions into a fund like the Thrift Savings Plan. Individuals would have property rights to these personal accounts allowing them to pass them onto their children after they die. Changes in the growth of SS’s initial benefits along with increasing the retirement age would make the program solvent.

Ryan’s ideas on tax reform appear to be the most controversial especially in a Democratically-controlled Congress. Ryan would ax taxing capital gains, interest, and dividends. To further encourage economic growth the corporate income tax would be replaced with a “border-adjustable business consumption tax” of 8.5%. The Alternative Minimum Tax would go away along with the death tax. As for income taxes Ryan proposes giving Americans an option. They can either stick with the current, complex, bloated tax code or choose to file using a tax return the size of a postcard with two tax rates: 10% and 25%.

Ryan told us government actuaries and analysts have run the numbers for his plan. They would make both Social Security and Medicare solvent while keeping federal taxes to 18.5% of GDP.

I asked Rep. Ryan how his plan can be sold during an economic downturn and increased economic anxiety. Ryan mentioned he lived near the Janesville, WI GM that will be closing. He understands the hard times many Americans are going through with a slowed economy and increased global competition. He said his comprehensive plan that includes fiscal along with tax reform can reward companies for staying in the U.S. Transforming the corporate income tax into a “border-adjustable business consumption tax” will make U.S. companies more competitive and encourage foreign firms to move to the U.S.

The legislation has been written, and the numbers have been crunched (assuming the vagueness of peering so far into the future). All that’s needed are ways to sell the plan. Ryan understands something so comprehensive will need bipartisan support. He told us he took ideas from Democrats and is talking with some (unnamed) to get their support.

The plan is bold. Bob Novak says it’s broader than Kemp-Roth. He also thinks Sen. McCain should seriously look at it to inject some policy excitement into his campaign. Maybe McCain could get Ryan’s roadmap into the national debate.