NEOAVATARA

http://www.cnn.com/2009/POLITICS/04/02/budget.bipartisanship/index.html

http://www.cnn.com/2009/POLITICS/04/01/gop.budget/index.html

Republicans, after what I would politely call a disastrous initial outing of their budget, presented a more complete version of the budget on Wednesday.

Led by Rep. Paul Ryan, the Republicans presented a budget that would freeze most spending to 2008 levels, and would increase tax cuts for corporations and business, as well as capital gains, to spur the economy.

The GOP budget would repeal the entire $787 billion economic stimulus package except for an extension of unemployment insurance benefits. It also would roll back a recently passed 8 percent spending boost in the budget for the remainder of the current fiscal year.  At the same time, the federal share of Medicaid payments would be converted to block grants for the states. Medicare would be transformed for Americans younger than 55 by allowing them to choose from a series of preapproved private insurance plans, with premium payments from the federal government to insurers varying according to an individual’s age, income and health.

Overall the Republican budget calls for $3.6 trillion less in borrowing over the next 10 years.  “The president’s budget is little more than a thinly veiled attempt by Washington to spend its way into prosperity, tax its way into tax relief and borrow its way into debt reduction. This simply cannot work,” said Wisconsin Rep. Paul Ryan, the ranking Republican on the House Budget Committee.

As for taxes, the GOP budget permanently extends all of former President Bush’s 2001 and 2003 tax cuts. Among other things, it also suspends capital gains taxes through 2010.  It also calls for establishing a new tax system based on two rates. A 10 percent income tax rate would apply to couples making $100,000 or less, as well as singles earning less than $50,000. The income tax rate would rise to 25 percent for those earning more.  It also repeals the estate tax.

The plan is much more complete than the joke John Boehner and others presented late last week, that had virtually no solid numbers.  This plan would significantly increase incentives for business growth, something that Obama’s budget completely fails to do.  It would also provide tax relief to all Americans, while at the same time limiting the disastrous addition to the ballooning U.S. debt that Mr. Obama is planning.

The Republican attack on Obama’s budget came full force as Judd Gregg, who only four weeks ago was Obama’s pick as Commerce Secretary, stating that Obama’s budget would turn us into ‘beggars’.

But don’t be fooled when the president says the economy he inherited is the reason that future deficits and debt skyrocket.

The president’s budget makes clear that a huge expansion of government is not just about today’s economic downturn. Once the recession is behind us, this budget will continue pushing for more and more government in our everyday lives.

Instead of tightening Uncle Sam’s belt the way so many American families are cutting back these days, the president’s proposal spends so aggressively that it essentially adds $1 trillion to the debt, on average, every year.

Pretty harsh words for a man that came very close to being in this President’s Cabinet.

At the same time, David Leonhardt of the New York Times defends Obama’s budget and stimulus plans by showing a historical example of a fiscal stimulus that worked – Nazi Germany.  No, I am not making this up; that is how far liberals have sunk.

Of course, the Republican plan is dead on arrival.  But while Democrats sit and debate more restrictions on executive pay (a populist idea, but a stupid one at that; but to be fair, one that 10 Republicans were crazy enough to vote for), Republicans are slowly forming the foundation for the future.   They must become the party of fiscal restraint and rationalism.  It will take time to build that kind of confidence in the American public after years of uncontrolled spending.  In the Senate, John McCain is formulating his own plan as well.  But for now,  Democrats are going to have their way with spending, deficits be damned.  They are even still considering using reconciliation procedure, which would cause all hell to break loose.  But at least the Republicans have planted their flag on the cause of budgetary restraint.  It is a small but important start.