Rep. Paul Ryan, the Wisconsin lawmaker who will be responsible for drafting the budget for Republicans, said Congress has “a moral obligation” to prevent a debt crisis that he said will hit hardest at seniors and others who depend on government the most.
As chairman of the House Budget Committee, Ryan will take the lead role in crafting a blueprint expected to rely heavily on savings from benefit programs. The budget he wrote last year before being picked as the party’s vice presidential candidate was to take two decades to achieve balance.
Ryan’s 10-year-budget task will be eased in part by higher tax revenues resulting from the Jan. 1 expiration of a two-year payroll tax cut, and in part from an anticipated $600 billion generated by raising rates on upper incomes. But given the sheer size of annual deficits in the $1 trillion range, it will be impossible to meet his goal without taking large savings from benefit programs such as Medicare and Medicaid, farm and student loan subsidies, the federal retirement program and more.
House Democrats made no attempt to defend the Senate’s failure to draft a budget over the past three years, instead saying a mere four-month extension in the debt limit would not give business and the financial markets the certainty that is necessary for the economy to grow more quickly.