The Blog of the Frances Perkins Center

Rep. Ryan’s budget a disaster — according to CBO report

In Economics, Political world on April 6, 2011 at 10:08 am

The Congressional Budget Office (CBO) has issued a report on the budget written by Rep. Paul Ryan, chair of the House Budget Committee. (Read the report here: http://www.cbo.gov/doc.cfm?index=12128.)

Here’s the CBO’s mandate:

CBO assists the House and Senate Budget Committees, and the Congress more generally, by preparing reports and analyses. In accordance with the CBO’s mandate to provide objective and impartial analysis, CBO’s reports contain no policy recommendations.

However, they do the numbers and write reports. This particular report contains the interesting facts that the Ryan plan would reduce federal spending on health programs roughly by two-thirds by 2050, more than double the share of total spending that Medicare recipients must pay out-of-pocket, and would raise he total cost of health care for Medicare enrollees by 25-45 percent. (Thanks to Henry Aaron of Brookings for that.)

And, according to Dean Baker of the Center for Economic and Policy Research, those Medicare enrollees, under the Ryan plan, by 2030 would end up spending most of their TOTAL INCOME on health care costs (see http://www.cepr.net/index.php/blogs/beat-the-press/representative-ryan-proposes-medicare-plan-under-which-seniors-would-pay-most-of-their-income-for-health-care).

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