The U.S. House Republicans has revealed a planned budget which aims to remove the deficit by 2024 through heavy cuts across the board.
Some of the areas where savings are going to be made will see heavy cuts to domestic spending and also another attempt to undo the Obamacare health reforms that are pulling on the budget.
According to a report by Reuters, the plan from House Budget Committee Chairman Tom Price proposes $5.468 trillion in spending cuts and interest savings over 10 years compared to current tax and spending policies.
The controversial budget has been designed to appeal to all members of the republican party by nominally adhering to “sequester” spending caps while also on the other hand, increasing spending in the military by almost 40 million dollars.
According to Reuters, some 70 Republicans had signalled they would reject their party’s budget if it failed to at least match Democratic President Barack Obama’s $561 billion base military budget request. At $613 billion including war funding, it just tops Obama’s full request with war operations.
If the new budget plan managed to pass through with Republican votes it will still not become law as these annual budget resolutions are non binding and are used as a way to start spending debates in Washington. However, the budget is a clear indication of how Republicans intend to tackle the budget in the future if they were able to have complete power in both houses.
The document from Tom Price says: “The $5.5 trillion in decreased spending and the end to annual deficits will mean we can begin to pay down the national debt and stave off a severe and completely avoidable fiscal crisis in the future.”
As in previous budgets presented by the Republicans, this budget includes no tax increases to be brought in to tackle the deficit, instead extra money is going to be found through cuts.
Unsurprisingly, the first item to be cut by the Republicans would be the highly controversial Affordable Care Act, brought in by President Obama and commonly known as “Obamacare”. According to the figures produced by Tom Price, by cutting this single act, the country could stand to save a massive $2.04 trillion over 10 years.
According to Reuters, he also would cut $913 billion in Medicaid spending by shifting it to a grant program to allow states to tailor the health care program for the poor. Price’s plan would do the same for some other social safety net programmes, including food stamps while Pell grants for college tuition would also shrink.