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House Budget Committee chair on the need to address the looming debt crisis, the quest for common ground on dueling budget plans, confronting wasteful...
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-- this year fresh off a party line budget victory in the House of Representatives.
Every camera in America must balance our budget.
-- today after Republicans have terrible plan to balance the federal budget over the next ten years we still have no budget from the president's.
In violation of the law -- does -- that the president's -- they're always on time this budgets.
Not so much exclusive I report.
Number that's sort of realized -- a couple more I don't want people thinking I'm.
Only big town all the time -- it has been four months since election -- still -- Florida and -- to.
Breaking his son to call out of Washington with the house approving congressman Paul Ryan's budget.
-- budget that does more than just ballot.
Can we reduce our deficit and debt.
It's still help those who the neediest in America can we have a safety net that survives and still reduce the deficit Owens has no -- at least.
Budgets are passing around here for changed and government's gonna have to learn to do more -- for us it's not government's -- it's the people's money in the budget -- senate Democrats are considering.
And never balances ever.
-- House Budget Committee chair Paul Ryan telling us Republicans and Democrats are still worlds apart.
Well that is an understatement we saw that just an hour ago the democratic led senate defeating the Ryan house budget forty to fifty -- So is there any hope left his congressman Paul Ryan.
Tennis is there -- -- -- OK I want talk about the budget passed today imagine you're pretty happy.
We're very happy about it look we pass a balanced budget.
We think it's important we -- the country have balanced budget it's reasonable plan.
It grows the economy balancing the -- not just a statistical exercise it's the necessary means to a healthier economy.
Creates more jobs how people keep more of their -- hard -- money and it's a big contrast to the other budgets that are passing at least budgets are passing around here for -- change.
But all the other budgets have trillion dollar plus tax increases and have net spending increases and we have a trillion dollar deficit.
We need to work on our spending and when the other -- offering even more spending increases and even more tax increases more borrowing.
We're still kind of worlds apart.
And why I went through the budget at least and it's very complicated list I think it's -- and trying to understand how it goes through different provisions and then -- We start first with Medicare as I understand it -- your program it doesn't affect anyone over the -- about what 55 right so if you're born.
In 1958.
Or earlier it doesn't affect you meaning you stay in the current Medicare program just as it's designed now.
In addition we get rid of the Obama care independent payment advisory board.
That's the board of fifteen bureaucrats next year that are in charge of cutting Medicare in ways that that Medicare tells us will lead to denied access to current seniors.
And so we don't think we should change Medicare for current seniors which would obamacare does so -- and what we propose a new system.
For younger people that -- like what we have in congress as I understand that there are two choices under your provision if you're under 55 he did end Medicare as isn't.
Or you know federal subsidies -- gotten by your -- check back in a Medicare exchange meaning you have guaranteed coverage options with in Medicare.
So -- comprehensive private plane just like the prescription drug plan works today or like federal employees by their insurance CA it's guaranteed you can't be denied.
You -- get to pick among these plans they have to meet -- Medicare's criteria.
And and you can choose among these benefits or you want attrition program you can do that -- -- that as savings because either it's a savings because you're getting.
Less services if you're under 55.
Or it's -- it's or -- or not.
-- this last one being put into it by the federal government so what does it so what we do is we give people basically the average amount that Medicare gives you today.
But with a couple of changes number one if you're -- we don't give you nearly as much.
If you're -- you get up top and additional subsidy to cover all your out of pocket or you can stay and Medicare as it and that -- you get to -- -- amount of money to going to Medicare.
And so we adjusted based on sickness based on wealth.
We means tested more for the -- less for the wealthy.
That saves money at the end of the day but the choice and competition was what really drives down the cost increases.
Like Medicare part.
That's a program that came in 49% below original cost estimates.
Because seniors got a choice of plans that they don't like their plan this year -- -- firing go to a new and next year those plans compete against each other.
And that drives down costs and increase quality.
It's a bipartisan idea and we want to apply that -- to the rest of Medicare for the younger generation and what this shows is you can make Medicare solvent in sustainable.
You can make sure that you don't changer for current juniors and save the next generation.
By doing these kinds reforms in theory hypothetically if they're fairly -- as is there wouldn't be any change in cost.
-- I don't know -- so but competition yet understand.
Medicare plans traditional Medicare that the Humana plan the blue cross plan and using an example they have to compete against each other.
For senior citizens business.
And but that's another subsidize one that's under under the new plan talking about what -- -- what are the intake -- what if you're just taking Medicare as is that's one of the options.
That's one of the if -- if metro Atlanta the Medicare as is.
It wouldn't say it's theoretically shouldn't change the cost of the Medicare program -- -- Medicare has to compete with these other -- and they did.
Based upon.
What it cost to deliver the services say that that I've done it right so I think it's just like having a monopoly if a monopoly is gonna bid for your business they'll set the price however they want to.
If you have competition that has to bid against each other for your business -- compete and bring down prices forcing insurers and government.
To compete for your business has proven.
To bring down costs and increase quality Medicaid under your under your budget they'll be block grants to states and states with an administered.
With the federal government -- mean less money in block grants and is currently spending on Medicaid it they would but in exchange states we get more flexibility.
Medicaid spending would grow at inflation plus the growth of each State's population.
So we've heard from a number of governors who said look I can deal with less and cost increases -- payment increases if you give you more flexibility.
To customize my Medicaid program to meet the needs of our State's population.
Chase and that's because the states dissension there would be more efficient with the money for the governor is gonna do whatever they -- that the federal -- beginning less money but if you can give more for your dollar goes to grow additional grows -- but that's where that that's where the decrease -- cost us a country.
-- The monster bike in spending.
Do you have a strict formula is everything being cut across the board or have you -- chosen different programs -- actually decide what you think Sony cut.
That's right so we have all of these different forms we have welfare reforms.
Just like we put in 1996.
Work requirements time when it's things flexibility for the states to get people off welfare back to work.
We apply those lessons to our safety -- welfare programs because we think.
That's a better way of fighting poverty I just -- state flexibility in Medicaid we just mentioned choice and competition for Medicare.
We mention there are a lot of other areas and we put spending caps and government agencies' budgets.
Which makes them prioritize they're spending on the Appropriations Committee ultimately decides.
Every little program within government agency's budget for putting caps on those spending.
At the end of the day we're taking four point six trillion dollars under the budget that would otherwise be spent what does that mean in in real sort of annual terms.
Under our budget spending still will increase on average 3.4 percent a year each year instead of the current path for just 5% a year.
That difference gets is to a balanced budget that difference consists -- balanced budget without raising taxes and we think it's extremely reasonable.
To balance our budget families have to balance their budgets.
Local governments and businesses have to balance their budget we should be able to get the government -- restrain its growth of spending in order to balance the budget.
So we can.
Get this threat off of our economy these big deficits this debt not only does it hurt today's economy it destroys -- for the next generation and we think this is necessary to do that.
Somebody's got some I've got to get her when there's -- spending cut someone's.
-- -- -- Government government government but the good that -- right -- government -- services whether it's entitlements -- jobs to people what government something someone's going to feel the pain.
We spent a 115 billion dollars each and every year according to general accountability office.
On payments to people that -- anxious to get the money and I'm -- -- also get money I'm gonna -- -- -- waiting and productivity get 49 different job training programs spread across nine different government agencies.
Government's gonna have to learn to do more with -- that's gonna have to learn how to be more efficient.
You what it's not -- funny it's the people's money.
And our children's -- -- were borrowing from the next generation to pay April I was gonna ask -- -- -- a waste and fraud he would things like here on capitol not enough you know put their number of staffers who owe back taxes mid may seem chumps hey you know I love watching those studies found let me -- -- sand and in people -- PI -- And on -- government please isn't it what would that service side issue but I mean it you know what ever is being made and -- -- -- some bills have been introduced but.
To do something about the tremendous amount -- wasted them when it's empty buildings.
People getting payments Haitian people being unemployment -- Jimmy.
The numbers are sort of staggering -- so much fat and I tell -- things.
You just said right there empty buildings we have up a process in this budget that says let's dispose of all this excess property.
Let's sell some of the federal excess lands and buildings that we don't need that saves money.
What about we caught program integrity.
We've got invest in going after the waste and the fraud and abuse that is occurring in these government agencies those are components of our budget as well the point we're trying to get that.
His reference to -- -- some kind of a formula they like this question was has across the board know we're saying.
Let's use a scalpel to go after the wasteful Washington spending to make sure reform these programs that are going bankrupt so they fulfill their promises.
Let's have a leaner federal government that respects states' rights every communities different we shouldn't.
Cram one size fits all programs on all different communities and say that's how we're gonna fight poverty and other problems we have in America.
We want to respect the constitution respect federalism.
Limit the size of the federal government.
So that we can keep economic freedom going and paying off our debt.
The debt is crushing our economy is slowing us down and -- guaranteeing the next generation has diminished future.
And we believe we have a moral obligation to balance this budget to get a healthier economy and create jobs.
What I don't understand this image I -- your mother's you talk about Medicare with a monitor in the campaign and I think with senator Stabenow today and said that.
The Ryan budget limits eliminates Medicare I -- good people are saying like you know we renowned.
How how we know who to believe the gunman setters seven -- -- good decent hard work and US senator me why she's sane eliminates Medicare is that every not spoken and explain your system where she.
-- you know I don't know I would say what are you talk to your fellow Democrat Ron Wyden has been supporting these reforms for a long time when he talked Alice Rivlin the head of the Clinton administration budget office who worked with me on crafting these reforms.
I think they think they can get political advantage by scaring seniors into supporting their program you know that the the dirty little secret about this -- -- Obama -- change Medicare and Obama cares a law that puts a board of fifteen bureaucrats in charge of cutting Medicare that -- -- denied access to current -- What we say to get -- -- this board make sure that all the savings from Medicare goes to Medicare's solvency.
Not to pay for another program -- rating -- handled by the way.
People are Medicare they organize allies -- on this program.
And before debt crisis the moment we're in right now we can put reforms in the guarantee the program doesn't -- for those were in -- near retirement.
But we must reform -- from our generation and that younger people.
So that we keep that promise if we keep kicking the can down the road if we keep borrowing and spending like we are we will have a -- crisis and then everybody gets cut.
In real time that's what's happening in -- right is so the senate has a budget now.
The house is a budget president -- of his budget but now the whole idea is that the two budgets will have to be somehow reconcile right.
If if you have different.
BM made the mistake you ever.
How in the world do we ever get the two sides in conference.
To work and really take your budget the -- -- for got a solution that's.
The question of the hour look we had they threaten withholding members pay for not -- To get senate to a budget this year whatever it took I'm glad we've got the senate actually doing a budget we're worlds apart.
And I think what people are they're stuck in the old campaign rhetoric they're stuck in the old.
This horrible plan ends Medicare as we -- to try and scare seniors because that's been missing for four years even though it's the only bipartisan idea actually save and strengthen Medicare.
That we don't like obamacare so we talk about you know how we don't like that they talk about getting rid of it right so here here's what I see.
I see a process going like but law requires house passed a budget the Senate's passing a budget.
First time we've seen them for years that's a good thing so the question now is.
Can we start looking for common ground can we start advancing toward a compromise.
And the way we look at this -- house Republicans we understand our budget probably won't become law in every great detail.
But hopefully get a down payment on this problem so you -- it -- into the deficit and the debt.
To to try and by the country time prevent a crisis so there's some compromise.
-- -- -- your budget -- we cut four point six trillion dollars.
So somewhere between zero and four point six trillion dollars in savings I'd like to think there's a compromise.
What makes us a little different is the Democrats actually increase spending -- net increase spending at a time we have record deficits.
And they won another trillion dollar tax increase on top of the one point six trillion dollar tax increase that is now already occurred in the law whether -- -- so that's why we have a big difference in the -- for the biggest -- and look at negotiators have been appear that under your fears that Democrats would say you know they -- -- -- tax increase and you say you want a gazillion.
-- -- -- You know the farther out you put your number.
The more likely this that you look like -- give.
When you go to the tables.
We'll find out but look people are tired of paying more taxes we shouldn't be paying more taxes just a few more spending in Washington we should be cutting their spending because you don't want.
For every two dollars we bring in we spent three.
You can't keep doing that is their role for the present in this process.
Well normally would think that the commander in chief with lead by example by putting a plan on the table to say here's how I fix America's economic and fiscal problems.
-- he hasn't done that is done that yet.
More the point -- but it was due the first Monday February.
And he still has yet to deliver it.
I think that that the cynical observation would be he's playing politics he's waiting for Republicans ago -- can beat them up and then he'll do something later.
Whatever his motivations for delaying his budget are.
I hope that he begins to engage.
I think the charm offensive this.
Helpful the question is is it really well last.
If it is real and if it does less than I think we got a chance to getting.
Down payment on a problem fixed massive final until the immediate question I was asked what your plans for 2016 my plans are at work on this problem right I know I know it sounds like many of you thought at all about that but presidential race -- an occurrence -- is in the cards from.
I'm gonna take a look at this seriously later.
But the way I look at this as I should not be clouding my judgment in doing my job right now on the head of the Budget Committee ever present Wisconsin's first district.
And I should not be putting into my mind.
You know some kind of political consideration three and a half years down from now because I think that will cloud my judgment.
What I need to do is look at if the moment we have right now we're on the cusp of a debt crisis we have a fiscal problem we have an economic problem.
I need to focus on that united to make sure that -- make the right decisions for the right reasons on dealing with this issue.
Then when we dealt with that then I'm gonna give serious consideration of these other things but I for the life of me don't think I should be focused on some political promotion or whatever.
Down the road when I have an important -- job to do right now.
-- to say go badgers though right -- is go Packers don't think -- -- you know it's economics.
But the Big Ten as he had -- season and I go back to -- don't forget Marquette you know there there there -- -- that -- every -- yes and that and I nice to see it thank sir thanks for.
