Politics
Rep. Paul Ryan, R-Wisc., talks about an alternative Republican budget plan.  (AP Photo/J. Scott Applewhite) Rep. Paul Ryan, R-Wisc., talks about an alternative Republican budget plan. (AP Photo/J. Scott Applewhite)  

Heritage Foundation releases its own budget proposal

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Amanda Carey
Contributor

The conservative Heritage Foundation released its own plan to restore America’s fiscal future Tuesday. Titled “Saving the American Dream,” the plan is the latest conservative proposal on how to reduce spending and solve the debt crisis.

The proposal tackles entitlement reform and goes a step further than even House Budget Chairman Paul Ryan’s “Path to Prosperity” in many areas. It balances the federal budget within ten years with spending at no more than 18.5 percent of GDP, restructures the tax code and reduces the debt to 30 percent of GDP within 25 years.

When it comes to Social Security, “Saving the American Dream” doesn’t do away with entitlement program, but it does propose several significant changes. For starters, instead of being an income replacement system, recipients — those who have worked over 35 years — would receive a flat payment designed to keep them out of poverty.

Payments would also be adjusted to income. Senior citizens with incomes from other sources would get a smaller check, for example, while affluent retirees would not receive a check at all. According to the foundation’s Center for Data Analysis (CDA), the Social Security reforms will save $10.9 trillion by 2035.

Ryan’s plan, in contrast, doesn’t put forth a concrete plan to address Social Security reform.

The proposal also seeks to transform Medicare into a program more like the Federal Employees Health Benefits Program (FEHBP), where seniors enroll in the plan of their choice and then receive defined contributions.

Heritage also sets forth a sustainable, long-term budget plan for Medicare to ensure its stability for future retirees. The CDA projects the Medicare reforms will save $2.3 trillion by 2021.

On health care, the Heritage proposal starts by repealing the health care reform bill President Obama signed into law. In its place would be a non-refundable tax credit to help families purchase health plans. Employers and employees can also decide whether to continue with employer-purchased health plans, or cash out the coverage in exchange for a higher income.

Other major spending reforms in Heritage’s plan include returning non-defense discretionary spending back to 2008 levels, scaling back education spending, replacing farm subsidies with farm savings accounts and privatizing government-supported transportation.

  • Not Likely

    Does this one predict 2.8% unemployment as well?

  • http://www.facebook.com/people/Cindy-Chambers/1410382047 Cindy Chambers

    here is thier plan. So actually what they are saying, is that it would become a welfare plan. So if you don’t make much money, you would qualify? Yea I am sure that Americans are going to want to turn over thier money they have paid in all thier lives so that somebody else can retire on it. Don’t think so! In fact I know so!
    http://thehill.com/blogs/on-the-money/budget/160179-heritage-releases-budget-with-deeper-cuts-for-seniors

  • Pingback: Will Republicans turn to the Heritage Foundation to replace Ryan’s budget? : The Reid Report

  • DannyBJoyner

    I support the Heritage Foundation budget…any serious potential Republican candidate who wishes to lead our Republic would be wise to step up and embrace this plan immediately…the Heritage Foundation is representative of WE THE PEOPLE…This is a plan which has legs for the right Republican person to walk into the White House or United States Senate in 2012…our children and grandchildren’s Liberty & Freedom’s must be protected…. JOHN 3:16
    Drain the swamp in 2012
    Alabama Patriots

    • Mainstream America

      If a man commits adultery with another man’s wife both the adulterer and the adulteress must be put to death. Leviticus 20:10

    • doncicciofitipaldi

      …..YEP….representative of WE the IGNORANT REDNECK people in good ol’ alabamy. lol

      • ojfl

        donciccio,

        it seems you are one of those Americans who cannot stand people with different opinions than yours. Why denigrate the people from Alabama?

  • TrishaD

    We have GOT to do something and very, very soon! I admire all the people who work to come up with a plan because they are working on all the sacred cows (also known as sugar teets) that all of us have grown used to. I only wish I had received the opportunity to invest my Social Secuirity dollars myself – now all the funds have disappeared into the universal government pocket (aka stolen by politicians) At least my success or failure would be my own.

  • chicagochuck

    Just take anything that Steel says and reverse it. It should be more like Joe Steal anyway. I’m not crazy about this but its a start. Once the programs are reformed they should be sunsetted out as the failed experiment they are. People must have the opportunity to succeed or fail on their own.

  • virginiagentleman

    Everyone wants to ‘FIX’ the economy, short and long term. Some have proposed plans for the ‘Big Fix’. No matter how good the plan, no matter which side tenders it, it always ends up with the same basic stumbling block!… NO ONE IS WILLING TO GIVE UP THEIR PIECE OF THE ACTION!…With that attitude, well, Can it really be fixed?

  • Michael73501

    “Stupider”..?? Gotta love those illiterate detractors…lol !

    But… let’s see YOUR plan brainiac.

  • Joe Steel

    Wow! The Heritage Foundation puts out some bad ideas but this is even stupider than usual.

    • ojfl

      Why are they stupid Joe? It is easy to cast stones but not too easy to refute point-by-point.

      • http://www.facebook.com/people/Cindy-Chambers/1410382047 Cindy Chambers

        I can tell you why it is stupid, because it will not work. It states that those couples that makes over $110,00 would be phased out. Now how many Americans do you know that is going to pay in all thier lives just to turn around and give thier retirement to somebody else? Nobody will. Anybody thinks that $110,000 a year for a couple is big bucks, especially in this economy is out of thier ever loving mind. So when they rob the people to give to others, those people that they rob, will stop paying in any taxes, SS or medicare and how long do you think those SS checks are going to keep getting paid when they don’t have enough coming in? Only those that stand to benefit from it would be paying in. The rest of us would have to stop paying any kind of taxes so that we too would be able to retire. So there goes that idiotic theory!

        • ojfl

          Cindy,

          for too long we have been hearing about “shared sacrifices” but when it comes time no one makes those sacrifices. As one who would be affected by this US$110,000 cap I am OK with that. Over time taxes will be reduced as SS and Medicare taxes will not be needed in earnest. People have to understand either they forfeit SS and Medicare in the future or they simply have to pay much more to sustain those programs as we know them now. There is no escaping this reality. Someone needs to have courage to say it and Heritage is doing it. One needs to applaud them for that. Just this week the actuaries stated it again. There is not much time to fix these things.

    • fourleafclover

      What Heritage Foundation ideas do you consider bad and what exactly is stupid about their budget proposal? Obama’s budget is in dire straits ($1.6 trillion deficit) and can use some good ideas. What are your ideas?

    • brian61

      The government that robs Peter to pay Paul can always count on the support of Paul, and Joe Steal.