DEFICIT: Obama proposes reducing deficits by $4 trillion over 12 years, with $3 trillion coming from spending reductions and $1 trillion from additional revenue. The president wants to resurrect a “trigger” that would enact automatic spending cuts if deficits haven’t stabilized by 2014.
Ryan’s budget proposes spending cuts of $5.8 trillion over 10 years.
MEDICARE & MEDICAID: Obama and Ryan want to squeeze significant savings out of the health care programs for the elderly, poor and disabled.
Obama would leave Medicare and Medicaid basically in their current forms, but cut at least $200 billion more from Medicare over 10 years and $100 billion from Medicaid. Obama lays out a mix of generalities and specifics on how to get there
Ryan would repeal Obama’s signature health care overhaul and recast Medicare and Medicaid, while cutting Medicare spending by an additional $30 billion over the $500 billion cuts in projected increases in the new health care law. People now 54 and younger would get a voucher-style federal payment to purchase coverage from private plans instead of the government making payments to health care providers for services to Medicare beneficiaries.
SOCIAL SECURITY: Both plans don’t touch Social Security, the politically sacrosanct retirement program for older Americans.
TAXES: Obama proposes an overhaul of the tax system that would eliminate tax breaks and loopholes and even lower some tax rates, resulting in $1 trillion in additional revenue.
Ryan’s budget would scrap numerous tax breaks and loopholes in exchange for reducing the top income tax rate for both individuals and corporations from 35 percent to 25 percent. He would extend the Bush-era tax breaks for all income levels.
Information source: Forbes