A True Roadmap to Fiscal Sustainability: The Numbers Don’t Lie

Kathryn Nix / February 01, 2010

During his State of the Union Address, Obama said that if “anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know.”  Earlier that day, Representative Paul Ryan (R-WI) introduced his Roadmap for America’s Future Act of 2010, which provides all of the above.

The Congressional Budget Office’s (CBO) analysis of Rep. Ryan’s legislation proves the plan would accomplish President Obama’s goals by reforming entitlements, reining in government spending, and setting the country on a long-term path to economic prosperity.

CBO found that the Roadmap would reduce Medicare and Medicaid spending, slightly increase Social Security spending, and lower tax revenues.  Overall, these changes would reduce federal budget deficits and the federal debt.  Federal outlays would decrease from 26 percent of Gross Domestic Product in 2009 to 19 percent in 2020 and eventually 14 percent in 2080.  After 2030, federal revenues would be maintained at 19 percent of GDP.  By 2080 the budget would experience a surplus of approximately 5 percent. (more…)