Path to Prosperity: The New GOP Budget

It's the most predictable economic crisis in history. Driven by four consecutive years of trillion-dollar-plus deficits, the nation's publicly held debt is projected to reach 73 percent of the economy this year. Funding for Medicare, Social Security and portions of Medicaid consume 43 percent of federal spending and will rise to 54 percent in 10 years. The federal government is so enormous, it represents 24 percent of our total economy.

The American people know that Congress must act quickly and decisively to rein in explosive federal spending, or we will face steep economic decline that will make a relic of the prosperity our nation has enjoyed for generations.

For the second straight year, House Republicans have offered a disciplined, realistic plan to prevent the steadily approaching economic disaster. The 2013 budget resolution recently introduced and approved by the House Budget Committee on which I serve is called the "Path to Prosperity" for good reason. Our budget blueprint cuts spending by $5 trillion, restores fiscal discipline, and puts America on course to a balanced budget.

The serious, principled solutions we've presented would not only lower our crippling national debt but also grow the economy. Our outdated, overly complex tax code is an impediment to economic growth. The Republican budget would replace the broken tax system with a simplified structure containing just two tax brackets of 10 and 25 percent. We lower the corporate tax rate, taking it from one of the highest rates in the developed world to 25 percent -- putting American companies on a level playing field with foreign competitors. While President Obama's budget would stifle job creation by raising taxes, the Republican budget would spur economic growth by keeping taxes low but growing revenues by broadening the tax base and eliminating special-interest loopholes.

Even with a more efficient tax system, our economy will remain in jeopardy unless we reduce the national debt. With entitlement programs like Medicare, Medicaid and Social Security consuming an ever-increasing portion of government spending, it is impossible to tackle the debt without reforming these programs. The Path to Prosperity budget strengthens and saves these programs from bankruptcy without changing benefits for those at or near retirement. No one age 55 or older will see any changes to their benefits. However, future generations may have no benefits at all if we don't take action to reform the system.

In his own budget proposal, the president refused to show the political leadership necessary to address entitlement reform. Instead, the White House budget calls for $500 billion in cuts to defense spending. Numerous military leaders have publically stated that such broad, indiscriminate cuts would be devastating to our national security capabilities. The Republican budget takes a more responsible approach, protecting our defense capability and cutting wasteful spending in other parts of the bloated federal budget.

President Obama's budget is nothing but campaign propaganda that actually increases spending, raises taxes and never achieves balance. Senate Democrats haven't even produced a budget in almost three years. Only House Republicans have presented a plan that directly confronts the nation's urgent fiscal challenges.