After two days of debate, the Republican-led House of Representatives passed Rep. Paul Ryan’s, R-Wisc., budget plan.
The vote fell mostly along party lines, 228-191, with no Democrats voting for the bill and 10 Republicans opposing it. The budget would cut domestic spending to levels not seen since the World War II era, reform the tax code, and change the way Medicare is implemented.
More specifically, Ryan’s budget would consolidate the six tax brackets that currently exist to two — 10% and 25% — and reduce the corporate tax rate to 25%. It would also fully repeal President Barack Obama’s health care bill and overhaul Medicare. Under the Republicans’ plan, Medicare would become a program that subsidizes senior citizens’ health care premiums, allowing to either buy traditional Medicare insurance or private health insurance.
Unfortunately for House Republicans, the Senate is controlled by the Democrats and this bill therefore has little chance to pass into law. That doesn’t seem to bother Republicans much. Both sides see this bill as a way of differentiating themselves from the opposing party. What effect this will have on the general elections come fall remains to be seen.
– Benjamin Nanamaker, InvestorPlace Money & Politics Editor
The opinions contained in this column are solely those of the writer.
Want to share your own views on money, politics and the 2012 elections? Drop us a line at email@example.com and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.