“Sen. Patty Murray’s new budget plan would cut annual deficits but still leaves the country with a $566 billion shortfall after 10 years. …
Assuming Murray succeeds in keeping her caucus largely in line and ushering the measure through the Senate, she will have an enormously challenging task of reconciling the plan with House Budget Committee Chairman Paul Ryan’s approach, who proposes no tax increases and calls for a dramatic overhaul of Medicare and Medicaid, as well as a repeal of the president’s health care law.
Ryan’s plan also projects the U.S. would carry a $7 billion budget surplus by 2023.
Murray argues that the sharp cuts in Ryan’s plan would harm economic growth, saying that it makes more sense to stabilize the debt in the long-term rather than balance the budget in just 10 years. Beginning in 2013, when the deficit is projected to account for 5.6 percent of GDP, the annual shortfall would be reduced to 2.2 percent by 2023, she said.
The major difference between the Ryan and Murray approaches has more to do with projected spending over the next 10 years, not revenue increases. Over 10 years, Murray’s plan would cumulatively spend $4.9 trillion more than Ryan’s proposal, according to budget documents. And while Ryan assumes no net tax increases in his proposal, Murray’s plan appears to call for less than one percentage point more in revenue than the Republican’s does as it relates to GDP.