Sarah Palin, the former governor of Alaska and the 2008 Republican Party vice presidential nominee, says she believes that the plan put forward by Wisconsin Republican Paul Ryan is the right way forward on America’s staggering debt.
Called the “Roadmap for America's Future,” the plan is important because it offers an alternative to the failed Obama Deficit Commission strategy, Palin wrote in an Op-Ed in The Wall Street Journal.
Palin says that something must be done to reverse rising spending put into place by the Obama administration, policies that would balloon the federal budget up to $5 trillion by 2020 from $3.5 trillion now.
“As early as 2025, federal revenue will barely be enough to pay for Social Security, Medicare, Medicaid and interest on our national debt,” Palin wrote.
“With spending structurally outpacing revenue, something clearly needs to be done to avert national bankruptcy.”
Palin singles out the commission’s unwillingness to undo Obama’s healthcare reform, raising again the specter of government decisions over life and death, driven by the overwhelming need to cut costs.
The Obama commission’s plan “implicitly endorses the use of ‘death panel’-like rationing by way of the new Independent Payments Advisory Board — making bureaucrats, not medical professionals, the ultimate arbiters of what types of treatment will (and especially will not) be reimbursed under Medicare,” Palin wrote.
“We need a better plan to build on these conclusions with common-sense reforms to tackle our long-term funding crisis in a sustainable way,” she wrote.
Ryan’s plan offers a more reliable exit from America’s debt problems by “encouraging personal responsibility and independence,” Palin argued.
For instance, instead of Obamacare, the Ryan plan would give people control over their own spending, in part by creating medical savings accounts and granting an opt-in healthcare tax credit.
Ryan’s plan also cuts “our high and anticompetitive corporate income tax” by creating a business consumption tax of 8.5 percent.
Overall, taxes would be limited to 19 percent of GDP and the plan would create a Medicare voucher for citizens under 55 to purchase their own care, Palin wrote.
Similar, the Ryan roadmap honors Social Security commitments by guaranteeing all existing rights to those over the age of 55.
Younger Americans can remain in the system or opt-out for a plan based on payroll taxes and paid into personal account, owned by them but managed by Social Security and guaranteed by the government.
Palin argues that the Ryan reforms, based on Congressional Budget Office (CBO) figures, slow the rise of U.S. debt, peaking at 99 percent in 2040 and then dropping back to 77 percent by 2060.
If nothing is done, debt hits 223 percent by 2040 and 433 percent by 2060, according to the CBO.
“Put simply: Our country is on the path toward bankruptcy. We must turn around before it's too late, and the roadmap offers a clear plan for doing so,” Palin wrote.
“Let's not settle for the big-government status quo, which is what the president's commission offers,” the former government wrote.
“We owe it to our children and grandchildren to make these tough decisions so that they might inherit a prosperous and strong America like the one we were given.”
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