Think Ryan’s budget proposal really cuts spending? Think again. CATO’s Dan Mitchell demonstrates otherwise:
According to the new numbers released today, Congressman Ryan’s budget plan will result in government growing, on average, by almost 2.8 percent annually over the next 10 years.
President Obama’s budget plan, by contrast, would increase the burden of government spending by an average of nearly 4.7 percent each year.
This chart compares the two budget plans. Because Chairman Ryan does not let spending grow as rapidly, cumulative spending over that period will be $6.2 billion less than it would be based on the President’s plan. That’s an impressive amount of money that taxpayers will save if Ryan is successful, but it’s not a spending cut.
Let’s be clear: Ryan’s budget plan depends on growth in GDP, economic growth. Should those numbers go down, Ryan’s increases in spending will need to be revised downward further.