The House of Representatives set the bar for an upcoming debate on the 2012 budget by passing a $3.5 trillion federal bill on Friday that spends $179 billion less than President Barack Obama's proposal in February.
This budget will help job creation today, lift the crushing burden of debt that threatens our children's future, and preserve and protect programs like Medicare and Medicaid. Most importantly it shows families and businesses that we're serious about dealing with America's spending illness, House Speaker John Boehner said.
The [House Budget Committee Chairman Paul] Ryan budget sets the bar for the debate moving forward on the FY2012 budget as well as the debt ceiling. But unfortunately, we are the only ones in Washington offering serious solutions on these issues.
The bill passed strictly along partisan lines, on a vote of 235-193 with no Democratic Party support. It will now be considered by the Senate, which is controlled by Democrats but it's not likely to see a vote in its current form because of its future cuts and restructuring of federal health programs, along with cuts in other areas. President Barack Obama has called for a raise in tax levels for certain Americans earning more than $250,000 per year, a move the Republicans have opposed.
House Minority Leader Nancy Pelosi said the Republican plan has the wrong priorities-for our seniors and for all Americans.
She said it would end Medicare as we know it, give big tax breaks and subsidies to Big Oil, hurt our children's education, and gives tax breaks to America's wealthiest families.
That's just not fair. It is just not the American way, she said.
The bill's passage comes on the same day when President Barack Obama signed into law a bill that cuts $38.5 billion from the federal budget over the next five and a half months.
Republicans say the policies in the 2012 legislation they have proposed will cut $5.8 trillion in government spending over the next 10 years. Obama, this week said in a speech that he wanted $2 trillion in spending cuts over the next 12 years.
Under both plans, the federal debt will continue to increase by trillions of dollars through 2021. Under Obama's plan presented this week, the federal debt, currently at nearly $14.3 billion, will increase by $7.1 trillion. A Republican proposal increases the debt by $4.65 trillion.
The bill itself spends $3.529 billion, and takes in $2.533 trillion in taxes for a deficit of $995 million.
President Barack Obama's February proposal had $3.729 trillion in spending, $2.627 trillion in revenues and a $1.101 trillion deficit.