On March 21, 2013 the House passed its (FY) 2014 (H. Con. Res. 25). Titled "The Path to Prosperity: A Responsible, Balanced Budget," the nonbinding $3.5 trillion resolution outlines spending and tax priorities for the appropriations process and tax-writing committees and projects a balanced budget by 2023.
The proposal includes plans for individual and corporate tax reform, reductions in discretionary spending, and significant changes to entitlements, including programs serving low-income individuals and seniors.
The House proposal's focus on spending cuts and deficit reduction is in stark contrast to the, which includes a mix of both revenue and spending cuts.
Read the IS statement on the House budget resolution.
Highlights of the FY 2014 House Budget Resolution
FY 2014 Budget Resolution - Top Line Snapshot
||Discretionary Spending (Base Outlays)
|FY 2014 House Budget Resolution
|Current Policy Baseline (FY 2014)||$3.6 trillion||$1.116 trillion||$608 billion|
The resolution assumes that the total $1.2 trillion in deficit savings from the automatic, across the board sequestration spending cuts remain in effect. However, it protects defense spending at the expense of non-defense programs by setting defense spending levels at the recommended Budget Control Act caps minus the impact of the sequester.
The resolution calls for comprehensive tax reform that simplifies the tax code and lowers rates for individuals and businesses by proposing:
The budget does not address the modification or elimination of tax deductions, including the charitable deduction, deferring instead to the House Ways and Means Committee to make decisions about tax expenditures as a part of comprehensive tax reform.
Entitlement / Mandatory Spending Reform
The resolution calls for a number of changes to entitlement programs that predominantly serve low income populations and seniors.
- Proposes converting Medicaid into a block grant program that would give states more flexibility to tailor their Medicaid programs to the specific needs of their residents, indexed for inflation and population growth.
- Assumes that the Patient Protection and Affordable Care Act's (PL 111-148) Medicaid expansion is repealed.
Supplemental Nutrition Assistance Program – SNAP (food stamps)
- Proposes gradually converting SNAP to a block grant program tailored to each state’s low-income population, indexed for inflation and eligibility while instituting new time limits and work requirements.
- Establishes a Medicare Exchange program to replace the current system beginning in 2024.
- Beginning in 2024, those born in 1959 or later will be given a choice of private plans competing alongside the traditional fee-for-service option within the Medicare Exchange
- Medicare would provide a premium support payment to either pay for or offset the premium cost of the plan chosen by the senior
- Calls for the Administration and Congress to submit proposals to provide long-term solutions for the solvency of Social Security
- Assumes the repeal of the Patient Protection and Affordable Care Act as part of long-term spending reductions and savings.