Republicans in the House are pushing an alternative budget plan that would cut income tax rates and radically overhaul the Medicare program providing health care to the elderly.
The plan unveiled Wednesday by Wisconsin GOP Rep. Paul Ryan also freezes overall spending on domestic programs and repeals most of the spending in President Barack Obama’s recently passed economic stimulus bill.
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Despite the spending reductions, the plan projects permanent deficits exceeding $500 billion into the future, fueled largely by big tax cuts.
The GOP plan would offer couples the option of a 10 percent rate on the first $100,000 of income, with a 25 percent rate thereafter. On Medicare, workers under the age of 55 would receive premium subsidies equal to the average Medicare benefit when they retire.
