Debra J. Saunders

The Ryan plan would curb Medicare costs two ways. The GOP would cap Medicare, which insures the elderly, as it would cap Medicaid, which insures the poor. Beginning in 2022, enrollees would receive subsidies to purchase private health insurance policies. Republicans believe seniors will purchase plans that encourage personal economies.

In the GOP's gutsiest move, wealthy seniors would receive a reduced subsidy. That's right: The Republicans have proposed some means-testing in Medicare.

"It was a good day for Democrats," J.B. Poersch, who is running a so-called independent expenditure campaign for Democrats, crowed to And: "This is a news flash for seniors. It's probably an overreach, and they are likely to pay politically."

Ryan does call for a reduction in the highest tax rate for families and corporations, but the GOP plan also calls for the elimination of the sort of loopholes that have enabled General Electric not to pay taxes last year. If done right -- a big if -- this approach could force some corporations to pay more taxes than they currently pay.

Critics are right to point out that the GOP plan fails to address the $14 trillion federal debt sufficiently because it includes no net tax increase and decreases taxes for the rich. The pure conservative response would be to argue that lower taxes create jobs and revenue. Some folks will bark and moan about how unsustainable the federal debt is -- right up until the moment they're expected to help pay for it.

Last month, Pimco's $236.9 billion Total Return Fund, the world's largest mutual fund, dumped its U.S. Treasury bonds. The fund's manager, Bill Gross, told The Washington Post's Jennifer Rubin that America has a year or two to change course or face a debt crisis on the magnitude of Greece's.

Ryan has presented a cohesive, respectable reform agenda that strives to fix Washington's most dire problems. Obama, Pelosi and Senate Majority Leader Reid can't say as much. They couldn't even pass a budget last year.

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Debra J. Saunders

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