Highlights of House GOP budget

AP News
Posted: Mar 29, 2012 6:48 PM
Highlights of House GOP budget

Highlights of the Republican budget passed by the House on Thursday:

_Envisions discretionary and mandatory spending of about $40 trillion over the next decade, $7 trillion less than spending projected in President Barack Obama's budget proposal. It cuts taxes by $2 trillion from what Obama proposed over that period, and cuts spending by $5.3 trillion from what the president sought.

_Would bring the annual federal deficit, now more than $1 trillion, down to about $287 billion in 2022. The president's budget sees the deficit falling to about $704 billion in 2022.

_Sets the ceiling for discretionary spending next year at $1.028 trillion. That's $19 billion under the ceiling set in the budget deal Congress reached with the White House last year.

_Extends the 2001 and 2003 Bush tax cuts. It repeals the alternative minimum tax and reduces tax brackets from the current six to two, at 10 percent and 25 percent. The top corporate tax rate is set at 25 percent. The measure calls for ending tax loopholes but does not specify which ones.

_Eliminates an automatic $50 billion cut in Pentagon spending in 2013, and sets the defense budget for next year at $554 billion.

_Repeals the 2010 health care act's planned expansion of Medicaid and converts the federal share of Medicaid spending into block grants to the states. The cumulative cost of Medicaid over the next decade would be reduced from more than $4 trillion to $3.4 trillion.

_The Supplemental Nutrition Assistance Program, or food stamps, is also converted to block grants. It sets a course for deep reductions in federal spending on highway and rail projects, research and aid to college students and assistance for farmers.

_Repeals the individual mandate and health insurance exchanges in the 2010 health care act.

_Starting in 2023, gradually increases the eligibility age for Medicare from 65 to 67. Future seniors would be able to choose between Medicare and private health care plans offered on a new Medicare exchange.