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House Approves Republican-Sponsored 2012 US Budget Plan

   Lisa Ferdinando | Capitol Hill  April 15, 2011
   House Speaker John Boehner during a news conference on Capitol Hill in
   Washington, April 15, 2011

Photo: AP

   House Speaker John Boehner during a news conference on Capitol Hill in
   Washington, April 15, 2011

   The Republican-controlled U.S. House of Representatives has passed a
   budget plan for 2012, which the majority party hailed as a proposal
   that saves taxpayer money and reforms government health and security
   programs for the elderly and the poor. But Democrats, including
   President Barack Obama, have been vocal in their opposition to the
   Republican-sponsored plan, saying it would destroy the Medicare program
   for the elderly and seriously affect other much-needed social programs.
   One day after approving a 2011 spending bill, Republicans and Democrats
   clashed over spending for the next fiscal year.
   The measure enjoyed overwhelming Republican support in the vote of 235
   to 193, with Democrats solidly opposed to it.
   The White House slammed it as a plan that places the burden of debt
   reduction on those who can least afford it, ends Medicare in its
   current form, while doubling health care costs for seniors in order to,
   in its words, "pay for more than a trillion dollars in tax cuts for
   millionaires and billionaires."
   Republican Representative Paul Ryan said the plan he crafted saves and
   repairs the social programs for the elderly and the poor and pays off
   the debt.
   "It gets the economy growing," said Ryan. "It keeps taxes where they
   are and prevents massive tax increases. It saves our Medicare, Medicaid
   programs. It fulfils the mission of health and retirement security for
   all Americans by guaranteeing that people who have retired or about to
   retire keep what they have, what they organized their lives around, and
   then reforms these programs so they are solvent and sustainable for the
   next generation."
   But Democrats had a much different view. House Minority Leader Nancy
   Pelosi said Democrats have offered a better alternative spending plan.
   She said big oil companies and wealthy Americans would enjoy tax breaks
   under the Republican budget and Medicare would be destroyed.
   "The Republican budget breaks the promise that this country has made to
   seniors, that after a lifetime of work they will be able to depend on
   Medicare to protect them in retirement," said Pelosi. "The plan here
   ends Medicare as we know it, and dramatically reduces benefits for
   seniors. It forces seniors to buy their insurance from the health
   insurance companies, where the average senior would force to pay twice
   as much for half the benefit, as much as, for some, $20,000 a year."
   Republicans say the budget plan aims to save at least $5 trillion over
   the next decade.
   Republican House Speaker John Boehner said the plan is a serious step
   forward. He charged that President Obama has failed to present a plan
   that would properly address debt and control spending.
   "This budget will bring more certainty to the American people, show the
   American people that we're serious about cutting spending because we
   all know that cutting spending will reduce some of the uncertainty that
   is causing job creators to sit our their hands," said Boehner.
   The bill changes the four-decade old Medicare system from a program
   that directly pays medical bills into one that provides recipients
   vouchers to purchase medical coverage from private insurers. It also
   sharply reduces funding for Medicaid, the joint federal and state
   health care program for the poor.
   Federal spending is expected to continue to dominate the debate in
   Washington, as the Republican plan is not expected to pass in the
   Democrat-controlled Senate.
   Congress also has to decide what to do about the nation's debt limit,
   which the country is quickly approaching.