Romney Budget Proposals Would Necessitate Very Large Cuts in Medicaid, Education, Health Research
and Other Programs
Governor Mitt Romneys proposals to cap total federal spending at 20 percent of gross domestic product (GDP) and boost defense spending to 4 percent of GDP would require very large cuts in other programs, both entitlements and discretionary programs.
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For the most part, Governor Romney has not outlined cuts in specific programs. But if policymakers repealed health reform (the Affordable Care Act, or ACA) and exempted Social Security from cuts, as Romney has suggested, and cut Medicare, Medicaid, and all other entitlement and discretionary programs by the same percentage to meet Romneys overall spending cap and defense spending target, then they would have to cut non-defense programs other than Social Security by 22 percent in 2016 and 34 percent in 2022 (see Figure 1). If they exempted Medicare from cuts for this period, the cuts in other programs would have to be even more dramatic 32 percent in 2016 and 53 percent in 2022.
If they applied these cuts proportionately, the cuts in programs such as veterans disability compensation, Supplemental Security Income (SSI) for poor elderly and disabled individuals, the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), school lunches and other child nutrition programs, and unemployment compensation would cause the incomes of large numbers of households to fall below the poverty line. Many who already are poor would become poorer.
The cuts in nondefense discretionary programs a spending category that covers a wide variety of public services such as elementary and secondary education, law enforcement, veterans health care, environmental protection, and biomedical research would come on top ofthe substantial cuts in this part of the budget that are already in law, due to the discretionary funding caps in last years Budget Control Act (BCA). By 2022, the cuts under Governor Romneys budget proposals would shrink nondefense discretionary spending which, over the past 50 years, has averaged 3.9 percent of GDP and never fallen below 3.2 percent to 1.8 percent of GDP if Medicare shares in the cuts, and to 1.3 percent of GDP if it does not.
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