Ryan's proposal makes for a cute document but just scratches the surface of the impending US national bankruptcy.
The Federal budget can be simplified to four things:
1. Revenue (Taxes - interest on existing debt)
2. Entitlements
3. Defense
4. Discretionary
For decades we have selected the path of "having our cake and eating it too" by borrowing money so that we could avoid raising taxes and still get all the goodies in #2, #3, and #4.
Republican stance:
We do not want more taxes to pay for #2, #3, and #4 so we have to slash and burn (and borrow more money)
If we are going to slash and burn, defense cannot be a sacred cow as it always has been. We cannot afford to be the world cop. We cannot afford a defense budget larger than the rest of the world combined.
Democrat stance:
We need it all and even more. We need a combination of raising taxes and borrowing.
To do this, you can tax individuals or corporations. Corporations pack up and leave and raise prices. Individuals moan and groan.
