Republican budget proposal set to slow pace of government spending

House Republican budget guru Paul Ryan is busy shopping around his latest annual spending proposal, which, according to an interview he gave on Fox News this weekend, will contain a number of provisions that could make passage of a budget difficult in a divided Congress. This development further complicates the budget debate taking place this year and adds another layer of uncertainty to the economic health of the United States.

Most notably, the budget accounts for a repeal of the Affordable Care Act, known to its opponents as Obamacare. Critics argue that the healthcare system overhaul could add billions of dollars in additional government expenditures, especially considering the fact that the U.S. Department of Health and Human Resources will be responsible for establishing federally mandated insurance exchanges in a large number of states. Only a few, including California, have taken steps in establishing one of these insurance centers.

This element of the budget mirrors past proposals created by Ryan, including a provision that shifts $770 billion in Medicaid expansion grants from their current form to a block-funding system send directly to state governments. 

The initiative also calculates the expected gains from the $600 billion, 10-year tax hike that was put into law earlier this year as part of the fiscal cliff deal. Combined, the Ryan plan envisions a balanced budget within 10 years thanks to a so-called "slowdown" in government spending.

During the interview, the House Budget Committee chairman acknowledged the differences between his proposal and those submitted by the Obama administration.

"We come from very different perspectives. We exchanged very frank, candid views, which are very different," Ryan said in the interview, referring to recent negotiations with the committee's ranking Democrat, Rep. Chris Van Hollen of Maryland.

While it's unclear as to whether or not the Ryan budget proposal will pass, the differences between it and Democratic ideas suggest that the ongoing U.S. fiscal debate is far from over. Investors, therefore, may want to consider wealth preservation methods to financially protect themselves and their livelihoods from potential economy volatility. To learn more, visit and download a "Free Game Plan Report" today.