Washington--The U.S. House of Representatives began debate on House Continuing Resolution 34, the fiscal year 2012 budget resolution. The American Farm Bureau Federation has not taken a position on the budget or any of the substitutes.
The budget resolution would cut $6.2 trillion in government spending and reduce taxes by $4 trillion over the next 10 years. While the budget resolution assumes that certain program changes will be made, the recommended changes are not binding on the committees that will write the legislation that implements the budget targets. Descriptive text accompanying the resolution assumes that the next farm bill will achieve $30 billion in savings over 10 years.
Several of the high-profile assumptions made by the budget resolution include the adoption of trade agreements, turning Medicaid into a state block grant program, changing Medicare into a modified voucher program and repealing health care reform. It also assumes that the top individual income tax rate will be reduced to 25 percent and that estate taxes will continue with a $5 million exemption and 35 percent tax rate.