Issue Papers Update Feb 2012

8/2/2019 Issue Papers Update Feb 2012

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U.S. Congressman

Paul Ryan

Serving the First District of Wisconsin February 2012

DearFriend,

Iampleasedtosharewithyounewinformationonlegislation,program

s,andpoliciesthataffectyouasanindividualand

alsoaffectallofuswholiveinSouthernWisconsin. Thetopicsofthe

enclosedreportsarebasedonareasofinterestthat

youpreviouslyindicatedareofimportancetoyou.

Keepingyouadvisedofthemostrecentdevelopmentsindomesticandinternationalpolicyisextremelyimportant,an

d

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PaulRyan

ServingWisconsins1stDistrict

congressional Issue papers


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AGRICULTURE

Wisconsin has justifiably been nicknamed AmericasDairyland in 2010, the United States Department

of Agriculture reported 78,000 farms statewide, 99%of which are family-owned. The importance ofagriculture to Wisconsin cannot be understated; the

industry provides more than 10% of the statesemployment and generates $59.2 billion in economic

activity annually. Milk, corn, cattle, and soybeans arejust a few of the products that come from the morethan 15 million acres of farmland in Wisconsin.

Appropriations

On June 16, 2011, the House passed H.R.2112, theAgriculture Appropriations bill of 2012. Thelegislation funds the programs within the United

States Department of Agriculture (USDA) andrelated agencies at a cost of $125.5 billion. The bill

passed with my support by a vote of 217 203. OnNovember 17, the House considered the conferencereport to H.R.2112 a new bill reflecting changes

passed in the Senate. The conference report passedby a vote of 298 121 and was signed into law onNovember 18, 2011. The bill, which reduces

discretionary spending by $2.7 billion from 2010,aims to reduce government spending whilecontinuing to provide funding for the necessary

programs that keep American agriculturecompetitive worldwide.

Farm Bill

The Farm Bill, which is comprised of both the cropinsurance and food stamp programs, was signed into

law on June 18, 2008, and the majority of theprovisions extend through 2012. It is my belief thatthis bill should be designed to assist family farmers

in times of need, rather than directing subsidies tolarge, corporate farming operations. The UnitedStates ought to have the ability to export our

agricultural products, and I remain committed toensuring that American farmers are provided withthe necessary resources to compete on the

international market. I am hopeful that thereauthorization will be considered this year.

Free Trade Agreements

On October 12, 2011, Free Trade Agreements (FTAs)with Panama, Columbia and South Korea were

signed into law. These agreements mark animportant step in keeping American jobs at homeand increasing American competitiveness

worldwide. Unemployment has hovered at 8% and

many manufacturing plants in Southern Wisconsinhave closed or experienced mass layoffs. The goal of

promoting market access for American farmers,entrepreneurs, and manufacturers is a goal that bothRepublicans and Democrats can and should share,

and the bipartisan passage of these FTAs will spureconomic growth and create jobs that are neededduring these difficult times.

Congressman Paul RyanISSUE PAPERS2

TABLE OF CONTENTS

AGRICULTURE . . . . . . . . . . . . . . . . . . . . . . . 2

BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . 6

ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . 11

HEALTH CARE . . . . . . . . . . . . . . . . . . . . . . 12

IMMIGRATION . . . . . . . . . . . . . . . . . . . . . . 15

JOBS & ECONOMY . . . . . . . . . . . . . . . . . . . 17

MEDICARE . . . . . . . . . . . . . . . . . . . . . . . . . 19

SOCIAL SECURITY . . . . . . . . . . . . . . . . . . . 23

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

WAR ON TERROR / HOMELAND SECURITY . . 27

VETERANS & MILITARY . . . . . . . . . . . . . . . 29


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While each of the three recently passed FTAs willserve to increase American competitiveness abroad,the Columbia FTA in particular marks an important

market opportunity for farmers and ranchers. In2010, the United States exported $832 million ofagricultural products to Columbia, including wheat,

corn, cotton and soybeans. This was the secondhighest export total of agricultural products in SouthAmerica. The Columbia FTA immediately eliminated

duties on 77% of U.S. farm exports, and within thenext ten years, over 90% of all tariffs on U.S. farmexports will be eliminated. As a result of the passage

of this FTA, American farmers and ranchers now

enjoy fewer barriers to entry of the Columbia exportmarket.

Immigration

Immigration policy has a direct impact on

agricultural employment in Wisconsin. Farmers havehistorically relied on seasonal labor to assist withfarm work; due to a lack of seasonal H-2B visas,

some businesses have faced annual labor shortfalls.Reforms to immigration policy ought to includeexpanding access to visas for seasonal and temporary

labor as well as a temporary guest worker program,complete with an employee verification system thatallows employers to verify the legal status of their

employees.

By providing a method to legally link employers with

immigrant workers, we would relieve pressure on theborders from people who attempt to immigrate tothe United States in search of employment. In turn,

government agencies would have the ability to more

effectively allocate resources to illegal andunauthorized aliens who mean to do us harm

criminals, terrorists, and drug smugglers.

Regulation Rush from Washington

Regulations coming out of Washington continue tostifle economic development in the agriculturalindustry. Overreaching legislation removes

regulatory certainty and directs manpower towardburdensome compliance and away from agricultural

advancement. As bills come to the floor for a vote,please rest assured that I am committed topromoting an environment of economic growth

within the agricultural industry.

For example, on December 8, 2011, I voted in favor

of H.R.1633, the Farm Dust Regulation PreventionAct, which prevents the EPA from revising standardson dust. Dust is generated naturally from agricultural

activity and consists primarily of soil and naturalmaterials; government regulation thereof wouldmark another unnecessary regulation that prevents

farmers and ranchers from growing their businesses

and creating necessary jobs in these hard economictimes. Despite passing with bipartisan support, the

bill has yet to be acted upon in the Senate, and awaitsdebate in the Senate Committee on Environment andPublic Works.

Dodd-Frank

The Dodd-Frank Wall Street Reform and Consumer

Protection Act, which was signed into law in July2010, is a lengthy and complex law designed toimplement wide reaching financial regulatory

reform.

Unfortunately, the overhaul involves radical changes

to financial regulation changes that will affect everyfeature of our financial-services industry, increase thepower of current financial regulatory agencies, and

create new ones. Dodd-Frank promotes the rule ofbureaucrats to our economic detriment and has hadnegative impacts on the agricultural industry.

House Agriculture Committee Chairman FrankLucas has proposed changes to the Dodd-Frank

regulation, which would relieve the industry fromburdensome regulation. As the committee continuesto consider these proposals, I will remain vigilant in

monitoring their development as it relates to farmersin the First District of Wisconsin.

MF Global Bankruptcy

The recent bankruptcy of MF Global has affected

paulryan.house.gov ISSUE PAPERS 3


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both individual and corporate agricultural producersacross the nation. While much of the vitalinformation remains unclear, guaranteed customer

segregated funds have been depleted. On December8, 2011, the Agriculture Committee held a fullcommittee hearing on the Examination of the MF

Global Bankruptcy, expressing that the primary aimof the hearing and ongoing investigation is to ensuremissing customer funds are returned and that

confidence is restored in futures markets. As theinvestigation continues, I will monitor ongoingdevelopments in the interest of ensuring that the

residents of the First District have their accounts

restored.

Conclusion

Agriculture is a cornerstone of both Wisconsinsculture and economy. As I continue to work with my

colleagues on the important issues facing the 112thCongress, please rest assured that providing farmerswith a competitive international position and the

continued ability to create jobs statewide remain myprimary concerns.

BUDGET

Southern Wisconsins families continue to work hardto make ends meet in an uncertain economy. Theunemployment rate in Wisconsin is high at 7.1

percent, while the national unemployment rate is 8.3percent. The manufacturing sector the cornerstoneof Wisconsins economy for generations is still

struggling to create and keep jobs. While private

sector unemployment has decreased, the size andscope of the federal government workforce has

expanded dramatically. Congress needs to place toppriority on job creation and controlling federalspending, including the severe problems that lie

ahead if we do not strengthen Medicare and SocialSecurity. With 10,000 baby boomers retiring everyday, these programs continue to take up a larger

portion of our budget each year, and threaten tocrowd out other government spending and hurt our

economy if left unaddressed. As Chairman of theHouse Budget Committee, I have a responsibility tohelp improve accountability, to monitor federal

spending, and to prevent taxpayer money from beingwasted and misspent, while putting forward long-term solutions to our entitlement crisis. If families

across the country can tighten their belts and cutspending, so can our federal government.

Increasing Federal Spending, Rising Deficits,

Mounting National Debt, More Tax Increases: Lastyear, the House pass the budget for Fiscal Year (FY)

2012, The Path to Prosperity. Unfortunately, it has

been over 1000 days since the Senate Majorityintroduced or passed a budget. Because of this, the

Federal government continues to operate without abudget. Families and businesses do not budget inthis irresponsible, on-the-fly manner, and as

Chairman of the House Budget Committee, I willlead efforts to return to a normal and accountablebudget process.

The Presidents budget proposal for Fiscal Year

(FY) 2012: Strong leadership is needed in the White

House, but despite repeated acknowledgments of thegravity of the Federal Governments fiscal outlook,the President seems to have ignored the warnings of

his own experts and punted on this years budget.The budget proposal he submitted to Congress last

year continues down the same unsustainable path:

doubling the size of government since the Presidenttook office, imposing $1.6 trillion in new taxes onfamilies, small businesses and job creators and

tripling the debt since the President was elected. This

crushing burden of debt is holding back economicgrowth. President Obamas budget was defeated by a

vote of 0 to 97 in the Senate. He is expected to putforward his budget proposal for FY2013 in the nearfuture. I remain hopeful that he will work with

Congress to address these important challengesfacing our country.

Path to Prosperity

House Republicans have pledged to lead where the



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President has failed. The budget advanced by theHouse of Representatives on April 15, 2011 helpsspur job creation today; stops spending money the

government does not have, and lifts the crushingburden of debt. The Path to Prosperity puts thebudget on the path to balance and the economy on

the path to prosperity. Specifically the budget:

Promotes Economic Growth and Job Creation

The Path to Prosperity fosters a betterenvironment for private-sector job creations bylifting the debt-fueled uncertainty and

advancing pro-growth tax reforms.

Contains Spending Cuts and Controls TheBudget stops Washington from spending money

it does not have on government programs thatdo not work. It locks in spending cuts withenforceable spending controls.

Promotes Real Security The budget fulfills themission of health and retirement security for allAmericans by making the tough decisions

necessary to save critical health and retirementprograms while making no changes for those inand near retirement.

Advances Patient Centered Health Care ThePath to Prosperity repeals and defunds thePresidents health care law, advancing instead

common-sense solutions focused on loweringcosts, expanding access and protecting thedoctor-patient relationship as the nucleus of

health care. Restores Americas Exceptional Promise The

budget tackles the existential threat posed by

rapidly growing government and debt, applying

the nations timeless principles to thisgenerations greatest challenge. It ensures that

the next generation inherits a stronger, moreprosperous America.

It is unconscionable to leave the next generation witha crushing burden of debt and a nation in decline.The budget I passed offers the nation a model of

government that is guided by the timeless principlesof the American idea: free-market democracy, open

competition, a robust private sector bound by rulesof honesty and fairness, a secure safety net, and equalopportunity for all under a limited constitutional

government of popular consent. I am committed todo the same this year when I put forward our budgetfor FY2013.

A Down Payment on the Nations Debt

The total debt surpassed its $14.29 trillion statutory

debt limit in May, and Treasury Secretary TimothyGeithner alerted Congress that the US would exhaustits borrowing authority under the debt limit by

August 2 unless Congress passed legislation to

increase the statutory debt limit. Most policy makersand economists agreed that if the debt limit was not

raised, the federal government would not be able topay its obligations such as defense operations,Medicare reimbursements, and Social Security

checks possibly triggering a default, which couldresult in a diminished credit rating, higher interestrates and a decreased value of the dollar. According

to the nonpartisan Congressional Research Service,this would risk causing serious negativerepercussions for the economies and financial

markets around the world.

Nobody wants the US to default on its obligations,

but at the same time, we cannot just rubber stamp adebt limit increase. For this reason, the HouseMajority, including myself, committed to passing

legislation that would (1) cut government spendingby more than any increase in the debt limit, (2)ensure taxes are not raised on Americas job creators

and families during these difficult economic times,

and (3) require a vote on a Balanced BudgetAmendment to the Constitution. The Budget

Control Act of 2011 passed the House and the Senatewith bipartisan support and addressed each of theserequirements. The law would create and enforce

discretionary spending caps to cut and restrainspending over the next ten years, provide amechanism for increasing the debt limit in two steps

subject to Congressional approval and more than adollar in spending cuts for each dollar that is



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borrowed cut establish a Joint Committee toproduce deficit reduction legislation providing foracross the board spending cuts equal to the amount

of a debt limit increase if the Joint Committeeslegislation is not enacted or falls short of the debtlimit increase amount. In FY 2012, this law cuts the

budget deficit by $21 billion and by a total of $2.11trillion over the next 10 years. More recently, onboth September 22, 2011 and January 12, 2012, the

President triggered through a presidentialcertification to increase the debt limit. As allowed bythe Budget Control Act, the House passed legislation

disapproving these debt limit increases but because

the Senate took no action on this legislation and itwas not signed into law within 15 days of the

Presidential trigger, the debt limit increases wereallowed to proceed. I voted to disapprove these debtlimit increases.

While far from perfect, the Budget Control Actachieves two-thirds of the discretionary spending

cuts called for in the House-passed budget andestablishes in law binding caps on governmentagency spending. Both parties also worked together

to establish a clear precedent that any future debtlimit increases must be matched by an even larger cutin government spending. In addition to nearly $1

trillion in spending cuts signed into law, a processhas been established to achieve even more savingslater this year. I supported this law because it would

cut government spending, avoid default and helpcreate a better environment for job creation.

Fixing the Broken Budget Process

Our debt is the product of massive spendingincreases that occurred under many Presidents and

many Congresses over many years. The budgetprocess is broken and is leading to runaway spendingand mounting debt. The Senate Majority has

ignored the budget process altogether and failed topass a budget in over 1000 days. In addition, over 60percent of the budget is on automatic pilot and lies

outside the regular control of Congress.

It is important to fix these failures of our currentbudget process with detailed proposals so we can getour spending and debt under control. To do this,

members of the House Budget Committeeintroduced a series of reform bills designed tostreamline the budget process and give policymakers

new tools to bring spending under control, toenhance oversight, and to increase transparency inthe budget process. These bills propose spending

caps, regular review of government programs, andgovernment shutdown prevention measures.

One of these bills is H.R. 3521, the Expedited Line-

Item Veto and Rescissions Act of 2011, whichRepresentative Chris Van Hollen (D-MD) and I

introduced on November 30, 2011. This bipartisanbill would allow the President to identify individualspending items contained within an appropriations

bill and send them back to Congress for an up-and-down vote, without affecting the remaining items inthe original bill. This bipartisan initiative would give

the President a tool to go after unjustified spending,while also protecting Congresss constitutionalauthority to make spending decisions.

In order for budget process reform to work,Members of Congress must have the will to make it

work. There is no procedural reform that candisplace the need for political courage and principledleadership to get the governments fiscal house in

order. The nations leaders owe it to the country tooffer bold solutions within that process to tackle thedrivers of the debt, putting the budget back on the

path to balance and the economy on the path to

prosperity.

EDUCATION

Education serves an important role in the lives ofindividuals nationwide and has a direct impact onthe overall success of our society. The commitment

to ensuring an effective educational system has beenreflected by the Department of Education spending



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increases over the past ten years. It is imperative thatwe allocate our limited financial resources effectivelyand efficiently to noticeably improve education and

ensure the continued success of future generations ofAmericans.

H.R. 2055 Consolidated Appropriations Act

The H.R.2055 conference report a new billreflecting changes passed in the Senate passed on

December 16, 2011, and provides a total of $71.3billion for the Department of Education. Thisfunding level includes $14.5 billion for Title I Grants

to local school districts, a continuation of the current

maximum Pell Grant level of $5,550, and $11.6billion for Special Education programs. The bill

eliminates funding for the Race to the Topinitiative. This bill provides the Department ofEducation with the necessary resources to continue

to ensure an effective educational system nationwide.

The bill funds the Department of Education at a

reduction of $153 million below Fiscal Year 2011.While the federal government can and should setbench markers for educational success, increases in

spending have not correlated with rising academicsuccess; spending more money has not guaranteeimproved results. The education of an individual

student can be centered on the academic institutionsand educators available; however, without thesupport system of parents, family and community

mentors, the educational system in this country willcontinue to fall short of expectation. Rather thanrelying on the federal government to ensure that

students are given the capability to fulfill their

potential, education ought to instead be governed bystate and local boards more ably qualified to

determine student need.

Elementary and Secondary Education Act (ESEA)

Reauthorization

The No Child Left Behind Act (NCLB) of 2001reauthorized virtually all ESEA programs through

2008. On June 16, 2011, H.R.2218, the EmpoweringParents through Quality Charter Schools Act was

introduced. The bill would modify the existingCharter Schools Program, Per-Pupil Facilities Aidprogram, and Credit Enhancement Initiatives to

Assist Charter School Facility Acquisition,Construction and Renovation program currentlyauthorized under ESEA. Substantial changes would

be made to Title V-B-1 and 2, while preserving manyof the provisions of the current law. The bill waspassed in the House on September 13, 2011 and was

referred to the Senate Committee on Health,Education, Labor and Pensions where it awaitsdebate.

A-PLUSThe Elementary and Secondary Education Act first

passed in Congress in 1965. The most recentreauthorization No Child Left Behind (NCLB) increased federal funding from K-12 education and

established new requirements for state and localschool systems nationwide. Despite spending nearly$2 trillion, there have been few demonstrable

improvements to educational outcomes.

Introduced by Representative Bishop (R-UT) in July

2011, H.R.2514, the Academic Partnerships Lead Usto Success (A-PLUS) Act, would allow states to optout of NCLB, giving them greater flexibility to

appropriately meet state educational needs. With theapproval of at least two of three state entities(Governor, State Legislature, state education agency),

states would enter into a five-year performanceagreement with the Secretary of Education andwould be required to demonstrate uniform increased

academic achievement as well as provide

disaggregated performance data from variousdemographic groups.

A-PLUS limits federal influence over state educationprograms and provides relief from the imposition of

NCLBs top-down reform policies, and I have signedon as a co-sponsor of this bill. Most recently, it hasbeen referred to the House Committee on Education

and the Workforce where it awaits debate.



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DREAM Act

The Development, Relief and Education for AlienMinors (DREAM) Act, H.R. 1842 in the 112th

Congress, has been introduced several times in recentyears. This bill amends the Illegal ImmigrationReform and Immigrant Responsibility Act of 1996 to

permit states to determine state residency for thepurpose of higher education benefits. Additionally, itgrants conditional permanent residency to

undocumented students who entered the UnitedStates as children. While the DREAM Act has beenpromoted as an alternative to comprehensive reform,

and I understand the points that DREAM Act

supporters have raised, I believe this legislationattempts to treat a symptom rather than the root

cause of our current problems. We must first securethe border and stem the flow of illegal immigration,and then work to increase legal immigration through

an enforceable guest worker program and bydeveloping a more secure employee verificationsystem. I believe it would be a serious mistake to

pursue piecemeal reforms like the DREAM Actwithout first putting in place these fundamentalcomponents of immigration reform.

Conclusion

As the 112th Congress continues to consider

legislation that affects education, please rest assuredthat I remain committed to ensuring that we have anefficient educational system that makes appropriate

use of taxpayer dollars as we aim to serve theindividual needs of our children and students. BothRepublicans and Democrats alike can and should

share the bipartisan goal of ensuring that educational

opportunities adequately prepare future generationsof America to support not only themselves, but to

contribute to the continued academic and economicsuccess of our nation.

ENERGY

The economic well-being of the United States andthe livelihood and safety of our citizens is largely

dependent on maintaining a strong energy supply.We depend on electricity to light our homes andbusinesses, natural gas to heat them, and gasoline to

operate the cars and trucks that carry us to work andtransport our goods. Because of the vital role ofenergy in our daily lives, we must continue to

develop new sources of energy that are reliable,renewable, affordable and environmentally safe.

The Path to Prosperity

The Path to Prosperity, the budget resolution that Iauthored, calls for getting Washington out of the

business of picking winners and losers in the

economy and that includes our energy sector. Lookno further than the bankruptcy of Solyndra, a

company that was once the poster child for theAdministrations green jobs initiative, to see anexample of the failure of Administrations economic

policies. Having Washington pick winners andlosers in the marketplace only further distorts themarket, weakens the rule of law, and ultimately, fails

to spur sustainable job creation.

Rather than helping politically connected firms at the

expense of others, Congress should be advancingcomprehensive policies that benefit all job creatorsand entrepreneurs. The best energy policy is one that

encourages robust competition and innovation toensure that the American people have access to anaffordable and stable energy supply. This is exactly

what the House-passed budget does. The Path toProsperity eliminates crony capitalism through thetax code, advances pro-growth reforms aimed to

boost job creation and lower gas prices.

It calls for fundamental, revenue-neutral tax

reform that would scale back or eliminate thedeductions, loopholes and carve-outs that aredistorting the tax code. It seeks to end the

current tax discrimination and treat large andsmall businesses alike. It lowers the corporaterate to 25 percent for all job creators so that

U.S. businesses no longer have to labor underthe second highest corporate tax rate in the



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gasoline while not undermining U.S. automanufacturers. It is my hope that Congress will passlegislation that will reduce energy consumption in an

efficient manner, protecting our domestic autoindustry and ensuring lower energy prices forconsumers.

Domestic Production

America has an abundance of domestic resources

including natural gas and oil in the Arctic NationalWildlife Refuge, oil shale in the Rocky Mountainregion, and a variety of alternative sources. A top

priority of the 112th Congress must be to unleash the

potential of domestic production of Americanmadeenergy in an environmentally-conscious manner. We

can do this while simultaneously improvinginfrastructure and creating jobs by allowing the useof royalties paid by energy companies to repair roads

and bridges. At a fundamental level, the cause ofexpensive gasoline is an imbalance between supplyand demand. Our society continues to demand

more gasoline, but we have not increased thedomestic supply of crude oil or finished gasoline.Increasing supply at home will not only help lower

fuel prices and create good paying jobs, but it willreduce our reliance on foreign oil from hostilenations such as Iran and Venezuela.

To this point, House Republicans are committed toadvancing proposals to increase Americanmade

energy. A variety of bills have passed the House andare awaiting further action in the Senate including:

H.R. 2021 the Jobs and Energy Permitting Act

H.R. 1938 the North American- Made EnergySecurity Act

H.R. 910 the Energy Tax Prevention Act

Keystone XL Pipeline Decision

Last July, the House passed H.R. 1938, the NorthAmerican-Made Energy Security Act, which directedthe President to issue a final order granting or

denying the permit for the Keystone XL pipeline.The pipeline would connect the tar oil sands in

Alberta, Canada to the US Gulf Coast. Estimatesindicate that this could enhance early energy capacityto oil refineries in the Midwest and Gulf Coast by

700,000 barrels per day. Despite passing the Housewith bipartisan support and estimates that theproject will create tens of thousands high-quality,

good-paying construction jobs in addition to severalthousand more spin off jobs, the Democrat-controlled Senate never took up the bill, and on

November 10, 2011, the Obama Administrationannounced that no decision would be made on thelong-sought pipeline until 2013, conveniently after

the next Presidential election.

As part of the Temporary Payroll Tax Cut

Continuation Act, which was agreed to in December,President Obama is required to issue a permit for theKeystone XL pipeline within 60 days by February

2012 - unless he determines that the pipeline wouldnot serve the national interest. Should PresidentObama decide that this is the case, he is required to

submit to Congress a report detailing his justificationfor this decision.

On January 18, 2012, President Obama rejected theKeystone XL pipeline saying: This announcement isnot a judgment on the merits of the pipeline, but the

arbitrary nature of a deadline that prevented theState Department from gathering the informationnecessary to approve the project and protect the

American people. There was nothing arbitrary inthe deadline given to the President. This project hasbeen in the works for several years, and I am

disappointed that the President decided this job

creating proposal was not in the nations bestinterest. I look forward to working with Members of

Congress to find ways to move forward on thisproposal which will not only lessen our dependenceon Middle Eastern oil but also create thousands of

American jobs.



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ENVIRONMENT

As an avid outdoorsman, a clean environment and

strong conservation programs are of the utmostconcern to me. Protecting the environment can gohand in hand with our efforts to expand our

economy. I am working with my colleagues inCongress to develop legislation that is based onsound science and will continue our efforts to

maintain and strengthen our environment. One ofmy top priorities is that we continue to balancegrowth with stewardship. By reducing rates of

pollution in more cost-effective manners, we can

ensure that our green policies are economically andenvironmentally sound.

Path to Prosperity

Spending on programs contained in the Natural

Resources and Environment portion of the Budget,which includes departments and agencies like theNational Park Service, the Bureau of Land

Management, the Bureau of Reclamation, the Fishand Wildlife Agency, and conservation orientatedand land management agencies within the USDA,

Department of Commerce, Corps of Engineers, andEPA, has increased by 45 percent since the start of thecurrent Administration. The House-passed budget

recognizes the importance of these activities, whichincludes overseeing water resources, conservation,land management, and recreational resources.

However, bigger government has not equated tobetter government, and it has only led to duplication,waste, and mismanagement.

Asian CarpMany catfish farms began using Asian carp in the

1970s as a means of effectively removing algae andother build-up affecting overall pond function.Unfortunately, due to the large flooding in the area

during the 1990s, many of the catfish farm pondsoverflowed and released the Asian carp into nearbystreams and the Mississippi River Basin. The carp

have since made their way up the Mississippi River,

competing with indigenous fish for resources andendangering local ecosystems.

Congress has already acted on this issue and isworking with the Corps in association with the GreatLakes Regional Collaboration to provide funding and

assistance for mitigating the effects that Asian carpare having on the Great Lakes.

Beginning in 2002, the Corps began construction ona temporary electric barrier as a means to slow thespread of the Asian carp. This barrier, which was

built and activated in the Chicago Sanitary and Ship

Canal, emits a pulsating current into the water thatcauses the Asian carp to turn back rather than

continue upstream and into the Great Lakes Basin.This barrier has proven to be effective at controllingthe spread of the fish, and in 2004, Congress acted

with my support to authorize $6.8 million toconstruct a permanent barrier.

I have continued to support this important, multi-state project and have signed several letters to thatextent. Protecting the Great Lakes from this

aggressive invasive species is extremely importantfrom both an ecological and economic perspective.

While the electronic barrier is a good first step, it isclear that more must be done. Knowing theimportance of this issue for the Great Lakes Region, I

signed onto a Great Lakes Task Force letter asking forthe U.S. Department of the Army, the EnvironmentalProtection Agency, the Coast Guard, and the U.S.

Fish and Wildlife Service to further examine the ways

to ensure that Asian Carp do not make it above theelectric dispersal barrier in the Chicago Sanitary and

Shipping Canal and eventually the Great Lakes. Thisletter looked at the feasibility of using piscicides aspart of a rapid response measure, creating a

permanent hydrological separation, increasing thevoltage of the current eclectic dispersal barrier, andclosing the OBrien and Chicago Locks if there is a

reasonable likelihood that Asian Carp have migratedabove the barrier.



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The Army Corps of Engineers has completed workon the Des Plaines River Bypass Risk ReductionBarricade, a 13-mile long fence, designed to reduce

the risk of invasive species, such as Asian carp, beingswept into the Chicago Sanitary and Ship Canalduring heavy rainfall. Rest assured that as Congress

continues to examine the ramifications of Asian Carpand possible solutions, I will continue to be activelyengaged in this issue.

Protecting the Great Lakes

The Great Lakes are one of Wisconsins greatest

natural resources. They contain nearly 20 percent of

the worlds freshwater and supply more than 30million Americans with their daily drinking water. It

is absolutely essential that we make every effort toprotect this treasured resource for future generationsof Wisconsinites.

In 2004, President Bush established a Great LakesInteragency Task Force chaired by the EPA that

would develop a strategy guiding federal Great Lakesprotection and restoration efforts. During debate onthe FY2012 Interior Appropriations legislation, I

supported several amendments restoring funding tothe Great Lakes Restoration Initiative. As you mayknow, the Great Lakes Restoration Initiative is

charged with cleaning up toxins and areas ofconcerns, combating invasive species, promotinghealthy waterways, restoring wetlands and other

habitats, and working with a variety of partners toprotect and preserve the Great Lakes.

Wolf Management

On April 27, 2010, the Wisconsin Department ofNatural Resources formally requested that the gray

wolf be removed from the endangered species list,due in part to the growing number of gray wolfattacks on Wisconsin livestock and other animals,

like hunting dogs. I fully supported this decision bythe state and joined the Wisconsin delegation insending a letter to the U.S. Fish and Wildlife Service

voicing that support.

In Wisconsin, the population of the gray wolfcontinues to grow and is no longer in danger ofextinction. In fact, Wisconsin has approximately 800

wolves, which is far more than the Wisconsin WolfManagement Plans goal of 350 and the federalrecovery goal.

I was pleased to see that in late December Secretaryof the Interior, Ken Salazar, announced that the gray

wolf no longer requires the protection of theEndangered Species Act in the Great Lakes Region.The U.S. Fish and Wildlife Service has published a

final rule removing wolves in Michigan, Minnesota,

Wisconsin, and portions of adjoining states from thelist.

Sportsmans Issues

During the 112th Congress, I serve as an active

member of the Congressional Sportsmens Caucus. Iam happy to serve in this capacity and believe insupporting policies that help sportsmen and women.

Consisting of more than 300 members of Congress,the Caucus promotes and helps pass legislation thataffects sportsmen. This includes issues related to

conservation efforts, gun rights, and other fishingand hunting-related concerns.

HEALTH CARE

The Presidents Health Care Law

During the first weeks of the 112th Congress,Republicans took the first steps to control

Washingtons reckless spending spree by rolling back

the Presidents fiscally irresponsible health care law.Businesses, policy experts, and government actuaries

have confirmed what the country already knew: thislaw spends trillions of dollars that we dont have,raises taxes on workers, businesses and families, and

puts the federal government squarely in the middleof health-care decisions.

Budgetary smoke and mirrors were used to claim thisplan would reduce the deficit. The law relies on 10



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years of tax increases to pay for six years of newspending. It double-counts nearly $682 billion asboth cuts to Medicare and payments to beneficiaries

and ignores the $298 billion needed to avert cuts toMedicare physicians. Even the $115 billion inimplementation costs are hidden behind budgetary

gimmicks and Washington-style accounting rules.

In addition to its impact on the deficit, the health

care law is damaging to job creation and economicgrowth. Its dizzying maze of mandates andthousands of new regulations threaten to cripple

businesses both large and small. The bill also hurts

workers by encouraging employers to drop coverageand dump employees into a government-controlled

exchange rather than pay the increased ratesassociated with new mandates in the bill.

The bill contains $813 billion in new tax hikes onindividuals and businesses. With the nationalunemployment rate hovering at over 8%, keeping a

job-destroying, spend-and-tax law on the bookswould be irresponsible and would further diminishthe prospects of a robust economic recovery.

I raised these concerns with the President at the 2009Blair House Summit and again when Congress took

up the bill. Since then, the Administrations ownChief Actuary, along with a host of otherindependent studies, have raised many of the same

concerns. A gimmick-free estimate from the HouseBudget Committee pegs the price tag of the healthcare law near $2.6 trillion when fully implemented,

with nearly $800 billion in new deficit spending.

But as the House stands ready to undo this damage,

some are crying foul claiming that repeal will in factraise the deficit. Only in Washington can repealing amassive new government-spending program be seen

as adding to our fiscal problems. To be clear, thesame budgetary gimmicks that were used to enact thehealth care law last year are still there. Nothing has

changed.

All of this belies the point that our nations healthcare system is fundamentally broken. We spend moreper capita on health care than any other developed

nation, yet our health outcomes are worse.Republicans and Democrats both agree that thestatus quo in health care is unacceptable. Congress

must work diligently to improve the quality of care,lower costs, and slow the spiraling growth ofprograms already on the books. These are not new

ideas, and I have been advocating for comprehensivepatient-centered health care reform since before thehealth care debate began in earnest.

We cannot afford to tinker around the edges of thisfundamentally flawed law. Full repeal is a critical step

towards true health care reform.

Health Care Lawsuits

Several lawsuits have been filed in various federalcourts challenging the constitutionality of theindividual mandate and the state Medicaid mandates

contained in the Patient Protection and AffordableCare Act. In November 2011, the Supreme Courtannounced it would review the constitutionality of

the health care overhaul. I am pleased that the Courthas decided to address this issue, and I look forwardto their final decision, which is expected sometime

this summer.

Path to Prosperity

Our government has a spending problemaproblem so large that it is driving up our debt,hurting our nations ability to create jobs, and

threatening our future. In the past, Washington has

not been truthful about the magnitude of theseproblems facing our country, but we can no longer

afford to put off an honest, fact-based conversationon how to solve them. Unless we act soon,government spending on health and retirement

programs will crowd out spending on all othergovernment programs, including national security,and, eventually, will consume every cent of every

federal tax dollar.



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No one person or party is responsible for thelooming crisis. Yet the facts are clear: major spendingincreases have failed to deliver promised jobs. The

safety net for the poor is coming apart at the seams.Government health and retirement programs aregrowing at unsustainable rates. The new health care

law has created a tremendous fiscal burden, and acomplex, inefficient tax code is holding backAmerican families and businesses.

The House-passed budget repeals the Presidentsdisastrous new health care law and protects the

health and retirement security of those who need it.

With the creation of Medicare in 1965, the UnitedStates made a commitment to help fund the medical

care of elderly Americans to ensure that a seriousillness would not exhaust their life savings or theassets and incomes of their working children and

younger relatives.

Medicares structural imbalance threatens

beneficiaries access to quality, affordable care. A flawin the structure of the program is driving up healthcare costs, which are, in turn, threatening to

bankrupt the system and ultimately the nation.Unless Congress fixes whats broken in Medicare,without breaking whats working, the program will

end up causing exactly what it was created to avoid millions of American seniors without adequatehealth security and a younger working generation

saddled with enormous debts to pay for spendinglevels that cannot be sustained.

It is morally unconscionable for elected leaders to

cling to an unsustainable status quo with respect toAmericas health and retirement security programs.

Current seniors and future generations deserve betterthan empty promises and a diminished country.Current retirees deserve the benefits around which

they organized their lives. Future generations deservehealth and retirement security they can count on. Bymaking gradual structural improvements, Congress

can preserve Americas social contract with retiredworkers.

Recognizing the problems facing Medicare, theHouse Budget Proposal:

Saves Medicare for current and futuregenerations while making no changes for those55 and older. For younger workers, when they

reach eligibility, Medicare will provide a list ofguaranteed coverage options from whichrecipients can choose a plan that best suits their

needs, the same way members of Congresschose their plans today. Then, Medicare willprovide a premium payment directly to the

plan of the beneficiaries choice. Medicare will

also provide additional assistance for lower-income beneficiaries and those with greater

health risks. Ensures that the cost of frivolous litigation is

not passed on to consumers in the form of

higher health-care premiums by capping non-economic damages in medical liability lawsuits.

Stops the raid on the Medicare trust fund that

was going to be used to pay for the new healthcare law. Any current-law Medicare savingsmust go to saving Medicare, not financing the

creation of new open-ended health-careentitlements.

Fixes the Medicare physician payment formula

for the next ten years so that Medicarebeneficiaries continue to have access to healthcare.

Allowing the federal government to break itspromises to current seniors and to future generations

is unacceptable. The reforms outlined in the budget

passed by the House protect and preserve Medicarefor those in and near retirement, while saving and

strengthening this critical program so that futuregenerations can count on it to be there when theyretire.

Reforming Medicaid in the Path to Prosperity

The Congressional Budget Office estimates that

federal spending on Medicaid, a program whichprovides medical care for the poor, will grow



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annually by 7 percent over the next decade fromnearly $260 billion in 2012 and to nearly $560 billionin 2021. Should this problem continue to be ignored,

Medicaid will continue to overwhelm state andfederal budgets and fail the vulnerable people whoneed it most.

Specifically, the Path to Prosperity:

Secures the Medicaid benefit by converting thefederal share of Medicaid spending into a blockgrant tailored to meet each states needs,

indexed for inflation and population growth.

This reform ends the misguided one-size-fits-all approach that has tied the hands of so many

state governments. States will no longer beshackled by federally determined programrequirements and enrollment criteria. Instead,

they will have the freedom and flexibility totailor a Medicaid program that fits the needs oftheir unique populations.

Improves the health-care safety net for low-income Americans by giving states the ability tooffer their Medicaid populations more options

and better access to care. Medicaid recipients,like all Americans, deserve to choose their owndoctors and make their own health care

decisions, instead of having Washington dictatethose decisions for them.

Saves $750 billion over ten years, contributing

to the long-term stabilization of the federalgovernments fiscal path and encouraging fiscalresponsibility at the state level.

All Americans will pay more because of this brokenMedicaid system and not just in higher taxes.

Because Medicaids reimbursement rates have beenratcheted down to below-market levels, the care thatMedicaid patients receive is often substandard.

Offering states more flexibility for their Medicaidbeneficiaries will remove the stigma Medicaidrecipients face, and allow them to take advantage of a

range of options available. Several of the nations

governors have made innovative proposals to fixMedicaid. This budget encourages further efforts inthis direction.

IMMIGRATION

The vast majority of Americans agree that ourimmigration system is broken. According to the

Office of Immigration Statistics (OIS) Annual 2010report, the Department of Homeland Security(DHS) apprehended 517,000 foreign nationals and

removed 387,000 foreign nationals from the United

States. Nonetheless, its estimated that one out ofevery twenty workers is an illegal immigrant and that

between 12 and 13 million illegal immigrants remainnationwide. This issue persists as a result of ourflawed immigration and border security system, is an

affront to the rule of law, an unacceptable securityrisk, and an added burden to the current state of theeconomy.

There are deeply held views on all sides of this issue,and rightly so. We are a nation of immigrants, and

the vast majority of Americans agree thatcomprehensive immigration reform is long overdue.Far too many illegal immigrants continue to arrive in

the United States, and those attempting to come tothe country legally find themselves wrapped inendless paperwork and bureaucracy as a result. This

broken immigration system does a disservice to thosewho play by the rules, rewards those who break themand fails children who all-too-often fall between the

cracks. Regardless of where you stand on the issue, it

is clear that our current immigration system is notworking.

However, I do not support amnesty for the millionsof illegal immigrants already living in the United

States. Any reform proposal must require that thosewho have disregarded the rule of law are notrewarded for their actions. In the end, I hope that

with better border security and a more robust and



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up-to-date employee verification system, we will beable to stem the flow of illegal immigration andrestore the rule of law.

DREAM Act

The Development, Relief and Education for Alien

Minors (DREAM) Act, H.R. 1842 in the 112thCongress, has been introduced several times in recent

years. This bill amends the Illegal Immigration

Reform and Immigrant Responsibility Act of 1996 topermit states to determine state residency for thepurpose of higher education benefits. Additionally, it

grants conditional permanent residency to

undocumented students who entered the UnitedStates as children.

While the DREAM Act has been promoted as analternative to comprehensive reform, and I

understand the points that DREAM Act supportershave raised, I believe this legislation attempts to treata symptom rather than the root cause of our

current problems. We must first secure the borderand stem the flow of illegal immigration, and thenwork to increase legal immigration through an

enforceable guest worker program and by developinga more secure employee verification system. I believeit would be a serious mistake to pursue piecemeal

reforms like the DREAM Act without first putting inplace these fundamental components of immigrationreform.

Seasonal Labor

I believe that any reforms to immigration policies

should include expanding access to visas for seasonal

and temporary labor. Wisconsin, for example, hasrelied on seasonal labor for agriculture and other

industries. Due to a lack of seasonal H-2B visas,some Wisconsin businesses face annual laborshortfalls. Allowing for a streamlined, safe, and

efficient visa process will provide businesses withneeded workers and relieve pressure on the borders.

Additionally, I believe a temporary guest workerprogram is one component of reform that could help

us secure our borders and gain greater control of

immigration. By providing a way to legally linkemployers with immigrant workers, we would relievepressure on the borders from people who are coming

here to seek work. This would allow us more time topursue the people who mean to do us harmcriminals, terrorists, and drug smugglers.

A necessary component of a guest worker program isan employee verification system that allows

employers to easily and accurately verify anemployees legal status in a timely matter. The faultyand cumbersome verification process continues to

provide incentives for the use of fraudulent

documents. To provide a system where employersand employees no longer perpetuate our illegal

immigration problem, I believe that there are severalprinciples that must be kept in mind.

First and foremost, an employees information mustbe safe from identity theft. Next, any system must beaccurate and secure. A verification tool that is easily

fabricated will not provide the assurance requiredthat employers are not unintentionally employingillegal aliens. Last, a verification tool must be

immediate. It can cause great disruption anddifficulties to ordinary Americans if they cannot getthe documentation they need from the government.

We must ensure that verification occurs immediately,and that employees are able to work and receive theirpaychecks.

New legislation addressing immigration policiesshould require illegal immigrants seeking a green

card or citizenship to leave the United States and

reapply for citizenship outside of the U.S., so thatthey can then re-enter the country legally, thus

upholding the rule of law. Proposals like the Z visa,which would have allowed an illegal immigrant tostay in America indefinitely through continual

renewals, are not an effective way of dealing with theproblem. They serve the same purpose as acquiring agreen card, without having to leave the country or

waiting at the end of the line. In my opinion, thisapproach amounts to amnesty.



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Conclusion

Although it does not appear likely that acomprehensive immigration bill will be taken up this

year, I will continue to advocate for common sensereforms to our broken system. I believe that anyimmigration reform bill passed by Congress must

first include strong border security provisions, anenforceable guest worker program, a secure employeeverification system, and a system that does not

reward illegal behavior, but provides equitabletreatment for all immigrants. In the past, I havesupported initiatives that would have accomplished

these goals and I will continue to do so as my

colleagues and I consider legislation in the 112thCongress.

JOBS & ECONOMY

Southern Wisconsins families continue working hardto make ends meet in an uncertain economy. The

nation is in the midst of the most prolongedemployment crisis in generations, as theunemployment rate, which currently stands at 8.3

percent, has been above 8 percent for 36 consecutivemonths the longest streak since the GreatDepression. The unemployment rate in Wisconsin

remains high at 7.1 percent and in some areas ofWisconsins First Congressional District theunemployment rate hovers near 10 percent.

The mounting economic hardships throughoutSouthern Wisconsin from mass layoffs to growing

insecurity have been downright gut-wrenching.

Families are finding it more difficult to make endsmeet while they watch their savings evaporate. As

Congress takes action to help spur economicrecovery, it must adhere to the principle of first andforemost do no harm. To this end, any stimulus

package Congress considers should be focused onprotecting the taxpayer and avoid prolonging ourdecline by simply throwing borrowed money at the

problem.

Economic growth comes when American familiesand small businesses work, save, and invest. Congressneeds to prioritize legislation that encourages job

creation by keeping taxes low, controllinggovernment spending, and addressing the severeproblems ahead if we do not reform critical

government programs that are driving up ournational debt. Left unchanged, these programs willcontinue to take up a larger portion of our budget

each year, crowd out other government spending,and hurt our economy. As the Chairman of theHouse Budget Committee, I take seriously my

responsibility to help improve accountability,

monitor federal spending, and prevent governmentwaste and abuse, while putting forward long-term

solutions to our debt crisis.

A Down Payment on the Nations Debt

One of the biggest threats to our countrys economicgrowth now and in the future, is our mounting debt.Our debt is the product of massive spending

increases that occurred under many presidents andmany Congresses over many years, but we arereaching a tipping point and can no longer afford to

kick the can down the road and expect that we cansolve our fiscal problems in the future.

The total debt surpassed its $14.29 trillion statutorydebt limit in May of 2011, and unless Congresspassed legislation to increase the statutory debt limit,

the U.S. would exhaust its borrowing authority.Most policy makers and economists agreed that if thedebt limit was not raised, the federal government

would not be able to pay its obligations such as

defense operations, Medicare reimbursements, andSocial Security checks possibly triggering a default

with serious negative repercussions for theeconomies and financial markets around the world.Nobody wants the US to default on its obligations,

but at the same time, we cannot just rubber stamp adebt limit increase. For this reason, the House andthe Senate passed the Budget Control Act of 2011

with bipartisan support, which created enforceablediscretionary spending caps to cut and restrain



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spending over the next ten years, provide amechanism for increasing the debt limit in two steps,and establish a Joint Committee to produce deficit

reduction legislation. I supported this law because itwould cut government spending, avoid default andhelp create a better environment for job creation.

In November of 2011, the national debt surpassedthe $15 trillion mark. Shortly thereafter the Co-

Chairs of the Joint Select Committee on DeficitReduction issued a statement indicating they werenot able to reach a bipartisan agreement prior to the

committee's deadline. The committees inability to

agree on specific cuts triggered sequestration cuts automatic, across-the-board spending cuts totaling

$1.2 trillion that will take effect in 2013 unlessCongress takes additional action. It is disappointingthat the Joint Committee missed an opportunity to

tackle our most pressing fiscal and economicchallenges; however, this committee faced anextraordinary challenge after Senate Democrats

failed to pass or even propose a budget last year.In fact, the Senate has not passed a budget in morethan 1,000 days. The simple truth is that we don't

need special commissions and committees to developsolutions; we need the President and Members ofCongress to do their jobs.

While the Budget Control Act was a step towardreigning in out of control government spending and

reducing the national debt, the budget processremains broken. Given my commitment to offeringdetailed proposals to fix the budget process, I joined

with a team of reformers at the House Budget

Committee to introduce 10 proposals designed tostrengthen spending controls, enhance oversight, and

increase transparency. These reforms mark animportant first step to getting our arms around theproblem, but there is no substitute for political will

in solving our structural budget problems. For moreinformation on these proposals please visithttp://budget.house.gov/BudgetProcessReform/.

In January 2012, the President requested the secondand final increase in the debt limit available underthe terms of the Budget Control Actan increase of

$1.2 trillion. The spending enforcement mechanismsin the Budget Control Act will ensure $1.2 trillion ingovernment spending will be cut and Congress

should work to ensure it is done in a smart, sensiblemanner than does not threaten our national security.Beyond this modest down payment, I remain hopeful

that leaders can rise to meet our generation's greatestchallenge with specific solutions and responsiblebudgets. I will keep advancing solutions that deal

directly with the drivers of the debt, help get our

economy back on track, and ensure futuregenerations a shot at the American Dream.

Job Creation and Economic Growth

The economic growth that our country needs cannot

come from Washington. It originates from thecreativity and entrepreneurial spirit of the Americanpeople. This spirit can only thrive if the government

creates an economic-friendly environment thatallows businesses to grow and create jobs. The HouseMajority has pursued an agenda focused on job

creation and economic growth. As such, we havepassed 35 bills aimed at empowering small businessowners and reducing regulatory burdens, fixing the

tax code to help job creators, increasingcompetitiveness for American manufacturers,encouraging entrepreneurship and growth,

maximizing domestic energy production, payingdown Americas unsustainable debt burden andbeginning to live within our means.

Unfortunately, 28 of these bills, despite garneringbipartisan support in the House, have either been

blocked by or are stuck in the Senate. Reforming ourtax code and eliminating the broken policies of thepast is an area where both parties can find common

ground and bring positive changes that will allowbusinesses to grow and create jobs. I will continue towork to advance policies that address our economic

challenges, foster innovation and investment, and



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help job creators without raising taxes on workingfamilies and small business owners.

Eliminating Tax Loopholes and Lowering Tax

Rates

The current tax code is broken and unfair. It benefits

those who have the time and resources to navigate acomplex series of deductions, credits, and rules. As aresult, many of the deductions and preferences in the

system are mainly used by a relatively small class ofmostly higher-income individuals. To comply withthis inefficient tax code, individuals, families, and

employers spend over six billion hours and over $160

billion per year filing and completing their taxes. Wewant a tax system that rewards Americans for hard

work, risk taking, entrepreneurship, investment andinnovation.

The Path to Prosperity, the Fiscal Year (FY) 2012budget passed by the House in early 2011, containsreal, practical solutions to the problems that we must

address in our current tax system. First, we need toclose loopholes that distort economic activity andthat reward the politically well-connected at the

expense of the hard-working small business owners.Second, we must simplify the code by reducing thenumber of tax brackets, so that people spend less

time and money figuring out how to comply with thecode. Finally we need to lower tax rates, toencourage economic activity and to allow our

businesses to compete on a level playing field againstthose in countries where business tax rates are muchlower. These reforms would tackle the problems

within our current tax system in a pro-growth way

by letting individuals keep more of the money theyearn and would restore the certainty needed for

families and businesses to plan for the future.

The budget we passed in the House of

Representatives calls for closing the loopholes andlowering the tax rates. The Presidents BipartisanFiscal Commission proposed something similar. Its

plan would reduce the corporate tax rate to as low as26 percent, and lower the top individual rate that

many small businesses pay to as low as 23 percent. Ifwe lower tax rates, does that mean the wealthy payless in taxes? It does not if we close loopholes. The

people who use most of the loopholes are those inthe top tax brackets. The money parked in these taxloopholes is taxed at zero. If you take away the tax

loophole and lower everybodys tax rates, that moneyis taxed. It is taxed at a fair, more simple, morecompetitive tax rate so they can compete in this

global economy. The President, however, hasproposed increasing the top individual tax rate to asmuch as 50.6 percent. This would be a direct hit on

Wisconsin small businesses and Wisconsin jobs

because 90 percent of businesses in Wisconsin paythe individual income tax, not the corporate income

tax. These small businesses employ 55 percent of theWisconsin workers in the private sector. The lastthing we need is to hurt job creation and our small

businesses, especially in Wisconsin.

MEDICARE

Medicare is the cornerstone on which all other

government health programs rest. Unfortunately, thedeteriorating financial conditions of this program arethreatening beneficiary access to its benefits. In their

most recent report, the Medicare Trustees projectedthat the account that funds Medicares hospitalbenefit will go bankrupt in 2024 five years earlier

than was previously estimated. Reports like thisillustrate that we can no longer let politicians inWashington deny the danger to Medicare it is all

too real, and the health of our nations seniors is far

too important. We have to save Medicare to avoiddisruptions in benefits for current seniors and to

strengthen the program for future generations.

The Presidents Health Care Law

On March 25, 2010, a Democrat controlled Congresspassed the Presidents new health care law whichfundamentally realigns our nations health care

system. This massive health care overhaul willexacerbate the very problems this reform effort



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sought to address. It will dramatically alter ourdeteriorating economic and fiscal conditions for theworse and may irrevocably impair the American

identity.

Sky-rocketing health care costs are drowning

families, businesses and governments in red inkleaving millions priced out of the market andwithout coverage. This lawwith its maze of

mandates, dictates, controls, tax hikes andsubsidiespushes costs further in the wrongdirection. It initiates a government takeover of the

health care sector (17% of the U.S. economy),

intrudes in the doctor-patient relationship, andincreases total spending by $2.6 trillion. It then raises

taxes by more than a half-trillion dollars over thenext 10 years and cuts more than a half-trilliondollars from Medicare to finance this new

entitlement. All told, this law will dramatically add toan already unsustainable rate of governmentspending growth that will overwhelm the Federal

budget and will dramatically change the wayAmericans get health care.

The health care law will have significant and seriousconsequences on the sustainability of Medicare andaccess to medical care. Before the bills enactment,

the Medicare program was already on anunsustainable path. According to the most recentMedicare Trustees report, the Medicare program will

be insolvent by 2024 meaning Medicare will payout more in benefits than it collects in revenue.Instead of reforming this important program so that

current beneficiaries will not see a disruption in their

services and future generations will be able to plantheir retirement around Medicares assistanceas I

have been advocating for several yearsthe healthcare law treats Medicare like a piggy bank. It double-counts $682 billion in reductions from Medicare

making the false claim of extending Medicaressolvency while also offsetting costs of the new healthcare entitlement.

Instead of promoting real competition whichwould moderate costs naturallythe lawnationalizes the regulation of health insurance

premiums. This will lead to shortages and rationing.Waiting times will replace prices as a means ofbalancing limited supply and higher demand.

Quality will decline as consumers begin facingrestricted access to the full range of treatmentoptions. Greater government regulation also will

limit incentives for medical innovation.

Yet, despite all the new spending and all the increased

taxes, supporters of this law argue that it will actually

reduce our current deficit levels. However, the fiscalarguments just do not add up. The only way reduce

the deficit, while at the same time having thegovernment pick up the tab for more than 30 millionuninsured Americans and subsidize millions more is

through the use of smoke and mirrors. In fact, afteraccounting for the more than $813 billion in taxincreases and $682 billion in Medicare cuts, the true

costs of this law concealed by timing gimmicks,hidden spending and double-countingwill makethe deficit explode, plunging us deeper into debt.

Medicare Reimbursements for Physicians

Medicare reimburses health care providers for

various procedures they perform. Thesereimbursements are made according to a feeschedule, which is updated annually by a formula

called the Sustainable Growth Rate (SGR). Ifspending exceeds the established targets, paymentrates to providers are cut; if spending is below the

target, payment rates are increased. The intent of the

formula is to place a restraint on overall increases inMedicare spending for physicians services.

Since 2003, Congress has chosen to override currentlaw in order to prevent reimbursements from being cut

as a result of the formula. On December 23, 2011, theHouse and Senate approved legislation that wouldprovide, among several provisions, a two month delay

in the scheduled cuts in physicians Medicare



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reimbursements that would have taken place onJanuary 1st due to the flawed SGR formula. However,since the bill only provides a temporary patch to the

27% cut, Congress must address the issue again in thecoming month.

Rather than passing temporary fixes, I would preferto address the more important matter of wholesalereform to the Medicare reimbursement system.

Physicians should not have to wait on Congress toact every year in order to prevent pay cuts that arearbitrarily determined by an outdated formula.

Fundamental reforms to Medicare and our broken

health care system are urgently needed, and I willcontinue to push my colleagues to take on this

challenge.

Path to Prosperity

Medicares structural imbalance threatensbeneficiaries access to quality, affordable care.Currently, Medicare reimburses health care providers

for services, creating a perverse incentive to ordermore tests and perform more services than may benecessary as a way to maximize ones share of the

program. By basing payment on volume, not quality,costs rise and efficiency is reduced. Ultimately, thisflaw in the structure of the program is driving up

health care costs, which are, in turn, threatening tobankrupt the systemand ultimately the nation.

Unless Congress fixes whats broken in Medicare,without breaking whats working, the program willend up causing exactly what it was created to avoid

millions of American seniors without adequate

health security and a younger working generationsaddled with enormous debts to pay for spending

levels that cannot be sustained.

It is morally unconscionable for elected leaders to

cling to an unsustainable status quo with respect toAmericas health and retirement security programs.Current seniors and future generations deserve better

than empty promises and a diminished country.Current retirees deserve the benefits around which

they organized their lives. Future generations deservehealth and retirement security they can count on. Bymaking gradual structural improvements, Congress

can preserve Americas social contract with retiredworkers.

Recognizing the problems facing Medicare, theHouse-passed Budget:

Saves Medicare for current and futuregenerations while making no changes for those55 and older. For younger workers, when they

reach eligibility, Medicare will provide a

Medicare payment and a list of guaranteedcoverage options from which recipients can

choose a plan that best suits their needs. Thesefuture Medicare beneficiaries will be able tochoose a plan the same way members of

Congress do. Medicare will provide additionalassistance for lower-income beneficiaries andthose with greater health risks.

Ensures that the cost of frivolous litigation isnot passed on to consumers in the form ofhigher health-care premiums by capping non-

economic damages in medical liability lawsuits. Stops the raid on the Medicare trust fund that

was going to be used to pay for the new health

care law. Any current-law Medicare savingsmust go to saving Medicare, not financing thecreation of new open-ended health-care

entitlements. Fixes the Medicare physician payment formula

for the next ten years so that Medicare

beneficiaries continue to have access to health

care.

Letting government break its promises to currentseniors and to future generations is unacceptable.The reforms outlined in the budget passed by the

House protect and preserve Medicare for those inand near retirement, while saving and strengtheningthis critical program so that future generations can

count on it to be there when they retire.



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Starting in 2022, new Medicare beneficiaries will beenrolled in the same kind of health care programthat Members of Congress enjoy. Future Medicare

recipients will be able to choose from a list ofguaranteed coverage options, and they will be giventhe ability to choose a plan that works best for them.

This is not a voucher program, but rather apremium-support model. A Medicare premium-support payment would be paid, by Medicare, to the

plan chosen by the beneficiary, subsidizing its cost.

The premium-support model would operate similar

to the way the Medicare prescription-drug benefit

program works today. The Medicare premium-support payment would be adjusted so that wealthier

beneficiaries would receive a lower subsidy, the sickwould receive a higher payment if their conditionsworsened, and lower-income seniors would receive

additional assistance to cover out-of-pocket costs. Thisapproach to strengthen the Medicare program ensuressecurity and affordability for seniors now and into the

future.

First, it ensures security by setting up a tightly

regulated exchange for Medicare plans. Health plansthat choose to participate in the Medicare exchangemust agree to offer insurance to all Medicare

beneficiaries, to avoid cherry-picking and ensure thatMedicares sickest and highest-cost beneficiariesreceive coverage. This reform builds upon the

bipartisan Rivlin-Ryan Medicare reform planadvanced in the Presidents Fiscal Commission in2010.

While there would be no disruptions in the currentMedicare program for those currently enrolled or

becoming eligible in the next ten years, all seniorswould have the choice to opt into the new Medicareprogram once it begins in 2022. No senior would be

forced to stay in the old program. This budget givesseniors the freedom to choose a plan that works bestfor them and guarantees health security throughout

their retirement years.

These reforms also ensure affordability by fixing thecurrently broken subsidy system and letting marketcompetition work as a real check on widespread

waste and skyrocketing health-care costs. Puttingpatients in charge of how their health care dollars arespent will force providers to compete against each

other on price and quality. Thats how markets work:The customer is the ultimate guarantor of value.

Reform aimed to empower individuals with astrengthened safety net for the poor and the sick will not only ensure the fiscal sustainability of this

program, the federal budget, and the U.S. economy. It

will also guarantee that Medicare can fulfill thepromise of health security for Americas seniors.

Wyden-Ryan Bipartisan Efforts to Strengthen

Medicare

Together with Senator Ron Wyden, a Democrat fromOregon, I put forward a proposal that builds uponthe bipartisan reforms contained in the Path to

Prosperity showing that it is possible to overcome theheated political rhetoric that surrounds the issue tocraft a way to save and strengthen Medicare.

Importantly the plan:

Saves Medicare for the future generation while

making no new changes for those over the ageof 55. Starting in 2022, Medicare would beginoffering seniors a choice among Medicare-

approved private plans competing alongside atraditional Medicare plan on a MedicareExchange.

Provides strong consumer protections designed

to safeguard the Medicare guaranteedincluding: risk adjusting payments to ensure

the sickest and poorest are guaranteedaffordable coverage and ensuring plans cannotrefuse coverage based on preexisting

conditions. Grants any small business with up to 100 workers

a free choice option so they could use the amount

that their employer contributes toward theirhealth coverage to purchase their own health

insurance.



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For more information on this bipartisan proposal:http://budget.house.gov/bipartisanhealthoptions/

SOCIAL SECURITY

Social Security provides vital financial support for

more than 54 million seniors. Social Security alsoprovides critical benefits to widows and those withdisabilities. Unfortunately, Social Security faces a $6.5

trillion deficit over the next 75 years (an amountequal to over one-third the size of the entire U.S.economy). With 10,000 Baby Boomers turning 65

every day, it is essential that we work to preserve the

programs these seniors have come to count on. AsChairman House Budget Committee, one of my top

priorities is to preserve the Social Security safety netand make sure the program remains solvent forfuture generations.

Social Security is Going Broke

Social Security is funded by the payroll taxes of

current workers to pay the benefits of currentretirees. Projected long run program costs are notsustainable under current program parameters. The

Social Security Trustees project that the cash flowdeficits that began in 2010 will continuepermanently. That means that to pay full Social

Security benefits, the government must cut spending,raise taxes, or borrow more money to financepension payments.

A central factor in the looming financial crunch isthe fact that our society is aging. The Baby Boom

generation has already started to collect their Social

Security retirement benefits. As a result, there arefewer workers to support each retiree than when

Social Security was created. Increasing lifeexpectancy and the approaching retirement of moreBaby Boomers continues to put increasing pressure

on Social Security each year. Over the next severalyears, the number of retirees is expected to growmore rapidly than the number of individuals whose

taxes will pay for future benefits. Because of this, thenumber of workers supporting each Social Security

recipient is projected to fall from 3.3 today to 2.2 in2041. When comparing these figures with those from1950 (when there were 16 workers for every 1

recipient), the challenges of the program becomeclear.

The Need for Reform

According to the 2011 Social Security TrusteesReport, beneficiaries will face a painful 23 percent

benefit cut in 2036 when the Social Security Trustfund is exhausted. These reductions are expected togrow to 26 percent in 2085. Even those who are

currently on Social Security those now 62 and older

may experience indiscriminate cuts in benefits at atime when they are increasingly reliant on the

program.

The Path to Prosperity

A common reaction to the question of what to doabout the problem with Social Security hasunfortunately been, What problem? The deniers

claim that the Social Security trust fund will remainsolvent for another 16 years, at which point thegovernment could theoretically cover the shortfall by

raising taxes. Others downplay whether any changesto Social Security will be necessary they claim thatsustained economic growth could take care of the

problem all by itself.

Neither is correct. First, any value in the balances in

the Social Security trust fund is derived fromdubious government accounting. The trust fund isnot a real savings account. From 1983 to 2011, the

trust fund collected more in Social Security taxes

than it paid out in Social Security benefits. But thegovernment borrowed all of these surpluses and

spent them on other government programs unrelatedto Social Security. The trust fund holds Treasurysecurities, but the ability to redeem these securities is

completely dependent on the Treasurys ability toraise money through taxes or borrowing.

Beginning in 2010, Social Security started paying outmore in benefits than it collected in taxes a trend



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that will skyrocket as the baby boomers continue toretire. In order to pay full benefits, the governmentmust pay back the money it owes Social Security.

Those who wish to solve this problem by raisingtaxes are ignoring the profound economic damage

that such a large tax increases would entail. Justlifting the cap on income subject to Social Securitytaxes, as some have proposed, would, when

combined with the Obama administrations otherpreferred tax policies, lift the top marginal tax rate toover 60 percent. In reality, lifting the cap on income

subject to Social Security will hurt the self employed

like many of the farmers and small business menand women in the First District hardest as these

individuals pay both the employee and employershare of the Social Security tax and further hamperthe economic growth these individuals can provide.

Most economists agree that raising marginal tax ratesthat high would create a significant drag on

economic growth, job creation, productivity andwages. This nation cannot fix its retirement-securitysystem by leaving young families with nothing to

save.

President Roosevelt himself viewed Social Security as

an evolving program. As he wrote in a 1939 messageto Congress, We shall make the most orderlyprogress if we look upon Social Security as a

development toward a goal rather than a finishedproduct. We shall make the most lasting progress ifwe recognize that Social Security can furnish only a

base upon which each one of our citizens may build

his individual security through his own individualefforts.

The evolution must continue today, because SocialSecuritys fragile condition poses a serious problem

that threatens to break the broader compact in whichworkers support the generation preceding them, andearn the support of those who follow.

I believe there is a bipartisan path forward on SocialSecurity one that requires all parties first toacknowledge the fiscal realities of this critical

program. The Presidents Fiscal Commission made apositive first step by advancing solutions to ensurethe solvency of Social Security.

While certain details of the Commissions SocialSecurity proposals, particularly on the tax side, are of

debatable merit, the Commission undoubtedly madepositive steps forward on bipartisan solutions tostrengthen Social Security. The House-passed budget

builds upon the Commissions work, forcing action

to solve this pressing problem by requiring thePresident to put forward specific ideas on fixing

Social Security.

In a shared call for leadership, the budget also puts

the onus on Congress to offer legislation to ensurethe sustainable solvency of this critical program.Both parties must work together to chart a path

forward on common sense reforms, and the House-passed budget provides the nations leaders with thetools to get there.

Social Security Cost of Living Adjustment

On October 19, 2011, the Social Security

Administration announced that a new Cost-of-Living-Adjustment (COLA) increase will be effectivefor Social Security checks issued beginning in

January 2012. The Social Security Act provides thatthe COLA will increase automatically each year,provided that there is an increase in inflation, as

measured by the Consumer Price Index (CPI). This

3.6% increase marks the first COLA since 2009.

TAXES

At a time when Wisconsinites are facing economicuncertainty, a high un

Documents

Issue Papers Update Feb 2012