Paul Ryans Budget Plan Relies On Obamacare Repeal

Ryan's main points: 

• Obamacare will "collapse under its own weight," thus creating the necessary conditions for the GOP budget to take root and flourish.

• If Obama-care does not collapse, there's no way to balance the budget.

• It's true that we lost the presidential election, but Republicans have a strong majority in the House and should not be asked to compromise with a relatively weak president.

• Lower tax rates are possible without sacrificing revenue if some loopholes are closed.

• Let's return to an organized process for passing a budget. It's nice that the Senate has begun budget deliberations.

He says his new plan will balance the budget in 10 years. "We can't just keep spending money we don't have. That's the basic acknowledgment when you're budgeting."

"Let me walk through a few of the charts if I could." Ryan shows a chart showing that his budget would take the deficit from $800bn+ in 2013 to just more than $100bn in 2015. "This is the chart that should scare everybody," Ryan says. The chart shows debt as a share of the economy rising to above 250% in the next two decades. In fact the national debt as a share of GDP has been falling.

"We believe that Obama-care is going to be so unpopular in this country because of all the broken promises..."

Ryan says health costs will increase and people won't be able to keep health care plans they like.

"You're going to see substandard health care. And so we believe... we need to repeal and replace Obama-care with a better system.

"We will never be able to balance the budget with Obama-care going because Obama-care is a fiscal train wreck."

Ryan then argues for lower taxes but refuses to concede that lower taxes would mean less tax revenue.

"There are other ways to do this," Ryan says.

Ryan says you can plug loopholes and lower rates and come up with more revenue.

His argument is for lower rates. His theory is that doing away with loopholes and deductions would make up the difference.

And it all relies on the repeal of Obama-care. Which has already passed a Supreme Court review. But that doesn't necessarily mean Obama-care is constitutional..