WASHINGTON -- An all-out budget battle is brewing on Capitol Hill, with lawmakers on both sides saying it's not just about numbers, but priorities.
House Republicans unveiled their blueprint Tuesday, which erases $4.6 trillion and balances the budget by 2023.
"We believe that we owe the American people a balanced budget and in fact we balanced this budget in just 10 years," House Budget Committee Chairman Paul Ryan, R-Wis., said.
The Ryan budget, called Path to Prosperity, relies on several working assumptions:
- Congress will overhaul the tax code with only two tax brackets -- 25 percent and 10 percent -- and a corporate tax rate of 25 percent.
- The plan will wind down mortgage brokers Fannie Mae and Freddie Mac.
- It will include welfare reform.
- The plan will make significant changes to Medicare, which Democrats say would hurt the middle class.
The Republican plan would also reignite a failed battle, repealing the president's health care law.
"We don't think we can afford to borrow $1.8 trillion in extra spending this law entails," Ryan told reporters Tuesday. "We think we can replace it with a better health care system."
Democrats called the budget a hoax, claiming the Republican plan includes savings from Obamacare that cannot be achieved if it's repealed.
The White House said Ryan's math just doesn't add up.
"While the House Republican budget aims to reduce the deficit, the math just doesn't add up," White House press secretary Jay Carney said. "Deficit reduction that asks nothing from the wealthiest Americans has serious consequences for the middle class."
In the heat of the looming budget battle, President Obama met with Senate Democrats one day before they released their first budget in nearly four years.
Democrats say their approach is balanced and includes raising taxes on the wealthy, an idea that is dead on arrival in the GOP-controlled House.