Presidential candidate Mitt Romney finally picked his vice presidential candidate and chose Wisconsin politician Paul Ryan. Ryan currently serves in the congressional House of Representatives. It's a position that he's held since 1999, when he was elected at just 28 years of age. Ryan already has a reputation for speaking his mind on major issues surrounding the November election against President Obama and Vice President Joe Biden.

However, Ryan has only recently joined Romney's presidential trail and is just starting to let his thoughts be known. Below is an overview of Ryan's proposals and the ways that his policies could affect the average American should Ryan become vice president.

Republicans, especially those that consider themselves on the more conservative side, are quite happy with Ryan's plans to limit the role of government, make a serious attempt at reducing the deficit and fight against two of three major entitlement programs. He has also ambitiously sought to tackle the convoluted tax system and propose only a couple of tax rates, while closing many of the loopholes that plague the current system. Reforms would include personal and business taxes.

Tough on Government Spending
At a recent Republican rally in Iowa, Ryan spoke out against the government spending beyond its means. Political strategists speculate that Romney chose Ryan because of his specific plans, as opposed to Romney's more general proposals on a number of important issues. When it comes to tackling government spending, Ryan would attempt to cut back Medicare and Medicaid. Concerning Medicare, Perry would allow private health insurance for individuals below 55 years of age. As for Medicaid, Ryan would shift quite a bit of responsibility to the states and leave it to them to keep healthcare costs from spiraling out of control.

At this point, Ryan has avoided the issue of rising Social Security costs. Both sides of the debate see the issue as too risky, as you lose the support of the millions of baby boomers who are already, or will soon be, drawing monthly checks from the Social Security system.

Tax Cuts
When it comes to taxes, Romney and Ryan already represented a unified front and would extend the Bush-era tax cuts. Obama's camp wants to impose a minimum tax rate for those making over $1 million per year. Currently, wealthy individuals who rely on a high amount of income from investment sources are able to pay well below the standard stated tax rates. It remains to be seen what loopholes Ryan would specifically eliminate, but cutbacks on income exclusions could be fair game.

Specific discussions surrounding Ryan's plans on taxes include letting the higher-end of the corporate tax rate fall to 25%, down from 35%, which could rise back to 39.6% if the Bush tax cuts are not allowed to continue. He estimates that a lower tax rate would be offset by the closing of loopholes and result in a system that is far less complicated, but should lead to roughly the same amount of annual revenue for the government.

In regards to the deficit, Ryan would be much more aggressive in cutting down on government spending, which makes sense because he would not be relying on tax increases that Obama supports. Federal spending would actually still increase, but at a slower pace than on the democratic side.

The Bottom Line
Clearly, such a mix of changes is going to affect the average American in different ways. It's very plausible to see fewer benefits in Medicaid, though the impact of Medicare changes is more difficult to predict, given all the individual state changes that could take place. Taxes would certainly be lower if Romney wins and pushes for the implementation of a number of Ryan's plans. However, Ryan's policies would eat away at government spending and reduce government jobs and related benefits.

Related Articles
  1. Investing News

    Obama Wants to Double Wall Street Regulation

    President Obama wants to double the budgets of the SEC and the CFTC over the next five years.
  2. Economics

    Does Big Money Hurt or Help Clinton and Rubio?

    Marco Rubio and Hillary Clinton lead their parties in raising money from Wall Street. Is that a help or a hindrance?
  3. Fundamental Analysis

    The Evolution of Obamacare Since Its Inception

    Find out whether the Patient Protection and Affordable Care Act, also known as Obamacare, has lived up to its lofty projections from 2010.
  4. Investing News

    Obama Floats $10 a Barrel Oil Tax

    President Obama intends to propose a $10 a barrel tax on oil; consumers might have to cough up 25 cents more per gallon.
  5. Stock Analysis

    The Biggest Risks of Investing in Lockheed Martin Stock (LMT)

    Learn about defense contractor, Lockheed Martin, its leadership within its industry, and how the company can stay on top as the defense landscape changes.
  6. Investing News

    Chipotle Served with Criminal Probe

    Chipotle's beat muted expectations and got a clear bill from the CDC, but it now appears that an investigation into its E.coli breakout has expanded.
  7. Stock Analysis

    China Mobile: Just How Big is It? (CHL, CHU, CHA)

    The story behind China Mobile, the biggest company you might never have heard of.
  8. Markets

    The (Expected) Market Impact of the 2016 Election

    With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election.
  9. Economics

    Trump vs. Bloomberg: How They Compare

    If Bloomberg enters the presidential race how will he compare to billionaire brethren Trump?
  10. Fundamental Analysis

    5 Economic Changes to Expect if a Republican Wins in 2016

    Discover the five most likely economic changes the United States can expect if a Republican wins the presidential election in 2016.
  1. How Long Should I Keep My Tax Records?

    The Internal Revenue Service (IRS) has some hard and fast rules regarding how long taxpayers should keep their tax records. As ... Read Full Answer >>
  2. Are personal loans tax deductible?

    Interest paid on personal loans is not tax deductible. If you take out a loan to buy a car for personal use or to cover other ... Read Full Answer >>
  3. Does a Flexible Spending Account (FSA) cover braces?

    Funds from a Flexible Spending Account (FSA) can be used to cover costs associated with installing, maintaining and removing ... Read Full Answer >>
  4. Does QVC charge sales tax?

    QVC, an American TV network, is registered with states to collect sales or use tax on taxable items. QVC is also required ... Read Full Answer >>
  5. Does a Flexible Spending Account (FSA) cover glasses?

    The funds in a Flexible Spending Account (FSA) can be used to cover most common medical expenses; this includes the cost ... Read Full Answer >>
  6. Are tax brackets adjusted for inflation?

    Each year, the U.S. Internal Revenue Service (IRS) adjusts tax brackets for changes in the cost of living to calculate federal ... Read Full Answer >>
Trading Center