US House passes spending cut plan

House Budget Committee Chairman Paul RyanHouse Budget Committee chairman Paul Ryan introduced the budget proposal
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The US House of Representatives has passed a 2012 budget plan which aims to cut $6.2 trillion (£3.8tn) in spending by the government over the next decade.

The plan, introduced by Republican Paul Ryan, would cut healthcare and social programmes for the poor and require elderly to pay more for their healthcare than they do currently.

The bill passed the Republican-controlled House in a 235-193 vote.

The proposal is not expected to make it through the Democratic-led Senate.

The bill, which covers the fiscal year that starts on 1 October, would transform Medicare – a programme in which the US government pays medical bills for the elderly – into a voucher system that subsidises purchases of private insurance plans.

It would lower taxes for the wealthy, a move fiscal conservatives say will boost US economic growth.

On Thursday, the US Congress passed a budget bill that would cut $38.5bn (£23.6bn) in government spending over the rest of the current fiscal year, to 30 September.

President Barack Obama, who in a policy speech on Wednesday called for raising taxes on the wealthy and changes to social programmes, must now sign that legislation into law.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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