"The average tax rate in the industrial world on businesses is 25% and we are going to tax our successful small businesses, a million small businesses, will get hit with a tax increase which would cost us 700,000 jobs if we go down the path the President wants us. We are not going to do that." — Paul Ryan
In The Loop
October 2, 2012
Click Here To Watch Paul Ryan
PAUL RYAN: "Look at the way our tax system works right now. We have a very narrow tax base. We raise about $1.2 trillion a year through income tax revenues. We forego about $1 trillion a year through tax expenditures. Look how narrow that tax base is. So what we're saying is you can lower tax rates by 20% across-the-board, limit some tax expenditures and loopholes and deductions without hitting middle-class taxpayers. The AEI just put out a study showing how you can do this. That TPC study which he cited had faulty assumptions in it. It did not even measure the Romney plan. It still had all these revenue assumptions in there assuming we were keeping Obamacare taxes in place and such things like that. And it doesn't even assume economic growth, which we don't when we estimate these things. Our point is with the kind of narrow tax base we have, with the steep tax rates we have which make us really uncompetitive, you can lower tax rates across the board by 20 percent, primarily limit your deductions from those at the top end and then get rid of all those different nook and cranny special interest tax expenditures. I have been on Ways and Means 12 years. Both parties put this stuff in the tax code. We need a cleaning of the tax code. You can do this without raising taxes on middle-class taxpayers. This actually lowers their tax rates. This lowers their taxes so they have more take-home pay. And also, never forget, we have subchapter S, LLCs. Those are typically words I don't use on cable news. 8 out of 10 of our businesses, they file their taxes as people, as individuals and the President wants their top effective tax rate to go to 44.8%. Canada just lowered theirs to 15%. The average tax rate in the industrial world on businesses is 25% and we are going to tax our successful small businesses, a million small businesses, will get hit with a tax increase which would cost us 700,000 jobs if we go down the path the President wants us. We are not going to do that."