VP debate excerpts – Paul Ryan on taxes

Edited by Jenny Jiang

Excerpts from Republican nominee Paul Ryan’s remarks on taxes at the vice presidential debate on Oct. 11, 2012:

Our entire premise of these tax reform plans is to grow the economy and create jobs. It’s a plan that’s estimated to create 7 million jobs. Now, we think that government taking 28 percent of a family and business’s income is enough. President Obama thinks that the government ought to be able to take as much as 44.8 percent of a small business’s income.

Look, if you taxed every person and successful business making over $250,000 at 100 percent, it would only run the government for 98 days. If everybody who paid income taxes last year, including successful small businesses, doubled their income taxes this year, we’d still have a $300 billion deficit. You see? There aren’t enough rich people and small businesses to tax to pay for all their spending.

And so the next time you hear them say, “Don’t worry about it, we’ll get a few wealthy people to pay their fair share,” watch out, middle class, the tax bill’s coming to you.

That’s why we’re saying we need fundamental tax reform. Let’s take a look at it this way. Eight out of 10 businesses, they file their taxes as individuals, not as corporations. And where I come from, overseas, which is Lake Superior, the Canadians, they dropped their tax rates to 15 percent. The average tax rate on businesses in the industrialized world is 25 percent, and the president wants the top effective tax rate on successful small businesses to go above 40 percent.

Two-thirds of our jobs come from small businesses. This one tax would actually tax about 53 percent of small-business income. It’s expected to cost us 710,000 jobs. And you know what? It doesn’t even pay for 10 percent of their proposed deficit spending increases.

What we are saying is, lower tax rates across the board and close loopholes, primarily to the higher-income people. We have three bottom lines: Don’t raise the deficit, don’t raise taxes on the middle class, and don’t lower the share of income that is borne by the high-income earners.

He’ll keep saying this $5 trillion plan, I suppose. It’s been discredited by six other studies. And even their own deputy campaign manager acknowledged that it wasn’t correct.

MARTHA RADDATZ: Well, let’s talk about this 20 percent. You have refused — and, again — to offer specifics on how you pay for that 20 percent across-the-board tax cut. Do you actually have the specifics? Or are you still working on it, and that’s why you won’t tell voters?

RYAN: Different than this administration, we actually want to have big bipartisan agreements. You see, I understand the…

RADDATZ: Do you have the specifics? Do you have the…

(CROSSTALK) BIDEN: That would — that would be a first for the Republican Congress.

RADDATZ: Do you know exactly what you’re doing?

RYAN: Look — look at what Mitt Romney — look at what Ronald Reagan and Tip O’Neill did. They worked together out of a framework to lower tax rates and broaden the base, and they worked together to fix that.

What we’re saying is, here’s our framework. Lower tax rates 20 percent. We raised about $1.2 trillion through income taxes. We forego about $1.1 trillion in loopholes and deductions. And so what we’re saying is, deny those loopholes and deductions to higher-income taxpayers so that more of their income is taxed, which has a broader base of taxation…

JOE BIDEN: Can I translate?

RYAN: … so we can lower tax rates across the board. Now, here’s why I’m saying this. What we’re saying is, here’s the framework…

BIDEN: I hope I’m going to get time to respond to this.

RADDATZ: You’ll get time.

RYAN: We want to work with Congress — we want to work with the Congress on how best to achieve this. That means successful. Look…

RADDATZ: No specifics, again.

RYAN: Mitt — what we’re saying is, lower tax rates 20 percent, start with the wealthy, work with Congress to do it…

RADDATZ: And you guarantee this math will add up?

RYAN: Absolutely. Six studies have guaranteed — six studies have verified that this math adds up.

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  1. Pingback: Text of the Joint Committee on Taxation's letter on eliminating major tax expenditures | What The Folly?!

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