Rep. Ryan ready to rock the tax system: Will it work?
That growth would offset losses in tax revenue from the tax cuts, the House speaker said Friday in a meeting with The Gazette Editorial Board.
"You get growth above 3 percent, you'll have wage increases. You'll have a much healthier economy," he said.
Ryan's counterpart in the
Ryan's approach is to create a system that reduces everyone's tax rates and to make up the loss in tax revenue with economic growth, he said.
"We know that if we're taxing ourselves at much higher rates than foreign competition, and we lower those rates, we won't lose revenues. We'll actually get more economic growth, ... And that will help us sustain the revenue loss, and the result will be faster economic growth. We do know that," he said.
The Gazette contacted two UW-Madison economists for their reactions.
Retired professor
"It's conservative theology, ... but it's not linked to any hard evidence to support that contention, and I'm quite confident that if you talk to 100 economists, you would get very similar points of view from most of the 100 if not all," Reschovsky said.
Tax cuts under presidents
Reschovsky agreed with Ryan that the corporate tax code -- with its high rates, and numerous exemptions and deductions and special provisions that lower corporate taxes -- needs reform.
Economist
However, cutting individual income taxes could still be worthwhile because it can generate higher incomes, employment and investment, which is preferable to the current situation, Williams said. But in that case, those positive results must be balanced against potential negatives of lower government spending because of lost tax revenue.
Some research suggests lowering taxes on corporations, however, could bring a net gain in tax revenue, Williams said.
Ryan said the tax code was last reformed in 1986, and the rest of the industrialized countries changed their tax codes since then, putting
"It is killing us," Ryan said, because
A reformed tax code would encourage companies to stay in
"I'm not saying all tax cuts pay for themselves because they don't, but the faster economic growth helps offset part of the revenue lost," Ryan said.
Plugging tax loopholes also will help staunch revenue loss, Ryan said, predicting that members of
"There are certain taxes where we're way too high, and because we're too high, we're losing growth. We are losing jobs. We are losing companies. We are losing headquarters all the time," Ryan said.
"If we lower those rates, especially on businesses, we know we'll keep those businesses in America, we'll keep that economic activity in America, and we'll encourage more economic activity in America," Ryan continued.
But can
"That's going to be a big test of ours. That's why it hasn't happened in 32 years," Ryan said. "... I've long believed we've got to take on the gantlet of
Ryan said he has heard from a handful of
Asked for how Ryan knows the tax plan would work, an spokesman pointed to a study of the 2016
Ryan spokesman
Williams called the
"The the consensus is this would have a stimulative effect. Whether that would get to 3 percent, that's less clear," Williams said.
On other topics Friday, Ryan:
-- Said "It's too early to say" when asked to rate President
-- Said he hopes the
-- When asked if
-- Noted the many bills the House has passed with "huge" bipartisan support and little notice from the press on military veterans and technical education, for example. "Watch what we're going to do on Hurricane Harvey," he said.
-- Said not to expect one big infrastructure-improvement bill.
-- When asked about Trump lashing out at McConnell over health care: "I think it's a device and tactic that works for him. It's not my style. I don't think it's particularly helpful. He knows what I think about this. ... I talk to him a great deal. If he does things that I think need to be spoken out against, I do--Charlottesville, the sheriff thing (pardon of former sheriff
-- The board did not get a chance to ask all the questions it wanted. One prepared but unasked question was whether Ryan wants the votes of white supremacists, who have shown affinity for the
-- Asked in a subsequent interview on WCLO Radio about news that President
"I don't think he should do that. This is something I believe that
___
(c)2017 The Janesville Gazette (Janesville, Wis.)
Visit The Janesville Gazette (Janesville, Wis.) at www.gazetteextra.com
Distributed by Tribune Content Agency, LLC.
Trump asks for $7.9 billion down payment for Harvey relief
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News