“Every income group on average gets a tax cut,” says Wisconsin congressman and House Speaker Paul Ryan at a Herndon, Virginia, town hall hosted by Martha MacCallum and Bret Bauer. He said this in an attempt to reassure taxpayers who are worried that their taxes will rise if the GOP tax reform bill eliminates tax deductions.
Ryan continued on to say that the reason for the Republican tax reform bill is to “clean out the code,” simplify it, and make it “fairer and simpler.” He also stated that the bill was crafted so that the biggest tax break goes to middle class wage earners. He added that, through the bill, President Trump seeks to ensure that the middle class receives the greatest tax relief. A study in April revealed that more than 70 percent of Americans who work full time live from paycheck to paycheck.
House Speaker Ryan stated that the new tax code will do away with loopholes “disproportionately enjoyed by very high-income people,” and that “American businesses are fleeing our shores and going overseas.” He continuing on to say that the American economy is “losing in global competition” and that the bill will strengthen the country’s economy.
“When you tax your businesses at much, much, much higher tax rates than your foreign competitors tax theirs, they win, we lose,”said Ryan. “We’re losing jobs, we’re losing companies, we’re losing headquarters.”
The Wisconsin congressman said that the small business tax rate is “crazy,” at 40 percent. The goal of the GOP tax reform bill is to lower the small business tax rate to 25 percent. President Trump emphasized that the American corporate tax rate is 35 percent, which is the highest worldwide.