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And hello again from fox and is in Washington.
On Monday President Obama will announce his plan to cut the nation's debt and to pay for -- jobs program.
And we're now hearing He will propose a minimum tax -- for millionaires as part of the package.
But well Republicans -- -- at any of that to get an early response we turn to congressman Paul Ryan chairman of the House Budget Committee.
And the GOP point man on these issues that joins us now from his home state of Wisconsin.
Congressman while little has been confirmed.
Here's an outline of what the president is reportedly likely to announce tomorrow let's put it up on the screen.
Four trillion dollars in savings at least 340 billion dollars from entitlement reform.
To Medicare and Medicaid.
At least 800 billion dollars in revenue increases.
Including that new plan to ensure millionaires pay at least the same percentage of earnings as middle income taxpayers.
Let's start if we cancer whether entitlements -- that see anything positive about a democratic president taking on entitlements.
I sure do but I don't know if there's any positive in this plan I wanna keep an open mind and see what it is.
But from what we hear originally looks like it's it's more price controls and reimbursement cuts to doctors other health care providers.
-- -- leads to restricted access denied care to seniors on Medicare already has.
The new president's panel that iPad starting next year which will further price control Medicare providers.
So I don't think that's going to work if that's what he's gonna continue doing get a thing on the tax side.
Is permanent tax increases on job creators.
Doesn't work to grow the economy it's actually fueling the uncertainty but -- hurting job growth right now and don't forget the fact that.
Most small businesses file their taxes as individuals so we -- raising these top tax rates.
You're raising taxes on these job traders were more than half of Americans get their jobs from in this country so what we want to see.
-- pro growth economics.
Even the president's fiscal commission is saying with with Democrats on there lower tax rates broaden the tax base for economic growth.
And it's more nickel and dime reimbursement cuts to health care providers.
I'm will simply lead to less access for care from senior citizens.
I will get to the taxes and a minute I wanna stick on the entitlements for a moment that Democrats.
Have been hammering your party have been hammering the GOP ever since they supported your plan the Ryan plan.
And that would have created a yacht a premium support program.
Which according to act for some people -- about -- -- plan.
What -- have reduced.
Admit it made health care cost more expensive for Medicare recipient starting in ten years does the fact that the president is addressing any entitlement reform.
Take the bull's -- off the GOP is back.
Well it's constructed.
-- that he's acknowledging that there's a big problem with these programs.
I and He has made an acknowledgment a couple of times -- they're gonna go bankrupt if we don't do something to fix them that's good.
And so the question then is what's the best way to fix them we believe the best way to fix them is not to jeopardize the access to these benefits for current seniors.
Our bill says leave them alone don't disrupt their services and then have a new reform program for younger generations.
That gives them more choice more competition it's not vouchers they choose among competing plans just like they do -- Medicare Advantage -- part.
And what we do is we have a strengthen program that works like the one we have in congress.
So that is actually something that solvent we actually make Medicare solvent and we don't do it by restricting access.
-- drugs to restricting access to seniors -- care like doctors and hospitals the problem is what the president has said he's going to do what is new law does.
-- puts fifteen bureaucrats in charge.
Of rationing price is too frightened to Medicare for current seniors -- that jeopardizes their care and also doesn't -- the system so what we've seen from the presents a far more price controls and rationing.
No plan to saved from bankruptcy.
We preservative for care current seniors hands.
We have a new system that works like -- we have in congress that prevents the program from going bankrupt in the first place we think that's a better idea but I'm glad he's actually wading into the discussion.
Let's talk about what ideas were the best but let's turn to taxes and there's a lot to talk about I wanna break it down and has some bite size pieces first of all.
What do you think of add that it's all over the papers today -- -- the New York Times reported at first this idea of a new minimum tax rate for millionaire is.
To ensure that they play at least the same percent edge of their of their.
Money that they got the ring -- As middle income taxpayers.
Right so I guess what he's saying he's gonna raise the tax on capital at ordinary income tax rates that's that's raising capital gains -- dividends look.
If you tax something more -- you get less of it if He can't job creators more get less job creation of -- tax investment more you get less investment.
At a time when -- are telling us including like I said the fiscal commission.
We should lower tax rates on investment and job creation but getting rid of all the loopholes.
So we can create economic growth so we think this is going in the wrong direction let's not forget that under current law that the president is already passed.
The top tax rate on individuals and small business -- 2013.
Goes to about 44 point 8%.
So we have employers here Wisconsin that pay that tax rate.
We're competing against countries.
That are taxing their businesses from -- 16% in Canada.
Almost 41% going in England 25% in China.
The world taxes their business is at about 25% and he's saying.
We're gonna attacks these job creators at above 45% -- this new tax it it what it does is it adds further instability to our system more uncertainty.
And it punishes job creation and those people who create jobs class warfare Chris may make for really good politics.
But it makes for -- in economics we don't need a system that seeks to divide people we don't need a system that seeks to prey on people's fear.
And being anxiety.
We need a system that creates job and innovation and removes these barriers front doors to go out and rehire people on but I'm afraid these kinds of tax increases don't work.
This is being called the -- rule because that comes out -- Warren Buffett the multi billionaire.
On her Berkshire Hathaway sad.
I end up because I get so much so much to my money from capital gains I end up paying a lower effective tax rate that my secretary who gets her money in salary.
What about that the question of what about the question of fairness there.
So what he's saying what He forgets to mention on that that's a double tax capital gains and dividends are taxes on money that has already been taxed once before based on income.
So person's -- -- income taxes -- the first level of -- on that money.
Then when you paid in capital gains and dividends tax you're paying that tax again on that money.
And -- what it does and -- we've done this before we have raised capital gains taxes and dividend taxes.
We heard economic growth.
Investment in our economy so -- -- investment in job creation more you will get less of it.
Like I said this is this looks like to me.
And not a very good sign because it looks like the president wants to move down the class warfare path.
Class warfare will simply divide this country more -- attack job creators divide people and it doesn't grow the economy.
What go to budget dot house dot gov and see a video we put out that shows a common sense idea that has a lot of bipartisan support in Washington these days.
To lower tax rates on these things by going after loopholes but Lisa millionaires and you're gonna you can catch -- -- we -- -- get rid of.
I got a lot of has got -- -- in -- but I have a lot I wanna ask you about congressman.
It looks like take a look at the big picture on -- -- the president is proposing almost 500 billion dollars.
In increased revenue to pay for his jobs plan we're told he's likely to propose at least another 800 billion dollars in increase revenue as part of tax reform.
As deficit reduction are you saying that congress and I'm talking specifically about the Republican controlled house won't go for running about.
You already have a one point five trillion dollar tax increase coming in current law -- -- point thirteen now we're talking about another one point three trillion dollar tax increase on top of that.
And he's yet giving us a stimulus bill which is basically like the old stimulus -- half as large.
Temporary tax rebates with.
Increases and then another tax increase on job traders and success a small businesses in addition to that.
Why on earth would we go with that -- especially when the problem is spending.
We want to cut spending we want to reform these entitlement programs and if we do it the right way it doesn't jeopardize current seniors.
And we wanna have a tax system that is not designed and picking and choosing winners in society.
But on encouraging investment and job creation and economic growth.
But but congressman -- -- -- basically saying is the super can mandate the twelve members of the house and the senate.
Which -- who have been charged with coming up with another one point two -- one point five trillion dollars in deficit reduction.
By Thanksgiving you're basically saying there's going to be no bargain there's going to be no compromise -- don't know what let me just finish because the Democrats are demanding.
That more revenue be part of that not -- that right or wrong but that's what they're sign.
And if not if you don't get that then you get these automatic triggers which includes 600.
Billion dollars an automatic cuts to the Pentagon.
Chris the president's poll is about thirteen trillion in new debt in his budget more of -- lesser status quo budget clearly we can cut one point two trillion dollars.
The president finance spending 46 trillion dollars of the next ten years.
It can't we can't one point 51 point two trillion dollars from that that shouldn't be that tough so we see the super committee is an opportunity to get -- down payment on debt.
Through spending cuts where I thought we had a shot at bipartisanship and this new rhetoric we easily to second guess myself.
Was a business tax reform the president says get rid of the loopholes lower the tax rates make us more competitive.
-- symbol can you know the simple system that helps us compete.
That's what I was hoping we can get and I thought the super committee might have been.
On a good vehicle to do that but if we're gonna just -- class warfare and trying to tax increases out of this.
But I don't think much will come of it.
But if we can come together and get a one point two to one point five trillion dollar spending cut but I think we have a shot at actually getting something done I -- we should.
Hold our expectations down and it's like committee.
And let's just get another down payment on debt there's so much spending that needs to be cut.
And eyes clearly think we can come to consensus on this much we proposed six point two trillion dollars in cuts in our budget clearly Democrats who could work but doesn't get one point five.
Let me let me switch subjects and it what do you think -- the chances of the country's headed for a double dip recession.
The economist -- it's about 5050.
Because of all this uncertainty.
They don't know what their taxes -- regulations going to be.
You've got 219 new expense -- regulations on the table coming from the Obama administration to the economy this year.
You've got a massive tax -- coming in -- thirteen and now these two proposals.
The permanent Texas stimulus and this new proposal for more tax increases I think that has helped shut down our economy and -- Italy's European problems.
What could wash over and our shores.
And so I do not think the president is doing what we need to do to grow this economy okay so let's do a quick -- -- if we can up the president's jobs plan.
Hot money to build.
Roads and bridges.
The so called shovel ready -- you're gonna -- about.
Well they're not so shovel ready number one but we are gonna do a new highway reauthorization.
And so that's the normal course of business but we don't want to do with all -- borrowed money so we do believe infrastructures good we're gonna fix this but we don't think that that's going to work.
If you do the right was shut the temporary tax rebates were tried in the Bush Administration they failed then to.
And when you pay from a permanent tax increases don't don't work and we just don't think we should be bailing out state governments.
When the federal government's budget is even worse shape in the state governments are so notice infrastructure.
At this as part of the jobs plan and -- to aid to the states.
To keep first responders and teachers on the -- well.
That's the that's that constitutional responsibility of state governments not the federal government and how about publishing the night -- How about some of these I just need to go through this quickly what is or all of some of those payroll tax cuts about the the retraining for long term unemployed.
So -- that Georgia plan sounds pretty interesting I think that's something we're looking at what is -- -- unemployment reform the temporary tax rebates like I said Chris.
I'm all for letting people keep more their own money.
But this particular idea was tried in the Bush Administration earlier in the Obama administration it hasn't worked.
Especially when you're taking these temporary tax rebates and paying for them with permanent tax increases.
That is actually self defeating so we just don't wanna go with ideas -- already proven to fail.
We want to advanced solutions that are proven to work in these don't do that the president said.
Business tax reform and trade agreements in his speech we think those are helpful for job creation.
But He didn't put any of these ideas in the bill He sent -- in the day.
President Obama has been going around the country selling his jobs plan over the last couple of weeks and He says if you -- party blocks his plan.
That He will blame the GLP for the continued unemployment let's take a look at the president.
It's time for the people you sent to Washington to put country before party.
To stop worrying so much about their jobs and start worrying more about yours.
Congressman Ryan can't -- -- -- Harry Truman and campaign next year against a quote do nothing congress.
We passed a budget the balance the budget pays off a debt reforms the tax code.
By getting rid of -- polls lowering tax rates we pass regulatory reform we passed new energy development legislation to explore domestic energy production.
We have passed so many bills -- of the house to create jobs and they're sitting over in the senate.
And so if He wants to run against a do nothing congress He should focus it on the do nothing senate Democrats.
It is an 817 days since they bother to try to pass a budget we passed starts on time.
And so I think we should take a look at where the problem is in congress I would argue it's -- senate.
Not doing a budget for two years to me is just ridiculous and so we have a difference of opinion on what to how best to fix these problems.
But when the president does things like this it leads me to believe.
That he's not in bipartisan consensus making -- he's in a political class warfare mode in campaign mode and that's not good for our economy.
Up less than a minute left congressman Ryan and I want to ask you one last question and that's about cylindrical solar panel making company that got.
535 million dollar federal loan guarantee from the government.
As part of the first stimulus plan the company just one bank -- laying off a thousand workers.
And leaving taxpayers.
Footing the bell less than a minute.
What's the lesson insulin prisoner.
There are billions more of this exact kind of spending that came out of stimulus that will produce these kind of results we fear.
This is industrial policy and crony capitalism.
At its worst it's exhibit eight for how this kind of economic policy doesn't work we shouldn't be picking winners and losers in Washington.
We should be setting the conditions for economic growth.
-- the private sector can't create jobs Washington's not good at picking winners and losers so we shouldn't try.
Congressman Ryan we're gonna have to leave -- there -- -- thank you for joining us today it's always a pleasure to talk -- -- -- Thank you Chris.
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