Speaker Ryan: Americans Will See More Take Home Pay with Tax Reform Plan

By Melanie Arter | November 9, 2017 | 1:20 PM EST

House Speaker Paul Ryan (Screenshot)

(CNSNews.com) – House Speaker Paul Ryan (R-Wis.) defended the House GOP Tax Cut and Jobs Act on Thursday, saying it will cut taxes for Americans “at every income level” and give them more take home pay.

Speaking at a Capitol Hill press conference, Ryan said the typical American household will see $1182 in their paychecks thanks to the House tax reform plan, adding, “That’s an average household of four earning $59,000.

 



“We’re doubling the standard deduction. We’re increasing the child tax credit. We’re lowering tax rates across the board. That’s not all. Middle-income families … estimates show they’ll see a pay raise too. This legislation will result in 3.1 percent higher wages for people. That means more take home pay every month in addition to a tax cut,” he said.

Ryan said the details of the bill will be “ironed out in the committee process,” which is typically how the legislative process works.

“We’re doing this the right way. We’re doing this the regular order way. It takes time, but trust me, we’re going to get this over the finish line,” the speaker said.

When asked to defend the bill’s elimination of state and local tax deductions, Ryan said, it’s important to look at the bill in its “totality.”

“You have to look at the fact that we’re doubling the standard deduction. … By doubling the standard exemption, right there 90 percent of Americans will fill out their taxes … on a form the size of a postcard,” he said. “Number two, when you actually say for your first $24,000 instead of $12,000, that’s tax free. If you have children, you’re going to have a $1600 per child tax credit.

“When you’re lowering people’s tax rates, when you take the thing all in its totality, what the analysis shows us … [is] that the average households at every income level sees a tax cut. So I think when you take a look at the fact that this produces faster take-home pay, faster wages growth, faster economic growth, and bigger paychecks. I think it’s going to be a good thing for everyone no matter where you come from,” Ryan said.

The speaker said he wants to get rid of the individual mandate from Obamacare any way he can – including adding it to the tax reform bill - because it’s “doing great damage to people in this country.”

“We’re making people buy something they cannot afford and don’t want, so I personally do not think that this is good policy for our country, and I think it’s wrecking our health care system,” he said. “Whether or not it goes in any particular piece of legislation, those are the kinds of conversations we’re gonna have along with many other issues with our members on an ongoing basis.”

Ryan pointed out that the GOP and the president both ran on tax reform.

“You have been making the case to your members that the House control by Republicans could be in jeopardy if you don’t pass tax reform. That said, historically what has happened in the first mid-terms of presidents, when they have passed big initiatives – crime bill of 94, Obamacare in 2010, that party has lost. Explain to us why you think it is so essential that this … you don’t get these majorities to sit on … you get them to pass big policy and then burn some of those seats,” a reporter said.

“I think it’s a very interesting analog, but I would say the crime bill of 93, Obamacare – those were unpopular bills. This is not unpopular. We’re actually letting people keep more of their own money,” Ryan said.

“We’re cleaning out the loopholes of the tax code and having a fairer tax system, so we’re gonna have faster economic growth, bigger paychecks, fairer taxes. That’s not an unpopular thing to do, and by the way, this is something we ran on. We didn’t do like some of the Democrat majorities in the past and pass some huge big thing on an unsuspecting country,” he said.

“We ran in in 2016 on doing this tax reform. The president ran on doing this tax cut and tax reform, so this is about fulfilling our promises to the American people. This is about actually improving people’s lives and making a positive difference and I fundamentally believe when we do this – make good on our word, make good on our promise, making people’s lives better - we’re gonna be just fine politically,” Ryan added.


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