(CNSNews.com) – “We have arguably the worst tax system in the industrialized world,” House Speaker Paul Ryan (R-Wis.) told a gathering in Hillsboro, Oregon on Wednesday.
He called the current system “complicated,” “paternalistic” and “condescending.”
We don't really have a system that is very fair, and one of the reasons why our system's not very fair is because it's really complicated.
You can sit next to your next door neighbor, have the same kind of income and pay dramatically different taxes because of all the different carve outs and the loopholes in the tax code. So, we want to clean this thing up.
We want to clean up our tax system to make it simple and fair, condense all these redundant loopholes, get rid of a lot of these bizarre special interest carve outs and just lower people's tax rates. Cut people's taxes, lower people's tax rates.
The philosophy in the tax code in Washington today is send your money to Washington and then if you do what we approve of, we'll let you keep some of it back. That's ridiculous, it's paternalistic, it's actually kind of condescending. What we want to do is just clean the system up, simplify it so much that you can fill out your taxes on a postcard.
Ryan noted that American businesses are taxed at between 35 and 45 percent, but the average tax rate on companies in other countries is 22.5 percent.
“We’re basically taxing American businesses out of America,” he said.
He said the nation would be far more competitive globally if American companies stay in the United States:
“That means our headquarters stay here. And when our headquarters stay here that means the affinity and the attachment to the community stays here. That means the Boys and Girls Club gets more funding.
"That means United Way and local churches and charities get more community support like clearly you do here in Portland. And so, there are lots of reasons why we want to make sure that American companies stay America. But we also want American companies to be able to make things here and export them all around the world."
In addition to competition and fairness, Ryan tax reform will spur economic growth, raising wages and producing more economic security for families.
“So, we really think that in order have a healthier economy where people to have good paying jobs, where we can keep businesses in America or we can make more things, where -- where people up and down could have good family supporting paying jobs, we have to have tax reform.
“So that is one of the biggest achievements we are hoping to achieve this year. We feel very confident about this,” Ryan said.