Skip to main content

Paul Ryan gave some remarkably dishonest answers in defense of keeping inequities in out tax system that give the wealthy preferential low tax rates, rather than to adopt the reforms the President has proposed for correcting these inquiries with the Buffett Rule.

WALLACE: Let's turn to taxes and there's a lot to talk about. I want to break it down in some bite-size pieces.
First of all, what do you think to all -- over the papers today, I guess, the New York Times reported that, first, this idea of a new minimum tax rate for millionaires to insure that they pay at least the same percentage of their money that they get their income as middle income taxpayers?

RYAN: Great. So, I guess what he's saying he's going to raise on capital at ordinary income tax rate, raising capital gains and dividends. Look, if you tax something more, Chris, you get less. If you tax job creators more, you get less job creation. If you tax investment more, you get less investment.
At a time when experts are telling us, including, I said the fiscal commission, we should lower tax rates on investment and job creation by getting rid of all of the loopholes so we can create economic growth. So, we think this is going in the wrong direction. Let's not forget that under the current law that the president has already passed, the top tax rate on individual and small businesses in 2013 goes to about 44.8 percent.

So, we have employers in Wisconsin that pay that tax rate are competing against countries that are taxing their businesses from 16 percent in Canada, almost 21 percent going in England, 25 percent in China. The world taxes their businesses at about 25 percent and he's saying we're going to tax these job creators at above 45 percent with this new tax. 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 a rotten economics. We don't need a system that seeks to divide people. We don't need a system that seeks prey on people's fear, envy and anxiety. We need a system that creates job and innovation, and removes these barriers for entrepreneurs to go out and rehire people. I'm afraid these kinds of tax increases don't work.

Ryan must have lost track of what exactly he is trying to defend here. Its the existing tax system that seeks to divide people who earn wages and salaries from the wealthy elites who receive Dividends and Capital Gains. How does Congressman Ryan defend this disparity in tax rates? By trying to prey on people's fear and anxiety about the future of the economy.

Then Ryan launches into some double talk about double taxation, that includes what seems to be a false statement, that distorts the whole issue.

WALLACE: But, Congressman, this is being called the Buffett rule, because it comes after Warren Buffet, the multibillionaire owner of
Berkshire Hathaway said, I end up -- because I get so much of my money from capital gains -- I end up paying a lower tax rate than my secretary who gets her money in salary.
What about the question -- what about the question of fairness, sir?

RYAN: 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, a person who's paying an income tax is paying the first level of tax on that money and then when you pay capital gains and dividends tax, you are paying that tax again on that money that earns it. What it does -- and we've done this before -- we have raised capital taxes gains and dividend taxes, we hurt economic growth, we stifle investment in our economy. So, if we tax investment in job creation more, you will get less of it. Like I said, this is -- this looks like to me 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. It will attack job creators, divide people and it doesn't grow the economy.

Rep. Paul Ryan

Ryan's convoluted answer suggests that the Chairman of the House Budget Committee may have a false idea of how capital taxes gains and dividend taxes are actually levied in this country. Ryan seems to be suggesting that capital gains and dividends are taxed once as normal individual income and capital taxes gains and dividend taxes are added on top of that income tax. That is simply false. Capital gains and dividends are NOT taxed as an individual's ordinary income.

One would assume that a Chairman of the House Budget Committee would know how the U.S. tax system is structured. So I'm thinking Paul Ryan is going on Fox News Sunday where he knows nobody is going to drill down into his double talk, so he let fly with a whopper.  
I mean what the hell? Its Fox News! Go for it Paul!

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Tips for watching Fox News Sunday (23+ / 0-)

    Gasoline made from the tar sands gives a Toyota Prius the same impact on climate as a Hummer using gasoline made from oil. ~ Al Gore

    by Lefty Coaster on Sun Sep 18, 2011 at 04:09:34 PM PDT

  •  If I were wearing a hat, it would be off to you... (7+ / 0-)

    ...for watching such swill on a Sunday! Ryan can sure spew the bullshit, can't he? I hope you held your watch above the rising tide of turds!

    Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

    by JeffW on Sun Sep 18, 2011 at 04:16:44 PM PDT

  •  It's not that he doesn't know the truth, (11+ / 0-)

    it's that he is a FUCKING LIAR and lying is the new truthing in the Republican Party.

    Still enjoying my stimulus package.

    by Kevvboy on Sun Sep 18, 2011 at 04:20:40 PM PDT

  •  True believers don't care if it's true or not. (6+ / 0-)

    So the question of whether or not Ryan undestands or is lying does not apply. The only thing that matters is does the statement favor or help the one true belief system.

    Bipartisan analogy: Both musicians and fishermen want more bass.

    by OHdog on Sun Sep 18, 2011 at 04:28:33 PM PDT

  •  And Chris Wallace, in true toadie fashion, (5+ / 0-)

    let the ridiculous statements stand. This is precisely why Faux news viewers are so confused about everything. The purpose of that network is not to enlighten and inform. Quite the contrary. They are set up to enforce a narrative that has little basis in reality.

    When I try to watch that hot mess that purports to be news, I end up yelling at the TV. Thanks for doing reconnaissance for us!

    48forEastAfrica - Donate to Oxfam "Compassion is the radicalism of our time." ~ Tenzin Gyatso, 14th Dalai Lama -7.88, -6.21

    by Siri on Sun Sep 18, 2011 at 05:06:17 PM PDT

  •  What does he want, Class surrender? (2+ / 0-)
    Recommended by:
    Lefty Coaster, Tracker

    If it's class warfare to expect the rich to pay more because they've benefited more, what does Ryan call it when Democrats acquiesce to Republican elitism? Class Surrender? Class Capitulation?

    If tax policy is Class Warfare, the Republicans are the aggressors.

    Greg McKendry, Linda Kraeger, Dr. George Tiller, Steven Johns. Victims of Wingnut violence

    by Judge Moonbox on Sun Sep 18, 2011 at 05:46:56 PM PDT

  •  Wasn't a good day for Mr. Ryan... (1+ / 0-)
    Recommended by:
    Lefty Coaster

    seeing that President Obama will not seek to raise the medicare eligibility age, leaving Ryan's attempt to end medicare as a ripe issue for 2012.  

    "The United States will not be able to dictate the pace and scope of this change. Only the people of the region can do that. But we can make a difference." 3/28/11

    by BarackStarObama on Sun Sep 18, 2011 at 06:32:42 PM PDT

  •  Tax (0+ / 0-)

    the rich or they will be eaten Paul. How will our rich masters like that?

  •  Ryan forgets (1+ / 0-)
    Recommended by:
    Tracker

    if you tax millionaires and corporations less, you don't get more jobs or increasing worker wages. You get higher profits, more income for millionaires, and increased poverty.

    Ryan and Wallace also ignore the class division that has been on going since 1980.

    In 1980, the top 1% had HALF the income of the bottom 50%.

    In 2007, the top 1% had DOUBLE the income of the bottom 50%.

    Also not mentioned by pundits is Ryan's proposed $2.9 trillion in NEW tax cuts for corporations and upper incomes. It is supposed to be revenue neutral, which means tax INCREASES for everyone else.

    How do you spur the economy by taking money out of the hands of workers and consumers and give it to investors who invest it overseas?????

  •  Ryan Is A Republicon B.S. Spinner (2+ / 0-)
    Recommended by:
    Knarfc, Lefty Coaster

    But, unfortunately, those who watch Faux News are drooling on every word he utters.

    Wonder how his district is fairing, any chance of him losing in 2012?

    Never be afraid to voice your opinion and fight for it .

    by Rosalie907 on Sun Sep 18, 2011 at 07:50:15 PM PDT

  •  I think Ryan is trying to say (2+ / 0-)
    Recommended by:
    Lefty Coaster, Tracker

    all income from capital gains comes initially from an investor who must first earn and retain the income after ordinary taxes.

    But this is simply not true. Employee or other versions of stock options are one example of income taxed only as capital gains, even if one must briefly borrow money to exercise the options.

    Another case I think is investment from inheritance which is slightly or not taxed.

    Probably here are other cases and examples I am unaware.

    H'mm. I'm not terribly into this, anymore.

    by Knarfc on Sun Sep 18, 2011 at 09:09:11 PM PDT

    •  How is capital gains money different from money (0+ / 0-)

      you put in a savings account. The interest earned on the money you have in that account, (your savings, money earned that you put in the account) gets taxed at whatever rate of taxes you are paying.
      Some folks earn more than others, so they naturally pay more than others. Is Ryan suggesting that we should do away with taxes on interest earned too? Am I just confused, is that interest considered capital gains?
      If I save a couple of thousand dollars a year, I get a 1099 statement from my bank on the interest I earned, I then have to include that statement with my earned income, so I am being taxed on it when I earned it and also taxed on the interest I earned after I saved it. Why should it be any different for millionaires and billionaires, why should they be allowed to get away with I can't?

      •  Capital gains is somehow more associated, in (0+ / 0-)

        the tax code and in people's minds, with "investment", and specifically, with risky investment. It is typically taxed, apparently for that reason, at a lower rate. But it becomes a loophole for other incomes and activities.

        H'mm. I'm not terribly into this, anymore.

        by Knarfc on Sun Sep 18, 2011 at 09:52:58 PM PDT

        [ Parent ]

        •  Talk about class warfare, if you have the money to (0+ / 0-)

          invest, and do invest it in "risky" investments, because they pay the most dividends, then you pay a lower rate than if you invest in more stable investments.  I don't see why or how that is fair. Didn't Buffet say that he pays, on the average a lower percentage in taxes than his secretary? So we are rewarding risk, not work? One wonders how much risk is actually involved in some of these investments, it seems to me they have found the way to game the system and bet on a sure thing. When the bottom fell out, it wasn't the super rich investor who took a loss, they still managed to hold onto to their capital, it was the smaller guy who took a beating, the one who could not take advantage of the Capital gains loopholes. At least that is how it looks to me.

  •  Paul Ryan Thinks He Has A Shot..... (0+ / 0-)

    at becoming the Republican Vice Presidential nominee.  He said he would consider it if he was asked.

    This is proof that he is not only deluded about taxes, SS & Medicare.....but he is in denial about what the country thinks about him.  He would be a huge drag on the ticket... I hope they nominate him.  Keep your fingers crossed, Paul.  

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site