Could Paul Ryan preside over transformative tax reform?
As chairman of the House Ways and Means Committee, Rep. Paul Ryan has been Congress鈥檚 go-to tax wonk. Now, as speaker of the House, that same passion is expected to be channeled into his leadership agenda, and some are anticipating a once-in-a-generation rewrite of the tax code.
Mr. Ryan hasn鈥檛 laid out specific policy proposals he would pursue as speaker, but he has flirted with some issues while avoiding others.
The Wisconsin representative has said he won鈥檛 work with Obama on immigration reform, but he did tell CBS News that his party needs to spearhead 鈥減olicy risks,"聽. 聽
CNN reported on Ryan鈥檚 and Senate majority leader Mitch McConnell's , and how thier differences may set the stage for collaboration between the two chambers. Recently, Ryan pressed Senator McConnell to attach a highway bill to an international tax code reform, which the majority leader opposed. The two have until Nov. 20 to reach a consensus.
Four years ago, , the Republican鈥檚 proposed 2012 budget that passed the House but never made it out of the Senate. The plan would have eliminated about $800 billion in tax increases, lowered the tax rates for individuals, businesses, and families, and set the maximum rate for businesses and individuals at 25 percent.
According to Forbes, 鈥渃onsolidating tax rates for all taxpayers; reducing the corporate rate; repealing the Alternative Minimum Tax (AMT) and keeping capital gains rates low. Ryan also has his sights on a shift from a global system of taxation to a 鈥榯erritorial鈥� tax system to make, he says, the country more tax competitive.鈥�
Politico鈥檚 Brian Faler reported Monday that, with Ryan as speaker,聽 than ever, but that it probably won't happen without a Republican president:
The sort of ambitious reform Ryan has in mind, which would be the first since 1986, promises to cut both individual and corporate tax rates in exchange for junking scores of credits, deductions and other special provisions. Any rewrite would be hugely controversial, with an array of powerful interest groups sure to line up to defend their favorite provisions, not to mention many Democrats who鈥檝e long complained that Ryan鈥檚 plans amount to a giveaway to the rich.
Faler added that Ryan wants to halve the mortgage interest deduction by letting taxpayers 鈥渨rite off their interest costs on only the first $500,000 of debt.鈥� He also wants to trash the tax exclusion for companies that provide employees health care in favor of a tax credit that could be used to buy individual plans. And he wants to end the state and local income tax deduction, while also thinning out 鈥渢ax extenders,鈥� 聽a collection of tax breaks for a multitude of entities like charities, teachers, big banks, and energy companies.
Ryan鈥檚 agenda is unlikely to be fully realized with a gridlocked Congress, but the Wisconsin congressman does have a record of bipartisan compromise, particularly with Sen. Patty Murray (D) of Washington. The two negotiated a two-year budget deal back in 2013 that prevented a government shutdown and cut the deficit.
