Politics

Rep. Paul Ryan Proposes Tax Cuts That Would Add $93.5 Billion To Deficit

| by Edward Arnold

House Ways and Means Committee chairman Paul Ryan (R-Wis.) has released a set of tax proposals that would add almost $100 billion to the deficit over 10 years.

According to the Huffington Post, Paul's proposal includes seven tax cut bills that would add $93.5 billion to the federal deficit that is on track to fall to $468 billion this year. The largest measure, called America's Small Business Tax Relief Act of 2015, would add $77 billion to the deficit by letting small businesses write off expenses quicker.

His other proposals aim to permanently extend certain tax breaks and rules to instill certainty in the tax code for businesses. They also want to encourage charitable donations and reduce the tax rate on private foundations. However, none of the proposals require savings from other budget initiatives, adding money to the deficit.

"We all know that our businesses need certainty to grow," Rep. Ryan said. “If these things have been in the [tax] code for a long time, and they’re important provisions, then let’s just keep them in the code."

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Democrats have been willing to work on the tax code, but they are not likely to accept these tax cuts without savings to adjust the deficit.

“This Republican ploy selects almost $100 billion of favored tax provisions to benefit a small portion of taxpayers by borrowing more money from abroad," Rep. Lloyd Doggett (D-Texas) told The Huffington Post. "Their package eliminates enough revenue to fund life-saving medical research through the National Institutes for Health for more than two years. Instead of a bipartisan commitment to comprehensive tax reform, they continue on a partisan path to promote the privileged.”

While the chairman's measure was passed in the committee along party lines, the Democrats unanimously think these proposals will make it harder to reform the tax code. Paul Ryan thinks otherwise.

"These are consistent with tax reform, these move in the right direction," he said. "We can walk and chew gum at the same time."

Sources: The Huffington Post, MSNBC / Photo Credit: US News