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Public Statements

CNBC "Squawk Box" - Transcript

Interview

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Joe Kernen: Congressman, you're Chairman of the House Budget Committee, I had something else I was supposed to say, I didn't even want to say it, let's get straight to this. Government does spend too much money, maybe speech writers and new speeches cost money, and therefore the President took the speech that he's given at least six or seven times about the Bush era tax cuts over the last two years and he ran it again. I've heard all of this before, Congressman, and I know that you in the House are not going to do this this way. So it's so obvious to me that jobless -- I wouldn't want to talk about jobs either, obviously -- but here we are, we're going to go into this tax discussion about $200 or $250 and above. Chuck Schumer's going to say "people in my state aren't rich at $200' but then he's going to get slapped and say "I do back the President.' We're doing the same thing over and over again.

Congressman Ryan: That's the point I was just going to make, Joe. First of all, this is the same movie we've seen before.

Joe Kernen: Saving money on speeches.

Congressman Ryan: Save money on speeches, he's distracting the country. Don't forget that these tax increases he's proposing are for more spending; it's not even for debt reduction. All of these tax increases that he's proposing don't even pay for a fifth of his proposed deficit spending. So the idea here is, never mind the fact that 80% of businesses in America file as individuals, never mind that this is a big tax increase on successful small businesses, job creators. We should take money from them and spend it through government and that's a better idea.

Joe Kernen: But Congressman, people at home, and I don't even know anymore how to look at the 3% that the President's talking about that are affected by subchapter -- I hear so many different facts and figures about who is Subchapter S, who actually has business income, who would actually be affected by it. I saw on NBC news last night: in the report, they said the President knew he'd be hearing about small businesses creating and he an answer for that; they sort of did his work for him.

Congressman Ryan: If you reduce it down to all the millions of people who file it looks like a very small statistic. But if you look at all the businesses that create jobs who file their taxes as individuals, it's hugely impactful, it's a big number.

Joe Kernen: It's a big number. It's the most successful of the companies that create -- exactly. The thing that gets me more irritated than anything, Congressman, your party, you were going to spend the next couple of days voting to repeal Obamacare knowing the Senate is not going to do it. We don't care that you're doing this. He's doing this, he knows that's not going to get passed by the House, you're doing the other thing, you know it's not going to get passed by the Senate and we're sitting here wondering why we pay you guys.

Congressman Ryan: Here is why I think he gave this speech this week. We announced last month that this month we're going to pass a one-year extension of the entire tax code and then have a fast track procedure for 2013 for fundamental tax reform. So we're going to deal with the fiscal cliff and we want to get to tax reform. We want to broaden the base and lower the rates and guess what, Joe, guess what, Andrew, there are a lot of democrats who agree with us, just not the one in the White House. So we're going to have democrats voting with us here in the House and if they ever have the vote in the Senate on extending all of the tax cuts for a year so we get to tax reform.

Joe Kernen: Why Obamacare? You'll get democrats on Obamacare, too.

Congressman Ryan: We'll get some democrats on Obamacare as well. Look, we really believe we need to show the country that we don't think, that the last arbiter of this is not the Supreme Court, it's the American people through their elected representatives. And so if you give us more elected representatives to fix this problem, we will fix this problem in 2013, meaning a Senate, a House and a President and we will replace Obamacare which we think is a job killer, we think it's going to increase health care costs, blow a hole in the deficit, it's creating a new entitlement that's not paid for.

We think we can replace it with consumer directed patient-centered health care, which is at the root cause of inflation which helps us with job creation, helps us with quality health insurance for everybody and helps with us our debt problem. So what we're saying is the final arbiter is not the President, it's not the Supreme Court, it's the people through their representatives and that's why we're having this vote this week.

Michelle Caruso Cabrera: You believe having a symbolic vote matters?

Congressman Ryan: Michelle, I do believe it matters, because we're telling our constituents here is what we will do if you give us the ability to do it. We're going to do it in the House, we would like to do it in the Senate, we need help over there in the election, and the President. Just like the tax cuts: we're going to extend the fiscal cliff for a year so we can get tax reform next year. Unfortunately, we don't see the Senate following suit. We know if that bill hit the floor of the Senate, it would probably pass.

We're trying to put pressure on fixing the fiscal cliff the right way and unfortunately the President has chosen more of this envy and division, more of this class warfare, the politics of division and distraction because he has a terrible economic record. You saw the latest jobs reports. Poverty rates are at an all-time high, it's a record he can't run on, so he's distracting the country in order to try to win this election. We want to call him out on it and say there's a better way forward. We have better ideas on health care, better ideas on taxes, on debt reduction and on growing the economy.

Andrew Ross Sorkin: Congressman, if he had made it a million bucks, like Schumer, would you have agreed to it? What would you say?

Congressman Ryan: Andrew, if you go to Wisconsin, industrial parks at the outskirts of every one of our towns, nine out of ten businesses which make over $1 million, have 50 to 150 employees, they're those rich people, they're the ones who pay those taxes. 90% of our businesses file as individuals and you know overseas, which in Wisconsin means Lake Superior, the Canadians just lowered their tax rate on all of their businesses to 15%. The President wants it to go as high as 45% next year. It's a job killer; it kills growth, kills small businesses, entrepreneurial growth. I've got a better idea. We can save more money, why don't we just stop subsidizing wealthy people? Why don't we means test our entitlement programs and get rid of corporate welfare, crony capitalism?


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