The Ryan Roadmap was introduced and then dropped into obscurity as Republicans simply ignored it and appararantly its author, the House Budget Committee Ranking Member Paul Ryan. Well that was then, today that is CHAIRMAN Paul Ryan and the official respondee to the SOTU plus the man who has unilateral control over budget levels this year. Not exactly ‘Paul Who?’ any more. So in the interest of public education let’s take a little trip on Paul’s highway.
A Roadmap for America’s Future: from budget.house.gov and specifically its ‘Tax Reform’ page.
Provides individual income tax payers a choice of how to pay their taxes – through existing law, or through a highly simplified code that fits on a postcard with just two rates and virtually no special tax deductions, credits, or exclusions (except the health care tax credit).
Simplifies tax rates to 10 percent on income up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts. Also includes a generous standard deduction and personal exemption (totaling $39,000 for a family of four).
Eliminates the alternative minimum tax [AMT].
Promotes saving by eliminating taxes on interest, capital gains, and dividends; also eliminates the death tax.
Replaces the corporate income tax – currently the second highest in the industrialized world – with a border-adjustable business consumption tax of 8.5 percent. This new rate is roughly half that of the rest of the industrialized world.
Billionaires don’t become such by paying themselves large salaries, it taking 100 years to earn your first billion even with a salary of $10 million a year, instead they gain that wealth by accumulating capital and taking gains on it in the form of actual capital gains as defined and interest and dividends. None of which are taxable under the roadmap. Nor are any future disbursements from their grandchildren’s Trust Funds. Tax Freedom FOREVER! Hurray!! If you chose your grandparents right. (Me? Not so much).
But gosh wouldn’t exempting all returns on capital from taxation blow a hole in the budget? I meant the Right spends endless time complaining that the lower 40% don’t pay taxes. Au contraire mon frere. Per CBO this is all free!! At least once they adopted the scoring rules provided them by Ryan’s staff.
The proposal would make significant changes to the tax system. However, as specified by your staff, for this analysis total federal tax revenues are assumed to equal those under CBO’s alternative fiscal scenario (which is one interpretation of what it would mean to continue current fiscal policy) until they reach 19 percent of gross domestic product (GDP) in 2030, and to remain at that share of GDP thereafter.
See how easy that is!! Just tell CBO to not score the cost of your tax cuts and BINGO! Balanced budget!!! Well in year 50, but still.
This is the man official Washington is swooning over as being “serious”. Sorry folks Ryan and his Roadmap are frauds, more like the Tour Guide and Map to VoodooLand than anything.