When tax rates are lowered, economic growth is produced. That's how House Budget Committee Chairman Paul Ryan described the GOP approach to reforming the U.S. tax code, in an interview on CNBC Wednesday.
House Republicans this week are expected to float a tax overhaul package that would cut the top income tax rate to 25 percent from 39.6 percent, but levy a surtax on some of the most affluent households.
This idea has little chance of gaining support from the White House. But the former Republican vice presidential candidate told "Squawk Box" on Wednesday: "Just because we have a progressive liberal president and Senate doesn't mean we should do nothing and offer no ideas on how to grow the economy."
The plan—detailed in The Washington Post earlier this week—would impose a 10 percent surtax on certain kinds of earned income over about $450,000 a year.
Ryan explained why this provision is necessary, even though he doesn't like it. "With the code we have—and we're trying to replace it was a revenue-neutral code, which is the parameters we have to deal with—is do some base-broadening that aren't ideal," he said.
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