Rep. Paul Ryan told CNBC’s “Squawk Box” on Tuesday that President Barack Obama’s planto extend the Bush-era tax cuts only for those making less than $250,000 a year is a “distraction.”
With 80 percent of businesses in the U.S. filing as individuals, Ryan, R-Wis., said the plan is a big tax increase on successful small businesses and job creators.
“Don’t forget that these tax increases he's proposing are for more spending, not even for debt reduction,” Ryan said. “All of the tax increases don't pay for a fifth of his proposed deficit spending.” (Related: American Tax Havens).
He added: “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."
Congressional Republicans announced in June that they were going to pass a one-year extension of the entire tax code this month and then have a fast-track procedure for 2013 for fundamental tax reform, Ryan said. The move is aimed at avoiding going over the "fiscal cliff" — when tax cuts are set to expire and automatic spending cuts go into effect at the end of the year.
"We'll deal with the fiscal cliff and get to tax reform, broaden the base and lower the rates," said Ryan, who has been mentioned as a possible running mate of GOP presidential hopeful Mitt Romney.
When asked about whether he was being vetted for vice president, Ryan said: “It is not in the Romney campaign's interest for me to comment on that. It's not going to do them any favors.” He added that he has “an important role to play in the House.”