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CNBC Transcript: Speaker of the House Paul Ryan Speaks with CNBC’s “Squawk Box” Today

WHEN: Today, Wednesday, December 7th

WHERE: CNBC's "Squawk Box"

Following is the unofficial transcript of a CNBC interview with House Speaker Paul Ryan on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today, Wednesday, December 7th. Following is a link to the full interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000574186.

All references must be sourced to CNBC.

KERNEN: PRESIDENT-ELECT TRUMP WILL BE SWORN IN NEXT MONTH AND HE'LL HAVE A REPUBLICAN CONTROLLED CONGRESS TO HELP PUSH FORWARD HIS AGENDA. JOINING US NOW TO TALK ABOUT WHAT SHOULD BE ON THE TOP OF THE LIST DURING THE FIRST 100 DAYS, HOUSE SPEAKER PAUL RYAN. IT'S GREAT TO HAVE YOU ON SET WITH US. WE GO WAY BACK.

RYAN: WE DO. I CAME TO SEE BECKY, ACTUALLY. STUCK WITH YOU GUYS. WHAT THE HECK?

KERNEN: YOU WERE -- WE'VE BEEN -- WE'VE KNOWN EACH OTHER A LONG TIME. I REMEMBER YOU USED TO KIND OF YANK CARL'S CHAIN. CARL QUINTANILLA. THAT'S AT LEAST SIX YEARS.

RYAN: OH, YEAH.

KERNEN: I WAS KIDDING. I'M SURE IT WASN'T JUST "SQUAWK BOX" THAT GOT YOU TO BE SPEAKER.

RYAN: MAYBE ONE OR TWO OTHER FACTORS. BUT WE CO-HOSTED FOR YEARS.

KERNEN: YEAH.

RYAN: YEAH, I WAS THE BUDGET GUY FOR EIGHT YEARS IN THE HOUSE.

KERNEN: LOOK AT YOU NOW. AREN'T YOU LIKE THIRD IN LINE NOW? OR SECOND IN LINE? SOMETHING LIKE THAT?

RYAN: SOMETHING LIKE THAT, YEAH.

KERNEN: THAT IS UNBELIEVABLE. GOD FORBID.THE WAY I WOULD START THIS IS, IT'S A GREAT EXPRESSION AND THAT IS THE DOG CHASING THE BUS. AND IT'S LIKE, I WANT TO GET THERE. I CAN'T WAIT TO GET THERE. FINALLY CATCHES THE BUS AND IT'S LIKE WHY WAS I CHASING THIS BUS. DO YOU KNOW WHAT THE HELL TO DO WITH THIS BUS?

RYAN: OH, YEAH. WE SPENT ALL OF 2016 GETTING READY FOR THE POSSIBLE OPPORTUNITY OF HAVING UNIFIED GOVERNMENT IN 2017. THE HOUSE WENT THROUGH THE ENTIRE EXERCISE. EVERY COMMITTEE WORKING, EVERY MEMBER OF THE HOUSE REPUBLICAN CONFERENCE.

KERNEN: WHAT WERE YOU SMOKING? NO ONE THOUGHT THAT.

RYAN: I KNOW NO ONE THOUGHT THAT, BUT WE WANTED TO BE READY. SO WE WERE -- WE'VE BEEN WORKING ON OUR TAX REFORM LEGISLATION FOR OVER A YEAR. WE'VE BEEN WORKING ON WELFARE LEGISLATION, HEALTH CARE LEGISLATION, REGULATORY AGENDA, ENERGY POLICY. SO IT'S NOT JUST TALKING POINTS AND PABLUM. WHAT I TOLD OUR COMMITTEES A YEAR AGO OUR MEMBERS IS, ASSUME WE GET THE WHITE HOUSE AND CONGRESS. THEN COME 2018 WHAT DO YOU WANT TO HAVE ACCOMPLISHED FOR THE COUNTRY TO GET THIS COUNTRY BACK ON THE RIGHT TRACK? WHAT DOES THAT LOOK LIKE? PLAN NOW. THIS IS YOUR PLAN. SO FOR THE NEXT YEAR -- THIS IS 2016 BACK AT THE END OF 2015 -- DO EVERYTHING YOU NEED TO DO TO GET READY TO DO THAT. SO THIS IS EXACTLY WHAT CONGRESS AND THE HOUSE HAS BEEN WORKING ON FOR THE LAST YEAR. GETTING EVERYTHING READY TO BASICALLY ROCK AND ROLL IN 2017 TO GET WORKING. SO WE'VE GOT -- WE ARE NOW WORKING WITH OUR FRIENDS IN THE SENATE AND THE INCOMING TRUMP ADMINISTRATION JUST ON TIMELINE, ON AN EXECUTION STRATEGY OF THIS AGENDA WHICH WE'RE REALLY EXCITED ABOUT. YEAH, YOU'RE RIGHT. A LOT OF PEOPLE DIDN'T THINK THIS WAS GOING TO HAPPEN, BUT WE NEEDED TO BE PREPARED IN THE EVENT THAT IT DID. AND IT DID.

KERNEN: YOU TWEET TOO. AND SOME OF THE DARKEST DAYS FOR REPUBLICANS OF THE – WHENEVER THAT WAS HAPPENING, YOU'D BE TWEETING OUT HERE'S OUR PLAN FOR -- IT'S CALLED --

RYAN: I DIDN'T USE THAT PITCH OF VOICE WHEN I DID THAT.

KERNEN: BUT THE PLAN FOR AMERICA. IS THAT WHAT IT WAS CALLED? I LOVE THAT PAUL'S DOING THIS STUFF. DOESN'T HAVE AN ICE CUBE'S CHANCE IN HELL OF EVER HAPPENING –

RYAN: THAT'S WHAT MOST PEOPLE SAID.

KERNEN: AND HERE WE ARE WHERE IT'S ACTUALLY HAPPENING. LET ME ASK YOU. IS THERE A WAY TO DO -- I DON'T KNOW IF YOU SAW THERE WAS A -- YOU KNOW, I DON'T FINISH A LOT OF SENTENCES. WHEN REAGAN CAME IN, THE FIRST THING, YOU GOT TO GET RID OF SOME OF THESE REGULATIONS IMMEDIATELY BEFORE YOU CAN GET ANYTHING DONE.

RYAN: THAT'S RIGHT.

KERNEN: DO YOU HAVE SOMEONE LIKE A CZAR TO IMMEDIATELY DO THINGS THAT OPEN UP DOORS TO DO ALL THE OTHER THINGS SO THAT YOU CAN ACTUALLY GET IT DONE?

RYAN: THAT IS THE ANALYSIS WE'RE GOING THROUGH RIGHT NOW WITH THE TRUMP TRANSITION TEAM. WE'RE GOING THROUGH AN ANALYSIS WHAT THEY DO ON THEIR OWN BY JUST WHEN HIS HAND COMES OFF THE BIBLE HE GOES DOWN TO PENNSYLVANIA AVENUE, SIGNS EXECUTIVE ORDERS. SO WHAT CAN HE DO ADMINISTRATIVELY? WHAT DO WE NEED TO DO LEGISLATELY? WE HAVE THIS THINGS CALLED THE CONGRESSIONAL REVIEW ACT. THE CONGRESSIONAL REVIEW ACT IS A TOOK CONGRESS HAS TO REACH BACK AND GET RID OF REGULATIONS AND THAT CANNOT BE FILIBUSTERED IN THE SENATE. THAT'S ONLY A 51 VOTE. WE'VE DONE THIS BEFORE. WE PUT A BUNCH OF THESE ON OBAMA'S DESK WHICH HE OF COURSE VETOED BUT WE'RE NOW LOOKING IN THE QUEUE FOR WHICH ONES HE CANNOT DO JUST UNILATERALLY ADMINISTRATIVELY THAT WE HAVE TO BE INVOLVED IN. THAT'S THE DECISION WE'RE GOING THROUGH RIGHT NOW. THE ANALYSIS WE ARE GOING THROUGH RIGHT NOW. IN ADDITION, WE HAVE A VERY, VERY BOLD REGULATORY REFORM PLATFORM WE'RE MOVING ON IN THE VERY NEAR PART OF THE YEAR. WE'RE GOING TO BE DOING OUR OBAMACARE LEGISLATION. YOU HAVE TO REMEMBER THIS LAW IS GETTING MUCH WORSE. IT'S WHAT ACTUARIES SAY ENTERING A DEATH SPIRAL. HIGH HIGH PREMIUM INCREASES. HIGH DECUCTIBLES, NO CHOICED SO WE HAVE TO FIX THIS PROBLEM.

KERNEN: BUT PEOPLE DON'T UNDERSTAND THAT A REPEAL DOESN'T MEAN THAT YOU PULL THE RUG OUT --

RYAN: THAT'S THE POINT I WAS TRYING TO MAKE ON "60 MINUTES" WHICH IS WE WILL HAVE A TRANSITION PERIOD THAT WILL BE REASONABLE SO WE'RE NOT PULLING THE RUG OUT UNDER PEOPLE.

KERNEN: AND WE'RE NOT TALKING MONTHS IT'S GOING TO BE YEARS.

RYAN: I THINK PEOPLE BELIEVE WITH ALL THE RHETORIC, MY GOSH. IN FEBRUARY I'M GOING TO LOSE WHAT I'VE GOT RIGHT NOW AND I'M GOING TO BE -- I'LL HAVE NOTHING TO GO TO. THE POINT WE'RE TRYING TO MAKE IS THIS LAW IS JUST FAILING VERY, VERY QUICKLY. WE'VE GOT TO REPLACE THIS LAW. AND WE WILL HAVE A TRANSITION PERIOD SO THAT WE DON'T PULL THE RUG OUT FROM UNDER PEOPLE.

KERNEN: BUT YOU DON'T WANT PEOPLE GOING BACK TO EMERGENCY ROOMS BECAUSE THEY'VE GOT NOTHING ELSE. YOU'LL HAVE A TWO YEAR RANGE AS SPEAKER IF YOU MESS THIS UP.

RYAN: THAT'S RIGHT. WE'LL HAVE A TRANSITION TO ANOTHER. THE POINT I'M TRYING TO MAKE IS WE'RE GOING TO MOVE ON MANY SIMULTANEOUS FRONTS. WE'RE GOING TO MOVE ON REGULATORY REFORM. WE'RE GOING TO MOVE ON OBAMACARE RELIEF. WE'RE GOING TO MOVE ON THINGS LIKE SECURING THE BORDERS. AND THEN OUR NEXT ROUND OF BUDGETING WHICH COMES IN THE SPRING, WE'RE GOING TO WORK ON THE OTHER ISSUES LIKE, SAY, TAX REFORM AND THINGS LIKE THIS. SO WE'VE GOT A BIG BOLD AGENDA WE'RE WORKING ON. BY THE WAY, WHEN WE WORKED ON THIS ALL LAST YEAR, WE CAMPAIGNED ON THIS. WE WANTED TO TELL THE COUNTRY VERY CLEARLY, HERE IS WHAT WE HOPE TO DO UNDER A UNIFIED REPUBLICAN GOVERNMENT SO IF WE WIN THE ELECTION, WHICH WE JUST DID, WE FEEL WE HAVE THE OBLIGATION TO FOLLOW UP ON THAT AND MAKE GOOD ON THOSE PROMISES WHICH IS NOW WHAT WE ARE PLANNING ON DOING.

SORKIN: SO LET'S TALK ABOUT THE TAX REFORM PIECE OF IT AND THE UNIFIED PARTY, IF YOU WILL, TO THE EXTENT YOU BELIEVE IT'S COMPLETELY UNIFIED.

RYAN: IT'S A WHOLE LOT MORE UNIFIED THAN THE DEMOCRATS.

SORKIN: BUT YOU'VE TALKED ABOUT 25% RATE ON THE CORPORATE SIDE.

RYAN: YEAH. 20% ON CORPORATE.

SORKIN: TRUMP HAS TALKED ABOUT 15%.

RYAN: RIGHT. RIGHT.

SORKIN: WHERE DO YOU THINK THIS REALLY LANDS?

RYAN: IT'S GOING TO COME DOWN TO NUMBER CRUNCHING. IT WILL COME DOWN TO IF WE CHOOSE TO PUT IT THROUGH A BUDGET AND HOW THE NUMBERS ADD UP. SO IT REALLY IS BASICALLY --

SORKIN: YOU CARE ABOUT PAY FORCE THOUGH?

RYAN: THAT'S WHAT I MEAN WHEN I SAY IF WE'RE GOING TO PUT IT IN A BUDGET, WE WILL SHOOT FOR REVENUE NEUTRAL TAX REFORM. THE PLAN WE WROTE IS REVENUE NEUTRAL. WE NOW TAKE INTO ACCOUNT ECONOMIC EFFECTS OF TAX CHANGES. THEY CALL IT DYNAMIC SCORING. I CALL IT REALITY BASED SCORING. WE WILL USE THAT SO WE MAKE SURE TO MAXIMIZE THE ECONOMIC GROWTH POTENTIAL. THE LAST THING WE WANT TO DO IS NOT WRITE TAX REFORM WHERE WE'RE NOT THINKING ABOUT HOW TO MAXIMIZE GROWTH. SO OUR TAX REFORM IS GOING TO BE FOCUSED ON MAXIMIZING GROWTH AND COMPETITIVENESS OF AMERICAN BUSINESSES. AND WE WILL DO THAT IN A WAY WHERE WE WILL MAKE IT REVENUE NEUTRAL. THAT MEANS YOU HAVE TO PLUG LOOPHOLES TAX EXPENDITURES SO YOU CAN LOWER RATES. SO IT'S GOING TO COME DOWN TO HOW THE NUMBERS ADD UP AS TO HOW LOW WE CAN GET THAT RATE. WE BELIEVE WE CAN DO IT AT 20% RIGHT NOW. IF WE CAN SQUEEZE THE NUMBERS AND PLUG MORE LOOPHOLES AND GET TO 15%. GREAT. THE LOWER THE BETTER AS FAR AS I AM CONCERNED. IRELAND IS 12.5% ENGLAND'S GOING TO 18%.

SORKIN: WHERE DO YOU LAND ON THE INDIVIDUAL RATE?

RYAN: IF YOU LOOK AT OUR PLAN WHICH IS THE ONE THE TRUMP PLAN BASICALLY USED THE SAME NUMBERS, WE CONSOLIDATE FROM SEVEN TO THREE BRACKETS. 15% BRACKET, 25% BRACKET AND A 33% BRACKET FOR HIGHER EARNINGS SO WE ACTUALLY SEVERED – FOR THE FIRST TIME IN ANY BASIC TAX REFORM PLAN WE PUT OUT THERE AND I USED TO CHAIRS AND MEANS I SPENT MY WORLD IN THIS FOR A LONG TIME. THE WAGE AND SALARY INCOME RATES WHICH ARE GOING TO BE MORE PROGRESSIVE FROM THE BUSINESS INCOME RATES. WHAT PEOPLE FORGET IS 80% -- EIGHT OUT OF TEN BUSINESSES FILE AS INDIVIDUALS. LLCs, PROPRIETORS.

SORKIN: SO HOW DO WE DEAL WITH THE PASS THROUGHS?

RYAN: PASS THROUGH RATES BECAUSE PASS THROUGHS PAY ONE LAYER OF TAX NOT A SECOND DIVIDEND CAPITAL GAINS RATE. IN THE PLAN THAT WE ENVISIONED WE'RE WORKING ON IT'S A 25% FOR PASS THROUGHS. 20% CORPORATE RATE. AND THE CAPITAL GAINS RATE GOES UNDER OUR PLAN A 50% EXCLUSION OF YOUR INDIVIDUAL RATE. THEREFORE THE TOP RATE WOULD BE 16%. NORMALLY I DON'T THROW THESE KINDS OF NUMBERS AROUND, BUT YOU GUYS IN "SQUAWK BOX" DO THIS. IF YOU WANT TO LOOK AT WHAT I'M SAYING, GO TO BETTER.GOP AND LOOK AT OUR TAX PLAN.

KERNEN: BUT CUTTING TAXES ON THE RICH WHEN YOU TALK ABOUT 80% OF THE THOSE ARE THE GUYS WE WANT TO HELP.

RYAN: IT'S THE GUY WHO OWNS THE INDUSTRIAL -- HE OWNS THE BUSINESS, THE TOOL AND DYE SHOP AND THE PARK IN GAINESVILLE THAT'S GOT 50 EMPLOYEES WHO'S COMPETING AGAINST CANADA WHO HAS A 15% TAX RATE.

KERNEN SEE WE'VE GOT TO KEEP EMPHASIZING THAT.

SORKIN: I THANK YOU BOTH FOR THE EDUCATION. THANK YOU FOR THE EDUCATION.

RYAN: IF BECKY WERE HERE WE WOULDN'T HAVE TO EMPHASIZE THIS. THIS WOULD BE TAKEN CARE OF.

KERNEN: SHE'S GOT IMPORTANT THINGS TO DO RIGHT NOW.

RYAN: I KNOW SHE DOES.

KERNEN: THOSE ARE THE THINGS YOU DON'T WANT -- YOU CAN'T DO THEM AGAIN. IF YOU DON'T DO THEM THE FIRST TIME YOU THINK MATTIS WON'T BE A PROBLEM?

RYAN: HE'S GOT -- A LOT OF US KNOW JIM MATTIS QUITE WELL. HE IS SO REVERED. HE IS EXCEPTION WORTHY TO THE WAIVER RULE. HE'S WITHIN THE SEVEN-YEAR WINDOW. WE'RE MOVING THE CONTINUING RESOLUTION TOMORROW. WE JUST POSTED THIS BILL LAST NIGHT. THAT WILL HELP MAKE SURE THAT THEY CAN MOVE ON THAT NOMINATION FAIRLY QUICKLY IN THE SENATE. SO THEY CAN'T GUM IT UP WITH A FILIBUSTER.

KERNEN: I HAVE NO IDEA HOW THEY'RE GOING TO DO IT, BUT, YOU KNOW, RACIST, RACIST, RACIST. BEN CARSON. GOT TO COME UP WITH SOMETHING ELSE FOR HIM.

RYAN: THIS IS POLITICAL WHITE NOISE, THIS STUFF.

KERNEN: REALLY? AND YOU THINK EVERYBODY THAT'S ALREADY BEEN SUGGESTED IS GOING TO END UP -- I MEAN, A PRESIDENT'S SUPPOSED TO GET HIS PICK OF WHO HE WANTS.

RYAN: SURE. BUT OBAMA'S PEOPLE GOT ATTACKED. PRESIDENTS PICK NEW CABINETS. THE OTHER PARTY TYPICALLY ATTACKS THOSE PICKS FOR THE CABINETS. IT JUST HAPPENS. SO THAT TO US IS JUST WHITE NOISE. I'M IMPRESSED WITH HOW FAST PRESIDENT-ELECT TRUMP HAS GOTTEN HIS CABINET GOING. HE'S MOVING REALLY QUICKLY. HE'S MAKING A LOT OF BIG EXECUTIVE DECISIONS.

SORKIN: YOU KNOW ROMNEY VERY WELL.

RYAN: YEAH. GOOD FRIEND OF MINE.

SORKIN: WOULD YOU LIKE TO SEE HIM AS SECRETARY OF STATE?

RYAN: I'D LOVE TO SEE HIM SECRETARY OF STATE. I DON'T KNOW WHAT DONALD'S GOING TO DO. I THINK HE'S GOING TO MAKE HIS CHOICE PRETTY SOON. I ALREADY MENTIONED THAT THIS MORNING. I THINK MITT WOULD BE FANTASTIC. HE'S ONE OF THE MOST COMPETENT PEOPLE I'VE EVER KNOWN.

KERNEN: I MEAN, YOU HAD YOUR OWN THINGS TO DEAL WITH, OBVIOUSLY, THROUGH THAT CAMPAIGN WHICH WE TALKED ABOUT ALREADY. WHAT WAS MITT – WHAT WAS THAT? WHAT WAS THAT?

RYAN: HAVE HIM COME ON AND ASK HIM YOURSELF.

KERNEN: OH COME ON. YOU JUST SAID – YOU KNOW, YOU JUST COPPED TO BEING A REALLY GOOD FRIEND.

RYAN: HE IS. HE IS.

KERNEN: OK. SO, TELL ME WHAT HE TOLD YOU. WHAT DID HE TELL – DID HE THINK HE WOULD BE WAITING IN THE WINGS?

RYAN: NO, NO, NO.

KERNEN: WELL THEN WHAT POSSIBLE MOTIVE COULD HE HAVE?

RYAN: I DON'T KNOW. I REALLY – HE DIDN'T GIVE US A HEADS UP WHEN HE DID THIS.

KERNEN: ARE YOU SURPRISED THAT TRUMP –

RYAN: WE WERE SURPRISED WHEN –

KERNEN: WERE YOU SURPRISED THAT HE FORGIVES HIM TO THE EXTENT – OR JUST –

RYAN: ACTUALLY, NOW THAT I'VE GOTTEN TO KNOW DONALD TRUMP, WHICH I DIDN'T BEFORE, I'M NOT SURPRISED. HE'S EXTREMELY MAGNANIMOUS IN THIS. AND I SEE THE KIND OF GUY HE IS, WHICH IS THE MORE – I TALK TO HIM ALMOST EVERY DAY. HE'S A VERY FORGIVING, VERY MAGNANIMOUS KIND OF A GUY. I'M ACTUALLY VERY IMPRESSED WITH HOW HE'S HANDLED THIS. I'M VERY IMPRESSED WITH HOW HE'S HANDLED JUST FORMER CRITICS FROM HIS OWN PARTY, LIKE SAY MITT ROMNEY, TO EVERYBODY ELSE. THAT HE'S BASICALLY SAYING LET'S JUST GO UNIFY THIS PARTY, UNIFY THIS COUNTRY, GET THINGS DONE. THAT'S EXACTLY WHAT I THINK PEOPLE WANT TO SEE.

KERNEN: RIGHT. FROM NEGOTIATORS AND BUSINESS LEADERS AND SHOWMEN. PEOPLE KNOW WHAT'S SHOW AND KNOW WHAT'S REAL.

RYAN: WHAT WE'RE SEEING IS WHAT EVERYBODY WAS HOPING TO SEE.

KERNEN: RIGHT.

RYAN: WHICH IS THIS IS GOING TO BE A BUSINESS GUY WHO BECOMES PRESIDENT WHO'S JUST GOING TO FOCUS ON GETTING THE JOB DONE AND FIXING THIS COUNTRY'S BIG PROBLEMS.

KERNEN: YOU'RE SURPRISED TO SOME EXTENT, AREN'T YOU?

RYAN: I'M EXCITED. I AM.

SORKIN: HOW DO YOU WANT HIM TO ADDRESS HIS BUSINESS CONFLICTS?

RYAN: HOWEVER HE WANTS TO. YOU KNOW, THIS IS NOT WHAT I'M CONCERNED ABOUT IN CONGRESS.

SORKIN: HE'S ANNOUNCED THAT ON DECEMBER 15th HE'S GOING TO TALK ABOUT SPLITTING THE FAMILY BUSINESS FROM HIMSELF.

RYAN: RIGHT.

SORKIN: BUT WHAT DO YOU THINK IS THE APPROPRIATE WAY TO DO THAT? IN SUCH A WAY THAT YOUR COLLEAGUES AND PEERS ARE NOT GOING TO BE HOLDING CONSTANT HEARINGS ABOUT THOSE CONFLICTS.

RYAN: I HAVE EVERY BIT OF CONFIDENCE HE'S GOING TO GET HIMSELF RIGHT WITH MOVING FROM BEING THE BUSINESS GUY THAT HE IS TO THE PRESIDENT HE'S GOING TO BECOME. I'M FOCUSED ON GETTING THIS AGENDA PASSED SO THAT WE CAN TURN AROUND AND TACKLE THIS COUNTRY'S BIG PROBLEMS BEFORE THEY TACKLE US. THAT IS WHAT I'M FOCUSED ON. AND NOT THE LEGAL DETAILS OF HOW HE DIVORCES HIMSELF FROM HIS BUSINESS, WHICH I KNOW HE WILL.

KERNEN: EXCELLENT. I FOUND THIS. CAN YOU GET THIS? CAN YOU ACTUALLY GET IN AND SEE THAT?

SORKIN: WHAT IS THIS? WHAT ARE YOU LOOKING AT?

RYAN: OH, IS THIS THE "TIME"?

KERNEN: YEAH. HERE WAS THE FIRST "TIME" PIECE. THAT'S THE MELTDOWN. THAT WAS FOLLOWED BY – FOR "TIME" – TOTAL MELTDOWN. AND, I MEAN, THEN THEY COME OUT WITH –

RYAN: WE CAN'T SEE.

KERNEN: OH, NO. I'LL SHOW YOU. THEN WE COME OUT WITH, I MEAN, THAT'S HARD FOR "TIME" TO DO THAT TOO, ISN'T IT? HERE. CHECK THOSE THREE OUT. THERE'S MELTDOWN, TOTAL MELTDOWN AND THEN IT HAD TO BE FOLLOWED UP BY THAT. THAT'S GOT TO BE HARD FOR "TIME," DOESN'T IT? AS IRRELEVANT AS "TIME" IS, BUT STILL, THAT'S GOT TO BE A LITTLE BIT PAINFUL.

RYAN: I MEAN, IT'D BE SURPRISING IF HE DIDN'T GET IT. IT WOULD BE SURPRISING. WHO ELSE WOULD GET PERSON OF THE YEAR?

KERNEN: WHO? WHO IS NUMBER TWO? HE SAYS SAID BERNIE SANDERS.

SORKIN: I SAID JOE KERNEN.

RYAN: THAT MAKES TWO – THAT MAKES ONE OF YOU.

KERNEN: SO OKAY. YOU KNOW WHAT, I GOT A LITTLE BIT MORE TIME.

SORKIN: THE BIG ANNOUNCEMENT IS HE IS JOINING THE ADMINISTRATION AFTER THIS AFTERNOON.

KERNEN: HA, HA, HA. I'M SORRY YOU'RE NOT GOING TO HAVE THAT OPPORTUNITY. GIVEN WHAT HAPPENED. WE'VE HEARD ABOUT GIVING THE KEYS BACK TO A PARTY THAT DROVE THE CAR INTO THE DITCH THE FIRST TIME AROUND. I KNOW THAT SOUNDS FAMILIAR. I CAN DO IT IN THE WAY HE DOES IT, BUT I'M NOT GOING TO. BUT, WHY SHOULD WE BELIEVE YOU GUYS AREN'T GOING TO DRIVE THE CAR BACK INTO THE DITCH?

RYAN: YEAH, IT'S A GOOD QUESTION. ACTUALLY, I THINK THAT'S A FAIR QUESTION. THIS IS, AGAIN, WHY WE SPENT SO MUCH TIME IN 2016 PUTTING A VERY SPECIFIC AGENDA OUT THERE. SHOWING THE COUNTRY, WHAT WE THINK ARE THE RIGHT REFORMS TO TACKLE THE COUNTRY'S BIG PROBLEMS. I WAS INVOLVED – I CAME INTO CONGRESS IN 1998 OR 1999 I WAS SWORN IN. SO I WAS THERE FOR 9/11, THERE FOR BUSH ADMINISTRATION, THERE FOR THE OBAMA ADMINISTRATION. I THINK THE DOMESTIC AGENDA ATROPHIED BECAUSE WE GOT SO FOCUSED ON TERRORISM, WE GOT SO FOCUSED ON WARS. AND AS A RESULT, THE DOMESTIC AGENDA, THE DEBT, HEALTH CARE, DEFICITS, GROWTH, IT DIDN'T GET THE KIND OF BILLING IT NEEDED TO ON THE AGENDA. THAT IS NOT THE CASE NOW. AND WE'RE ALL NOW KIND OF ACCUSTOM TO HAVING FOREIGN POLICY CHALLENGES CONTINUOUSLY. BUT WE NOW ARE SO FOCUSED ON GETTING THIS DOMESTIC AGENDA UP AND RUNNING, GETTING PEOPLE OUT OF POVERTY BACK INTO WORK, GETTING THIS ECONOMY GROWING FASTER, MAKING AMERICAN BUSINESSES MORE COMPETITIVE SO WE'RE NOT PUSHING BUSINESSES OVERSEAS.

KERNEN: WHAT IF PRESIDENT –

RYAN: AND THE REGULATORY – THE REGULATIONS ARE REALLY A BIG DEAL.

KERNEN: TRUE.

RYAN: THIS ADMINISTRATION, THE OBAMA ADMINISTRATION, HAS JUST PUT SUCH A CHILLING EFFECT ON JUST DECISION MAKING BECAUSE OF THE REGULATORY ONSLAUGHT.

KERNEN: WHAT IF PRESIDENT TRUMP SAYS, SPEAKER RYAN, I WANT YOU TO DO THIS FOR ME. I WANT A BILL ON MY DESK PUTTING 35% TARIFF ON SOME OF THESE GOODS COMING BACK IN. WHAT WOULD YOU TELL HIM? BUT WHAT WOULD YOU TELL HIM?

RYAN: I'LL TELL HIM WHAT I'VE BEEN SAYING ALL ALONG –

KERNEN: THAT YOU'RE NOT GOING TO DO IT?

RYAN: WHICH IS WE CAN GET AT WHAT HE IS TRYING TO GET AT BETTER THROUGH A COMPREHENSIVE TAX REFORM.

KERNEN: THROUGH A CARROT, NOT A STICK.

RYAN: THROUGH A CARROT AND THROUGH A BETTER TAX REFORM. CAPITOL'S MOBILE. AND SO WHY DO WE MAKE AMERICA THE MOST ATTRACTIVE PLACE WHERE IT JUST MAKES SENSE TO KEEP YOUR HEADQUARTERS HERE, TO KEEP YOUR MANUFACTURING HERE, BECAUSE WE FIXED OUR TAX LAWS. WE HAVE THE WORST TAX SYSTEM IN THE INDUSTRIALIZED WORLD.

KERNEN: I THINK YOU'VE ALREADY TOLD HIM THIS AND HE STILL TWEETED THAT.

RYAN: I THINK WHAT HE'S TRYING TO GET AT IS THERE'S A NEW SHERIFF IN TOWN AND WE'RE GOING TO GO REALLY WORK ON KEEPING BUSINESSES HERE, KEEPING JOBS HERE, GETTING GROWTH. AND THAT TO ME – WE CAN ADDRESS THIS THROUGH TAX REFORM. AND THAT IS, LOOK, OUR PLAN SAYS IMMEDIATE EXPANSION PLAN EQUIPMENT, A 20% TAX RATE FOR CORPORATIONS, YOU DO THAT AND YOU WILL SEE GROWTH IN THIS COUNTRY.

SORKIN: YOU'VE LONG TALKED ABOUT FREE MARKET AND THE MARKET SYSTEM WORKING. AND SO I'M CURIOUS WHAT YOUR THOUGHTS ARE WHEN YOU HEAR DONALD TRUMP NOW TALK ABOUT A COMPANY LIKE BOEING SHOULD ONLY BE ABLE TO MAKE A CERTAIN AMOUNT OF PROFIT.

RYAN: HE'S A BUSINESS GUY. HE'S A TRANSACTIONAL, NEGOTIATING, BULLY PULPIT USING BUSINESS GUY WHO'S BECOMING PRESIDENT. I DON'T THINK WE SHOULD BE SURPRISED ANYMORE THAT HE'S GOING TO SAY SURPRISING THINGS FOR AN INCOMING PRESIDENT. HE'S AN UNCONVENTIONAL PERSON. HE WAS AN UNCONVENTIONAL CANDIDATE WHO IS BECOMING AN UNCONVENTIONAL PRESIDENT. BUT WHAT I LIKE ABOUT IT IS HE WANTS TO SHAKE THINGS UP. HE'S READY TO GET GOING. HE'S NOT SAYING LET'S JUST SLOW BACK AND WAIT, WHICH WE GET AROUND HERE A LOT. HE'S SAYING LET'S GO, GO, GO. THAT TO US IS MUSIC TO OUR EARS. WE HAVE BEEN WAITING FOR THIS OPPORTUNITY TO GET VERY GOOD FREE MARKET PRO-GROWTH ECONOMIC POLICY MOVING. NOW WE'RE DOING IT. AND SO THAT'S – I SEE THIS AS EXCITING. HE'S GOING TO DO THESE THINGS THAT I THINK ARE INTERESTING, EXCITING AND SURPRISING, BUT IT'S GOING TO SHAKE THE SYSTEM UP. AND THERE'S NOTHING WRONG WITH THAT.

SORKIN: BUT YOU DON'T LOOK AT THOSE THINGS AS BEING AT ODDS AT ANY LEVEL?

RYAN: NO, I THINK THAT WE ARE GOING TO BE FOCUSED – WE KNOW EXACTLY WHAT – WE TALK ALMOST DAILY ABOUT THE AGENDA, ABOUT WHERE WE'RE GOING, ABOUT THE KIND OF LEGISLATION WE WANT TO PASS. SO WE ARE IN SYNC ON THAT FRONT. AND SO WE ARE MOVING.

KERNEN: YOU'RE CONVINCED NOW? BECAUSE PEOPLE LIKE YOU WEREN'T ALWAYS CONVINCED. IS HE A BONAFIDE REPUBLICAN?

RYAN: YEAH, WE ARE JUST DIFFERENT PEOPLE.

KERNEN: IS HE A REPUBLICAN?

RYAN: OF COURSE, YEAH.

KERNEN: IF HE GOT HIS – HE IS THERE NOW? YOU'RE NOT GOING TO ASK WHETHER WHAT KIND OF PERSON HE REALLY IS? REPUBLICAN, DEMOCRAT, BOTH, DEPENDS ON THE DAY. SO HE DOES HAVE THESE – THESE ARE REPUBLICAN VALUES.

RYAN: NO, HE'S A CONSERVATIVE. YEAH. VERY MUCH SO. LOOK AT HIS CABINET PICKS. LOOK WHO HE'S SURROUNDING HIMSELF WITH. I MEAN LOOK, REINCE PRIEBUS I'VE KNOWN EXTREMELY WELL FOR A LONG TIME.

KERNEN: THAT GUY, TALK ABOUT NAVIGATING THROUGH SOME DIFFICULT WATERS.

RYAN: REINCE WAS THE CHAIRMAN OF THE KENOSHA COUNTY REPUBLICAN PARTY, WHICH IS ONE OF THE COUNTIES IN MY DISTRICT, AND THEN HE BECAME THE CHAIRMAN OF THE FIRST CONGRESSIONAL DISTRICT REPUBLICAN PARTY, THEN HE BECAME THE CHAIRMAN OF THE WISCONSIN REPUBLICAN PARTY, AND THE NATIONAL PARTY. HE'S A BRILLIANT GUY. HE'S A VERY SUCCESSFUL LAWYER. I MEAN, PEOPLE DON'T KNOW THAT ABOUT HIM.

KERNEN: THAT MUST BE IT. BECAUSE HE WALKED A LINE AT CERTAIN TIMES WHERE – I MEAN, SKILLFULLY NAVIGATING –

RYAN: BUT THE POINT IS, REINCE IS A REAL CONSERVATIVE.

KERNEN: IT WAS A TOUGH CAMPAIGN.

RYAN: REINCE IS A TRUE BELIEVING CONSERVATIVE. HE'S AN EFFECTIVE CONSERVATIVE. SO HE IS SURROUNDING HIMSELF WITH, YES, REAL REPUBLICANS, REAL CONSERVATIVES WHO BELIEVE IN THE PRINCIPLES OF CONSERVATISM, WHO BELIEVE IN LIBERTY AND FREEDOM AND ECONOMIC GROWTH AND THE CONSTITUTION AND EQUALITY OF OPPORTUNITY AND UPWARD MOBILITY. THE THINGS WE BELIEVE IN ARE THE PEOPLE WHO IS HE SURROUNDING HIMSELF WITH.

KERNEN: BUT HE WAS – HE MANEUVERED THROUGH SOME TOUGH WATERS. WAS HE READY TO GO DOWN WITH –

RYAN: YEAH. THIS WAS HIS JOB. HE WAS RNC CHAIR. AND, YEAH. YEAH, NO, REINCE –

KERNEN: BECAUSE HE NEVER CUT TRUMP LOOSE.

RYAN: NO.

KERNEN: SOME PEOPLE CAME CLOSE.

SORKIN: I'M JUST TRYING TO UNDERSTAND – BACK TO THE CONSERVATIVE FREE MARKET KIND OF PIECE TO THIS.

KERNEN: RIGHT.

SORKIN: JUST THE WHOLE IDEA OF DEMAGOGUING A PARTICULAR COMPANY OR TRYING TO MAKE A DEAL WITH A PARTICULAR – YOU KNOW, THAT TO ME, SEEMS SO OUT OF LINE WITH THE WAY YOU HAVE HISTORICALLY THOUGHT ABOUT BUSINESS.

RYAN: HE'S NOT GOING TO BE A TRADITIONAL PRESIDENT. IT JUST IS WHAT IT IS. AND IN MANY WAYS, IT'S REFRESHING BECAUSE IT JUST SHAKES THE SYSTEM UP A LITTLE BIT. AND I THINK THAT'S PRETTY GOOD.

KERNEN: ARE THERE A LOT OF PEOPLE ON THE LEFT THAT THINK HE'S – THAT HOPE HE'S UNCONVENTIONAL ENOUGH TO GET HIMSELF INTO TROUBLE? INTO SOME TYPE OF ETHICAL OR – THEY ALREADY USE THE I WORD. YOU GOT TO MAKE SURE –

RYAN: YEAH, WELL I THINK THE OTHER PARTY PINS FOR THIS STUFF. I MEAN, LOOK –

KERNEN: THEY'RE READY TO LOOK FOR SOMETHING NOW. THEY WANT TO START IMPEACHMENT PROCEEDINGS NOW FOR SOMETHING.

RYAN: THEY LOST AND THEY DON'T LIKE LOSING. WE DIDN'T LIKE LOSING.

KERNEN: AND I'M SURE – SO THEY'RE GOING TO BE HANGING ON EVERY – RIGHT? I MEAN, ANY WORRY AT ALL THAT HE'S SO UNCONVENTIONAL THAT SOME LINE COULD BE CROSSED SOMEWHERE THAT COULD BE PROBLEMATIC?

RYAN: I THINK PEOPLE SHOULD STOP UNDERESTIMAING THIS MAN. I UNDERESTIMATED HIM. YOU UNDERESTIMATED HIM. JOE, I GUESS, DIDN'T. BUT, YOU KNOW, I THINK WE SHOULD STOP UNDERESTIMATING HIM BECAUSE HE ALWAYS SURPASSES THESE EXPECTATIONS.

KERNEN: PRETTY AMAZING. 17 CANDIDATES INCLUDING JEB BUSH AND ALL THESE GUYS. NEVER GOT OVER 3% OR 4%. IT'S UNBELIEVABLE. THANK YOU FOR BEING HERE.

SORKIN: THANK HIM FOR BEING HERE.

KERNEN: THANK YOU FOR BEING HERE.

SORKIN: WE SPEND EVERY MORNING TOGETHER. PAUL RYAN, REALLY A PLEASURE.

RYAN: YOU BET. NICE TO SEE YOU GUYS. THANKS FOR LETTING ME BACK ON THE SHOW. APPRECIATE IT.

KERNEN: YEAH, YOU'RE WELCOME.

SORKIN: WHEN YOU'RE IN NEW YORK, COME ON BACK.

RYAN: ALRIGHT.

KERNEN: ANY TIME. WE GO WAY BACK.

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