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House Speaker Ryan opens door to tax cuts adding to deficit

  • House Speaker Paul Ryan of Wis., answers questions during an interview at the Associated Press bureau in Washington, Wednesday, Sept. 13, 2017. (AP Photo/Pablo Martinez Monsivais) Pablo Martinez Monsivais

  • House Speaker Paul Ryan of Wis., left, answers questions during an interview with Julie Pace, AP chief of bureau in Washington; and Erica Werner, AP congressional correspondent, at the Associated Press bureau in Washington, Wednesday, Sept. 13, 2017. (AP Photo/Pablo Martinez Monsivais) Pablo Martinez Monsivais

  • House Speaker Paul Ryan of Wis., left, answers questions with Julie Pace and Erica Werner, at the Associated Press bureau in Washington, Wednesday. ap photo



Associated Press
Wednesday, September 13, 2017

WASHINGTON — House Speaker Paul Ryan backed off months of promises that the Republicans’ tax plan won’t add to the nation’s ballooning deficit, declaring Wednesday in an AP Newsmaker interview that the most important goal of an overhaul is economic growth.

Asked twice whether he would insist the emerging tax plan won’t pile more billions onto the $20 trillion national debt, Ryan passed up the chance to affirm that commitment. GOP leaders made that “revenue neutral” promise in a campaign manifesto last year and many times since.

“We want pro-growth tax reform that will get the economy going, that will get people back to work, that will give middle-income taxpayers a tax cut and that will put American businesses in a better competitive playing field so that we keep American businesses in America,” the Wisconsin Republican told Associated Press reporters and editors. “That is more important than anything else.”

Ryan’s comments signaling possible retreat on a core GOP commitment came amid quickening action on taxes, which Republicans view as their last, best chance to notch a significant accomplishment to take to voters in the 2018 midterm elections following the collapse of their “Obamacare” repeal drive. Yet even as President Donald Trump hunted for Democratic votes for a plan that’s not yet taken shape, and GOP leaders laid out an aggressive timetable to lawmakers, significant hurdles remained.

A major one is the GOP’s failure, thus far, to pass a federal budget, which under legislative rules is a prerequisite for a tax plan that can avoid being stalled to death by Democrats in the Senate.

Others involve the contents of the tax blueprint itself, which Ryan and his lieutenants envision as a far-reaching reform plan that would significantly lower rates for corporations and individuals while cleaning up the loophole-ridden code. One problem is that every tax deduction has its own constituency, and Ryan has already ruled out eliminating some of the most popular ones, including deductions for home mortgages and charitable giving.

Ryan made his comments on taxes as he discussed a range of issues with the AP, including immigration, where he pledged to find a solution for the nearly 800,000 immigrants brought to this country as children and now here illegally. He declared that removing them all is “not in our nation’s interest,” though he declined to reaffirm his past support for eventual citizenship for the “Dreamers.”

He said any immigration solution must include border security measures, though he said a wall along the entire southern border, which Trump has urged, doesn’t make sense.

The long list of difficulties has led some analysts to conclude that Congress is likelier to settle on straightforward tax cuts than on full-blown reform — if it passes anything at all.

But Ryan rejected that approach, telling the AP, “It’s not just narrow cuts in taxes that will do the job.” Referencing tax cuts signed by President George W. Bush, Ryan said, “You can’t just do what Bush did in 2001 and 2003. You have to overhaul the system itself to put American businesses and the American economy in a much more competitive situation.”