Paul Ryan on the Problem of Temporary Tax Cuts
10:31 AM, Sep 9, 2011 • By JOHN MCCORMACK
On CNBC this morning, Paul Ryan discussed President Obama's stimulus speech and explained the problem with most of Obama's proposed tax cuts: They're temporary.
"The payroll tax cut that, to me, is not a bad idea. It's always good to let people keep more of their own money," Ryan said. "But it's no substitute for fundamental tax reform--for certainty. It's temporary stuff."
"See, what we've learned already from the Keynesian playbook is demand side spending stimulus, temporary tax rebates, which were tried in the Bush administration and didn't work, and this administration--all this stimulus hasn't worked," Ryan continued. "It's temporary. It gives you a debt hangover at the end of the day. And so I'd like to see if we can focus on maybe some more of the corporate tax reform stuff and permanent things. Businesses need some permanence to plan and invest, and they didn't get much of that last night."
Of course, one compromise might be to make the payroll tax cut permanent.
You can watch the full segment of Ryan's appearance on CNBC here:
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