By Lara Seligman - 08/01/13 04:37 PM EDT
House Budget Committee Chairman Paul Ryan (R-Wis.) on Wednesday slammed President Obama’s latest plan to overhaul the tax code for corporations as “crony capitalism.”
“It’s a raw deal and I think it’s more crony capitalism,” Ryan said on Fox News. “The president likes to pick winners and losers. He lets some businesses off the hook with ObamaCare but he won’t let families and small businesses off the hook.”
Republicans, who want corporate tax reform coupled with individual tax reform, have generally brushed off the proposal.
Ryan said Wednesday that he’s “all for” cutting taxes for corporations, but added that the top rates should come down for families and small businesses also.
Ryan said most business owners in America filed as individuals.
“The top individual tax rate now is effectively 44.6 percent. So a 44.6 percent tax rate on successful small businesses, that's where most of our jobs come from, and he's saying a 28 percent tax rate on large corporations. That's not fair,” said Ryan.
“We want fairness. We want tax rates coming down on everybody — small businesses, families and corporations, not just corporations,” he added.
The president has delivered a number of speeches on economic issues as he seeks to pivot attention back to jobs and proposals he says will bolster the middle class.
In Chattanooga, Tenn., on Monday, Obama called for lowering the corporate tax rate from 35 percent to 28, with a lower preferred rate of 25 percent for manufacturers.
In exchange, he is asking lawmakers for more infrastructure spending, greater investment in community colleges and manufacturing hubs.
The White House has not provided a cost estimate for those plans, but Obama has proposed allowing U.S. companies to repatriate their foreign holdings and pay a one-time “transition” tax.
The proposal also left Democrats scrambling to reconcile past support for revenue-neutral tax reform with the president’s new plan.