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Rep. Ryan: ‘Class warfare’ is ‘rotten economics’

Rep. Paul Ryan (R-Wis.), chairman of the House Budget Committee, criticized Obama’s proposals for additional taxes on high income earners in the country, saying it would create more economic instability and hinder job growth.

"Class warfare, Chris, may make for really good politics, but it makes a rotten economics. We don't need a system that seeks to divide people. We don't need a system that seeks to prey on people's fear, envy and anxiety. We need a system that creates jobs and innovation, and removes these barriers for entrepreneurs to go out and rehire people. I'm afraid these kinds of tax increases don't work," Ryan said to Chris Wallace on Fox News Sunday.

Ryan said that when capital gains and dividend taxes are raised, it hurts the economy and stifles growth. He told Fox News that in comparison to other countries, the high tax rate in the United States is hurting job creation and adding to economic uncertainty.

However, he praised Obama for raising the issue of spending on entitlements, but disagreed with the president on the best way to fix the programs.

"It's constructive in that he's acknowledging that there's a big problem with these programs. And he has made that acknowledgment a couple of times now, saying they're going to go bankrupt if we don't do something to fix them. That's good. So the question, then, is what's the best way to fix them? We believe the best way to fix them is not to jeopardize the access to these benefits for current seniors," said Ryan.