This afternoon, longtime listener and third-time caller, Speaker Paul Ryan, joined The Rush Limbaugh Show, where the two discussed how the Tax Cuts and Jobs Act will deliver more jobs, fairer taxes, and bigger paychecks to working people and families across America. Listen to the interview here, read the transcript here, and check out the excerpts below.
Speaker Ryan: “It’s a $1,182 tax cut for the average household in America. It takes the child credit from a thousand to $1600. So $600 more per child of a tax credit. . . . It lowers your tax rates across the board, and it doubles the standard exemption, which means for a couple, instead of the first $12,000 being tax-free, your first $24,000 of income will be tax-free.”
Rush Limbaugh: “Now, that's a huge cut.”
Speaker Ryan: “That's a huge cut. And, by the way, by doing that, doubling the standard deduction, 90 percent of Americans will be able to file their taxes on a form the size of a postcard so it's a radical simplification of the IRS itself but radical simplification of the tax code. And the whole theory is here, instead of doing all these things that the IRS tells you to do, we're just going to cut your taxes and let you keep more of your money in the first place, and you decide what you want to do with your money. That's our philosophy driving this.”
Rush Limbaugh: “One of the other big areas it seems to me that is a potentially huge cut. . . . A great benefit for people here in terms of keeping their own money. The pass-through change here. Would you spell out the [Subchapter]-S pass-through… Explain how that works?”
Speaker Ryan: “Yeah. So eight out of 10 businesses, eight out of 10 businesses in America are not corporations. They're what we call pass-through businesses, like Subchapter-S corporations or LLCs or sole proprieties. So that's 80 percent of all American businesses. They pay the top individual tax rate, which goes above 40 percent these days. We're dropping the tax rate for these businesses, small businesses, to 25 percent. And for smaller businesses, you know, businesses making less than $100,000, they're going to have a much, much lower tax rate.”