House Speaker Paul Ryan tried to allay fears expressed by some taxpayers that getting rid of some tax deductions would raise their taxes, despite Congress establishing overall cuts.
"Every income group on average gets a tax cut," the Wisconsin congressman said Tuesday at a town hall in Herndon, Virginia - hosted by Bret Baier and Martha MacCallum.
The purpose of the GOP reform is to "clean out the code" and make it "fairer and simpler," and the bill is designed to give middle-income earners the biggest break, Ryan said.
President Trump also wanted to make sure the vast majority of tax relief went to the middle class, he added.
Ryan cited an April study that showed over 70 percent of full-time workers in America live paycheck to paycheck.
Ryan said richer taxpayers utilize loopholes that are "disproportionately enjoyed by very high-income people," and the new code would do away with them.
The House Speaker also explained that the tax reform bill will boost America's economy, which is "losing in global competition."
"American businesses are fleeing our shores and going overseas," Ryan stated.
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"When you tax your businesses at much, much, much higher tax rates than your foreign competitors tax theirs, they win, we lose," he explained. "We're losing jobs, we're losing companies, we're losing headquarters."
The current small business tax rate of over 40 percent is "crazy," Ryan said, adding that the goal is to get that rate down to 25 percent.
The U.S. corporate tax rate of 35 percent is the largest in the world, as President Trump has pointed out.
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