House Budget Committee Chairman Paul Ryan says S&P’s downgrading of the U.S. credit rating comes as no surprise and the “super committee” alone won’t be able to solve the nation’s economic woes. Ryan also said on “Fox News Sunday” that one of the answers to America’s fiscal crisis is fundamental tax reform.
“We more or less saw this coming because we are on the wrong fiscal path,” Ryan said about the S&P action.
The debt-reduction plan initially proposed by the Republicans would have prevented the downgrade from occurring in the first place, Ryan said, chastising Democrats for their unwillingness to reform entitlement programs — the primary debt drivers.
The Wisconsin Republican, however, conceded that the GOP hold some responsibility for S&P’s downgrade. "Both parties got us to where we are," Ryan said.
Ryan also said the answer is “fundamental tax reform to get us a tax system that’s internationally competitive and does not penalize businesses for making things in America and for hiring people.”
Ryan said he would, if asked, serve on the so-called super committee, which will be selected later this month, and will be charged with reducing the deficit by about $1.5 trillion during a 10-year period.
“It is not enough to fix this problem, but it is a down payment on the problem,” Ryan said, preferring to call the committee a select committee. “I think you need to change the leadership in Washington if you want to fix the problem.”
Ryan said raising taxes to supplement ever-increasing government spending is poor fiscal policy.
“The question really is . . . are we doing the things we need to do to get the spending line down, down to 2 percent of GDP?” Ryan asked. “It’s going to 4 percent of GDP by the time my kids are my age.”
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