Rep. Paul Ryan of Wisconsin has hit the nail on the head on a tax reform — that it must also apply to small businesses, noted economist and CNBC Senior Contributor Larry Kudlow says.
"[For] the big guys, they want to take the rate from 35 to 25 [percent], but for small businesses, which make up the bulk and the backbone of American business, [Ryan] said they must be eligible for the same 25 percent lowered tax rate the big boys get," Kudlow said Thursday on "The Steve Malzberg Show" on Newsmax TV.
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"Right now, they are paying the top individual tax rate, which is 40 percent plus all the Obamacare taxes. He would move them down to 25 percent. That's a home run to tell you the truth.
"They are going to make a bill, get it through the Senate and put it on [President Barack] Obama's desk."
At a meeting of The Wall St. Journal's
CEO Council, Ryan said a major overhaul of the tax code would be tough because the White House would dismiss GOP demands to cut some tax rates on big earners.
Kudlow said if the commander-in-chief decides to veto it, "you're setting up a major GOP policy agenda" for the 2016 election.
"I really like what Ryan said. By the way, McConnell echoed that …" Kudlow said.
He said Ryan is also in favor of simplifying the personal tax.
"Ryan mentioned this the personal's got to come. We need a simple flat tax if you ask me, but it's too complicated right now and you'd need a Republican in the White House," Kudlow said.
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