Paul Ryan: “I think the gentleman hit the nail on the head. That is, if we thought more government spending was the answer to our…”

“I think the gentleman hit the nail on the head. That is, if we thought more government spending was the answer to our economic ills, we would not be in a recession. We have the most spending we have had in the history of the Federal Government today. We have been increasing spending at a rate greater than inflation. If we thought more spending was the answer, why is Japan mired in a 10-year-long recession? We know that when we see business investment dry up, job losses take place, we know that is where we need to focus; focus on getting people back to work and getting businesses back up and running. And that is not filtering money through Washington by keeping taxes higher and spending more, it is letting people keep more of what they earn so they can reinvest as they see fit. When we look at the risk that is out there in the marketplace, when we look at the cost of doing business, government has a negative bias against investment. We have a bias in our Tax Code against saving and investing. If you make money and spend it, the Federal Government leaves you alone. But if you make money and save and invest it for your family and business, the government penalizes you with a high tax. We can reduce the price of saving and investment by reducing the tax on it. Every time in this country in the last century when we cut the capital gains tax or cut income tax rates, we have grown the economy and encouraged more economic growth and activity.”