Fact check: Ryan's wrong in claiming payroll tax cuts "don't work"

On Fox News Sunday, House Budget Committee Chairman Paul Ryan (WI-01) ignored Republican leadership’s call to work together with President Obama on creating jobs and refused to embrace Obama’s plan to cut payroll taxes that would help working Americans. Ryan falsely claimed payroll tax cuts “don’t work.”

In reality, Ryan voted for a bill that included a temporary payroll tax cut last year and the nonpartisan Congressional Budget Office found that reducing payroll taxes helps create more jobs than tax breaks for the wealthy. The National Federation of Independent Business also concluded that payroll tax cuts help small businesses and “can can reduce unemployment and keep people working during a period of slowed economic growth.”

Ryan ignored Speaker Boehner’s call for Congress to work together to improve the economy. Boehner said: “If we want to create a better environment for job creation, politicians of all stripes can leave the ‘my way or the highway’ philosophy behind.”

FACT CHECK:
Paul Ryan Voted For a Bill That Included a Temporary Payroll Tax Cut. On December 17, 2010, Ryan voted in favor of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. In addition to extending certain provisions of the Bush tax cuts, the bill included a temporary employee payroll tax cut for the 2011 calendar year. [HR 4853, Vote #647, 12/17/10; PL 111-312, 12/17/10; Washington Post, 12/16/10]

Reducing Payroll Taxes on Firms Creates More Jobs Than Tax Cuts for the Wealthy. In January 2010, the non-partisan Congressional Budget Office wrote that reducing payroll taxes for firms was among the policies “that would have the largest effect on output and employment per dollar on budgetary cost in 2010 and 2011. By contrast, policies that would temporarily increase the after-tax income of people with relatively high income, such as an across-the-board reduction in income taxes […] would have a smaller effects because such tax cuts would probably not affect the recipients’ spending significantly.” [Congressional Budget Office, 1/10]

National Federation of Independent Business: Payroll Tax Holiday Can Create Jobs. The National Federation of Independent Business has said that a payroll tax holiday for small businesses would help “struggling businesses reduce costs” and “can reduce unemployment and keep people working during a period of slowed economic growth.” [NFIB, accessed 9/16/11]

Speaker Boehner: Leave the “My Way or the Highway” Philosophy Behind. On September 15, 2011, Speaker John Boehner outlined his economic plan to help a struggling economy. During his speech before the Economic Club of Washington, D.C., the House Speaker urged both political parties to work together. “The responsibility for fixing this toxic environment for job creation is a bipartisan one,” said Boehner. “And lastly, if we want to create a better environment for job creation, politicians of all stripes can leave the ‘my way or the highway’ philosophy behind.” [National Journal, 9/15/11]

Source: DCCC