Single day for tax reform for the gop so far i am Brian Sullivan. At a National Association of manufacturers summit in washington, d. C. , 30 minutes ago, vicepresident pence talked about tax reform and called for a 15 Corporate Tax rate we are waiting a few minutes for House Speaker, paul ryan he will give a major speech on tax reform and outline what he wants to do and when he believes he can get it done after that, he will sit down with us right here on cnbc to talk everything taxes, both from individual to Corporation Tax reforms. Michelle, a bringing day ig day. Im Michelle Caruso cab rrea the yields on bonds have hit 2. 748 snap and twitter taking a hit after facebook announced instagram now has 250 million daily active users lets listen to House Speaker, paul ryan right now as he begins his speech thank you so much, buddy appreciate it. Afternoon, everybody how are you doing . Great to see you thanks for coming out today. Appreciate it. Welcome to d. C hi, kathleen thank you. Thank you very much. Appreciate it. Please jay and i go back many, many years. Thank you so much, jay i also just want to say what an honor it is to follow my dear friend our vicepresident , mike pence. Isnt he doing a great job [ applause ] together, we are working on a bold agenda for the country, regulatory reform, health care reform, tax reform, rebuilding our mill theyritary. After years of talking about these problems, we are finally doing something about them i do not view this as a simple checklist for government or just turning the page on the policies of the recent past this is much deeper than that, much bigger than that. It goes back to something i talked about right when i became speaker. It is something that is as relevant today as ever it is about building a confidence america, an america where people are confident they can get a job that pays well in an economy thats growing, an america where people are confident their children will grow up with Real Security and opportunity. We want an america where people are confident that they can withstand any challenge and emerge Even Stronger this to me is the great task before us. I have to tell you, because these are anxious times. We all feel it it is not something we often think about in the rush of our daily lives. We are being tested. Our capacity to come together and to always move forward towards a better, stronger nation, is being tested. That is what defines us as americans. Its not about our struggles it is about how we overcome them, how we bounce back this is what drives me every day as a policymaker how do we build up our countrys antibodies you know what i mean when i say that how do we fill up that well of resilience we can call on when things get tough i believe i have come to the he can act right place to talk about how we get there how many fitimes in recent year have the socalled experts told us that American Manufacturing is never coming back, that its best days were in the Rearview Mirror right now, there are nearly 1 million more americans working in manufacturing than there were at the beginning of this decade. Manufacturing is thriving across the country. You know as well as anyone how quickly things can change. When they do, will we be able to say that we are ready . Will our workers be ready to take on the jobs that donteve exist yet . Will our economy be ready to handle the disruptions that we cant even fathom yet . Thats our test. That is why working with President Trump, we are delivering on an agenda to create jobs and to grow our economy, to begin fixing our regulatory system, we have repealed obama error red tape with a legislative tool we call the congress nary review act before this congress, this tool had only been used successfully once before, once in the 20 years this tool has been on the books. Since january, 14 congressional review acts have been signed into law 14 times we have rolled back repressive regulations that could save businesses more than 36 million. We are just getting started. To Revitalize Main street. Earlier, the house passed the financial choice act you have seen as much as anyone the hit that Community Banks have taken from countless costly rules coming out of washington these banks are the very life blood of credit for Small Businesses across the country. Our plan will give relief to those Community Banks. It will make it easier for Small Businesses to get the capital they need to grow and to hire. Another thing we need to do, we need to make our workforce more resilient and the thing we need to do that is to close the skills gap how many times have you been talking about this with your member of congress at euro tary clubs with your fellow workers this is so vitally important. We need to connect people with the skills they need to get good, paying, indemand jobs the house will take critical legislation to expand career and critical education it has strong support on both sides of the aisle we need to get it to the president s desk fast. Our work continues to repeal and replace obamacare. This law is clearly collapsing americans nationwide are facing double digit premium increases and coverage choices are disappearing by the day. In 30 of the counties throughout america, people have one or no plans to choose from this month, anthem decided to quit the Obamacare Exchange in ohio, leaving 18 counties with zero coverage items next year. Last month, Blue Cross Blue Shield decided to quit the missouri exchange, leaving 25 counties with zero Coverage Options and also last month medica signaled it would quit the iowa exchange, which will leave 94 of 99 counties in the state of iowa, 70,000 people, with zero Coverage Options so this is the story across the country, higher premiums, little or no choice, a death spiral we are engaged in nothing short of a rescue mission to finally bring relief to americans struggling under this law and give everyone access to the care they need. Just in five months, in five months, we have made Real Progress on getting government out of your way. Your support has been the big reason why i just wanted to come and say thank you for that once in a generation, about once in a generation or so, there is an opportunity to do something absolutely transformational, something that will have a truly Lasting Impact long after you and i are gone that moment is here. We are going to meet that moment ladies and gentlemen, we are going to fix this nations tax code once and for all. [ applause ] this has got to get done. You may recall that the last time we did this was three decades ago, the same year i got my drivers license. A lot has changed since then our economy is more interconnected with the rest of the world than ever before the internet has transformed the way we do business and go about our daily lives. The world is changing and as it has changed our tax code has remained stuck in neutral. It has ballooned to 70,000 pages of rules and regulations that few people today actually understand there is this old line about the tax code our tax code is about five times as long as the bible but with none of the good news. Are President Trump recently introduced a set of prips fncip for tax reform right now, we, the house, the senate, the white house, we are working together to turn them into a transformational tax reform plan. Chairman kevin brady and our ways and Means Committee members are holding open hearings and meeting with stake holders on this right now i want to take a few minutes and walk you through what that kind of reform will look like lets start with families and individuals. At some point along the way, our tax system started working for the tax collectors rather than working for the hardworking taxpayers. Look at what happens during tax season i could describe the complexity of the code all day long what really defines our tax code is that sense of dread that you feel you know that feeling . You have to navigate long x complicated forms to file your returns. You need to wade through a seemingly endless amount of credits each with their own rules and after you tally up all those deductions, you are placed in several different tax brackets based on your income level. At the end of the day, you hope, you really hope that you do not owe a whole bunch this year. You hope, because you dont know ahead of time. How could you . This whole system is too confusing. It is just foo datoo darn expene we have to stop this madness dont you agree . So lets just start over. First, first, we will eliminate harmful, burdensome taxes, including the death tax and the alternative minimum tax. Next, we will clear out special interest carveouts and focus on the one that is make the most sense, home ownership, charitable giving, retirement savings. We will consolidate the seven brackets into three, double the standard deduction and simplify things to the point that you can do your own taxes on the size of the form of a postcard instead of the 1040 form this is within our reach wouldnt that be nice . Finally, most importantly, we will use the savings from limiting these loopholes to lower tax rates. We are going to cut taxes. You heard that right, yes. Not up, down but if we are going to truly fix our tax code, we have to fix all of it, both for individuals and for businesses you know why we are going to do that, because it is going to create jobs. Thats what this is about. Thats what this is all about. It is about jobs, jobs, jobs, goodpaying jobs as a matter of fact, the Nonpartisan Tax Foundation estimated that our blueprint would create 1. 7 million new fulltime jobs how do we do it . Well, right now, we have the worst business tax system in the industrialized world most people dont really know this here in america, 8 out of 10 businesses file their taxes as individuals. In fact, most of our jobs come from these new and Small Businesses under our crazy system, successful Small Businesses pay a top marginal tax rate of 44. 6 . Its crazy look you all know this but manufacturing employs more than 12 million americans and adds more than 2 trillion to our economy every year the overwhelming majority of these companies are Small Businesses at the same time, our Corporate Tax rate, the one that taxes the rest of american businesses, is 35 . Let me try to put this in a global perspective overseas, which where i come from means lake superior, companies in canada, they pay just 15 heck, the average tax rate on businesses in the industrialized world is 22. 5 yet our corporations pay 35 and our successful Small Businesses pay 44. 6 . How can we compete like that we cant it actually gets worse than that you see, the status quo encourages companies to move operations overseas, to make things abroad and sell them back into the United States this makes no sense. It is actually costing us a lot of jobs. We are actually very unique in the world in the way that we discourage capital from coming back to america and how we incentivize offshoring this is not the kind of exceptionalism that we should be aspiring to. Today, u. S. Companies are leaving to become Foreign Companies when it should be the other way around we want Foreign Companies to become u. S. Companies. We must think differently so that once again we make things here and export them around the world. There are so many different ways of achieving this. We, in the house, have our own idea that is one of the things that we are discussing with the administration we are going to get this right here is the bottom line. We can not accept a system that perpetuates the drain of american businesses overseas [ applause ] when i look at this once in a lifetime transformational opportunity, my view is this, we should not just try to play catchup with the rest of the world. We should not just aim for being in the middle of the pack. Lets not accept following any other countrys wake lets be the best once again part of this is moving to what we call a territorial system that reverses this trend of corporate inversions and enables businesses to bring back cash stranded overseas without being taxed. Right now, if an American Company makes money overseas, it gets taxed over there. We also tax it again if that company tries to bring that money back into the u. S. Almost no other country does this as a result, it is preventing Many Companies from bringing that money back home they just keep it over there it is literally straining trillions of dollars that can come back into our economy we have got to fix this and we will [ applause ] of course, real tax reform means slashing our Corporate Tax rate as low as possible. This means eliminating special interest carveouts and replacing them with lower tax rates for all businesses and it means creating a new, lower tax, specifically for Small Businesses so that they, too, can compete on a fair, level playing field. There is one last piece of this puzzle it goes back to the idea that all of this is about looking down the road. It is about planing fning for te future, leaving a better legacy. These reforms, these tax cuts, they need to be permanent. Every expert agrees, they need to be permanent because every expert agrees that temporary reforms will only have a negligible impact on Economic Growth they need the certainty to hire more workers to invest in their businesses and plan for the future so thats basically an overview of our plan, which we will begin to turn in the legislation to put before congress. It is a very ambitious plan, yes. It has to be now, i know that the cynics and the naysayers will be in full force. You will hear that tax reform is coming along one day and then you will hear that tax reform is dead and then you will hear it is back on track and then you will hear it is on life support. Sometimes you will hear this the same week, in the same day heck, sometimes you will hear this in the same hour. Do not be surprised by any of this i am here to tell you, we are going to get this done in 2017 [ applause ] you know why we are going to get this done in 2017 . Because we have to get this done in 2017. We can not let this once in a generation moment slip by. Yes, the defenders of the status quo, and there are many of them, they are counting on us to lose our nerve, to fall back or to put this all together. We will not wait for a path free of obstacles guess what it doesnt exist we will not cast about for quick faxes and half measures. Transformational tax reform can be done and we are moving ahead full speed ahead i promise you that we will give it all that we have. Here is what im asking you today, im just asking to you do the same get in this fight. Help us get this done. Help us make this difference help us make and build the confident america that our children deserve that you are building for your families and your communities right now today. Thank you very, very much for having me today. I really appreciate it thank you. House speaker, paul ryan, laying down his guide posts for what he would like to see in a tax reform bill. Lets bring in brian and our own steve liesman. A lot of similarities to a lot of what has come out of the white house but we didnt hear the border adjustment tax. He talked around it quite a bit. The speaker is going to be joining us in 15 or 25 minutes on cnbc. We are going to ask him about that and whether that is d. O. A there are a lot of similarities between what speaker ryan and vicepresident pence had to say. Pence spoke about 45 minutes ago talking about reducing the code from 7 brook kackets down it 3 pence highlighted a 15 Corporate Tax rate ryan did not stick to a number we will ask him about that a lot of discussion about tax reform the speaker will join us and we will dig more into the numbers when he does what did you think whether he heard what paul ryan said . It is what i didnt hear. I didnt hear the words donald trump. We heard the words mike pence but not donald trump this is somewhat reflecting the polling that we talked about yesterday. The president s declining Approval Rating. Also, the declining Approval Rating of issues that he had previously been up there on, in terms of the approval of the public out there we are seeing that these issues are going down they have to revive them what i also didnt see is the market react his comment we have to get it done in 2017 i am here to tell you we will get this done in 2017. Im not hearing anybody believe them glchlt them a few months ago, that would have led to a market rally nathere is a lot of sin ancym we have said and guests have said that tax reform is already, quote, built into the market others have said that tax reform is not built in. If you think it is already built in, maybe the market wouldnt react because it is already built in i am not talking to anybody who thinks it is built in. All our guests have said that all the survey data and economists are saying they dont expect it this year. They expect it next year when they get it, they dont expect a whole lot of juice for the economy out of it, brian fair enough lets talk about juicing the economy via Manhole Covers and other heavy industrials with tom rorden of nina and company they are a wisconsinbased manufacturer of all kinds of things, caterpillar tractors, Manhole Covers, about 1600 employees, based in wisconsin, factories in pennsylvania. Thanks for having me. Thanks for coming you and i were tal