tv Presidents Treasury Department Budget Request CSPAN February 15, 2018 11:42pm-1:23am EST
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[inaudible] [inaudible] >> the committee will come to order. before we get started i want to offer our deepest condolences to those impacted by yesterday's tragic shooting. our hearts go out to the victims and their loved ones. please know you are in our prayers. it's our honor to welcome's elimination to testify on the 2019 budget proposal for the
treasury department. we appreciate your time and look for to testimony. the annual hearing plays a key role in our work on behalf of the american people. we have important work ahead of us. last year you said your number one priority was economic growth for america. then and now we sure that priority. last year working together with you we overhauled our nation's tax code for the first time in 31 years. we now have a tax code built for growth to deliver were jobs the bigger paychecks to americans nationwide. families can keep more of their money until their income exceeds
$61000 until their income exceeds $61000. in my district a typical middle income family of four with two kids will see a tax cut of over $2600. this will have real impact for many. the benefits don't stop there. utility companies are announcing lower rates. businesses are announcing new jobs. companies are bringing home money to invest in our community and work. this is only the beginning. there are still benefits to cover workers and families as this unleashes the growth of jobs in our economy. there's still more we can do to advance tax reform. that's why today's hearing is
important. we have areas eager to discuss. we know there's no such thing as a perfect tax system. we have responsibility to provide real workable solutions. retaking the approach that relates to the bill which offers a 20% deduction to pastor business income. that's incredibly important. we know certain parts are having unintended consequences. i'm committed to working with their ways and means members and stakeholders to develop the right solution, one that's thoughtful, carefully crafted and successful the objective is to make sure farmers and ranchers can reap the benefits of tax reform.
were committed to taking action as soon as possible. now that we have a new tax code this committee has a shared responsibility to ensure its working on behalf of all americans. we need to hold the irs accountable we also have the opportunity to build on success in tax reform to ensure the economy continues to grow. the slow growth status quo is not working. we decided to change that and create jobs along main street. the last two days in town hall meetings i have heard from local restaurant owners were added new workers, dealers were adding more employees.
from a business that's increasing their purchase of american-made equipment by $2 million in a dinner the other night i ran into a business owner who has a hundred 60 workers and everyone got a 10% pay raise because of this. it's happening all over america. for the first time in years there's a new sense of optimism. it's our job to make sure this continues for years to come. we are pleased to see proposals and egrets work together to find common ground to keep the economy growing. more importantly, to keep us there. we've accomplished a lot of important things together on behalf of our communities. we have a strong economy that's growing stronger.
we look forward to fine-tuning a move forward with president trump and you as well. we look forward to your testimony. now i yield to the ranking member. >> thank you. a budget is a reflection of american values. time and again the administration is focused on the needs of the wealthy and powerful from attacking the healthcare to dismantling -- we've seen the trend. the trump budget cuts medicare by $500 billion jeopardizing this we saw this last year when the president ran through with tax cuts for the wealthy and corporate america while
republicans claimed the bill will benefit average americans the evidence is clear, 83% goes to those at the top. republicans priorities with the wealthy and corporations not the middle class. tens of thousands of workers are being laid off middle-class families are not seen the gains promised. i saw this when the legislation first past. the bill allow for taxpayers to prepare their property taxes before the close of 2017. there is a tremendous amount of interest we saw an influx. an attempt to help my constituents find their ways i asked to find guidance. instead of issuing guidance they
issued guidance to complicate matters unlimited middle-class families ability to take advantage of this. that's not put in the middle class first. the tax laws fiscally irresponsible. it as to the nations debt while giving massive tax breaks to people at the top. they claim this will pay for themselves but that is simply not true. tax cuts don't pay for themselves, we pay for them. the white house budget director essentially noted that. it's clear vital benefits and hard-working americans have paid into an earned this. we can do better.
instead it cutting programs we need to work on a bipartisan basis to fix the many problems created. one example we address the issue of the multi- player plan. i'm hoping american workers who plan for retirement and contribute to their pension will be in a position to secretly. after working plan retirements were taken away. there taken away at a time when they cannot prepare for retirement because there are ready living it. these retirements are at risk by no fault of their own. hoping these plans will be successful.
i also asked the administration to help with these efforts. our goal is to work and create opportunities for the middle class. i want to acknowledge your staff the staff reacted quickly many families will receive and drive that benefit. i yield back. >> today soul when this is stephen mnuchin. the committee has received a written statement. you have five minutes to deliver your oral remarks. he may begin. >> i like to express my condolences for the tragic shooting and also thanks to the many first responders and teachers that save so many lives.
chairman and members of the committee, it's good to be here. i focused on avenging the presidents policy. we have 3% higher gdp growth more robust growth in the tax cut. it's already providing money by putting money back into the pockets of hard-working families. since the small 350 companies have announced higher 4o1k matches, new hiring, benefiting more than 4 million employees.
receive the fastest wage growth since 2000 on. our reforms are making companies competitive again. it's happening on the economic success of the nation. we lower the corporate rate from 35% to 21%, below the average. it encourages companies to bring back profits overseas by eliminating the tax incentives, turning the budget reflects the tax reform legislation which reduces the burden on taxpayers. policies will drive down spending the drive the economy. it will reduce the budget deficit is a share of gdp. this past year has been important will continue to
policies that enable american people to succeed. i look forward to working with congress to make this happen. >> thank you. we want to make sure as many members have an opportunity will put the time in three minutes. a lead off with a brief question. we wanna let them keep more of their hardened trawlers. this means over 90% of americans will see a reduction in their taxes and bigger paychecks and take-home pay. you want to talk about your plans of putting additional
information. >> thank you. we are pleased about the work at the office were working closely with the irs may have successfully updated the withholding tables. over 90% of americans will see tax cuts. the irs will put up a calculator that will allow families to double check their withholding based on the new tax law and update their forms. were pleased with the work that's been done. >> families can fine-tune according to their situation. >> following world war ii labor unions negotiated to negotiate pension plans in exchange for their hard work they were promised long-term financial security in retirement.
it has put many plans in trouble. more than a million americans are multiemployer pension plans facing insolvency. we need to help these retirees. in november i introduced legislation on those not in unions as well low interest rate loans. they would be funding through the private sector through bonds. my belt is not allow for benefit cuts. a large number of experts in the field or in your staff. providing resources another to provide a solution could you speak to us about to become what others are facing in retirement security? >> we agree there are significant issues the treasury does play a significant role but
has limited ability to approve certain changes. we look forward to working with a bipartisan committee. will be more than pleased to provide technical solution as we look at solutions. >> thank you mr. johnson. >> mr. secretary, welcome. i see the budget includes the proposal to stop individuals not authorized to work from claiming the child tax credit. i've had a proposal to require the social security numbers or refundable child tax credit. it is relevant now given the ongoing debate on immigration. for the record, can an individual claimed the
refundable credit with just a taxpayer number? >> doesn't this mean the individuals who weren't allowed to work can get this? yes or no. >> i just want to modify my last statement. the irs has allowed, it's looking at the legal issues associated so i'm not making a commitment going forward, we are looking at the legal issues associated with the. >> i had a joint tax for all my bill that saves 13 billion to address another issue the 2016 and daa included significant retirement reforms such as a new
match for the service member's contributions. due to an error, some guard and reservists who have a civilian retirement account won't be able to get the match, and i think that's wrong. the irs caps the amount an individual can save each year. the irs allows state local government workers to contribute the maximum to both the government and civilian accounts. don't you think are brave men and women should be allowed to do the same? >> my staff has raised this issue. were looking at a carefully to figure out what we can do. we want to do it we can to support the military and the men and women who are supporting.
>> thank you. your statement talks about tax cuts for the middle class. when you are here last year you said there would be no tax cut for the upper class. we now have joint tax committee data and it shows those with income over $1 million would receive an average tax code of over $64000 next year under the tax law. do you disagree with that? >> i have no reason to disagree with the numbers. i assume what you're saying is correct. >> i think that makes your glasses rose-colored. >> what i said the beginning of
last year to offset tax cuts with the elimination of deductions we work closely with the house and senate. this was an issue we looked at carefully. >> you said there be no tax cuts for the upper class. in the data shows otherwise. your budget assumes a 3% increase. today there's an article that hoping for 3% or more, already this budget has a deficit. if the growth rate is 2% instead of 3%, to know how much the deficit would increase the year? >> our projection is 2.9, not
three. >> we stand behind the projections. many people have said we can't get there but we've had over 3%. president obama have projected 4%. >> they only give us three minutes in your statement was the most generalized of any statement i remember. if you're wrong and it's not 2.9% most economists think to know how much the deficit would be next year? >> the static score was one and a half trillion dollars. if we got no growth that would be the difference. >> so it would be a trillion and a half next year? >> that was over ten years.
>> i don't have the number front of me. >> thank you. >> welcome mr. secretary. beginning with chairman dave, years ago it now through the leadership of chairman brady i've been on this committee a think my tenth year. the process of meetings and hearings and proposals and we finally achieve something historic, tax reform to benefit american families and businesses. with each week we see positive impacts across the country. businesses have announced bonuses, pay increases in investments and workforce development and increases an employee match give programs.
i want to expand on a question chairman brady have. you have the withholding tables and the calculator, what are the regulatory efforts are you putting forward to spread the good news to citizens across this country. how are you sharing information and how can we help you? >> we have a massive effort to implement the new tax bill touches everything from forms rotating to customer service to technology. were putting out guidance every week to help taxpayers understand. were focused on the. >> thank you. we look forward to working with you to educate the public.
building on lester's accomplishments, the house has passed two bills with overwhelming bipartisan support to boost competitiveness of u.s. companies. i renew a lot of gsp there is more we need to do in partnership with the ministration. i want to finish this work with the successful nafta update an estimated tens of billions of dollars of deals for u.s. companies are waiting in the banks pipeline. >> thank you mr. chairman. mr. secretary i agree with mr. neil. the budget is a reflection of our values and our priority. is there any money in the budget to deal with the proliferation?
>> i'm not aware of that level of detail for me to be the expert. >> in light of what happened yesterday i think the gun violence is a tragedy what we have seen. i urge congress to look at these issues. >> do you propose to do something? >> i have best responsibilities but this is out of my lane. >> your part of this administration. were losing hundreds of thousands of people, young children, in school trying to get an education, they're murdered. teachers a football coach, and you're saying to me who represent the people in georgia and the city of atlanta that we have the cdc and someone in this
government told the cdc we can do better. we must do better. we have to save our children, our citizens, our teachers. so do you have anything? >> i appreciate the severity of the tragedy and i will speak to the president and the other cabinet members. >> thank you mr. secretary, yesterday you talked about the budget and we spent time on increase funding for opiate crisis but we did not spend time for increase funding on mental health which often spurs these tragic instances.
>> we need to do something to control the proliferation of got gun violence, too many guns. >> we cannot continue to good down this path. >> mr. secretary, the reason the guidance has created confusion here's why, the guidance relates to the 2018 my constituents were prepaying their 2017 taxes. as a result, the guidance does not apply to them. there is a long-standing custom that dates back that the irs has never objected to where the sellers prepay their share of
the current taxes even though it would not arrive to the following year. it's because the seller is liable. the seller needs to estimate the taxes they'll deduct that amount on their tax return. to my knowledge the irs is not objected. illinois is the only state in the country that pays this way. the payments were disallowed citizens would be the only ones not allowed to pay the 2017 property taxes without limit. this is completely unique. could you work with me in resolving and bringing clarity to this issue? >> i've had two meetings on this issue. i am aware that it's unique and
were working to try to get comfortable with the if authority but they can offer guidance. we are actively working on it. >> thank you. the me talk about iran and the commercial sales of aircraft. last time we talked about this was in may. you said you are studying this issue. there have been no licenses issued by the department. since that time iran has said nothing to make a case that it deserves commercial aircraft. they have gone after their own citizens they are active in yemen backing militants and so forth, would you agree that at the very least they have done
nothing to further its cause and gaining access to commercial aircraft? >> we have not issued any licenses that's not be interpreted as a decision that we are not going to. we are working with the intel community. this will be further reviewed. >> after repeated refusals to answer text question/year finally we have an opportunity task you three minutes of questions. i think it's a congressional committee government equivalent by tweet. according to the joint tax analysis the rate drop cost the
treasury $220 billion. it's for people who are in half a million a year in income. you promised there would be no tax cut and the president said much the same. the trump budget proposes to cut student aid programs over the budget. about the same amount, i think that's the ticket to the middle class and also to keeping our workforce competitive. when it restoring that top rate allow us in the republican members thought was pretty perfectly adequate it was something that got added almond conference. wouldn't that allow us to avoid those cuts are at least moderate
the second question concerns the claim that every american household would get $4000 every year and increased household income. when you came out of hiding on fox news you said it would be $4500 for every family. do you disagree with a recent survey that 98% of americans have not received any additional compensation at all? please somebody gets even a dollar 50 a week an additional benefit from this bill, there's very few americans, if any who have gotten $4500 in additional wages increase out of this? even they gave a permanent tax increase is been in place for two months.
i said that while the president wants to take credit for the few that happened he doesn't want to take responsibility to cut parkinson's and alzheimer's research and terminate workers. finally said the recent these might be occurring is because companies don't have good reason to invest in america. isn't that an indication that some of this tax bill is misplaced since so much is going to corporate buybacks. >> your time is expired if you'd like to respond in writing will move forward. >> thank you for being here today. i thank you for your leadership.
let me talk about growth in the next ten years. take a look at the next ten years we've had little to no growth, this was some 50 years. we run a potential in dollar debt, plenty of blame to go around. had a chance to speak in front of the tax foundation last week they are expecting $5 trillion in growth because of the new tax law. what your thoughts about the impact the growth is can have on debt and deficits. we're all concerned about the debt especially last ten years as we look forward, can you expand on your thoughts on the growth and impact on debt and deficits. what we have been doing is not working. i'd like your thoughts. >> i stand behind the numbers i cited before.
the difference between the 2.2 static cost of the tax cuts was a trillion and a half, half a trillion was the difference between policy and baseline. we think the right way to do that is the trillion. >> i've chaired a local chamber in florida, most businesses are 50 employees and less. probably 90% of the businesses in the country. the 25% tax cut for the enthusiasm at a record high, maybe you could comment on that. >> we have the highest level of confidence. for small businesses we have the lowest tax rate since the 1930s.
small businesses are big part of driving growth in the economy. >> i think you for your opening statement in your sincerity and secretary nomination, years as well, but frankly were long overdue and the congress to stop, is important as it is to express our condolences,'s more important that we and act, this is not in your province but it is for the united states congress. looking at the disasters that keep on coming when they come for one of us and we do nothing, who's next?
when will we stand up? all that's required is we do our constitutional responsibility and float. otherwise we are all complicit. what happens, increasingly and with devastating impact, our children, what are we as a body or institution if were not going to stand up for children, if you disagree with universal background checks, fine. at least vote and let people know where you stand. families, victims, the country deserves it. you're good people. were great nation and they deserve us to act.
i do believe this president can make it traumatic difference by calling upon us to act on a multitude of areas not the least of which is this tragic issue we face. what a thank you for the work that you've done. i think the representative for his leadership but the treasury department went overboard when when it was cruel when members found out they could get a deduction on then the tax reform took it away. i cannot commend you enough. the inequality here for connecticut residents, the double taxation that exist will we find out more than 750,000 make itemized deductions and
they supplement everyone's tax cut that's unfair. three minutes does not allow me enough time. i hope to work with you to amend that travesty. >> thank you, and welcome i echo the thoughts of many my colleagues say how encourage diane to see the tax cuts and job deck. although less than two months we are seeing its positive effects. shortly after we had tcf bank, u.s. bank, wells fargo, giving out special bonuses to increase their employee wages. this is real money going into hard-working americans.
because of the tax cuts and job asked the median income family for the third district of minnesota will have an average tax cut of about $2200. a lot of people and have to wait to see the dollars in their pocket. the new rules are put up by the irs. people know i want to thank you for your involvement in helping us move that through. it's not surprising to see the other economic indicators trending in a positive direction. private-sector investment was up 8.8% in the last quarter compared to the growth of less than 1% in the first quarter.
mr. secretary, there's no doubt in my mind that businesses large and small are making these investments in anticipation of tax reform passing. those investments are resulting in the economy. it also means i'll hire more people and increasing productivity. these are positive economic impacts helping taxpayers across the country. i look forward to continuing to open the newspaper to hear positive stories on television and how the tax reform legislation is now locked. >> thank you were touching on areas and one that you have a great deal of influence on it
deals with the supervision of the financial crimes enforcement network. i appreciate your testimony and they recognize the challenges where we have an emerging cannabis industry's about a billion dollars now moving past 20 billion, over 200,000 employees. there is an air of uncertainty about access to banking services. the obama administrator allowed banks to open accounts for people who grow, process and retail sales is still many don't have access to banking services. it's a threat to public safety. i hope there's a way for us to
work together and to get clarification. i would welcome an expression today if you're supported in moving forward. i understand your reviewing it. at a minimum i hope to work with our committee to develop appropriate rules for tax and baking. that we can work with the financial services agency with traditional lending. do you have any sense of what the timeline will be for the review your undertaking and how expansive it might be? >> were happy to meet with the committee and discuss issues. it's a complicated issue. this is a light at the doj
decision. can tell you when working a clot with that but it's on the top of our list. >> this is one item that affects people in this committee from washington to maine. it's a growing part of the economy. 97% of the public have access to some form of the legal marijuana product. i will seek clarification and prevent the insanity of having this activity be forced to be conducted on an all cash basis. >> i live in the dallas-fort worth area were experiencing a building boom now. our economy is what i hope i
truly believe the tax cuts will become the engine that drives the economy. my cities and state is excited they are beginning to scratch their heads about how they will finance a plan to what projects they will put forward that will fit the formula. is there any thought to going back and creating an instrument such as the build america bond that we had? is there any interest or plans to go back and look at that funding system that cities can
>> i don't remember the specifics but yes. >> i asked about infrastructure and he kind of went on and was interested in the issue and categorically rejected the viability of public-private partnerships. he told the group private public partnerships don't work and to cite indiana as an example. in august of 2017, "the wall street journal" did a story headlined underfunding of infrastructuron the funding ofit was referring to a stretch of highway referred to as the highway to hell.
it was a partnership in the project was two years behind schedule and 60% built before the state took over the project. seven cars drive on a bridge that structure is inefficient and that is the call for a real infrastructure built. the bill he put together or the white house put together for every $6.50 a.
and the tools that will come along with it. it wasn't workable in september of 2017, why is it workable now? >> the president does have concern of things being privatized. there are certain things he doesn't think should be sold off. >> thank you mr. chairman and welcome mr. secretary it's good to have you here today. we looked at the budget with fraud and abuse and i want to commend the president for taking a look at that.
mine is the tuition required social security for students and we all agree we want to help those that need the help. o. mbe put out a statement that said from increased effort for all forms of the tax credits in the oversight enforcement raise $43.8 billion over the next decade which is a lot of money to help people tha that deserved needed rather than those that are trying to three at what is e number that we all use and might be looking at to save peace dollars and programs for the
fraud and abuse. >> is an issue. it's based upon social securityy numbers and im in the process making in the socia the social y department in understanding how we are going to move forward and technology. on credit cards today you have a unique identity to protect against fraud which we think is quite significant. >> we have heard it over and over again how people are going around the system so i applaud the administration and look forward to hearing more about
it. >> thank you for being here and engaging with us today. i'm going to ask whether the team have any plans moving forward you work for a boss that is quoted as saying i am great with death and nobody knows that better than me. if things don't work out i will just renegotiate, that is the smart thing to do and also if the economy was good, it's good therefore you can't lose and one of the problems i had in the tax bill is one of the principals only bipartisan tax reform bill as it would be revenue neutral of shutdown are egregious loopholes for the so-called expenditures that was not the
case and ended up with a tax cut bill where the benefit goes to the wealthiest 1%, 1.5 trillion wasn't offset. you include interest on the debt yoyou're pushing $2 trillion of additional debt in our fiscal house and there is little wonder after the budget deal when he blew through the caps another half a trillion on top of that the administration's it's a newt calls for cuts to $2 trillion. i would set it you're not going to be able to push through congress. the american people won't stand for it and i've mentioned it during the debate unlike the tax cuts of 2001 or 2003 it's different this time because we are not in a position to make a fiscal mistake month with
70 million baby boomers beginning to massive retirement joining medicare and social security. that is exactly what this congress and administration david is made up of huge fiscal mistake setting future generations up for failure because the bank of china is open now and we are going to have to borrow a lot of money to finance these cuts and spending increases that were passed in the budget into that isn't going to be good for the long-term economic growth and there's going to be a day of reckoning. you get me o give me or any memn opportunity to write $1.5 trillion of hot checks and i will give theologian of wealth and growth. but there will be a day of reckoning and it's going to come home and had us sooner rather than leader and that's the challenge, so again i ask whether this administration is putting together a team to get
serious about getting a long-term fiscal house in order or are we going to be negotiated its collapse. >> mr. reed, you are recognized. >> before i get into my comments i want to start out on a positive note i was proud to be part and i think you and your team for the efforts down on tax reform because i think tax reform is going to lead to huge amounts of opportunity and that is a cornerstone to getting our fiscal house in order to have growth and private-sector job pb creation to create new wealth and i think that is a major part of the solution, but i do have to agree with my colleague from wisconsin on the other side of the aisle. i ran for congress in 2010 on the issue of the debt crisis come on the issue of the national debt becoming too large to be sustainable for the future of america. after last week and after much
soul-searching, i've come to the conclusion and will be the first to say it on the committee for the first time i believe the crisis is upon us. this is the day of reckoning. it's not tomorrow but we are starting to see that crisis explode as we speak. and i would ask you and the administration to make sure that we have policies proactively try to mitigate the impact because as has been indicated, if interest rates go up, and we know they are going to go up, the magnitude of the debt service i don't think the american people can appreciate. i have done some rough calculations and going off of 3.6% of the debt service obligations on interest rate is about an extra $520 billion a yearjust to pay interest.
and people can relate to that when you talk to them about their credit cards and mortgage payments back home and if you told them you had to come up with $520 billion of interest payment they would ask the question where are you going to get that money and then you put that into perspective where we spend money across the budget. we spend 840 billion on social security. the fence wdefense we will spent $700 million. if interest rates go up to 6.3% -- this is what i asked when i tried to be the canary in the coal mine to say this is happening if we don't get fiscal house in order, 6.83% you are not about trillion dollars for additional interest payments. i don't know how we sustain that and you are a very smart man mr. treasury secretary. how do you sustain that type of debt and keep america strong and vibrant going forward?
>> first of all commend the president shares your concern but it's gone from 10 trillion to 20 trillion over the last eight years and these are issues we need to look at and we look forward to working with you. >> it is imperative that we keep this in order. >> mr. secretary, the tax bill was pushed through cost more than a trillion $500 billion, then we have the interest and it goes on forever. 80% of the money we spend goes to the top 1% and some would say a little more than that. they got a handout of $3.4 billion from the u.s. treasury. you are the secretary of the treasury.
after they cheated millions of customers come over and take accounts, overcharged veterans, they got this reward. but following the tax cut, they were paying the shareholders $22.5 billion, their shareholders. that's 102 times the amount they are putting into charity and wage increases combined, and at the same time, mr. secretary, they are closing 900 branches. so, here's my first question, mr. secretary. i heard you insult a lot of big states many times. let's get it straight here right from the horses mouth. you said we need to eliminate the state and local tax deduction because we have to get ouhad to getout of the businessf
subsidizing states. who wrote that talking point for you because you seem to repeat it over and over again like a broken record. and i told you last year and i will say it again, new jersey subsidizes one states, that's baloney. with my state getting back at 74 cents on the dollar it contributes to the federal revenue. now with the tax cuts we will be contributing even more. how dare you insult the states and you've also said in your statement with the need to do is cut their taxes. the taxes. we all try to cut taxes, but you know that bill went back to the civil war long before the tax code came into existence to make sure the local communities, county and state have enough money and resources to get by year after year. that is an insult.
this week the director of the national intelligence, cia, fbi and other intelligence officials warned that russia might be meddling and will use the digital strategy to worsen at this year. i understand the administration is workinthat theadministrationn implementing sanctions required by the adversaries sanctions act that garnered. how many sanctions does the president direct you to impose? [inaudible] if you want an answer leave them time to do so. >> thank you so much for being here today. first of all, the claim that it gives 82% of the benefits, first
of all that is based on the tax policy doing the math about ten years from now and the reality in 2019 over 100 billion tax cuts go to families under $200,000. $180 billion of total tax cuts that were 50% go to families making under 200,000, so can we stop separating people with a tax code to say somehow only the wealthy. i want to thank you for tax cuts. i spent time at the auto show and every maker i went up to, the person would either say thank you for the tax cut bill this is something that is working in a positive manner. not here in the chamber but in pennsylvania i have the same reaction from people who were glad and in the busines businesn sometimes $4 a month makes the difference between somebody buying a car or truck so it is important. the big issue, and i know you
are already on this and we are working on this together, the piecemeal legislation. we have the public readable act which would permit tax-exempt findings in certain buildings by expanding the definition of exempt facility mods. the other issue is on conservation easements. the conservation easement was made a permanent. it was legislation that we had and was offered in the previous congress with broad bipartisan support unfortunately there is language out there now that turns the corner and doesn't present it in the right way. another thing i can't tell you how much i appreciate the administration for stepping out of the private sector and coming into washington, d.c.. it will continue until now improves. when we see the economic revival
taking place in the country and the only card we can play is we still hate the trunk. when millions and millions are receiving the benefits of legislation taking place and what the president is able to do mostly on his own by the way to improve the lives of everyday hard-working taxpayers and citizens that is something to be lauded. it's hard to hear everything else and its brave talk about entitlement reform that's only going to take place before election time and not when we have to make the cuts when 70% of the budget is automatic and has absolutely no ceiling. i don't care if you are in a different dealership or company. this is the problem we've had and we found inby one this rip e affect for almost 15 or ten years to decide [inaudible]
mr. crowley from you've been talking out of order since the beginning, so [inaudible] speaking without your microphone on. now you are recognized. >> [inaudible] >> you for speaking at the early part of the debate and we let it go. [inaudible] i respectfully disagree with you. >> and i respectfully disagree. >> mr. secretary, welcome. there's a new definition of reading, writing and arithmetic. i respect your position you hold the highest positions in government and i take that you will talk to the president about what he can do to help protect our children from the onslaught happening on a weekly or
biweekly basis. 18 events in this year alone and we are only in february. that is incredibly disturbing to the president and my colleagues as well. mr. secretary, the president said on may 7, 2015 when he was running for president, he made a promise. he said and i quote, i was the first and only potential gop candidate in the state with no cuts to social security, medicare or medicaid and then in the budget proposal, the president has proposed a 65 billion-dollar cut social security, a 500 billion, half a trilliohave atrillion dollar cue and over 1.5 trillion over the next ten years to the medicaid system. that is a political promise the president is never going to keep because the budget doesn't reflect that at all.
by january 12 in new york quoted in reference to the issue of high state taxes looking for creative ways to get around the tax law on that amount of state and local taxes you said and i quote i can assure you we can audit the real estate tax issue that was the january 12 economic club in washington. you remember making that statement faxed >> i don't, but -- >> i would like to enter that into the record. >> does it sound like something you would have said? >> i'd have to read the whole thing in context. >> i will enter into the record that statement. i think my republican colleagues would be concerned. mr. roskam happened delete codee beachcombing gibletdelete codems home state of illinois. and my colleague mr. rei reed oe epiphany he had been after
december 22 when he voted to increase the national debt by $2.4 trillion in the tax scam bill that was passed as well as other colleagues just last week when another $300 billion. that countr comes to total of $2.7 trillion that just last week my republican colleagues voted for. they are worried about the national debt. why weren't they worried about it before they get the biggest tax cuts to the wealthiest, ed 2% going to the wealthiest end of the wealthiest multinational corporations in the history of the world and now they are worried about this. i understand now why the president is cutting social security, medicare and medicaid systems because he's going back on that promise. >> the time is expired. i remind everyone in attendance were democratic colleagues raised the national debt by $2 trillion in one year, one
year and/medicaid by $700 billion. >> thank you mr. chairman and mr. secretary for being here today for the continued service to the country. the results are becoming more apparent every day and i appreciate you coming out. we started to see how it is growing our economy but still has work to be done in congress and technical clarifications with the implementation of everyday tax reform passed another company announces in the form of bonuses and higher wages and you saw that in ohio this is in addition to the direct benefits they are receiving due to the reduced taxes as my colleague mr. kelly said they noted that families making between 40,050,000 ca 10% reduction in the taxes that they
go in the 2009 alone over 100 billion of tax cuts go to families like these and we are seeing that so the narrative again my colleagues on the other side continues to say this is a giveaway to corporations and as i travel the state of ohio i continue to hear people thanking us for this tax cut. i would also talk about the debt crisis. i disagree with my colleague from new york the debt crisis started ten years ago and continues to go and yes we do have to worry about the debt crisis. one thing we have to do is get gross and i think we are getting that on the attacks and child spills can't but we've also got to get spending down and we have to look at mandatory in on the budget committee so i continue to look at that as well. the one thing that i hear is my colleagues on the other side are concerned about the deficits. i'm glad to hear that. i hope we can work together to come up with solutions so our children and grandchildren don't
have to deal with this debt crisis, but again the tax cut will grow the economy and allow us to grow a revenue base that will help. we can't continue down this path that we have the last eight years. i do want to bring to you and issue of restaurants and retailers that reach out to my office to ask for and eve an aid when writing the tax reform legislation we intended to consolidate three types of improvements and renovation properties for the qualified improvement category and also sign the property of the 15 year recovery period which it had han the bold will however gettinundr getting a drafting error occurred now appears to qualify and it will default into a recovery period. i know our committee is looking at it, but i want to make sure that you aren't aware of it, which i assume you are. what would you say to the retailers and restaurants that are nervous they will be able to
quickly resolve this issue lacks >> first of all, i am unaware it was unintended and we are looking at whether there's anything we can do with regulations. i think it is likely to pursue something that may need to be fixed in the bill that we look k forward to working with you. >> thank you mr. chairman. mr. secretary, i am appalled that this budget. after $1.5 trillion tax cuts for the wealthiest corporations and donors, the budget proposes cutting basic necessities of everyday americans. medicare, medicaid, social security, food assistance, housing and heating just to name a few. at a time when this administration and active complicated tax cuts, the trump budget fails to provide substantial increases to the primary services that help real
americans with their taxes and the volunteering low income tax clinics and tax counseling for the elderly and the taxpayer advocates. at the time when tens of millions of middle-class taxpayers in some states will be grappling with tax increases and the secretary who threatened them you propose a budget that increases while substantive on the ground assistance. further i'm disturbed that the budget walks its investment and enforcement when the private debt collection enforcement this year targets the ssi recipients in the impoverished social security recipients to the levels even though they were impoverished and 45% of th the x
payers into installment taxpayers into installment agreements they couldn't afford. it seems that it focuses on increasing the profits of debt collectors for the disabled retiree of these and impoverished counter to the policy and decency. i cannot understand how you refuse to allow the taxpayer advocate to monitor these calls to understand the inappropriate actions. i know there are thousands of hard-working employees have educated themselves to helping taxpayers yet to prioritize everyday taxpayers could enforcement practices target those with for-profit debt collectors and to audit the taxpayers in states like
illinois they make me wary of this budget. what are you doing to remedy the harm to your private debt collection program? i will follow-up on the issue of the private debt collectors. i'm not familiar with that issue but will follow up with it. thank you mr. chairman and mr. secretary. so much of the real benefit for the work you did passing tax reform goes down t to the school businesses and others at the engine of job growth and economic growth in their country when they do well to country
does well. a lot of them are contractors but with small businesses that are family owned for the period of time. as the secretar secretary of tri have two questions. can you tell me what it may be recommending about ways in which we might be able to resolve the concerns particularly the small employers act and then in a related way, i think that there are many small businesses that are passed through was that are excited about the opportunities of investment particularly taking the t. have to grow their businesses and give me a little bit of insight on the priorities that he you are going to have in terms of making recommendations and clarifying the pass-through
opportunities for small businesses. as you mentioned, we look forward to working with you and others in congress to try to figure out a solution for it and we are working with the irs and office of tax policy to put together a guidance so that small businesses can take advantage of the investment opportunities on the one hand and on the other hand make sure that there are guard rails that don't get abused. i want to thank the secretary for joining us today but i have to say in course with some of my other colleagues i'm shocked although maybe i shouldn't be that within two months after they passed the largest tax giveaway to the multinational
corporations in the nations history, we are here discussing a budget proposal that takes even more money away from the hard-working people that i represent. and every time this administration never misses an opportunity to shift more of the burden onto the poor and middle-class families and communities in which they live. in my district they are already staring down impossible to shift choices thanks to this. they gutted the local income tax deduction from my constituents and for the city budgets again to almost certain chaos. but the republican budget proposal before us today takes the difficulty is that further from the municipality and when the city budgets are tighter, tangible services and our communities suffer. that means teachers don't get the supplies they need, fire stations don't get the equipment they need command police departments can't hide your a new deputy. if this budget proposal were to
become law in many cities i represent are also in desperate need of infrastructure updates from crumbling bridges to unsafe crossings and overdue highway projects, these are massive projects that meet federal support and federal dollars. instead it pushes localities out on an island forcing them to do even more with eva glass. how can these cities for even one of the transportation project is the president proposes in his budget that perhaps the single most offensive proposal and the budget is the republicans food rationing box for snap recipients. recipients. i'm out of words to describe how amazed i am at the depths to which this budget stoops to hurt people, but i couldn't let my time go without saying that. how in good conscience can the president sign a law containing roughly $1.5 billion in tax cuts that heavily favors billionaires
and corporations could stash money overseas and turn around and literally take fresh food out of the mouths of children? is this shining example of democracy to the world? i've said this every year at this hearing, budgets are about priorities. and if this budget doesn't show exactly what this administration's priorities are, i don't know what does. this kicks people in the teeth that are struggling to support ei to the country. it is despicable. and with that, i yield back. >> thank you mr. secretary for appearing to be. i know time is limited but i want to touch on a couple of tax issues. one is my hope that we can resolve the 199 199 a. issue ur the concerns of producers and i hope we can address that. also i would like to draw your attention to the issue of cash
accounting for agriculture syndicate. despite the long-standing law and practic practice online forh accounting for family owned agricultural production under the participation exemption, the irs attempted to argue in the fifth circuit that a family owned ranch for more than 100 years was in eligible for this extension because of family owned s. corporation was a limited partner in the ranch. the fifth circuit ruled in favor of the decision and spans across texas, louisiana and mississippi, however the irs indicated it may continue to hold its position in other circuits creating uncertainty for producers in the other 47 states. so it seems to me that it is contrary to the effort to provide certainty and beauty for the businesses and i strongly encourage the irs to stand down from th the position so thank yu again for being here today mr. chairman and i yield back. >> mr. secretary, i wanted to
ask my question about the treasury department's proposal elimination of the community development financial institution fund. in a report, your department issued june of 2017 it was said, quote, cpsi and minority depository institutions are often the only source of credit and financial service in the impoverished urban and rural moderate income areas with limited access to the bank system. i submit to you that nothing has changed. the budget again calls to effectively eliminate the arm of the treasury department that needs economically distressed communities many of which are in my district. the fund owns a number of programs that encourage the communities around the country and low income communities to
garner the financing and the interloper that the administration of the markets tax credit program which provides tax credits to investors. due to the proven record of such a program, the fund leverage its federal funds roughly 12-1 leading to the investment of about $3 billion of low-income distressed communities. i was wondering if you could explain to my constituents who depend upon this why your department would issue such a report that talks about the benefits and effectively eliminates such a fund and i am curious why you would eliminate such a fund when it has been said time and time again that this administration has added
$1.5 trillion to the budget due to a tax cut. i think it is hypocritical that he would add that can't take away tools that actually help lolow-income and distressed communities especially since we live in a time when we are asking the communities to do more than less. >> they have done tremendous work for many communities. the treasury is proud to have been a part. >> how would you eliminate it. >> it is paid for through growth. it's been just a difficult position and looking for savings into putting more money.
we been waitin have been waitint trickle-down of economics. they've already begun to see the benefits of the historic law which like the growing trend throughout the country. and charlotte atlantic packaging and charlotte and the benchmark auto sales just naming a few of them that have given out bonuses of a thousand or more.
further, they just broke ground on a second location in my district and implemented a minimum wage of at least $15 an hour. they would see the taxes cut by approximately $2,250. they've seen the positive impact in their paycheck and i also want to briefly touch on the importance of the change to the territorial system that we accomplished on the tax reform and finally level the playing field for companies around the globe and i look forward to continuing to work on that implementation to increase competitiveness. also, i look forward to working with you and the committee to ensure that the work towards a
territorial system to end the taxation regime. this move will increase the competitivenescompetitiveness il market and limit the playing field for individuals that is currently tilted towards their foreign counterparts. and for the talent to determine the business in hiring decisions. with that, mr. chairman, i yield back. >> thank you, mr. secretary for being with us. the entire infrastructure plan is about leveraging a small federal investment through the process driven investors and if there is nothing to be made, it sounds like the same folks that have been left behind before are going to be left behind again.
so, can you tell me do those investors plan to fund projects in struggling communities like concrete or my district in similar communities as the country when these communities won't necessarily provide a lucrative return but they desperately need infrastructure investments to support farmers and families and small businesses. >> there are many projects that will not have returned some investors and they need to be funded through federal or state dollars, public private partnerships are not available for everything. >> we have very few federal dollars, so it is concerning impact according to the white house how they will spur economic and social returns. it's 5% of the formula versus the 70% for the ability to secure nonfederal fund.
very concerning for that rural communities and then we talk about the state and local governments having resources and i wanted to also ask the marketplace fairness. you told the senate banking committee this year that the president is supportive of the idea. working with a bipartisan group i ran the department of revenue for washington and it is critical for state and local budgets that we resolve this issue yet we have had good bipartisan legislation and leadership refused to a file that to move. we haven't even had a committee markup.
i will change my comment from his support of two key feels strongly. i appreciate the commitment of indic and bipartisan legislation and is critical for the state and local governments. having just passed the once-in-a-lifetime tax reform and the effect that is having a significant as the economy continues to grow i would hate to see us shoot ourselves in the foot and the consequences of withdrawing would have a significant impact on the manufacturing and lots of other
things. but as i look at the negotiations and where we were headed that causes concern. can you tell us the role that he played for nafta to the economy? >> i am actively involved in the meeting weekly with other members and i'm cautiously hopeful the investor will be renegotiating video, so it is a major priority to renegotiate. can you talk about the consequences if we did withdraw? >> our priority is to renegotiate the deal and as i said, we are actively having discussions on this. i don't want to go into the details but i would be happy to follow up with you privately.
as a second part of trade, they talked a lot about bilateral trade agreements, so we are 14 months in and haven't had a trade agreement put forth or a template for example for bilateral trade agreements. can you talk about what you see and how important it is to the economy? >> this is one of the top issues we are meeting on regularly and it is bilateral but i think that he is open-minded if we can renegotiate, he would consider going off a lateral if we are in active discussions but again i don't want to go through it publicly but i assure you we are in active discussions enhancing the ability for exports for the american companies it is a very
families who bear the burden and thanks to the limits from the state and local tax deductions. the average deducts $18,000 in local taxes each year for 100 years to ensure they wouldn't be taxed twice on their hard-earned money and with the 10,000-dollar cap, they are liable to pay $8,000 more. already my constituents have told me that they are filled with dread when attempting to plan their family finances. they haven't been taxed because the health or state and local economies by paying for better schools and roads and services like fire and police. republicans are hauling out the states most essential services and if that isn't enough, in its attempts to pay for the tax cut, it strikes another blow to california by putting critical grants and programs that help
the most at risk population at-n the state budget eliminates programs like the social services block grants that provide critical services to the most vulnerable including seniors and victims of child abuse and cuts funding of 21 william dollars. it funds affordable housing projects so families don't have to pick between paying for their medical bills or medicine or other bills. these changes will affect over 3 million seniors, children, working parents, disabled and other families who are struggling to make ends meet. california stands to lose over $1 billion a year in these
programs alone. all this at the same time that the republican tax scam wants to see them turned into even more of a donor state but texas rising to pay for ill-conceived tax cuts for corporations and the wealthiest few. this tax plan is irresponsible and i will yield back. >> i would like to thank you for appearinappearing andthat. and please advise members of congress to committee is two weeks were submitted questions and answers will be made a part of the hearing record and with that mr. secretary thank you for joining us, the committee stands adjourned.