>> politics was supposed to be about finding a way to overcome those differences through extended discussion in the real legislative process and through principled compromise. it wasn't supposed to be about one party winning on their own as you know when one party can do this on their own maybe 1933 or 34 dealing with the depression, lbj 64 and 65 even

he had a republican support. [inaudible conversations]

[inaudible conversations]

[inaudible conversations] [inaudible conversations] >> the committee will come to order before we get started i want to give her deepest condolences of those impacted by the tragic shooting in florida our hearts go out to all victims and loved ones you are in our prayers.

the committee is honored to welcome him stephen min nguyen following the budget proposal from the treasury department we appreciate your time and look forward to your testimony our communion -- committees annual meeting we have a lot of important work ahead of best when you were here last year you told us the number one priority was economic growth for america now we share that priority especially on tax reform. last year working together with you president trump in the senate to successfully overhaul for the first time in 31 years years with the tax cuts and jobs act we have a to deliver more jobs and taxes with paychex to americans nationwide families can keep

more of their hard earned money to use as they see fit those with no income tax and it exceed $61000 in my district the typical middle income family sees the total tax code of $2600. this is real money with a real impact the benefits don't stop there they are announcing lower rates so more investments in america and to bring home money from overseas to invest in our communities and as encouraging as this is it is only the beginning there is still a lot of benefits to come as the new tax code only shows jobs in our economy.

this is why it is important and then looking at those specific areas there is no such thing as a perfect tax it exists in the tax cuts and jobs act to provide this real workable solutions taking this approach section 199 of the bill to pass through business income incredibly important for farmers and ranchers. those that have unintended consequences farmers and ranchers i am committed to working with the ways and means members and stakeholders to develop the right solution that is thoughtful or carefully crafted successful

to have balance competition in the marketplace. the objective is to make sure all farmers and ranchers benefit tax reform to take action on a solution as soon as possible. now that we have a new tax code for american prosperity to have a shared responsibility on behalf of all americans this includes holding the irs accountable making sure the agency administers the tax code with fairness and integrity and the opportunity to build on to make sure america's economy continues to grow that slow growth status quo simply isn't working we decided to change that to create jobs on main street. with the town hall meetings across the district and from a

business increasing their purchase by chilean dollars then to run into business older -- owner 160 workers everyone got a 10% pay raise this is happening all over america. a new sense of optimism and confidence it is our job to make sure this continues for years to come. we are pleased to see proposals to work together to find common ground not only leapfrogged america but more importantly keep it safe may

we accomplish important things together right now we have a strong economy growing stronger with tax reform and we are looking forward to work to find tune the code for america to move forward we look forward to your testimony and now for the purpose of the opening statement. >> welcome to secretary mnuchin a budget is a reflection of america's values because we have seen time and again focusing on the needs of the powerful instead of middle-class families. and to dismantle protections to see the trend. the trump budget cuts over $500 billion billion dollars jeopardizing the support program for older americans we saw these priorities when they

ran through $2.3 trillion tax cut and putting confusion across the country for what needs to be corrected. why they claim it will benefit average americans it is clear 83% of those go directly to those at the top. and those big corporations but not middle-class with the most well often connected with those thousands of workers but they don't see the gains republicans have promised. back home in massachusetts the tax plan limits the deduction of $10000 allowing them to prepay their property taxes massachusetts a tremendous amount of interest but we saw the influx and in the attempt

to find their way through a maze of confusion i ask the irs to issue guidance to help taxpayers. however and to complicate matters further to take it vantage of the tax benefit not putting the middle-class first it also is fiscally responsible with 2.3 children dollars on -- trillion -- trillion dollars with massive tax cuts to those at the top claiming they will pay for themselves the budget director says that is not true. while they don't pay for themselves and then to pay for the handouts and then to pay

on to call on my colleagues on the bipartisan basis and for your kindness on that matter and to be attuned to that. so i'm hoping that these american workers plan for their retirement year after year instead of taking wage increases to seek some relief. after working for those 30 plus years their retirements were taken away from them when they no longer have the ability because they are already living in retirement. those that are at risk through

no fault of their own those with the employer pension plans will be successful. secretary mnuchin i also asked the administration to help with these efforts to work on this committee to put them first to create opportunities for the middle-class so to acknowledge the staff with a crumbling foundation issue and the staff reacted swiftly and the irs was aligned with that position in many families will receive the benefit so on that basis i yield back the time. >> secretary mnuchin department of treasury with a written statement part of the formal hearing record welcome and you may begin.

>> so to express my condolences for the tragic shooting for those that save so many people's lives. >> ranking member and members of the committee it is good to see you. advancing the president's policies through economic growth a core focus of the president and he is delivering last year the economy had two straight quarters or higher gdp growth and was higher than the average 20 years the cornerstone is the regulation of the tax cuts and jobs act already providing the relief to middle income families putting money back into the pockets of hard-working american families. this was enacted over 350 companies announcing companies announcing bonuses and wage increases higher 4o1k matches,

new hiring benefiting more than 4 billion employees. this is a meaningful difference in the lives of american families. and to have an effect on the economic success of the nation. and one of the highest of the industrial world that 21% below the average encouraging companies to bring back profits to eliminate the tax incentive and turning to the budget reflecting last year's tax reform legislation to reduce the burden on taxpayers for long-term growth and then to drive down spending that is critical to putting the nation on the fiscal path over the

long-term as a share of gdp in important step forward we will continue to progress by enacting policies to enable american people to succeed we look forward to work with congress to make it happen. >> thank you very much. >> thank you for your testimony we have scheduled around 1130 make sure sure as many members have the opportunity to question the secretary will put question time that three minutes and i will lead with a very brief question. letting americans keep more of their hard earned dollars but this month over 90% will see the reduction of their taxes in the paychex and take-home pay.

to talk about treasuries development of the recently released withholding guidance to put out additional information to fine tune further those provisions. >> so the work of the office within treasury is working very closely with the irs and they have successfully updated and then to see tax cuts then to put up a calculator to allow families to double check withholding based on the new tax law. so we are very pleased with the work done with the irs. >> mr. secretary following world war ii negotiating to

have multiemployer pension plans promising not long-term financial security and that more than 1 million americans are now facing insolvency it is critical we address the crisis and those retirement accounts that are at risk and low interest rates to pay retiree benefits having that money from the private sector it does not allow for benefit cuts to have a pension regulation a large number of experts in the field to provide resources and other support to develop a solution if we speak to become another part of the crisis of

retirement security. >> thank you very much the treasury does play a significant role but with a limited ability to approve certain changes. and to be more than pleased to provide technical assistance as congress looks at solutions. >> mr. secretary, welcome. the budget includes a proposal to stop individuals who are not authorized to work from claiming the child tax credit. i long have had a proposal requiring a social security member for the child tax credit is especially relevant

now giving the ongoing debate with immigration. can an individual claim with the individual taxpayer dedication? yes or no? but those who aren't allowed to work can get this? yes or no? but i just want to modify my last statement to be clear. the irs has allowed but that is the issue we are looking at those legal issues. we are looking at those legal issues. >> thank you. by the way i just had a joint tax core on my bill that saves $13.3 billion so to address another issue from 2016

included significant retirement reforms that due to the inadvertent era and cannot get the match and then to cap that they can save so mr. secretary state and local government workers to contribute the maximum to both government and civilian retirement accounts. don't you think our brave men and women in uniform should be allowed to do the same? >> thank you very much. we are looking at it carefully to figure out what we can do.

>> i appreciate that and i yield back. >> welcome. your statement talks about cuts for the middle class last year actually no tax cuts now with that tax committee data showing the income over $1 million would receive an average tax cut of $64000 next year under the tax law. do you disagree? >> i will assume what you are citing is correct.

>> that makes your glasses kind of rose-colored. >> what i said at the beginning of last year which was the case it was the objective to offset the tax cut for other deductions working closely with the house and the senate in the issue we worked out very quick -- carefully. >> that there would be no absolute tax cut for the upper class and the data shows otherwise. your budget assumes 3% increase growth rate but today there is an article hoping that 3% or more is folly already has an immense deficit the growth rate is 2% instead

of 3% do you know how much the deficit would increase next year? >> 2.9 and not three but close enough. >> we stand behind our projections and president obama predicted another percent. >> i hate to interrupt you but they give us three minutes. that is the most generalized so if you are wrong most economists think do you know how much the deficit would be next year? >> i would be happy to say the status quo is $1.5 trillion that is the difference which we don't believe.

>> 1.5 trillion next year? >> that was over the ten year period. >> i don't have that number in front of me but i will get back to you on it. >> you are recognized mr. secretary beginning years ago so seven or eight years ago the process of meeting security and proposals we finally achieve something historic so with each passing week with businesses in my home state with pay increase

with investment of workforce development and increase of employee match gift program so that question that chairman brady had you have the calculator one of the regulatory efforts to spread the good news to united states citizen and sharing information how can we help you? >> a mass at the irs to implement the new tax bill to make them user-friendly with customer service to technology and we are putting out guidance every week in an effort to help taxpayers understand and provide certainty.

>> we all look forward to working with you but to build on last year's accomplishments the house passed two bills overwhelmingly bipartisan support the renewal of the gsp there is more we need to do in a partnership with a successful nafta update with a fully operational export bank estimated tens of billions of dollars are waiting in the banks of the pipeline. >> i agree that the budget is a reflection of values and priorities. i asked one question is there

any money in the budget to do with the proliferation? >> i am not aware of that level of detail to be the expert. >> in light of what happened yesterday? >> i think gun violence is a tragedy and i would urge congress to look at these issue issues. >> do you propose to do something? >> i have responsibilities as treasury secretary but this is out of my way of responsibility you are part of this administration we are losing hundreds of thousands of people. young children trying to get an education and are murdered. teachers, football coach and

you say to me who represent the people in georgia the city of atlanta that someone? we can do better. we must do better with citizens and teachers. so do you have anything or are you willing? >> i show you i appreciate the severity and the tragedy and i will speak to the president and other cabinet members. >> talking about hhs budget we spent a lot of time on increased funding for opioid crisis but we didn't spend

time on funding for mental health or research that spurs these tragic instances. >> there are too many guns. >> for us to go down this path. >> you are recognized. >> the reason irs guidance has created confusion for my constituent in illinois that is a prepayment of 2018 property taxes my constituent in 2017 prepaid 2017 property taxes we pay arrears and this does not apply to them there is also what dates back

decades the irs has never objected to to prepay their share of the current property taxes even though the tax bill would not arrive until the following year because the seller is liable that is the long standing custom for the seller to estimate the amount of taxes that they oh to deduct that on the federal tax return and to my knowledge they have never objected. as far as i can tell illinois the only state in the country that pays in arrears. so the prepayments were disallowed they are the only ones not allowed to pay their 2017 property taxes again we are not asking about prepaid 20 routine one -- 2018 this this is just 2017. could you work with me to

bring clarity to this issue? >> first of all i have already had two meetings on this issue i am aware it is unique we are working with the office of tax policy and irs to issue guidance with the 2017 taxes. we don't have a decision yet but we are actively working on this. >> shifting gears to iran and the commercial sales of aircraft at the time you said we were studying the issue obviously no issue license issued but since that time iran has done nothing to make a case that deserves a commercial aircraft they have gone after their own citizens

and are active in yemen so would you agree at the very least iran has done nothing further to further the cause with commercial aircraft? >> we have not issued any licenses to be interpreted but also that we are prepared to issue and i can tell you we are working with the intel community as a decision and the president before we issue a license. >> after repeated refusals to answer tax questions last year we have an opportunity finally to have three minutes of questions it is the equivalent of government by tweet.

but according to the joint tax analysis that rate drop for the top tax bracket cost the treasury $220 billion those that are half a million dollars per year in income sing there would be no absolute tax cut and the president said the same. but the trunk budget proposes to cut student aid programs over the budget. the same amount of $200 billion that is the ticket to the middle class and to keep the workforce competitive. so that allows us the top rate they all thought it was perfectly adequate when voted out of the committee wouldn't

that allow was to void those cuts if you don't want to do that but then moderate that harsh reduction the president said would never occur? and responded to all three of these at once the response that every american household would get $4000 every year in fact when you came out of hiding you said would be $4500 so isn't it true or do you disagree that 98% of americans have not received any additional compensation at all? while i am pleased anybody would even get $1.50 per week as a benefit is that true there are very few americans who have actually gotten $4500 in additional wage increases

out of this even with a permanent tax and in place two months? i assume while the president wants to take credit for the few he doesn't want to take credit for decision by pfizer not to cut parkinson's and alzheimer's research or terminate workers. you said yesterday the reason the stock buyback maybe occurring is the companies don't have a good reason to invest in america. isn't that an indication that some of the tax bill was misplaced in so much money goes to corporate buybacks? >> your time is expired. >> excuse me your time is expired if you would respond in writing we will move forward with the hearing.

>> mr. secretary thank you for being here today and for your leadership. let me talk about growth over the next ten years quickly taking a look at the last ten years little or no growth, slowest growth in 50 years and have run up 10 trillion-dollar debt roughly with plenty of blame to go around speaking in front of the tax foundation last week they came up to me because of the new tax law. so to get your thoughts on the impact with the debt and deficits we are concerned about the $20 trillion especially the last ten years we have accumulated another 10 trillion so you can expand your thoughts in terms of growth and debt and deficits

over the last ten years clearly isn't working if i could get your thoughts. >> ibm stand behind the numbers i have cited before with a 2.2 and 2.9% is $2.5 trillion the cost of the tax cuts was $1.5 trillion but trillion dollars but half a trillion of that was the difference between the policy in the baseline so that is the right way to compare the trolley into the 2.5 trillion. >> even just the impact of the local chamber both are 50 employees probably 90% of the businesses of the country 25% tax cut it seems like the enthusiasm is at a record high maybe you can comment on that with nfib.

>> we do have the highest level of confidence and for small businesses the lowest tax rates as the 1930s and this is very important because small businesses very important to drive the growth of the economy. >> i you back. >> mr. chairman thank you for your opening statement and your sincerity and secretary -- secretary mnuchin yours as well that frankly we are long overdue in congress to stop as important as it is to express our condolences that we vote and ac act, secretary mnuchin this is not in your providence but it is within the united states congress hailing from connecticut to experience

sandy hook and the disasters that just keep coming and when they come for one of us and we do nothing, who's next? when will we stand up and all that is required to do our constitutional responsibility otherwise we are all complicit in what happens increasingly in the devastating impact for our children. what are we as a body or institution if we don't stand up for our children if you just agree with universal background checks then at least vote or let people know where you stand on this issue. families, victims, the country deserves it.

you are good people and we are a great nation to serve this congress to act. sec. i know you can carry that message back to the president and i do believe this president can make a dramatic difference to call upon this congress to act on the multitude of items not the least of which is his tragic issue that we face thank you for the work the work the treasury has done an representative courtney for his leadership but the treasury department went overboard when it was cruel when the members found out first to get the deduction but then the tax reform took it away. with that i cannot commend enough but the inequality for the connecticut residents the double taxation when we find

out that more than 750,000 people make itemized inductions to supplement everybody else's tax cut is unfair three ministers not allow enough time for me to go into that but i hope to work with you to correct that and amend that travesty. >> mr. secretary welcome today i thought of many of my colleagues to tell you how encouraged i am to see the benefits already of the tax cuts and jobs act although less than two months since the reform became law we are already seeing a positive effect shortly after we could analyze the effects of the lower rates minnesota companies like u.s. bank and best buy and wells fargo could give out special bonuses to their employees to increase wages and invest more in their

savings plans the bottom line this is real money going into the pockets of hard-working minnesotans and because of the tax cuts and jobs act the median income family of four have an average tax cut of $2232 if you mentioned already will not have to wait until next year to see those dollars in their pocket. the new withholding rules put out in january knowing they will have those dollars in their pocket they are seeing that in their paychecks right now so thank you for your involvement and also i want to mention it isn't surprising to see the economic indicators turning in a positive direction the bureau of economic analysis reports private sector investment was

not 8.8% in the last quarter compared to the growth of the first quarter of 2017 and mr. secretary no doubt in my mind businesses large and small were making these investments for tax reform to get across the finish line. now resulting in a growing competitive economy making equipment investment means they are hiring people to increase productivity or good indicator of wage growth yet to come with positive economic effects helping the hard-working taxpayers so mr. secretary look forward to continuing to open the newspaper to hear the positive stories on television about the positive impacts of talk -- tax reform legislation that is now law and i yield

bac back. >> touching on a variety of areas that you do have a great deal of influence dealing with the supervision of the financial crimes enforcement network i appreciated your testimony that you recognize some of the challenges that we have an emerging legal cannabis industry throughout the united states now at about $8 million moving moving past 20 billion over 200,000 employees with an air of uncertainty about access to banking services. the obama administration issued guidance to allow banks to open accounts for people who process and retail sales of marijuana but still many don't have access to banking services and that is a threat

to public safety and an invasion for money laundering or tax evasion or theft. i hope there is a way to work together for the clarification and improvement and i would welcome especially today if you are supporting it to review that but i would hope that at a minimum we could work with our committee to develop appropriate rules for tax and banking for the cannabis industry with the financial services industry to develop access with additional lending for this economy do you have any sense of the timeline that you are undertaking and how expensive it might be? >> we are always happy to meet

with the committee to discuss these issues it is complicated we are actively looking at this in light of the doj decision so i cannot tell you exactly when we come out with guidance that it is on the top of the list and we are working on it as we spea speak. >> this is one item that affects a variety of people on this committee and as i mentioned a growing part of 97% of percent of the american public has access to some form estate or legal marijuana products and the committee might be able to delve into this a little bit to seek verification to prevent the insanity to have this activity and be forced to be conducted on the all-cash basis.

>> mr. secretary i live in dallas fort worth area we are in the incredible building boom and our economy is what i hope it looks like over the next few years i truly believe the tax cuts fill will become the engine that drives that economy the state is excited about the new infrastructure plan they are beginning to scratch their heads a little how they will finance that plan and what projects they will put forward to fit the formula. is there any thought to go back to create an instrument such as the build america fund

that was so popular years ago is there any interest or plans to go back and look at that kind of a funding system that cities can have two put their part of the capital into those projects or a similar instrument? >> it isn't currently contemplated but obviously we look forward to working with congress on the infrastructure that is an important part of the president's agenda and how we finance that. >> thank you. >> mr. higgins you are recognize. >> thanks to my colleagues i cannot see mr. secretary but tuesday, september 25 of of last year there was a meeting in the white house regarding the blueprint for the tax cut

plan you were present the vice president and the president and chief of staff and gary . do you remember that meeting? >> i don't remember the specifics, but yes. >> i asked the president specifically about infrastructure and he went off and very exercising categorically rejected public-private partnerships and in fact at that meeting he pointed to the device president instead public private partnerships don't work relating to infrastructure citing indiana as an example. do you remember? >> ideal. >> august 2017 the wall street journal did a story headline the indiana highway gives a blackeye to public-private

partnership and the president was referring specifically to the 21-mile stretch of highway in indiana referred to as the highway to hell as a project a private state partnership signed by the vice president in 2014 when he was governor the project was two years behind schedule and only 60% built before the state took over and financed in a more traditional way. the infrastructure plan is not the entire federal budget but if you have 56000 structurally deficient bridges when every second of every day seven cars drive on the bridge structurally insufficient that is an urge for an infrastructure bill the bill that you would put together or the white house and put together for every $6.50 of

state and local spending the federal government will spend one dollar. that is it some more state and local taxes on top of foot they already pay on top of the tolls. i would like you to respond if it wasn't workable september 2017 why is it now? >> as you have outlined the president does have concerns in certain cases of things to be privatized that isn't across-the-board but as you have outlined certain areas he thinks we should not sell off. >> thanks to my colleagues. >> welcome mr. secretariat is good to have you here today i want to go to the area in our budget of fraud and abuse

there is a lot of dollars out there want to commend the president for taking a look at that talking about the child tax credit and then mine is the tuition related that required social security numbers for students and we all agree we want to help those that need the help that there is a lot of fraud and abuse. so thank you for looking at this because i went be put out a statement from the increased efforts from all forms of these tax credits $43.8 billion over the next decade that is a lot of money to help people that deserve it and need it rather than those who try to go beyond the system so can you tell me any others you are looking at

those social security security numbers that is the identifying number that we use to save dollars in programs to prevent fraud and abuse? >> that is an issue i've spent a lot of time on because we administer a lot of tax credit through the irs based on social security numbers and i am in the process of having meetings with the social security department to understand how we will move forward with technology and smart social security cards and protect that information because as you know with those credit cards today to have that unique identifier we need to figure out how to use technology to protect us against fraud which we think at the irs's significant. >> because we know we have heard that over and over the wayne one -- ways and means

committee have heard over and over how people go around the system getting something they don't deserve so i applied the administration i look forward to hearing more about it i healed back my balance. >> mr. sec. thanks for being here to engage us today and i will ask you if you missed part of the team has any plans to get our fiscal house in order but first you currently work for abbas was quoted as saying i am the king of debt i am great man with debt i have made a fortune and if things don't work out i will renegotiate that is a smart thing to do also quoted as saying i would borrow if the economy crashes you make a deal if it is good it is good. therefore you cannot lose one

of the problems i have with the tax code is one of the principals working on a bipartisan tax reform bill would be revenue neutral tax breaks from special interest jamming into the code over the years clearly that wasn't the case and ended up with a tax cut bill going to the wealthiest 1% and 1.5 trillion was not offset with the interest on the debt is pushing $2 trillion of additional debt in the fiscal house so it is little wonder after the budget bill we blew through the caps another half 1 trillion on top of that and to seek a budget calling for cuts to medicare and medicaid of $2 trillion coincidence? i don't think so i would humbly submit you cannot push through congress cuts of $2 trillion to medicare medicaid over the next ten years. the american people will not stand for.

. . . . >> in order to finance these cuts in the spending increases that were passed last week of the budget. that is not going to be good for the long-term economic growth. there will be a day of reckoning. you give me or any member and opportunity to write $1.5 trillion worth of hot checks and i will give you the illusion of wealth and growth. there will be a day of

reckoning. it will come home and it will hit us sooner rather than later. i ask you if this administration is putting together a team to get serious about getting a long-term fiscal house in order or will we just renegotiated things collapse on this? >> mystery, you are recognized. >> before i get into my confidence i want to start on a positive note. i was proud to be part of it and i thank you for your efforts on tax reform. i think it will lead to huge amounts of opportunity across the country. that's a cornerstone to have private sector job creation i do have to agree with my colleague from wisconsin on the other side of the aisle.

i ran for congress in 2010. it was on the issue of the debt crisis in on the issue of it becoming too large to be sustainable for the future of america. after last week and much soul-searching, i've come to the conclusion on this committee i believe the debt crisis is now upon us. this is a day of reckoning, not tomorrow we're starting to see it explode as we speak. i would ask you and the administration to make sure we're going to this debt crisis that we have policies proactively to try to mitigate the impact of the crisis. as indicated, if interest rates go up, and we know they will, the magnitude of the debt service the american people cannot appreciate.

i've done some calculations. going up to 3.6% of debt service obligations on an interest rate is the next or $520 billion a year, just to pay interest. people can relate to that when you talk to them about their credit card and mortgage payments. if you tell them you needed $520 billion of additional payments they would ask where you would get the money. then you look at where we spend money across the budget. 840 billion on social security, defense, 700 billion. if interest rates got to 6.8% -- this is what i asked a few years ago and i said this will happen if we don't get our fiscal house in order. 6.83% your at $1 trillion for additional interest payments. i don't know how we sustain it.

you are a smart man, how do you sustain that debt load? and keep america strong and vibrant going forward? >> of the president shares your concern the debt has gone from 10 trillion to 20 trillion. these are issues we need to look at and we look forward to working with you. >> it's imperative we get this in order. >> mr. secretary, welcome. the tax bill that was pushed through cost more than $1,500,000,000,000 and then we had the interest in a goes on forever, money that we have borrowed. 80% went to the top%. wells fargo alone 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, open to fake accounts, overcharge veterans they got a reward following the tax cut their pain shareholders 22 and a half billion dollars, their shareholders that is 102 times. the amount they're putting into charity and wage increases combined. at the same time they're closing 900 branches. here's my first question, i

heard you insult big states many times. let's get it straight right from the horses mouth. you stated repeatedly that we need to eliminate the state local tax deduction because we need to get out of the business of subsidizing states. who wrote that talking point for you? he repeated over and over again. i told you last year, new jersey subsidizes low states, that's baloney. with my state getting back 74 cents on the dollar. now with the tax cuts we would contribute more. how dare you insult those states. you also said what they need to do is cut taxes. we all try to do that. you know that bill went back to the civil war long before the tax code came into existence.

to make sure the communities had enough money and resources to get by. that's an insult. this week the director of the national intelligence, the cia and fbi or that russia might be meddling, they did metal in the 2016 election and will use a digital strategy to worsen it this year. i understand were implementing sanctions a bill that garnered more than 400 million votes. how many sanctions did the -- you can get a answer in writing. >> mr. kelly to recognize the

question. >> thank you mr. chairman. want to correct something. first the claim that only gives benefit to the top 1% that's based on a policy in 2027 the reality is in 2019 over 100 billion tax cuts will go to families making under 100 billion under 200,000. could we please stop separating our people the same only the wealthy. i spent time at the auto show in washington and every maker weather chevrolet, ford and chrysler they said thank you for the tax cuts bill. something working in a positive manner. not here in this chamber but when i'm home i get the same

reaction to people who are glad to get the crumbs. sometimes $4 a month makes the difference of someone being able to buy a car shock the break. mp3 legislation we do something called the public buildings renewable act i know we'll talk about this with infrastructure, the other issues on conservation easements. that was made permanent this legislation that we have has had the broad bipartisan support. there is language out there now that turns the corner of that and is not presented in the right way. i cannot tell you how much i

appreciate the administration for stepping out of the private sector coming into d.c. what i've seen is that this will continue until morale approves. when the only card we can play is that we still hate trump when millions of people are receiving the benefits of legislation that is taken place that the president has been able to do to improve the lives of everyday hard-working taxpayers, that is something to be lauded. it's hard to come in and hear everything else. the brave talk of retirement entitlement reform will never take place but we have to make those cuts. 70% of our budget is automatic. the matter what you're running this is the problem and i want

this effect for 15 years the other side has said in a slumber and all of a sudden debt is now. >> sooner given talking out of order at the beginning so. >> when was i speaking out of order? so now you recognize the question. >> you are speaking to the secretary at the early part of the debate we let go. >> i respectfully disagree with you. >> i think there's a new definition of reading writing

and arithmetic and that's run for your life. i respect your position you hold to take you at your word that you will talk to the president about what he can do to help protect our children on what's happening on a biweekly basis. eighteen events in the shoot your alone. that's incredibly disturbing. the president said may 7, 2015 when he was running to for president he promised he", i was the first and only potential gop canada to say they'll be no cuts to social security, medicare or medicaid. in this budget proposal the president proposed a 65 billion-dollar cut to social security, half a trillion dollar cut to medicare number 1.5 to

the medicaid system. that's a political promise he is never going to keep. his budget does not reflect that at all. mr. secretary, january 12 your quoted in reference to high state taxes looking for ways to get away the tax law you said, i can assure you we will audit the real estate tax issue that was that the economic hub in washington, to remember that statement? >> i don't. >> does it sound like something you would've said? >> i need to read the whole thing in context. >> i like to enter to record that statement cash.

>> i appreciate the crocodile tears from my colleague from new york on the epiphany he had when he voted to increase the national debt by $2.4 trillion and additionally last week by $300 billion. that's $2.7 trillion now on epiphany they're worried about the national debt why weren't they worried about it before, 82% going to the wealthiest 1% of the multinational corporations in the history of the world. i understand why the president is cutting the system because

he's going back on his promise. >> i remind everyone that our democratic alex raise the national debt by $2 trillion in one year/medicare by $700 billion. >> thank you for being here today and your continued service to our country. the results are being more apparent every day and i appreciate you coming out to ohio there is still work to be done in congress and technical clarifications every day tax reform passed everyday since it passed people is sending this along to their workers this is in addition to the right direct

benefit the receiving do to reduce taxes. the gct noted that families making between 40 and 50000 are seen a reduction in their taxes. over 100 billion tax cuts will go to families overseeing that. the narrative that they continue to say it's a giveaway to corporations and wealthy americans it's ridiculous. as i travel in ohio i hear people thanking us for those tax cuts. i disagree with my colleague from new york. the debt crisis started about ten years ago and we do need to worry about the debt crisis. we need to get growth and i think were getting that we also need to get spending down and look at mandatory spending. the one thing i hear is that

they're concerned about our debts and deficits. i went to work together with solutions so that our children don't have to deal with this. the tax cut will grow our economy and allow us to grow revenue base that will help. we cannot continue down this path. i want to bring to a number of retailers have reached out asking for help in addressing a drafting air. we intended to sign the property of 15 your recovery time which it had under the law. given a drafting air it appears that it will default into a 39 your recovery.

i want to make sure that you are aware of this which i assume you are. what would you say to retailers and restaurants who are nervous another you can quickly resolve this issue? >> i am aware of the air. it was unintended. looking to see if there's anything we can do with regulations. you might need to be fixed. >> mr. secretary, paul that this budget. $1.5 trillion tax cut to the wealthiest corporations in the trump budget proposes cutting basic necessities of everyday americans. medicare, medicaid, social security, food assistance,

housing at a time when the administration enacted complicated tax cuts the trump budget fails to provide substantial increases to primary services that help real americans with their taxes. the volunteer clinics the low income tax clinics, the tax counsel for the elderly and the taxpayer advocate. when tens of millions of middle-class taxpayers and when states are grappling with tax increases and the secretary who threatened with audits, you propose a budget with paltry increases further, i'm disturbed that the trump budget looks at the investment in enforcement when your private debt collection enforcements this year target ssdi recipients and

to leverage even though that they were impoverished to put 45 of the taxpayers into installment agreements they cannot afford. it seems your enforcement focuses on increases the profits of debt collectors at the spencer the disabled and him part first countertop irs policy i cannot understand why you allowed the taxpayer advocate to monitor these collection calls to understand these inappropriate actions. i know there are thousands of hard-working employees who dedicated themselves to helping taxpayers. your current enforcement

practice target vulnerable taxpayers with for-profit debt collectors in your own threat to audit taxpayers in states like illinois with high expenses it makes me wary of this budget. what are you doing to remedy the harmful vulnerable taxpayers by your private debt collection program? >> i look forward, i will follow up with the irs on the issue of the private debt collectors see why they don't want the taxpayer advocate. i'm not familiar with the. >> thank you. i yield back. >> thank you for being with us here today.

so much of the benefit of the hard work they do passing tax reform was down to small businesses and others with economic growth in our country. when they do well the country does well. i'm seeing enthusiasm when i'm talking to grassroots. one group with challenges and many are contractors, i have a lot of small businesses that are family-owned working with pension plan issues you said as the secretary of treasury, can you tell me what the pbgc may be recommending for ways in which we could resolve the concerns the small employers have? in a related way there many small businesses that are pastors that are excited about the opportunity for investment,

taking the capital they have to grow their businesses. what priorities are you going to have for making recommendations or clarifying what the pastor deduction opportunities maybe? >> this is a complicated issue. the significant risk as you mentioned and we look forward to working with you and others to figure out a solution. were working with the irs and tax policy to put together guidance so small businesses can take advantage of these opportunities to make sure their guardrails but don't get abused. >> the sanchez.

>> i am shocked, although maybe i shouldn't be that less than two months after the republicans pass the largest tax giveaway were discussing the budget proposal that takes more money away from the hard-working people i represent. this administration never misses an opportunity to shift the burden onto the poor and middle-class families. cities in my district are staring down a plus if possible budget choices the law guided state local income tax deductions and through city budgets into chaos. the budget before us today takes that a step further and city budgets are tighter, tangible services suffer. teachers don't get supplies they

need the police departments can hire new deputies. this would be real of this budget proposal were to become law. many cities are desperate needs of infrastructure updates these are massive projects that a federal support in federal dollars. this budget pushes localities on an island forcing them to do more with less. how can they squeeze cities put more of this perhaps the single most offensive proposal is the republican food rationing box for snap recipients. i'm amazed at the depth at which this budget stoops to hurt

people. how come in good conscious, president signed a law containing roughly 1.5 billion in tax cuts that heavily favors billionaires and corporations that stash money overseas and literally take fresh food out of the mouse of children. is this our example of democracy to the world? budgets are about priorities. if this doesn't show what the true priorities are i don't know it does. this takes people in the teeth that are struggling to support their families, it's despicable. >> i wanted to touch on some tax issues. it's my hope we can resolve the

199a issue their concerns among egg and i hope we can address that issue also cash accounting. despite long-standing law allowing cash accounting for agriculture production the irs attempted to argue in the fifth circuit that permit ranches, they were ineligible for the exemption because the family on s corporation was a limited partner. they correctly ruled in favor saying it stands across texas, louisiana and mississippi. however may continue to hold this position creating uncertainty for others in the state.

i strongly encourage the irs to stand down from this position. >> mr. secretary, i have a question about the secretaries of the nation of the community development institution funds. in a department issue it was said cd fis and mdis, are often the only source of credit and financial services and impoverished urban and rural moderate-income areas with limited access to the banking system. i submit to that nothing has changed, this year's budget cause to eliminate the treasury department that distressed communities, many which are in

my community. the front runs programs that encourage investment in poor communities. they help businesses garner financing which are part of the new market tax credit program which provides credits to those of capital organizations and low income community. the new tax credit has enjoyed broad bipartisan support for many members of congress. the cdf iphone leverages roughly 12 - line leading to the investment of 3 billion in low income distressed communities. can you explain to my constituents why your department would issue a report that talks

about the benefits but eliminates the fonts. why would you eliminate the fund when it's been said this administration has added $1.5 trillion to the budget to to a tax cut. i think it's hypocritical that you would add to our debt to take away tools to help low income distressed communities. especially since we live in a time when we asked communities to do more with less. i don't know if you can answer that but i would like for you to try. >> the treasure is proud to have been part of this. >> the trillion and a half dollars is paid for through growth.

this is a difficult decision and looking for savings and putting. >> i want to reclaim my time. why would you choose to make that calculator choice which if you do not have the kind of growth your same, we have been waiting for the trickle-down economics. >> the secretary it was a pleasure to work with you on tax reform. the two months since this has passed we began to see the benefits of that historic law much like the growing trend throughout the country businesses are giving out bonuses there is several

companies just naming a few picking up promises of thousand dollars or more. further bb&t and metlife and others which just broke ground on a second location my district race employee wages and implemented a minimum wage of $15 per hour. in addition the average family and my district will see their taxes cut by approximately $2250. all my friends have characterized these as crumbs, carolinians know otherwise and see the impact in their paycheck. on a touch on the importance of the change of tax reform. we have leveled the playing

field for companies around the globe and i look forward to working on that implementation to increase competitiveness. has to to work towards a territorial system for americans abroad and and that taxation base regime. this move will increase the competitiveness of americans in the global jar market a level the playing field. then we'll have a system that allows talent not tax burden to determine the business and hiring decisions. i'll back. >> thank you for being with us the administration's infrastructure plan is about leveraging a small federal

investment through prophet driven investors. if there's a prophet to be made it sounds like the same folks will be left behind. to those investors plan to fund in rural communities or similar communities across the country when these communities will provide a lucrative return. >> there are many projects that will not have returns for investors and they need to be funded through state dollars. >> we have very few federal dollars in the president's budget. it's very concerning.

according to the white house how it will spur return on investments ranks at the bottom about where it would go. versus 70% to the ability to secure nonfederal funding. we talk about state local governments having resources want to know about marketplace fairness. he told the senate banking committee that the president is supportive and looks forward to working with lawmakers. i've been working on the setup bipartisan group since before i was in congress. it's critical for state local budgets that we resolve this issue. we had good legislation we haven't even had a committee markup. is this a priority and we help

us move forward on online fairness legislation? >> i'm pleased to answer because i will change my comment from be supportive to feeling strongly. without a comment on any specific bill, he feels strongly that taxes should be collected. >> we have a very specific bill that is bipartisan and we needed to move. i appreciate this in the state local government. i yield back. >> having just passed a once-in-a-lifetime tax reform in effect that is having on our economy is significant as it continues to grow, hate to see

us shoot us in the foot by which i'm from nafta. the consequences would have significant impact on manufacturing and other things. as i look at the negotiations and were headed it causes me concern. can you tell us the role you play on trade negotiations? >> i am actively involved in a bathroom light houses leading this. i'm cautiously hopeful that will be renegotiating the steel. it's a major priority to negotiate the deal. >> can you talk about the consequences to the u.s. economy we did withdraw. >> that's not our first

priority. our priority is to renegotiate the deal. we're having discussions on this. i'll be happy to follow up privately. >> revenue administration came in contact about bilateral trade agreement. we have not had one put forth a template for example, can you talk about what you see in terms of bilateral trade. >> i think it's very important. it's the top issue we are meeting on constantly. i think the president is open-minded and he said if we could negotiate the tpp we could go into a multilateral and were in active discussions.

i assure you were in active discussion on enhancing our ability for experts in creating more fair trade for american companies. that's a big focus. >> i think you understand the importance of international trade and what it means to the economy moving forward and i look forward to your input on that. >> the gop tax plan is to affect. when% in the wealthiest of the corporations. now, the top 1% combined not just run mansion, but two. corporations like kimberly clark said the savings it received from a new tax cut law will help them pay for restructuring program which includes layoffs of about 5000 - 5500 people were

about 12% of its workforce. who is paying for this? and my stated 6.1 california families who bear the burden thanks to the limits to the state local tax deduction. the average california deducts 18000 taxes each year. they assured they would not be taxed twice on their hard-earned money. but that cu cap there likely toe paid about $10000 more. these dollars hennepin tax because they held our state local economies by paying for better schools and roads services like fire and police. the by capping what can be deducted there hollowing out our

most essential services. if that's not enough the administration budget strikes a blow to california by cutting critical grandson program that helped the most at risk populations in my state. it eliminates social services block grant including seniors and victims of services. it cuts the community development block program on the low income home energy assistance program that affords housing programs so families don't have to pick between paying for their medical bills

and other bills. this will affect over 3 million seniors, children and other family semi- state who are struggling to make ends meet. california stands to lose over 1 billion-dollar per year based on the cuts to these programs alone. all of this at the same time the republican tax give turned into something even more than a donor state. with taxes rising to pay for republicans tax cut for corporations and the wealthiest few. the tax plan is irresponsible. >> i want to thank you for appearing before the state. members of congress have two weeks to answer questions. thank you for joining us. this committee is adjourned.

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>> washington journalist live every day. coming up on friday morning, security clearance procedures for white house aides have comment under scrutiny. will look into it with jeffrey ringel. changes to the criminal justice policy under jeff sessions. we'll talk with the u.s. assistance attorneys. watch "washington journal", live at 7:00 a.m. eastern on friday morning. >> live coverage of the savanna book fest will start saturday morning at nine eastern and includes robert with his book future war. author scott shapiro with internationalists. however radical plan remade the world.

>> watch live coverage on saturday morning at 9:00 a.m. eastern. . . first we'll hear from florida senator bill nelson.. >> a moment of silence for the victims.