Transcripts For CSPAN2 House Ways Means Tax Reform Markup Part 1 20171109

And bin that nature of a substitute . And then the court will distribute the amendment. Des gentleman from connecticuts it is recognized. Mr. Chairman. En to submit for the record with the Washington Post with alzheimers disease with the g. O. P. Tax bill for in those plans. And to have those devastating effects i am more than 800,000 americans and the letter as well from several organizations the alliance for aging research than National Disability rights the Sclerosis Society Lutheran Services for america than of those that have come out against the elimination of the medical expense. Without objection. But spencer who with 71. And those who love written me personally submitting their comments for the record. Because our time is limited today. So medical expenses have been allowed to be deducted it is so critical for many of our seniors. The claims of medical expense deduction . Seniors in need of longterm care . Pears with the special needs child, multiple sclerosis, a cancer, 116,000 claim this deduction averaging 11,114,000 of qualified medical expenses. With that elimination is the 1. 6 billion per chip for the connecticut taxpayers a levels. To say this is a tax loophole for the rich but it is a middle and class deduction. At the 8. 8 million 6. 3 million have incomes of 75,000 arrests or less her if you are wealthy you must be very sick to have expenses in over 10 percent of your income of those tax filers these are friends and families facing devastating illnesses with children and spouses meeting full time and longterm care. I will repeatedly say you have got to tell the same friends and neighbors better impacted by this. Well be forced everyone to go on the Medicaid Program . So they on the book since the 40s i had a mother who had multiple sclerosis. I know how this can impact of the families and their desire to do whatever they can. That is why that is so right on when they talk about this. So those letter claiming this is less than 50,000. So this is a direct result. So why be your own this side so those that will join us. So with that Tax Deduction they previously enjoyed. Recognized for three minutes. Here we are 16 minutes into end after todays because of the gentleman from connecticut is a true friend but theyre not defending once again. That legislation produces taxes for americans in every income level with a simple tax code to benefit my constituents every stage of their life. It is so fundamental is untouchable. In then to pay in the entitlements. So earlier this year to put forth solutions of all americans and health care was right for them including the increasing amount to provide additional funds of the population including seniors. As part of the comprehensive Health Reform earlier without medical expense deduction under obamacare but with tax reform it is no longer vital things together tax benefits that all americans provided in this bill. But what was critical was the progrowth policy and payroll tax revenues to increase the solvency of the trust fund would also generations to come to rely on this program and i yield back. The health care in elections suggest they include the number one issue that i cannot support enough the amendment that goes to the issue of the hca was not the status quo. To lower the threshold for eligibility for medical expenses and deductions. Those with health care expense is our little help to the tax code. Eliminating this entirely the help that they receive through the tax code will now be redirected to those i referenced one of the constituents from new jersey to use is the deduction that totaled more than 12,000 each year. 20,148. 7 million americans claim the medical expense deduction with 50,000 or less than 74 50 years or older so repealing this is a tax increase on Senior Citizens if republicans got their way and it would skyrocket and those House Republicans and control that out of pocket cost by 2026. It is like an oil painting. Not just peace is an isolation. With those out of pocket for those that our lucky enough to still have insurance no longer getting help through the tax code but guess who will continue to prosper . I urge my colleagues to support the amendment is brilliant. Mr. Chairman it is so fascinating they were persuaded during the passage of the Affordable Care act why would they propose to make medical expenses more difficult . That is exactly the plan to move the deductibility at 10 percent that was their idea. Something that they did violence to i dont have an answer for that purpose there is no answer. It is absurd and inconsistent. Parenthetically if the hca were working as it was proposed this discussion will not be necessary. By listening to this image that these proposals are not to be viewed in isolation. In those to keep more of their own money during the duration of their lifetime . Those that our episodic. I will yield my time to mr. Larson but i will vote what we are talking about is of 117 billion is available for citizens to have to deduct those expenses to get those multinational corporations you dont give their fair share. Where under this deduction for glasses or guide dogs. Or childbirth classs for prosthetic limbs because this committee refuses to do anything of any type with the price gouging from pharmaceutical companies companies, people down in texas are calling me concerned about the rage as price she has to pay for insulin. Until we have a committee that is willing to stand up to the pharmaceutical industry to do something beyond giving them more corporate giveaways like this bill does. The gentleman is correct her cry would point to and did to the status quo and is it relates to the relief you bet i am to make sure they have those services that they have been receiving since the 40s. So yes we want to preserve that. So to have that payment for reading and prescription eyeglasses so what happens . To that compassionate conservatism . Your nofaults of their own it it doesnt matter what particular tax bracket you are in so we should understand the status quo with respect to the ability to deduct these from the expenses you incur remains and the tax code. So to squeeze into corporate interest is wrong. [inaudible conversations] i thought i was second. I appreciate the amendment when he tries to do so my friend used a couple of words so does that mean they are deductible when the claims are qualified . I want to make sure the American People realize you can claim it. Said jeff qualified medical expenses but with a tax return is not deductible because it doesnt mean that. Is a possibility . Under present law there is a floor to have total qualified expenses then you could clean the excess above the floor that is about 10 of adjusted gross income. Said average Median Income and so first you have to get that threshold which is 10 which is 11,000. And that standard deduction of a couple is 12,000. And getting into the weeds but then 24,000 of expenses before you even get the deduction if you take that 2 percent of 116 and the 12,007. That is before you ever get a true deductions. Said take the total of all itemized deductions. Face up to get through that 24,000. So to get that deduction then you get the true deduction so we can say these are deductions so they dont meet that standard. So that didnt daunt total itemized deductions if they exceeded the same but a typical nursing home care with alzheimers is roughly 98,000 per year. A lot of families are divesting themselves of assets of all income levels to qualify for shortterm medicare qualification. Theyre not supposed to but with those 21,000 returns i took medical expenses and average reductionist 10,200,500 so this is definitely impacting middleclass working families. This is a radical change in policy better planning for that eventuality. The longterm care policies stocks right now. Insurance is virtually nonexistent so now you take away with those have been planning for and to repeal the deduction. The point is well taken. This is on the brink of financial ruin. And asking unanimous consent to be included in the record an article appeared from the Washington Post saying base figures planning to live with alzheimers disease the g. O. P. Tax plan britains those plans. As an expert in this area the series are fascinating. But what would have been great to have somebody sitting there aarp it would have been great those said impacted. Of 24200500 or less. These are real people. This will only impact dave minimum amount of people. These are your friends and your family in your community to said year did not come under our percentage if you lose that exemption then you are not worthy. This is why i want to make sure the history to have the math correctly. This exemption used to be a 7. 5 of adjusted gross income. Before that was 5 and 3 . That movement at 10 came in the statute when . So at the time of the hca to move that tax deductibility beyond a t i in that phase in . But those rules with taxpayer spouse over age 65 and. S 7. 5 so that was the general rule 10 percent regardless of taxpayer age with the effective date. So that was the statuary mechanism . When did this than come into effect . Last year. And with the ac a referred to as obamacare. To ratchet up that percentage of a gi. Now what is happening with the tax reform package that the agi adjustment especially for the people in arizona if we are now with 10 percent then how much of my calculation would actually have Access Medical expenses with those calculations with that analysis to see the Population Dynamics . If you would like to know those taxpayers over the next several years . The hca has already created. Net knowhow that with me at the table i can get that to you later today. Am looking for intellectual consistency because those that supported this now we offer amendments for the other direction. Just a little bit of consistency. Now your recognized to speak on the amendment. And strongly support the amendment so in my state of illinois 373,160 individuals claimed the medical expense them less than 75,000. With 191,000. Those of their reported income of 50,000 or less and in my district alone 15,000 with that medical expense deduction. It is almost to the dollars so this isnt necessarily for those Senior Citizens to other places throughout the country. I yield back. I yield my time. And to go back to mr. Larsons district you first half to get above the 10 threshold before you have deductible medical expenses. Absolutely correct. Once you get above that it is above the itemized deductions. The in my friend mr. Larsens district they were proposing a four person household of a average savings of 4,100 in taxes so the question is if comes down to with the average household im not talking about blamed or qualified but the claimed deduction on their tax return but if it doesnt go over the standard scott not a deduction. If you qualify which ive heard my friends use it as a deduction. The question would be, and i appreciate my friend the question comes down to mr. Larsen rather than the tax of 4,096 on the average. When you go back to how many people on average . 3 . Approximately 6 . We are talking about a small number in the higher tax bracket. The top half of the income distribution. You are recognized to speak on the amendment. It is unbelievable that the plan would eliminate. Yes the claimants must but it is the most expected difficult medical problems. No one knows when the more serious illness will occur. My state over 1 million taxpayers claim it, the average deduction was 10,413 nearly half of californians who claim this deduction reported an income of 50,000 per year or less. That savings can make a difference that allows families to give loved ones the best care they can at the most critical time of their life, so this elimination will hurt, like a mother that gave birth to twins that have to be hospitalized for months and are overjoyed when they come home but they required ventilators, feeding pumps and oxygen and have to have the necessary monitoring equipment. The contributions cannot afford the payments and weekly chicopee trips to require the outofpocket expenses for the 10 of the income. Its the only way she and her family could stay. Why should this mother be penalized for the corporations and the rich can get richer and i will yield the rest of my ti time. I want to thank you for giving me an opportunity to talk about his view because we have no experts and i dont need claims that hes an expert on this one certainly not an expert about the number of people in the state of connecticut who file individually as i said repeatedly it is 41 of over 700,000 people in the state of connecticut who do so and to add insult to injury, you have the individual deductions. So, as it piles up in the state of connecticut as i explained to the Committee Earlier it was averaging 11,000 meanwhile you ask us and the seniors to pay for 5,000 Healthy People who will be benefited from the estate tax bill. Thats what we are talking about. Where are the specifics for that . The thank you mr. Chairman. I take a little offense to my colleagues on the other side in the way that we dont care about the Senior Citizens that we sit with anand talk with. I dont care about the individual on their deathbed as a volunteer in hospice and staying with those people i dont care about those people because of the tax. But me tell you what i can try to summarize for the American People. We have two seniors making about 24,000 a year, they are low income seniors, about 20,000 worth of medical expenses. Under todays code, a 24,000, or 4,000 worth of taxable income still subject to tax. What do we do . We take the 24,000 coupled and expand the deduction to 24,000 under the new code that is in this code and doesnt care about a lot of people back home in my opinion. What we do is say 24,000dollar income minus the newest standard deduction that we increased, what does that produce . Zero taxable income, zero. Under the existing code with 20,000 is a lot of medical expense. Under the existing code they have to pay a tax would we do is do the best we can. I understand what you are trying to do, that republicans wont care about the wealthy and corporations. Let me tell you something, i care a lot about people. Its why im here and im trying to improve their situation on a daytoday basis. Basis. To insinuate i am some evil republican is offensive. You care about people, too. I know you do. What we are trying to do is make their lives a little bit easier, simpler, not sen and not send io washington and left them enjoy their lives as best they can as we go through this process. Ms. Sanchez. I ask unanimous consent to enter into the record and article from the la times to hit the middle class. Without objection, so ordered. I would also like unanimous consent to put my record in the interest of time and at this time i would yield time to my colleague mr. Blumenauer. I heard my colleagues say its kind of following the path of democrats because the limitation was restricted when we approved the care act. The Affordable Care act, which we paid for, was the largest expansion and that was a huge benefit for a wide range of americans including the orderly. Contrast that with wiping it out altogether not to give more health care to people, but to make active cuts for the most welloff. The inheritance tax is the the difference is telling. Millions of health care which you are trying to take away versus wiping out deductio the n and tiger lee for senior citizen. I would like to reclaim the remainder of my time. I think the gentle lady and i am prepared to close. I would like to close by asking is it guaranteed that those in the states with 11 million will get a tax break from this bill . Is it guaranteed if the bill becomes law that they will get a tax break . The the bill retains the top individual rate. Its not guarantee that there will be benefits. Those at the state over 11 million im sorry, my apologies. In the bowling the estate. That is the point we are trying to make and i will state again i think that you are all honorable and thats why we are asking you not to do this. We are asking that we go back to the status quo so that we do not have Senior Citizens paying for a state tax relief. Time is expired. Question on the agreement offered by mr. Larson. All those in favor signify. Those opposed, no. In the nature of the amendment in the substitute. I resort to the point of order. Mr. Chairman, first let me thank my friend as a cosponsor of the amendment. The amendment is very simple. To save 2. 15201 billion of the bill. It never crossed my mind it would consider the bill to repeal the amendment and the Charitable Organization began earlier this year. It was too crazy, unbelievable. When i reached the end of the bill i was shocked. We spend hours and organized training and studying because they have a moral respect against the indefensible policies. It was never about a party or candidate put together our shared values, hopes, dreams, families of the world. This bill before us will put neighbors against neighbors and volunteers against volunteers. Until the last stability in our country. You may not remember the house tried to repeal the amendment and i remember it like it was yesterday. It will free us from politics in our heart of hearts. To put the good of the nation before the campaigns. Help us and save us for what we might do today. Is there a republican. Are you going to any republicans on this . Thank you very much mr. Chairman. At the lyndon b. Johnson amendment that the republicans would appeal is work that president johnson did recognizing the great importance of preserving the independence and integrity of religious organizations and charities. More than 4500 charities and over 100 religious leaders voiced their support for maintaining the amendment. There is a cost reflected in the table from joint tax, over 2 billion with the lost. As a mega church of mega attacks and that is where this would lead to. This tax bill will be formed, not reform the tax law for the houses of worship. It threatens to destroy the congregations from within over disagreements on the partisan politics. It assures an unholy alliance. Pastors and people of faith know that there is nothing free about the pulpit that is bought and paid for by Political Campaign contributions are beholden to partisan interests. They are designed to transcend partisan politics. They noted the houses of worship need to be places we can practice civil discourse. It couldnt be done with taxdeductible thoughts. Lets not involve the places of worship to become manipulated by wealthy donors and partisan interests change them from their values of religious purpose. Certainly the louis amendment should be adopted. I hope we havent reached the point where the minister, priest, rabbi at the close of a religious service will have to say their name and then suggest and i approved this message. It was important for those of us at massachusetts at the time and followed it very closely every day. We forget that through that whole campaign, time and again it was stymied in the force of opposition to the. If we are not careful we are going back down this road in america those that might have religious views that are different than yours because people say they should be invited back to the Public Square at the genius of the constitution is in a lot of ways encapsulated by the question after jefferson asks mr. Madison to portray if we were to have the statesupported religion, which one. They should feel free to speak their minds and hearts without the fear of an irs agent monitoring their speech. Its based on the political and as we saw in the activities. They should spend their time and resources administering the tax code and not monitoring the speech and houses of worship. I encourage my colleagues to impose this amendment. I yield back the remainder of my time to mr. Lewis. Introducing the politics if there was itwas a bad idea, mano it is a bad idea today. I have spent a lifetime not as a congressman but in churches and seminaries but as a separation between church and state. This is a good amendment anthony should pass it. The teaching of the lessons during the service, sure teaching the values. Those in the tax bill this one frightens me the most. Every sunday morning when i go to my Lutheran Church in western wisconsin with my family, i feel it is a sanctuary for my soul, an opportunity for me to communion to congregate, get together with my fellow neighbors in fellowship to check up on one another. Regardless of the political affiliation repealing the Johnson Amendment and politicized the pulpit it will create a civil war in the pews and establish republican and democratic churches and synagogues overnight. We all know it, we know how tribal and pulverized the system is today. What clubs we join and what family members would like to hang out with given our political affiliation. You politicized the pulpit. It will make the conflict in the middle east look like a picnic. There will be conflict in the streets here overnight and we will be driving the children of our families away from organized religion because they will not tolerate it. The joint committee on taxation sitting before us today scoring this is a 2 billiondollar cost for the able political contribution to be made taxfree. We dont currently allow that in the political system this will be a backdoor attempt to do it. And i ask unanimous consent to include a letter dated september 5, 2,017 cents to the congressional leadership of the committee and the finance committee signed by 103 denominations, 4,200 state leaders, 5,500 nonprofit groups saying dont do this. Without objection. A letter dated sent to every member of the United States congress. Those that look forth to the Church Service and respite from the craziness of Politics Today to repeal the Johnson Amendment and jeopardize all that. I ask my colleague to accept the amendment and i yield back my time. Thank you mr. Chairman. This is one of those thoughts whether we should even speak on this because each of us looks at our religion very personally and as a matter first and foremost between our families and maker there are moments in which you start to see what i say what ist balance in church and state and we have a history in this country. I also think this moments the overcorrected eyes and have Great Respect for the gentleman from wisconsin into this kind of a circumstance entirely and lets talk about what happens. A study from last year had about two thirds of regular churchgoers had heard a politicapoliticalstatements froa to the highest percentage of these were black protestants, 28 heard the clergy for Hillary Clinton and about 20 of the ministers opposed to republican candidate. So we have seen the politicizing and if my colleagues were so believed that the irs should the inside of the churchs which i hope we can keep them away, lets allow the congregations and their leaders and ministers to find a way to speak with it without getting the irs involved. I think this amendment does not. Mr. Davis. I would associate myself with the remarks that have been made and i yield back. I will recognize myself on the amendment. You sense a tenderness here on both sides and a sensitivity to where we are. Theres things that have been spoken in admonitions we made towards one another and i think that they have been received on both sides. There is a sensitivity here. I am going to urge us not to adopt the amendment for some of the reasons we articulated, but i think this is a very sobering debate and we need to be very careful moving forward. Where we are right now the law is not particularly satisfactory because there is a Chilling Effect in the part of some communitys reluctance to pay and in the matters of the Public Square because they feel like they are going to be targeted and they have been targeted, yet there is a cautionary tale for the friends on the democratic side. At the time for talking is over and the question is on agreeing to the amendment offered. All those in favor signify. Those opposed. The opinion of the chair, and pursuant to the committee ruled 19 further proceedings will be postponed. Are there additional amendmentst in the nature of the substitute. Thank you very much. I have an amendment on the desk on behalf of myself and my colleagues. Reserving the point of order. A mr. Doggett. With the economic evidence is so clear that it is a joe killer and will not grow our economy, well loowe have looked to the alternatives to accomplish a growth in the economy and create jobs in this country and i believe that alternative centers on investing in people. Instead of investing in people and the education, this republican bill takes away those tax incentives and tax benefits that benefit education. They begin by eliminating the deduction for the student Loan Interest and tuition and fees deduction. These are a critical lifeline for many students. If you look at the class of 2016, graduates throwing their caps in the air, two thirds of them graduated with a diploma and a burden of debt. The average debt for those in 2016 was 35,000. Those are the students that benefit from being able to deduct the interest on their loans that republicans would deny them. A second provision, an incredible provision would deny Classroom Teachers often in very underfunded schools, any deduction for the 500dollar deduction that they have for providing materials and their classroom. We ought to give schools the funding they need to put in the meantime lets not punish teachers who try to bridge the divide by restoring this deduction we are helping them and providing an incentive for better education. And this also restores the provision that allows employers to say we have a welding shop that we dont have a Training Program here at the firm or the company but he will pay your wer tuition to go to the Community College and come back better suited under the republican plan they would tax that worker that a bear trying to further their skills for both the employer restored in the provision and in addition to getting us back to restoring the 65, 67 billion in cuts the republicans make, we adopt the same Simplification Program for the American Opportunity tax credit that i worked on since 2009 but instead of taking away from the program we used to see things from the simplification to expand and enhance the program so that more students will have genuine opportunity and we will not see the financial burden as a reason that every young person doesnt try to get all the education they are willing to look for a. I think this is a very good amendment and we have been hearing this morning on the other side this suggestion that we are trying to position you on these boats you have to cast. This is a chance to demonstrate some interest in the problems and challenges every day americans have so we are being asked in the tax bill essentially holding back on the teacher expenses when they step in to fill the void created by the budget shortfalls when they sometimes by the carload brings a place to the classrooms of the children might have a chance to draw a direct benefit or so we can repeal the estate tax with the alternative minimum tax on 4. 5 million families in america this cuts to the dispute we are having over this tax bill and our position remains for the people that ought to benefit are the middleclass clearly and decisively as opposed to the greater concentration of wealth when you consider 2 of the American People will pay the estate tax. We are the ones position in posg middleclass people against the very wealthy current graduate students will no longer be able to deduct the student Loan Interest or tuition on their taxes, so effectively the bill is a tax increase for students and their families making education even more expensive than it is. The credit is eliminated and hr 21 and gets rid of taxfree Educational Assistance through highend employees eliminating provisions to cause a taxable income of students benefiting from employer provided Educational Assistance to sky rocket. Many low and middleincome employees benefit from these provisions. In fact, the recipients of section 117 earn half of the recipients were 50,000 or less. What are we doing here . Dont make us out to be bleeding hearts although i dont care what you call me. At what point does a fetus qualified for this taxdeductible savings account. Will a woman have to provide proof to the irs that she is pregnant . You are signing a document in this bill. Are you going to through for the credit . This takes current and recent students. What have you done now . How about a Higher Education policy that helps our students. Yesterday the Associated Press reported that the premise of the tax bill listed this triple down economic theory that giving to the corporations would somehow help everyone else. Is that what you believe . Each of us have to ask the question and point out who will most higher when this bill. Thank you mr. Chairman. I want to take the Committee Members back several years ago when mr. Camp was here and you will remembehewill remember we n opportunity to work in the chair man divided up the code and various portions and asked the kennedys to form on certain issues. We had an opportunity to work and we ha had to give him a tax provision to take a look at and we decided together one of the things we wanted to conquer is the complexity of the code of people using the credit and we found there were 90 pages of different rules and regulations of how they might be able to use any of those credits so wha whas needed is a simplified and got them down to the different credits. What we need is just give me a flowchart. It was so complicated we couldnt even get a flowchart. How do they get into the tax code and tell what it is they are able to use because it is so complicated and im very proud to say that we did come up with a solution, we filed it and it was heard in this committee. Very proud that we worked together to be able to simplify that unfortunately it did not get passed into law this gives us an opportunity to simplify that which is in this complicated code and as well as the 529 that will help the everyday family and get something simplified that families can use. I know from my own conversations with people they say that stuff is so complicated we dont even want to look at it. These credits will help people get their education, so 29 seconds if you would like to take the 29 seconds. I agree with you on simplification. Thats why this amendment does the same thing. I would ask why you took out 17 million from the opportunity tax credit which is what this does instead of reinvesting it in students. Students. Thank you very much, chairman and it certainly was a pleasure to work with the representative on the leadership of the committee that i promised to support the amendment. Education is our fundamental right and the only way we will be able to preserve and continue what we call our democracy. He used to say that education makes a man easy to be that difficult to drive. Yet to educate the middleclass doesnt deserve the same support it cuts over 65 billion in educational benefits and the benefits that the middleclass families use to make College Affordable and it strikes people may benefit for the taxpayers struggling with heavy Student Loan Debt and it penalizes the families whose employers have Education Programs and all of these cuts so that you eat received the best possible education that money can buy in to protect us to 20 milliondollar inheritance. The greatest thing the country is known for has been its movement of individuals from one of socioeconomic status to another. The best possible way to do that is through a robust level of support by education so that any child, no matter where he, she might be boren have the greatest opportunity to become whatever their hard work, talent and ambition will make them. That is the promise of america and should be the promise of our support for education. I strongly support the amendment and yield back the balance of my time. I want to believe the reforms that we have are not only better for students and families that they are also better for education and teachers. It is interesting in south dakota this week we had an organization send out email talking about how our tax plan was bad for the teachers because they would no longer be able to deduct 250,000 for teachers and im so grateful for those we have in south dakota. Ive got some of them in my family and how much they sacrifice across the state. But what is interesting is the deduction and value is the reality of the deduction and money that would save those teachers if we kept the portion of the tax code by the time they were able to deduct that from the average salary for the teacher would be seeking his 37. 50. Now under our tax plan, the teacher of south dakota will be able to save ove see over a thod dollars in tax cuts. Now you tell me why they would tell them to defeat the bill and fight against it when it would save them a thousand dollars versus the 37. 50 that they could save under current law. I think it is disingenuous and the truth needs to be shown on the situation. Its one of those situations we are dealing with in this amendment. I like the changes we make in the 529 plan. Taxfree qualified distributions be expanded to be used for apprenticeships, elementary costs and also the ability for families to save for their unborn. I remember the first time that my husband and i heard a eye dr. dr. sheartbeat. It was life changing and we plan for her future and dreamed of the life that she would have and above the realitthe reality of g translated by defining the fact now they can start saving for over costs they may have. I think it is highly appropriate and we felt knowing our children were around at the way and we wanted to give them the most secure its no different than any other experience. My colleagues on the other side of the aisle were talking about this issue yesterday or the day before. Letting parents dream about the future they could have been the tradition it provided them to do so and prioritize it. Its how this language could be defined. What is so dangerous about that and getting opportunity for the parents to save in the plan for the future of the children. I opposed this amendment and with that i wont yield back. The educational expense that many in the communities take out of their own pockets by proficiencproficiency and this o their own symptoms is a 250dollar tax credits above the line. Its not a deduction, it is an elimination of 250 federal taxes that would apply because they feel its necessary for the proper teaching of the student in the classroom that theyve got him out of their own pockets by the crucial supplies and resources so that children can learn in the classroom. 250 above the ta250 above the ts off the cuff that they otherwise might face. This is one of those we all struggle with. Section 127 that allows an employer to do in educational expense subsidy to the skills related to the complainant. An into the employer received a Tax Deduction so they are able to remove. Do we have a sense of tax avoidance or reduction in Corporate Taxes that come from both sides on 127 . I do not have that at my fingertips but i will get that for the members. My line of questioning here in my threeminute by Big University has done some innovative programs and bigger doing one right now and im trying to get a sense of how much is receiving a federal subsidy because the employer gets to take that as a business expense. The employee that im going to graduate school and receiving this is the value of that cash value is its taxable to the employee that is subject to the rules and compensation. It is an exclusion, so this is somewhat deductible compensation for the employer but that aspect is not included in. So it it sort of gives a double whammy. If i have an employee that is in 535 and employer coming to the federal taxpayers. It would generally if you think of the compensation at the employee level and its also not subject to the payroll tax. I want to thank mr. Doggett for this amendment and im happy to be able to work with him. Folks in my district i talked to like jessica, i had the opportunity to meet with a young mother named jessica who works at starbucks and has been enrolled since january. She told me she would not be able to attend College Without this program but having to pay taxes for receiving the employer provided tuition benefits, which is what the bill would do so for those trying to make a better life for themselves and others and their children that section 127 what needs to be expanded. We have bipartisan support to expand back on this committee so it is very unfortunate we have a piece of legislation that proposes repealing section 127. My colleagues will say that the corporate cuts will lead to growth and see so much wage growth that they wont need these benefits anymore but even conservative economists dont believe that. Im also someone that looks at the numbers and there is no evidence that the tax cuts actually pay for themselves. If they succeed for generations to come, we have to invest in the quality education affordable and accessible for everyone across this country this bill not only drives up the debt but it makes the assertion that republicans are going to be taking a sledgehammer to education and job Training Programs like the president recognized in his budget. I urge my colleagues to support this amendment and i yield back. I was speaking this morning and want to make sure i get this right under the current tax credit is the most someone could say in real dollars as a result of the tax credit . It is an above the line deduction so it is 250 reduced from the taxable income. Its 39. 6 40 . Most teachers are not paying that. It would be 40 of the 250 which is 100. Subtopic brackets would save a maximum of 40. I assume that the average teacher would probably save half of that so we are talking about 20. She invests a lot in her classroom but we never use that deduction. You can assume what her answer was. The decisions we are trying to make do we want a tax code that has the special and small benefits for many small groups of americans or a tax code that treats all americans fairly. This may be 100 if you have a teacher paying 39. 6 marginal tax rate. I dont know too many of those. It gives the small sometimes invisible benefits to certain americans but by the way a lot of americans dont even take advantage of or do we want a tax code that treats everyone more fairly and provide Growth Opportunities for more people and gives every american the opportunity to rise and thrive and flourish and that is the debate we are having. And i hope we would choose that simple tax code, that fair tax code where it doesnt make sense to move jobs overseas. Or it doesnt make sense to have been itemized all the time. Thats what we are trying to achieve here mr. Chairman. I tossed in the los angeles Community Colleges for 20 years. I have seen firsthand the struggle of students struggling to pursue Higher Education in spite of the financial situations. I have seen students work multiple lowwage jobs, attend school part time and still be forced to take out Student Loans to cover the cost of their education. And ive been inspired by thousands of students ive met and taught because of their desire to better themselves despite the odds. Im shocked by the complete disregard for the needs of the countrys students and we must support the doggett amendment. At the time of the largest piece of growth comes from Student Loans nearly claw dribbling over the last ten years and at the time when total Student Loan Debt has reached a staggering 1. 34 trillion, i cannot comprehend why the tax plan would eliminate critical deductions and credits for the students. First let me say republicans claimed to simplify education incentives by consolidating different credits into an enhanced American Opportunity tax credit. They are selling your bill of goods. The plan combines them but eliminate 17. 3 billion from the American Opportunity tax credit. Is it combines them and reduces it. Now was not the time to turn our backs on the vulnerable students and Young Professionals that are trying to do best to find gainful employment to achieve the American Dream. I yield back. Of a bite to take this opportunity to associate myself with the words on this subject. First of all, on the subject of saving for college, have three kids of my own, i appreciate the fact that our bill would give me an opportunity to save more for my kids did to prepare for their future and college education. This bill does a lot going in the right direction but specifically a want to talk about the idea we are doing harm to our teachers because of the deduction for expenses for educators. I am a husband of an educator and i have seen firsthand how much time and money is spent on the supplies for classrooms. They do it for the love of their children, the love of their school and their profession. They dont do it for the benefit of the tax credit which is in many cases is 40. That is insulting to managedcare educator the points time and expense into the classroom and it is confusing how they have to get to the point. It is a deduction topoftheline for educators by the time you wake work your way through the tax bracket you wonder what you read that direction in the first place. If you apply the current law as to the new proposal you will see that if you truly want to benefit educators you would support the proposal because of the end with the big picture average familys benefit for go for example, a married couple making 90,000 under the current plan after you work your way through this confusing tax process you will find that there are tax liabilities with an average family with two kids with 90,000 and adjusted gross income but if you take the same proposal to the same family doubling the proposal 24,000 the taxable income goes down that much further they end up with a Tax Liability of 4,100. I say that to apply the law you will see this family will save 2,037 of total tax cuts that is much better than the demand isnt the minimus deduction. As the proud daughter of two longtime educators and Public Schools in selma alabama and though the power of Public Education and i support the amendment because i believe it is the best way we can support and promote better teaching in america. I have a deep concern about this administrations attempt to divert dollars to unaccountable schools. H. R. One has a provision to known today for more taxpayer dollars to private while taking away teachers ability to get a deduction for supplies. The interlining bill allows parents use a taxfree savings accounts with private cater 12 tuition. 529 was created to help save for college but this bill will allow highincome parents to use 529 at at 10,000 per year for private school expenses. My constituents deserve the same Playing Field as those that send their kids to the handover. We have no business to further incentivize the wealthy. School choice is a false choice in my district but go private academies were founded by concerned parents in the late 60s of racial segregation and the Public School i went to is now resegregate again in the private academy is still largely all white. Some of these private schools are not accredited and teachers are not required to teach with disabilities and no required curriculum. Yesterday our proposed a bill to close the loophole to divert those resources to the for those that turn a profit of the donations they give to private schools for each year wealthy donors use the tuition tax credits to divert 1 billion of taxpayer funding to private schools at a time when our Public Schools are short on resources in congress is struggling to find funding for programs such as individuals with disabilities act we are responsible to protect public funds for Public Schools. Lets pass this amendment. I yield back. Mr. Chairman ira appreciate the opportunity to speak i have Great Respect my daughter is a secondary teacher but my children went to the Catholic School and i paid their tuition that did not give me a break on Public Schools are still paid that purpose i paid for educational goals sides so early on it was said it is a job killer. I went to the Tax Foundation to see how much of a job killer it would be in texas but it creates 81,000 and gives people more takehome pay of 2,200,550 that was a cult a killer then people have to have more money to work with increasing their opportunity to have more takehome pay allows them to take that to spend it the way they want to as opposed to the way washington thinks it should be spent and on a Global Impact it is embarrassing the United States is ranked as 23rd if you were contemplating to start a business where you would want to start i dont think theyre making a decision based on the fact they dont like the landscape but really it is the fact we tax them too much and regulate too much they hide that offshore than ryukyus them to be unpatriotic because they go someplace theyre treated more fairly. Bottomline the tax cuts did is to grow the economy. And make America Great again in so many ways that people will have the opportunity in america to embrace that opportunity and make the most of it. Were talking about things that dont match up just go the entirety of the bill. More takehome pay is incredibly important. Nobody ever says i have a tax credit and will buy a new truck but they do say go down and makes it possible to upgrade my homer by a new car or truck or to pay for my kids education or retire. So tax cuts in its entirety is about progrowth. And then to have the businesses to stay home to make America Great again. I yield back. Strike the last word. I really do appreciate my colleagues on the other side and i understand your frustration. It would be nice if we had an Expert Witness ever to come before this committee on something as important as something that would impact 100 percent of the economy. Not one single witness. You make good points you deem based on whatever Research Behind closed doors or whatever assumptions you have made but i ask again because you get a lot of questions coming is a guarantee those making over a 11 million would get a tax break . Yes, sir,. Yes they will. Is a certainty that teachers to get 250 deduction above the line currently will no longer get back . If this becomes law it would repeal that above the line deduction. Bad as we are concerned about perot i have a daughter that is a teacher. So with that testimony nobody talks about that because it is a political discussion not a policy discussion. I feel badly for a number of view because you are honorable people you have been asked to carry the water for your leadership to put a bill forward that the other body talking with great experience on this side of the aisle, will have a far different way to look at this. But you are asked to follow this word and it changes almost daily there will be another amendment to pass along party lines that you can hopefully vote that will not resemble any shape what the senate will do for girl i hope our colleagues realize that is exactly what will happen to you. This is a political discussion the you cannot understand why we are angry over the fact we dont have a single Expert Witness and we are told in the case of School Teachers will get 250 deduction above the line that you cannot get back because we have to have the estate tax people making more than a 11 million for girl. Real . , this is a good discussion but stepping back from the political component, my wife is an educator putting in long dedicated hours as well as contributions on her own. We dont use that deduction but i do know that those that would appreciate having more money in their pocket vs 250 above the line deduction that could translate between 30 and 100 but to have flexibility where the dollars are going. We have talked about eliminating the student deduction for interest on loans. This is a bipartisan proposal in the past president obama recommended eliminating this deduction as well. All of us have been looking for the right strategic and smart ways to consolidate those deductions that are out there with 90 pages of forms to make it more simple and more clear some of families and students are saving for college to pay off college that. You have more flexibility and dont have to deal with the rules and guidelines. So were making sure we are allowing any student from any family that there are more dollars in their pocket but also plan for their retirement. Families have been contacting the appreciating that opportunity as they offset the cost of college and vocational Training Programs. I yield. I just wanted to make sure because i received an email on the previous three minute discussions, lets come back at 127 where it is providing a subsidy for an employee to continue education. So that is still a business expense. They get to remove that from their calculation. Correct it is a form of compensation. So in the current way it is still that way . Correct. We need to get that down so there is an understanding. If you or i decided right now to go back to school school, but the cost for thats come in the income required for that we do not have this type of sponsorship, it is still taxable income to pay payroll tax. I am trying to find the equivalency if the employer is offering this to me then receiving this series of taxexempt and payroll. Under h. R. One, youre right in the example you could claim those credits modified in the years we may have already paid that. So in many ways this makes it more across the board americans are treated the same. Correct. There is a lot of changes i should not make an opinion about the equivalence but the taxpayer may be eligible to create claim the American Opportunity tax credit. But the key point is that the incentive that tax deductibility as a business expense expense is not changing so were not creating an impairment and with that i yield back. I am sitting here appalled that the conversation that is going on about teachers and educators and i am also married to an educator. My best friend is a teacher. Between 20 and 25 years they have talked for girl my friend a single. She buys supplies every year that goes way over the two did 50 deduction. I said to her let me tell you how this works. It is looking at your tax form to bring down the muddy you spent but your new double deduction is 12,000 more than she has ever conducted in her entire life. She looked at me and said how can that be . We want you to take more money home to have more money in your pocket with what what you want to do to circumvent the 250 and let you absolutely have the freedom you have never had before i think every teacher in this country deserves a congressional medal of honor for what they do in todays classrooms with the loyalty to take students and completely turn them into successful members of our society and their passion drives them every morning. Because of that i give you every teacher in this country is an expert on education that none of us have because were not in the classroom. But they deserve the double standard deduction to completely renovate their life for them to decide what they want to do with their money with the value of why they do this to begin with so every teacher listening listening, you are so valued you deserve more than we can possibly give you. Right now we can give you a 12,000 standard deduction or 24,000 deduction that we have never been able to deduct and this is one of the reasons why we are here today passionately saying to our fellow americans this tax reform bill is about you and were committed to move this, this week not only revolutionize education but the American Dream for every single american. All those in favor . Those opposed . In the opinion of the chair, no. Of the proceedings on the amendment will be postponed are there any other additional amendments . I have an amendment at the desk. He reserves a point of order. While the amendment is being distributed. I withdraw my reservation my amendment against the tax hike in this bill that is of the middleclass working families pursuing the American Dream of Home Ownership. Remember those. Extends tax relief for struggling homeowners who receive a mortgage debt forgiveness. This will apply to those who have honed damage or lose their home in a fire or earthquake or flood or whenever and they get their mortgage reduced because of this. Then day turnaround to get a tax hike on the amount of the reduction. So gate to get the deduction but then get the tax increase. This comes with what americans are struggling the most how to put their lives back together in this is the last thing we need to do to these americans hardworking middleclass and deceive the American Dream of homeownership. This is a bipartisan measure, authored by members of this committee 180 coauthors the last time this was introduced. So under current law there is a five and a thousand dollar per family or to order 50,000 exclusion for homeowners trying to move up for a better home or a bigger hole because they have a family or a studio to own their own home. This bill increases the number of years you have to live in your home. Currently it is to out of the last five under the republican bill increases five out of eight. That is not fair. This provision hurts working middleclass families by lengthening the amount of time they have to stay. Because the American Dream of homeownership further out of their reach. We should figure out how to help middleclass working families, help them achieve a the American Dream with Greater Family opportunities rather than take this away from them in order to help the wealthy and corporations. I hope my republican colleagues concede the value in the merit of this amendment joining me to help middleclass working americans. This is one of those occasions i have a little bit of expertise but at least i am a part of this so to walk through one of those mechanisms mueller coping that would create some stability in the neighborhoods but ive understand current law right now is easy to game. Here is the game. By a house, rented for three years, live in four to to hear some of the gain is taxfree so it is a game you costly role houses sometimes in the same neighborhood. If you buy two houses. Fix up one of them and live in the other for two years then turned into a rental three years then rolled over. If you look at the time line is meant to slow down the of swapping backandforth. Will you yield. Absolutely. I dont necessarily agree with your analysis. This is part of the dialogue so what part of that i have from . I dont represent a lot of People Better gaming the system. That was not my question. I want to be sure were honest so right now it is five years only live in it for two years. If you are correct there are People Better to invest are you telling me it is okay for them if they stayed there a little vulgar . Take a look at the mechanism if i had to live there is Little Wonder my ability to do that to live there then swapping them so it is that mechanism. But it is okay if you live there a little longer . That is where intellectually what is what we both want to do is the stability of the neighborhood not to go in and out. So part of my amendment would remove that opportunity to other people that lose their home a Natural Disaster . Yes. We can discuss to have the debt abated that is under taxable events we gave that during the mortgage crisis to a lot of people i believe your motives are honorable the two were understand. Honorable enough to include u. S. A coauthor . We can come back to talk about this and now there is another way to get there. He is not agreeing to the amendment all those in favor . Those opposed . In the opinion of the chair, a the nos have it. Pursuant to committee will further proceedings will be postponed are there any additional . I have an amendment at the desk. I reserved. Suspend while distributed. I withdraw seven derecognize spirit there are things we can do with the tax bill to help the middle class. Unlike the republican bill that helps corporations in the rich get richer, we can help those in need by expand the earned income Child Tax Credit to a child as workers right now adults than on custodial parents are those that we allowed to be taxed into poverty specifically 7. 5 million childless workers are taxed into deeper poverty by federal income and payroll taxes. Why . Right now they are largely excluded from the earned incometax credit or the e itc it is the strong antipoverty it Party Efforts to provide support to the most vulnerable among us but yes the eitc for childless workers is so small that none of these are making a tangible impact of a 21 yearold jess starting off in the workforce does not have a child making Poverty Level wages of 12,000 from manual labor. 956 of payroll taxes deducted and pays to launder 40 a federal income taxes. Receiving cero eitc because childless workers under the age of 25 are ineligible. He is taxed 1,170 into poverty that is below the poverty line. Expanding eitc will have reached to help taxpayers from every walk of life that was expanded to childless workers that credit is projected to reach 750,000 veterans and military members and those with disabilities in the first year alone. In the past republicans and democrats to expand the idea just a few years ago but with this republican plan ignores the idea entirely and completely fails to provide meaningful assistance to individuals without qualifying children. The amendment i offered today would lower the age of the eligibility for this child as workers and ensure that working people are not just well off with a path to create more wealth i urge my colleagues to support the amendment and i yield back. Mr. Chairman, i oppose this amendment in this humanresources subcommittee to reexamine the causes and consequences not engaging in the labor force. Here is what we found roughly 11 million on custodial fathers in the United States with close to 25 percent of them having no earnings and therefore unable to support or care for their children. Those factors are lack of post secondary education, and benefit programs to discouraging work, a drug and alcohol dependency, criminal records in the available jobs and the weakening of social and cultural norms and increasing working in earnings that is a wrong solution deaconess it can address any of those underlying issues but instead we should be more directly engaging these workers and more effective ways that we could be discussing when remove into welfare reform. Back in Washington State i worked with a group for dad services which does truly amazing work to assist fathers by providing resources to help them get a sense of self and responsibility all done preventing Family Violence and is supposed to be focused on strengthening families and their communities. And a cofounder is a personal friend of mine one of those went up the street to sell their body and has changed their life of many young men and women in the seattle area. One of the biggest problems are a nation faces today is fatherlessness. We held a hearing on this challenge to make we think of the consequences of working age men not participating in the workforce. Without possibility not able to contribute as a negative Ripple Effect on the community. We have to tackle those underlying issues of the tax code that is not the only place to do this we need to make sure we engaged the fathers in the home and outside the home with every step with the policy be developed and i look forward to working with the subcommittee. I yield back. On the amendment . His position is offered sincerely note question but i have worked a long time but the problem largely to apply the eitc is needless complexity offer it to the single filers makes sense been overwhelmingly it is in tax preparation it implies an effort to move past the lot and in this instance it is the complexity of the eitc that we should all agree to simplify and Ronald Reagan saw that as a great vehicle and slow did tip oneill but the best part the earned income tax credit works. I yield back. Mr. Chairman i appreciate the remarks offered already and the intent behind the amendment to do things it is important to know that perhaps it doesnt go as far as some would wish that it does but i think we need to take a deep look at how we can truly assist people out of poverty. Yes there are good things of the of eitc if we really look at the struggles of families face and cash flow flow, so as families face these expenses, how can we help them . The best way is to expand the economy and create more jobs. The best way to increase wages is to have to offers for what should or should not be included in compensation for the employee. But that dynamic of the growing economy to create an opportunity in a brighter financial future for folks all across the country rather than to check in with politicians with wages or other dynamics. I yield back. I agree with my friend from nebraska. We want to empower people. Eitc when it was so strongly supported by people of both parties including president reagan, goes directly to reward work. And my concern from the outset has been if we do we to spend or borrow 1. 4 trillion or 2. 3 trillion dollars with interest where do we prioritize . I think expansion would have been prioritized by most people but in advance they are billionaires it is an opportunity for us rather than extending benefits for some businesses through the pass through provision which dont help most Small Businesses we could have restructured that with a couple of good hearings with an honest discussion of priorities what would help the most people directly . Is unlikely that this will pap will pass but i hope it will return to the tide and a true promise to simplify the earned income tax credit and help more people directly. I yield back. I appreciate the comments that i also support the earned income tax credit. I show the speakers initiative as well. So for the last two years as a chaired a subcommittee on nutrition but with those 17 hearings in two years. We looked at what worked and what didnt. Best practices and but brief was and just coming in to check a box. Or a number but where they would have to check that eitc box that is not what they showed us. What was missing that we needed Human Interaction . Coleman said you know, what made the difference . The osama from mine with the job training and placement and skills. When i did not show up at work because my car was broken down in my child was ill the next day i did not get a call from my a employer but from the social worker to ask what she could do to help to make sure she did not fall out of her progress that was having somebody there to put their arm around her to say we will find a way. I will help you through this. This is what we have lost that were not just looking at a mass numbers of people but they are people who deserve the dignity and help we can get of. I would tell you i support the earned income tax credit but i also support the Human Interaction Research Board in this nation. And with real issues in read the to have that compassion to connect to job skills a hint job training. That is the pope in perugia of poverty. But i dont support this amendment but what weve learned to be true breathing life back into our country. Thanks. You are but in 2005 and with the person responsible but the improvements for the non custodial parent focus on fatherhood helping those to provide for their families. I am very proud this amendment lowers the eligibility at 18 to cover a struggling young girl workers that current law excludes including apprentices and homeless youth. The eitc currently disadvantage would enter the work force earlier to experience higher rates of pollard, poverty them their peers. This is verified to create barriers to economic stability. We know approximately 20,000 youths between 18 and 21 indicate threequarters are not enrolled by age 21. Lower in the age at 18 promises to promote economic that is why because of the organ in the organizational support. So i will read these individuals but for the children in the National Association of social workers and the juvenile law center. We could do much more every gave access to the critical work force to encourage and reward work to offset through payroll in in incometax is. This amendment will promote economic wellbeing for these hardworking and qualified Young Workers for price support that and i urge you to pass it i yield back the balance of my time. Mr. Chairman, i have heard of this introduction into both a service of the Small Business community. But the taxpayer does nothing for the people but he was taxed into poverty. We have taught last couple of days the but theres more money in peoples pockets. Including people in power every to stimulate the economy to create an Economic Opportunity for people on the income spectrum. So to talk specifically, that is just ignored. But to talk about her specific example the young man that makes 12,000 per year i think she said he had to pay 40,500 of income tax. The plan doubles the standard deduction. Guess what . This young man who least 0,000 but that is an extra 400 in his pocket. So houri tony will grow well as a result of this plan. There will be more competition and wages will rise. And in my opinion the process is to create opportunity there is nothing we can do to create an opportunity for those the way she describes and to expand our economy. The results that with not only him but. I understand her passion but this plan will immediately put another 400 in his pocket to give it the opportunity to succeed in the land of opportunity in the future. I yield back. Mr. Chairman i fully support to extend the earned incometax credit for the childless adults and on custodial parents. It is a Great Program that works to reward work. So often we want people to get off government assistance and work and this is a pod and it continues to provide for their families. This but to bring intergenerational all benefits and it is based on an array use although those that provide a substantial refund but they encourage that by extending it we encourage more work decreasing the eitc is a smart investment to provide mobility an opportunity because it has been shown to help out comes. To date the eitc is the single most important public source of income support for working families and children. By expanding that to childless adults we give the same opportunity to low income and middle income family units that do not. We expanded to uncles and cousins that are non custodial to so many children. With the wages for working families earning of 43,000 is an important way to make a difference from working with middleclass families. My state of alabama the sixth poorest one out of every five people live below the federal poverty line by yet in 201518 claim to earned income tax credit and we included childless adults. That was increased also. The average credit 2,007 per return and that is substantial for those living on the margins this is real money for real working americans making a difference in the urge my colleagues to support the earned income tax credit to be extended. We have been elegant solution that we could move forward if you question in bad actors then you have to be willing to have a conversation for someone has that is a simple data match system but yes it could be magic but i think this is one republican sand democrats what we believe does incentivize work. If as the committee to get beyond tax reform to look at legislation that our team has had over four years to take care of these concerns then you so could that be used somewhere else . What a great conversation. I appreciate good intentions that we have to do something that is much more elegant to make it more simple and efficient but i yield back. All those in favor . Opposed . In the opinion of the chair, a the nos have it. A will call is requested further proceedings will be postponed further additional amendments . I have an amendment at the desk. Please suspend will the amendment is read. I withdraw my plaint of order. You are recognized on the amendment. Housing affordability in my region is that the lowest level since 2010 in and getting worse. The median home price is 64point 5 higher than in five years ago while wages have only risen 25 and the trend is getting worse due to a growing population with infrastructure that definitely needs updating to keep the upper crow looking for a safe place to raise their kids to put down roots Affordable Housing makes the crisis much worse as People Living on our streets in tent cities with Public Health risk and Living Conditions that should not exist in our country but the republicans need to be in the state of Affordable Housing with private activity bonds and missing best opportunity to expand lowIncome Housing tax credit. According to the finance commission, a 2000 aba affordable apartments housing over 4,000 people in six counties across my state currently planned over the next two years would not be built without private activity bonds. By eliminating these the bill will prevent 200080 families earning less than 60 percent in their area that they can afford. Private activity bonds have helped 76,000 apartments and 46,000 home loans for firsttime home buyers of my colleagues simply want to eliminate this to pay for a massive Corporate Tax cut that is why we reinstate private activity bonds almost half of those nationwide would disappear for millions of dollars for local economies not to mention much needed housing it will also expand the low Income Housing tax credit with the idea bipartisan right here in this Committee Led by chairman hatch in the Senate Making 50 percent more credits available we could make as many as 10,000 Affordable Housing Units Available los for beginning farmers to build the first acres and nonprofit facilities like ymca all of which we finance by issuing private activity bonds. My constituents are struggling to afford a safe place to live cutting these lifelines is unconscionable and i urge my colleagues to support this amendment. Your recognized to speak. With these issues i raised the private activity bond allocation and i think she would agree the new market tax credit as well. It deals with the most complex six aspects, of the housing were hit and she spoke of that whole issue of bin come elasticity talk about Home Ownership and for those who rent breeze still need to generate more units at those levels and that speaks the term low income it goes well beyond that into the housing market. I want to urge paul to support that. You are recognized. I move to strike and with that key element in then this bill will decapitate the industrys so when chairman kim started the process to review the tax code when we cochair the housing committee. And then nothing happened. So we must restore tax incentives which communities across the country rely upon for infrastructure funding. And then deciding to eliminate the boland have been working with mr. Reed began with a private equity bonds. And then to abandon ship . Event that sustainable infrastructure bill with bipartisan support to be allowed for used Water Infrastructure projects for the cities and towns across the country are facing a major challenge to replace your aging and worn out infrastructure so with those constraints private activity bowens something that billions of dollars of private capital Infrastructure Projects while shifting economic away from municipalities. The private equity bonds are used for projects across the country. Airports, hospitals, schools , assisted living facilities, thousands of u. S. Colleges and universities and hospitals and charities and municipalities to rely on private activity bonds for funding Infrastructure Projects including notforprofit health care i ask unanimous consent to add to the record to the new Jersey Hospital Association so private activity bonds is a growing source of financing and need i remind you without those industries catastrophic industries when they pay 50 percent of their income. Affordable housing so when e talk about funds, finance, tax credits and talk about new market initiatives. All of these have been lifesavers and im afraid there will be many distressed areas across the country that have been laid to waste because there hasnt been the redevelopment that needs to take place. To keep these into distressed rural and urban communities throughout the United States of america. And i both yield to mr. Pascrell. The Riverside Development of the 20 to 45 units in my town where i live in paterson new jersey would be significantly jeopardized because it is highly dependent upon tax issues. They got a letter from the owner of the property at the time when the infrastructure is crumbling we need more investment not le less. What a gentle man yield. What do you think im talking about . Your growing off on a tangent about infrastructure and everybody yells. I think the ladies amendment was on low income credits. That was very thank you mr. Chairman. I keep scratching my head when i got to the part of hr one. The new market tax credits. The private activity bonds has been in the tax code for 103 years for the public facilities, the users are accomplic countles these are programs that support seniors, farmers finance bond and will Income Housing tax credit is a proven policy we should be building on because leaving it intact if we illuminate the bond we are weakening the way the credit f for. We have a choice to make and forcing more people to sleep on the streets and let proven programs continue. This is our opportunity to put this right again and we should actually be improving low Income Housing tax credits. That has been a Bipartisan Program to. If i could deal with the remainder of my time to mr. Pascrell. The Real Estate Industry that opposes the legislation has weighed in with the senate and the advocates have been vocal. There is nothing in the information i read that would lead me to think differently. Weve made it clear tools like the tax credit. Ive had all of these records sent to me over the last two days. The time is expired and you are recognized to speak on the amendment. The gentle lady from the Washington State, she and i can put our years together in congress and wouldnt have the experience. Theyve been amazing leaders in congress and to the previous roles in public life. Quite frankly i cant disagree with anything either of them said. This is a program that is supported by republicans and partnership. Its housing thats needed in this bill. Bill. Low Income Housing is still in this bill and i continue to advocate beating it up as others on this side of the aisle. Its a tough job of the balancing act that would be the equivalent on a circus wire. I say that a affectionately. I pledge to work as i know members of this side of the aisle every step of the way at the same time mr. Neel knows this is then used for golf courses. I dont think anybody on the dais thinks that is an appropriate use when we have the housing crisis we have today for office buildings. I dont think anybody thinks that is an appropriate use when we have communities in Washington State and ohio that are suffering from housing and units not beating there so i want to tell the Ranking Member honestly because he has been a champion on these issues forever when i was still a kid in college he was an advocate along with jack kemp and ronald reag reagan. If you both with us on this i will not tell chairman brady. I will continue to work with the chairman to be an advocate to tighten up the language of the abuses and make sure we help the people the gentle lady from washington talked about so i would urge a no vote for now. We will continue to work on these. You are recognized to become a how do you end abuse by eliminating the position fax you say that the chairman has a major balancing act thats true but he very much object to the balance in this bill. Its in terms of the deficit increase but what has happened here. It is a problem in this position theres still benefits in so many ways for the very wealthy. It is in every tax bill that was 25 years ago. It is how you balance and where you put things on the scale. It is onlit only way you will havee elimination of many positions that have helped the middle class and lower income people who are trying to join the class and then on a scale you pile the benefits for the very wealthy so i dont think you should congratulate yourselves on the balance because it is so imbalanced. Instead you want to join and support this amendment as a way to say you need to change the balance. Big supporter of low Income Housing credit. There are more people under this bill there are more americans who at the lower end will not pay income tax according to the joint tax based upon the tables more americans at the lower end will not be paying im just refuting a statement that you need bumade but im not going te with you. I am going to argue with you on the low income and middle class americans paying less taxes under this bill. All middleclass people will not be paying less taxes. That has become very clear. The time is expired. I do want to speak in favor of the amendment. This gets to the truth that make some of the projects go back home. Iit creates these publicprivate partnerships to mak that make ts happen in each of the committees and states across the country. It isnt a huge hit in the tax code as far as they revenue implications. We are talking about a bill delivering a 44 marginal tax rate reduction for corporations in this country and we are taking away private activity bonds incentives in the code that makes the Vital Programs become essential including the low Income Housing projects that we all have in our communities as well. If i could join the community on taxation sitting silently most of the day their analysis of the bill has shown that four fifths of the aggregate tax cut, four fifths will go to corporations or Business Owners making over 260,000 in year. And the 21 of the benefits in the build are reaching individuals and loving class families. We talk about a disproportionate need right now to help working class around the country to activities on this something that helps the projects move forward that benefits all the communities. If we can at least approach tax reform in the debate under the philosophy o of first do no har, because this has been a Vital Program that has proven its worth over and over again. That would be a good place to start and i would be happy to yield to my friend from Washington State. Thank you. Mr. Chairman, i would ask unanimous consent request to submit a letter from the Fred Hutchinson Cancer Research center. Their letter talks about the opposition to eliminating the private activity bonds so i would ask your i will yield back. The gentleman yields back. Youve are recognized to speak on the amendment. I want to first tell my friend im not on mars, im here with you and when i ask you the question its because lets face it, there are abuses in private activity bonds and we have to admit there are abuses whether it is a golf course or state becomes, all these things are abuses. And i was asking the question because also like my friend i am a supporter of lowIncome Housing credits. I was asking the question because if i asked you specifically does this zero into the lowIncome Housing credits use it of course but then started down this path, i would not support this amendment because it is broad and takes into consideration too many things that include abusive issues but i do believe that we have to make sure that, and this is one of the reasons i even double income credits but again i think every time i Say Something to you you tell me that im on mars or jupiter or whatever. I am just trying to get a specific answer so i wouldnt support this amendment but i will yield some time to you. Because the legislation is fraud and not only deals with low Income Housing, it deals with historic money and a lot of things. Thats why i responded to it. Im not going to just respond to one piece of the legislation. You read the whole thing yourself. It is a valid part of the bill and thats why i responded the way i did. We are friends and we need to keep the friendship there no matter what. We will be friends on mars, too. [laughter] but as i read this and of course we just get this today uses a location for the lowIncome Housing credits and thats what im a supporter of. There will be a lot of members on both sides but i think theres also abuses which we know of, theres abuses in the activity bonds which is one of the reasons why it wouldnt support. No one in this group of democrats republicans accepts or in any manner, shape or form hides abuses. We all want to get rid of it, but you dont throw away the Larger Program because of those abuses because if you do that how you think you are solving the problem that youre not and it will only show up some other place. History shows us. So, we are not for advocating an abuses, but the private activity bonds as an example, part of the legislation is something that i know youve supported in the past. Taking my time back i will always be friends with you on jupiter, mars or wherever we will keep working together. Are recognized. Mr. Chairman, you know and members of the committee now my support for the lowincome tax credit which you as a member leading the committee recognized i associate my comments with mr. Pascrell about the value of the program and knowing that the tax credit is retained and kept in place as a part of the tax reform bill we also have to acknowledge there will be challenges with the bonds being removed and i hope our conversation can continue on that so we are looking at ways to make sure its going to be available for lowIncome Housing, charter schools, whatever that may be as the process moves forward because this isnt the last step today that it is true that reform bill is going to put more money in the hands of wealthy and middle income folks which is going to be beneficial with them. But also we have to take a finer and sharper pencil to making sure that the tax credit in particular is going to be effective and look at that in the future so i would impose the amendment today but hopefully continue to have the conversation. You are recognized to speak on the amendment. I would like to associate myself with the remarks. We are together on a bill and i dont know of anything that is better for us than things that have been uplifting whether it is low Income Housing for the historic tax credits for new markets tax credits i agree with you those are so good when you get to the historic tax credits and these are mostly jobs bills that the amendment is so broad. Im so tired of hearing about these people that get these great. I think we look at these amendments and in their entirety our concern is this is such a tough thing we are trying to keep in balance with all the hearings weve listened to when we have people from the corporations lets not put all these people in the same box as these people tax breaks when you ask them why we have this erosion problem the answer is always the same is a better place to go where they dont get beat up on taxes and if we are 23rd in the world in places to start a business we need to look at how they bring the jobs back home but i will tell you, and i think him so much more onboard with you when you talk about these things we have been to places, public buildings, schools, police departments, Fire Departments that we need to have the tools in there for them so i am willing to look for anything we need to do to improve the situation. On the amendment today i think it is too broad so i wont be able to vote for it but i think it is absolutely positive and what we look at going forward. How do we create hubs and keep them here in america. And are we doing what we say we need to do . Giving big breaks to corporations i think we lose the whole purpose of what we are trying to do so its not about taking care of the buildings, it is about making sure the United States of america is the best country in the world to study businesstart abusiness and keeps here. You are recognized to speak on the amendment. I actually want to think through some of the interactive effects of the change in tax rates, the value of the credit and also the fact lets walk through some of the senses. The tax credit, those still exist. Are we changing those . Spinnaker is n there is no changing deal of income credit. That part of the equation is staying. What we are talking about right here is the private activity bonds tied. Who are the primary purchasers of this primary and . They are purchased by individuals. Primarily these individuals. So the basic incentive is if i am a high income individuals i will purchase this if im able to use the taxexempt saying im getting the same yield as a corporate bond. If i am actually in a world where my tax liabilities have changed, do we expect there to be any effect on Interest Rates on these type of bonds in the environment where the marginal tax rate has been reduced . The simple answer is yes. Theres multiple aspects of the legislation that would affect. The classic supply and demand, the elimination of the ability to issue the private activity bonds and governmental bonds to change the supply of the tax instruments in the market. We tend to reduce the supply and on the other hand, as you were noting that demand for the taxexempt is determined by competing investment opportunities. Theres one more point. Do we have any sense of purchasing this type of taxexempt data . I do not have that at my fingertips but is held by corporations, so the Insurance Companies use it as one example. Some local banks hold the taxexempt. I was just trying to get my head around the tax efficiency in the world aware of those have changed and we will have to get together and sort of analyze that market and the need. You are recognized. I want to pick u went to picy friend left off. We have an infrastructure Funding Crisis in this country. We have not kept pace. We have a Highway Trust Fund that cannot meet its ongoing obligations and we filled up with all sorts of gimmicks and it means state and local dont have the partnership and they are paying a heavy price for our inaction. This is the jurisdiction of our committee and i hope that we get to the point we are going to increase our responsibility and people find that there is broad bipartisan support for increasing revenuescome in off th, not thedeficit. But i take exception. Ive worked with mr. Kelly on this and we see the impact is growing increasingly important because congress hasnt kept up its responsibilities as a partner with the state and local government so i strongly support this amendment and i hope that we will reach the point of this is an area that if we brought people in weve b we would be ao cover a lot of ground, resolve questions and come together for something really good for the country rather than using this bill to eliminate it. And i will yield to my friend. In the project i mentioned a little while ago in Clifton New Jersey said its being billed for 92 seniors cant purchase the property so after december 31 this person wouldnt have purchased the property and there are 3,000 senior applications with 92 spots. This may be just a small example of what we are talking about here and it is on the private activity bonds. This isnt just someone that has come in lately the perfect record on housing to deliver where they ar were supposed to deliver to the seniors. What do we say to this person . Thats the last thing a senior needs besides this rent is going to be minority builders need that anxiety and that is what we are creating here so we are talking about a wide scope bill and identities in the bill, you did and thats why we have to respond. I think you are doing an injustice. I dont think you want to do it but you are going along to get along and i think it is going to hurt a lot of people and i will ask you to reconsider. Youve are recognized to speak on the amendment. When you came up with the cost of the program can you walk me through the mechanics or do you simply look at the boss to the treasury assuming the maximum utilization on the bond . Are you asking just about the taxexempt bond analysis . We have a document that explains in detail how we do estimates of proposed changes in the taxexempt bonds and we look at a portfolio model where we try to compare what alternative aftertax rate returns ar of rer about otherwise be taxexempt and how the change might shift to the holders and would be affected rates are and how it might change the holdings of the instrument by taxpayers and we measure that all elective to the projections, the baseline projections of the issuance of different types of taxexempt securities, so for example we tried to track the amount of debt goes to private activity bonds as opposed to governmental. Are you finding the private activity bonds fully utilized or is it underutilization . As i know you are aware there is a volume cap on a number of types of taxexempt debt. Some of the volume is carried forward which is intended for utilization. In the past, but congress has a direct amount. So you could affect the overall cost to the treasury by several mechanisms. Sometimes congress is considering sunsetting certain types of activity bonds while leaving the rest in place for the budgetary effect. Congress has the ability to look at the broad use of that and make a determination of the highest and best use of. My time has had a number of hearings related to the use of taxexempt securities. Does the gentleman yield back . Mr. Thompson, you are recognized to speak on the amendment. Does anyone else wish to speak on the amendment fax question going to the amendment offered by the representatives all of those in favor, those opposed them in the opinion of the chair, pursuant to the Committee Role 19 further proceedings will be postponed. Id like to give members a little outlook for the rest of today and tomorrow. We expect more votes around 1 30 and 2 30. As we did yesterday, we will come back and vote on the committee pending amendments and we will continue through the rest of the day with a second series of votes later in the afternoon we will come back again to address those pending votes. That will conclude today. Tomorrow we will conclude the markup anytime certain to be determined and i forget that over and says we know. Mr. Tremaine, couldnt we dont longer tonight . Yes, the code for a certain period. We may be able to get some of our work done. One of the things we want to do is make sure we can get to as many amendments as we can and we also have the option of moving to two minutes per member during the amendment debate that might try to accelerate how many amendments were offered as well, so lets look at those options thank you mr. Tremaine. For what purpose does the gentleman seeks recognition . The point of order has been reserved. I will ask the gentleman to suspend while the clerk distributes. [inaudible conversations] [inaudible conversations] thank you to the gentleman from new jersey recognized for five minutes on the amendment. Every disaster is a tragedy in the country. Mr. Thompson saw it firsthand last month when the wildfire devastated his district. Ive been fighting for Disaster Relief for hurricanes and the victims since 2012, relief that never came. There are still families not back in their homes today five years later. Why do we have to fight for every penny of assistance, the same tax relief afforded to the victims of hurricane katrina, the major hurricanes going back years was denied victims of sandy. But here the churning of this committee put forth without any debate or Committee Process selective tax relief for victims of hurricanes maria, irma, harvey and attached it to the reauthorization. Amazingly the bill before us today eliminates positions from that tax relief plan passed just six weeks ago reserving only Property Casualty loss reductions and only for this years hurricane victims. This bill has another opportunity to the disasters across the rest of the country. Hurricanes dont discriminate. They dont ask if you are republican or democrat it should be the determining factor in who gets relief and who doesnt. So choosing relief for victims in texas. It is not a good policy to. This takes politics out of the equation making available robust taxes. This provides retroactive tax benefits to disasters. This includes the recent wildfires in Northern California fohurricanes harvey, irma ana maria. The clean Water Infrastructure after Hurricane Maria devastated the island in september. While today they do not file federal income taxes most do not make enough income to file federal tax. The American Family o family ino rico and Virgin Islands are suffering. Here we are weeks later if the majority still not restored. Beyond that there is an infusion of support from the capital the debate still stuns me when i heard people on the down payment on food and water, a down payment should be coming to the aid of puerto rico and Virgin Islands not the least of which is because it is part of the American Family. And when they are suffering like we have gone through the work if the national principle, whether it was texas, california, or my own constituency just a few years ago we want to come to the resistance very quickly honoring the whole notion of the principle that simply says we dont ask what your political affiliation is or if you live in a red or blue state, we dont ask who you voted for in the last election. To make a point of order not germane to the amendment on the substitute violates house rules Social Security act. Does the gentleman wish to speak on the point of order . If this isnt germane, nothing is germane. Pass whatever you want to pass. This is talking about our citizens. This is saying they are not secondclass citizens. This is saying you have the responsibility to everybody. Me included. And you discriminate against me because im from new jersey. We will settle it right here and right now. Thats what this is about. Dont give me the baloney. We can go through every one of these amendments to talk about what is germane. I will make this clarification. The amendment is not germane come it violates the house rule 16 by commending the Social Security act. The point of order is sustained and the amendment is not in order. Mr. Chairman, if i may, i wouldnt want to walk out of this place if this isnt germane because you have a legal problem on your head now. I will yield the opinion of the chair. Questions on the motion. All those in favor, those opposed. Youve got to be kidding me. You need a hearing aid for crying out loud. Lets be fair about this, mr. Chairman. I ask unanimous consent to put into the record of my statement that i was going to make on this amendment and its impacts my district and is stated very much and i believe it is incumbent upon this committee to deal with these issues. They are not partisan issues and its not just about the wildfires and hurricanes. This is about every community that every one of us represents. We dont know when the next Natural Disaster is going to get or whose district of Natural Disaster is going to take place in. I would also like unanimous consent to read into the record of this letter from the mayor who also takes exception to the way your bill handles people whove been affected by a Natural Disaster. Without objection are there further amendments. I just want you to know i am going to strike from the bill that you just laid aside from a few moments the part dealing with medicare section. Im going to strike that from the bill and im coming back with that amendment again. We welcome that discussion. You are seeking a recorded vote on the chair. A recorded vote is requested. Clerk will call the roll. [roll call] [roll call] [roll call] [roll call] [roll call] [roll call] [roll call] the gentle man is not recorded. [roll call] the clerk will call the roll. The motion to table ha is agreed to. Further amendments in the nature of the substitute. For what purpose does the gentle lady seeks recognition. Move to offer an amendment at the desk. The point of order has been reserved and i ask a gentle lady to suspend while the clerk distributes. The gentleman from california is recognized. Think of order is withdrawn into your recognized for five minutes to speak on your amendment. I offer this amendment would fully restore advanced from dingdong is as a former Public Finance lawyer, i i know how important advanced for findings are. As i am quite familiar with the fact Tax Exemptions were advanced funding to municipal governments are an important tool for financing infrastructure and other community projects. Has been discussed oas we discue activity bonds, advanced fundings allow the municipalities an opportunity to take advantage of a refinancing that would decrease the Interest Rates. The current exemption allows state and local governments to refinance or buy back outstanding bond in order to lower their Interest Rates. The effect is that it reduces the borrowing costs and frees up resources for investment in new public projects. Every taxpayer has an interest in making sure that their local government hathe localgovernmens they need to use that tax dollars as prudently as possible. Eliminating advance for fun and would likely result in less Overall Investment in infrastructure as well as needed a public projects at a time when our infrastructure upgrades are long overdue and sorely needed. All over my state advances for fun thing supported colleges and universities, local and county municipalities, Public Health healthcare and transportation Infrastructure Projects. In fact, the Childrens Hospital in birmingham issued 235 million in bond during the beginning of the recession in 2009 thanks to advances for funding they were able to refinance in 2015 under improved Economic Conditions and save millions of dollars in taxpayer money. Last year the city of tuscaloosa in my district uses advanced fundings to save the residents over 3. 2 million on Municipal Improvement projects. I believe that dominating the provision is shortsighted and imprudent. I would ask my colleagues support the commonsense amendment to restore the exemption for advanced funding bonds and i also would like to get unanimous consent to submit for the record the letter from the National Association of bond letters support on the amendment. I yield back the balance of my time. The gentle lady hell back. One of the most important opportunities is what you can undertake with taxexempt financing. It works for the community, the investor and certainly offers a Mission Statement for accomplishing big things including those building Public Schools, hospitals, roadways, airports, bridges and even rail improvements, so i think the proposal make a good deal of sense and i always thought it was important when you got the bonds to market they were advertised a fullpage and now other technologies that if there was a sure return on your investment it was taxexempt financing. So it was good for all involved and im very pleased to support the amendment. Anyone else wishing to speak on the amendment . You are recognized. I would like to yield my time. I want to thank the gentle lady for yielding time. I know i got a little choked up talking about private activity but i do believe that private activity bonds along with advanced from and new market tax credits and historic tax credits are useful tools for helping to get public projects done. Its a way of not only incentivizing taxexempt bonds and investments in infrastructure but its also a lifeline of so many of the public entities we all represent. Everything from cities and counties, hospitals and universities. It is important for lowIncome Housing. These are in court and financing tools to put our money where our mouth is. We talk about Public Private partnerships all the time and this is a way we can use the tax code to elevate and help our local communities. I know that for me so many of my distressed and underserved communities would never give money in order to improve their infrastructure or build a library or post office or to build a new fire station. The only way they can get that money is through the issuance of a taxexempt bond and i just think that this has been an ageold nonpartisan issue. Weve all seen the benefit of being able to support this kind of financing for public projects, and im not sure why hr one would totally put a great big opportunity for municipalities and all these public entities, nonprofits. I have numerous nonprofits in my district that have taken advantage of the fundings and private activity bonds and the like. In fact i think it is important that we highlight some of this. I want to make sure i go on the record as supporting this really important project in my district that would not have existed had it not been for the advanced funding or private activity bonds. The board o board of education d 3. 7 million worth of financing to renovate an elementary school, and this was a lead on it was done in a very poor part of my district and the ability to refinance saved them a lot of money. The same is true in the city of north. Over the last six years due to the fact we have over Interest Rates now and the recession in n saved the city of north port over 1. 6 million in savings goes right back to the communities. 1. 6 million more than the city of north port has to provide services to its citizens. So in my opinion, this is a really important tool in the toolbox to help our municipalities. The city in my district has the ability to be finance and fund saving. The workingclass municipality almost 500,000. I can go on and on. I know the time is near but i want to make sure we understand the implications of this. We are cutting off our noses. These investments are important public projects that would otherwise not get done. I hope that my colleagues will support this amendment and back advanced funding bonds. Does the gentleman wish to speak on the amendment . Questions on the amendment offered . All of those signify by saying aye, in my opinion, the noes have attended the meeting will be postponed. Mr. Chairman, i would move [inaudible] the amendmen the amendment said the desk and mr. Nunes reserves the point of order. The point of order has been reserved. The clerk will distribute. I asked the gentleman to suspend while the clerk distributes. [inaudible conversations] mr. Chairman, if all motorship is the American Dream, led the g. O. P. Tax kiev is the american nightmare. This g. O. P. Tax gam raises taxes on people who want to buy a home solely on middleclass families and their the ones that aspire to own their own homes but cannot afford the 100 percent cash down to buy the house. Even if you can still afford the house the tax kim eliminates your ability to not deduct your taxes paid. Homeowners even if youll the home all right you have to pay a higher tax to live under the roof. They can keep their state and local Tax Deduction and corporations do. So these tax changes lead to a 10 drop of the value of a whole. If you are one of the 111 million americans that live in rental housing unit you may thank you were in the clear there are still important programs to create housing to exacerbate the crisis with housing for girl making it more affordable mile less affordable for stick creates a permanent firsttime home buyer tax credit valued at 8,000 for pro in the new tax credit for those who live in rental housing pay more than 30 percent of their income in rent and finally to help those living in government subsidized housing it creates a new refundable tax credit valued at one months rent to provide a financial safety net for those families like seniors on fixed income. And the cost of housing from renters is growing at the unstable rate. We must address the harmful trend and i believe we can pass the amendment we have before us and that will do just that. The gentleman yield back your recognize. I certainly appreciate the spirit of his amendment. Certainly homeownership is something that we should pursue as we do the tax code without ability to deduct mortgage interest so the federal government does provide and Home Ownership is the way most americans build equity and build well in the is althings we should consider but this is almost another entitlement in the American People would prefer opportunity i think that is what this bill does. We use the limited dollars that we have to stimulate the economy with this bill, give middleclass tax payers 1,200 more every year in their pocket and by stimulating the economy creating jobs we give people the ability to lift themselves up. That they can use that money to put a down payment on a house. As a young tax lawyer in myrtle beach, i got involved in the issue of homelessness early in my career. And actually became the of president of the local homeless shelter. And ran that ad out of my law firm to keep the books and did the law for to administrative work over 10 years i saw the effects of homelessness because we had a policy could not be there there, you can only state a limited time but you had to be working or looking for work. Hundreds of people in my 10 years if not thousands took us up on the challenge. They would move through us to transitional housing to become independent citizens because we gave them an opportunity. I think that is the best way to help people give them opportunity, not entitlements and at its core that is what our bill is all about. For stimulating the economy will provide more jobs and with these americans to of given up they will raise wages and also put 1,200 in their pocket and all of these give them that opportunity to move up the ladder without the need for another entitlement. Mr. Chairman the gentleman says this credit would be more of an entitlement but i beg to differ the reality is this amendment would reinstate the 8,000 tax credit for those purchasing their first home. We are incentivizing Home Ownership and that is the code restorer and cornerstone of our democracy and working families we should be giving them an opportunity and incentivizing period the tax code of behavior we want to see we want to see hardworking individuals get permanent homes in the average net worth of a homeowner is 45 times higher than a renter. But the Home Ownership rate is near a 50 year low. Right now we experience theyll blow in homeownership by with think we would want to change that 8,000 firsttime homeowner credit. Well the rates across the country are at 53 to create new burton barriers will exacerbate in these opinions of these researchers, in kahn inequality. So this would help taxpayers overcome the barriers to Home Ownership in something we should be promoting. Alabama pays more than half of their income and 20 percent of the households have children. One out of three renters earn less than 30 percent of the average Median Income and have extremely low income. These are the folks i want to benefit and make sure they have an opportunity to get a Home Ownership. This is true in my district it is probably true in all of the districts on the committee. I would think youd want to promote Home Ownership after all it is about our values have revalue Home Ownership. We should be incentivizing low income and middle and come and come to own a home. With those differences when it comes to savings and health. So we should be encouraging that in the tax code. So i cannot imagine were giving up this tax credit for firsttime homeowners with huge tax advantages. I urge my colleagues to vote for this amendment. I went to yield my time. I agree we should do what we can to take down those barriers but just to be clear the tax cut certainly does a lot to provide the leadership but of course, there are a lot of local programs to allow full cost to have credits to buy first homes and this 8,000 credit you were speaking of, to know does not currently exist. It did for a little while after the financial crisis but no longer. And also those with a leadership for young people that think about that. Why do we have closed in Home Ownership for young people . A couple of reasons. So many are underemployed because of the underperformance of our economy over the last eight years in the Obama Administration. The burdens and regulations placed on our banks in particular is much more difficult to get a loan demand has been in decades because of dodd frank. That is a huge obstacle to young people in getting a home. If we are really serious about wanting to take the bergens out we need to look really hard at what we have done to the Community Banks in particular of dodd frank and ease the path and the burden to get a loan. I did a lot of closings and i do know people who do closings and i know a lot of bankers and they will tell you the restrictions placed upon them by this burdensome law, once the crowning jewel of the Obama Administration when democrats had the house in the senate and the presidency, have prevented millions of young people from entering into Home Ownership. In fact i would tell you with certainty it would be far more effective to put more people into homeownership there and the relaxation of these restrictions under dodd frank. More than this 8,000 credit not coming out of the federal budget. I agree we need to encourage young folks to be firsttime home buyers and that is the pathway to Building Wealth and the primary pathway for the american citizen but we can do a far more effectively than these onerous banking restrictions and i yield back. Clearly the republican tax plan is designed to create a nation of renters to disincentive vice homeownership. This is raising taggants altman negative taxes on homeowners. To pay for a large tax cut the republican plan taps caps the deduction but however in my district the average home price 654,000 and in san jose 75 of the homes are greater. What about that deduction to pass to those pockets . They have devastating effect and to the of market one tax plan limits on mortgage Interest Deduction to affect many buyers in regions around the u. S. By reducing the mortgage Interest Deduction deduction, republicans are punishing those who make plans to buy a house. This will effectively raise their taxes making their homeless affordable or not affordable through no fault of their own. And promotes a motorship to encourage middleincome americans to buy homes for the first time republicans may claim it benefits the of wealthiest few but those that claim that families that have incomes between 75,000 and to madrid thousand that does not sound like the wealthy to meet. Where republicans targetting a deduction . According to the Tax Foundation capping that mortgage Interest Deduction by 50 percent could raise enough revenue to reduce the Corporate Tax rate by three Percentage Points so in other words, republicans try to her home owners to reduce Corporate Tax rates. This is a corporate giveaway making Home Ownership harder or to pad the pockets of the ceos of large corporations. Thankfully through this amendment to provide the 8,000 credit for those purchasing their first home to provide a credit for taxpayers renting their homes. Thanks for offering the amendment and i urge my colleague to support it. I yield back. How many people cannot itemize currently . Approximately 30 . Under our proposed plan we estimate approximately 6 give it is true that you are reducing how that could be deducted. That is one of the modifications. Correct. The people that can benefit, are they at the higher end or lower end . Again, i would project that those atomizers are the top half of the income distribution. Do you know what percentage of the mortgages in america are above 500,000 . Off the top of my head i dont i would have to look that up. I read some of mrs. To six it was less than 5 in america. But i yield back. Yes. Data not time to yield. Cancer quickly. Do you have any idea the cost of a onefamily home threebedroom, one bathroom goes for . I dont. Im sorry i am talking about statistics. How was that not a statistic . I will say that the house that my father purchased in 1964 at 24,000, today it is worth over 600,000 and raised four children, six people and three bedrooms with one pattern a modest home but attached. Today whether 6 or not, i do not give a rats behind by reality is i have bluecollar individuals struggling to make ends meet to live in the great communities of my district. I will reclaim my time. Making reference do you believe that is an entitlements . A child has the entitlement . Do you believe . Get the regulations of the table. There was a time historically to look back but the people were trying to get by and let those markets for growth of the title is taken away by the government. So we see more and more individuals try to afford rents in this country and cannot afford it because it is more than onethird of their income. That is not economically sustainable for more and more of those people the National Association of realtors has said that if your bill passes and it will diminish the value of homes across the nation of boards of 20 . That is the National Association of realtors. Bin that would be ripped from them. But we want to spur Home Ownership. If youre so young people what them to deduct interest and would be nice if you were not ripping from them this interest. And then not to adapt. Your time is expired. You are recognized. Thank you. So i would like to elaborate because there is such a disparity that exists in this coated terms of where live and how much you learn, what size your family and consistently you have been asked to say what would happen if this bill. If the bill became law of the levine the assault tax would be limited. So to conclude people could not take a vintage, we have to have. I cannot take advantage of something not there. Could they . No because 6 percent would. So then they go on to say only a wealthy people will take advantage. Of course, because it is no longer available. This is the line of reasoning that we get and what happens with other experts. I want to yield my time to mr. Crawlies. I appreciate it prepared to but to convince people to invest in homeownership the ever growing so is it true or false that true and out of 1,000 but this day of negative date that state tax. It is less than 1 of that. So those taxpayers will actually benefit by helping the estate tax but those 30 percent of americans who rent but they have no problem of those 2 percent that will benefit. I know everybody on this committee. I am the oldest of seven. My people growing up in a twobedroom house for crow benefit of their. My parents you are the tax incentive. You took a job, my dad was a steelworker and warehousemen and they bought there first post at 8,000 the second was 14,000 in the continued to build because they had a job and could raise money. There is a difference in philosophy it is clear for portable leave. Will you yield . No sir. Didnt believe that government is the incentive visor. Yes we do have a role to play in to help people but the incentive is of people have a job they have respect for themselves and hope they and they become in life of a but he didnt own his. I agreed people is a but i know the story. There is just a difference for you care as much as i do but please. But not from the other side but i am doing it because i want to lower the corporate rate and create hope for people. I yield back. The gentleman yields back. Mr. Chairman i yield my time to the gentleman so to my friends on the other side we place in our Financial System 50,000 patients of new regulations for making loans to firsttime home buyers and then to say young people are not entering the housing market. But to say that is because of follow the regulations that make it impossible so lets give spin negative the student loan to the hit but it would give them more opportunity to get their kith and then they will be able to buy a home. With a 200 deduction. The American People have figured this stuff out. They dont want the land of entitlement and this is just one more entitlement. They figure out the government cannot take care of all of your needs if they wanted to. So what our bill offers is opportunity. And in future for our children and grandchildren and i am glad to be a part of it. Bumblebee brief because we have the votes. We dont know the plan because it changes every hour. Just look at the press accounts of the last two days. Fake chips with edge keeps been altered. We dont know that. We have seen with the elimination of deductions. So they get this and then they take away. Across the country the coastal regions so those that are related to income is elasticity. We had there are few issues we wish were more complex than the housing market. You are recognized to speak on the amendment. Are you saying that these homes that you talk about are going down in price . Is that you are saying and losing value . I am not saying that. Passes that they believe the value of homes across the nation would see a dip of up to 10 . The value of the home would go down and it would be cheaper then it would be right now. That is the math. The way things work usually when the price goes down people can afford to buy them so im confused when you say heres whats going on here if we do this we passed the small value of the homes are going down so if the value goes down the price will go down and when you lower prices to sell more product and open up a new opportunity to. It doesnt matter whether its your home or my home or a friend. Im trying to understand if this affects the value of a home it will ring the value back in the world in which i live which is the retail world, lower prices mean more people can afford to buy and engage in buying something. We sell more when prices are down and then the prices drop people usually buy. We are running past each other. Thank you mr. Chairman i will yield back. I just want to clarify a couple things. I dont see anything in your bill thats going to provide a 1,200 a year benefit to students. That isnt close tif it isnt ce right thing to say. My area wiped out in a fire, 1300 homes, 1500 square foot home the value of those in my district 660,000. When you talk about its not a bad thing to see the price of the home values drop, that may be well and good if you are the one buying the home but if it is my home i dont want to see the value drop by 10 more to any constituents want to lose 10 of their portfolio. I think it is interesting that the effort of the bill is to lower the older prices. It wasnt a good thing if there were more to do i think if it is one of the only things left to help the creation at all what im suggesting what your bill will do because the National Association of realtors say if the bill passes, home prices can drop up to 10 . Thats not me saying it, its been saying it. Hehe spoke about lowering it bt thats what this bill does and in order to get 20 you have to eliminate all the benefits to homeowners, all the benefits that were talked about to the students paying the Student Loans you have to eliminate their ability to deduct interest. Its a fact. And the idea that somehow where he came from they worked hard all their lives, they got no government handouts. Nothing happened with Social Security, medicare and things that help people advance themselves in this country. No one ever helped them do that. It just comes out of the sky. Suggest the people who live in my district dont work as hard but theyve been working everyday to own a home and send their kids to a Decent School that is what id arrived from that notion. It couldnt be anything further from the truth. My constituents wake up every day, put on their shoes and go to work just like everybody else in the country to own a home and property and testing creation for themselves and their families and there is nothing wrong about that and i will never apologize for that. The time is expired and the committee will recess and convene immediately following houseboats to take our own Committee Votes on pending amendments. From the Vietnam Veterans memorial a ceremony featuring remarks by the former defense secretary and from oriole designer. Sunday at 4 p. M. In 1967 cbs news Vietnam Special report. Whether it is the enemys clever tactics or the bad conditions, the weather or the terrain it seems clear the American Military is bogged down like the marines in the mud. Then we will tour the National Archive exhibit remembering vietnam and at 8 00 on the presidency in 196 1967 presidens Lyndon Johnson vietnam war press conference. About wha what he would do ie had a aggression in tha aggressf the world in 1954 we said we would stand with those people in the face of common danger and the time came when we had to put up or shut up. Watch the vietnam war 50 years later this weekend on American History tv on cspan three. Administrator david testified at a House Homeland Security Committee Meeting about efforts to prevent terrorist attacks against transportation systems. He spoke about th security Screening Technology and workforce morale and training at the tsa. Congressman Michael Mccaul chairs this one hour and 20 minute hearing. The committee on Homeland Security will come to order. The committee is meeting today to hear from the administrator of