Transcripts For CSPAN2 Presidents Treasury Department Budget Request 20180216

Morrow. The book cost 8. 95 plus shipping and handling. To get your copy go to cspan. Org landmark cases. Yesterday treasury secretary Steven Mnuchin testified before the house ways and Means Committee regarding the president s 2019 budget request for his agency. On most of the questions from lawmakers focus on the budget and tax reform related matters, the secretary was asked about his thoughts on gun violence after 17 people were killed in a shooting in parkland, florida. The treasury secretary urged congress to look at these issues and said he would talk to the president and other cabinet members by how to address it. This hearing is one hour 40 minutes. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] the meeting will come to order. Before we get started today i want to take a moment to offer our committees deepest condolences to all those impacted by yesterday tragic shooting in florida. Our hearts go out to all the victims and their loved ones. Please know youre in our prayers. Today our committee is on the market welcome secretary Steven Mnuchin to testify on a fiscal 2019 Budget Proposal for the Treasury Department. We appreciate your time and look forward to your testimony. Our committees annual hearing with the treasury secretary plays a key role in our work on behalf of the American People and we have a lot of important work ahead of us. Mr. Secretary, when you your last you told your number one priority was the Economic Growth for america. Then and now we shared that priority especially on tax reform. Last year working together with you, President Trump and the senate we successfully overhauled our nations tax code for the first time in 31 years. With the tax cuts and jobs act we now have a tax code that is specifically built for growth to deliver more jobs, lower taxes and bigger paychecks to americans nationwide. With this law, families will be able to keep more of their hardearned money to use as they see fit. A fourperson family with no income tax under the new law into the income exceeds 61,000. They pay no income tax intel their income exceeds 61,000. In my district back in texas, the typical middle income family of four, parents with two kids will sit total tax cut of over 2600. This is real money and will have a real impact for so many hardworking families. The benefits dont stop there. You killed a companies are rates. This is as are announcing more jobs and new investments in america. Companies are bringing a the my from overseas to invest in our communities and in our workers. As encouraging as this is its only the beginning. There is still a lot of benefits to, for workers and families across the country as this new tax code unleashes the growth of jobs in paychecks and our economy. Same time, theres still moree can do. Thats why at todays hearing with you its so important. Looking at we have a couple specific areas where eager to discuss today. First as we all know theres no such thing as a perfect tax system. We have responsibility to provide real workable solutions. We are taking this approach now as relates to section 190 9a of the bill which offers first ever 20 deduction for pastdue business income, incredibly important for our main street businesses, farmers and ranchers. We know certain parts of this provision having unintended consequences for our farmers and ranchers due to treatments of farm coops. Im committed to working with our ways and means members, senator hatch of the Senate Finance committee and administration and stakeholders to develop the right solution now. One that gestapo, carefully crafted and successful in restoring balance competition in the marketplace. The urgent object is to make sure all our farmers and ranchers can reap the benefits of tax reform and were committed to taking action on solutions as soon as possible. Next, now that we have a new tax code built for new era of american prosperity, this committee and the Treasury Department have shared responsibility to ensure this new tax law is working half of all americans. This includes holding the irs accountable, making sure the agency administers our tax code with a renewed focus on fairness, integrity and taxpayers service. We had the opportunity to build on success of tax reform to ensure that americas economy continues to grow. Our local businesses told us the slow Growth Status quo of 2 for the past decade simply isnt working. We decided to go bold and change that with historical reforms to help them grow and create jobs along main street. Just in the last few days in town Hall Meetings across our district, ive heard from local Restaurant Owners who are adding new workers, from auto dealers were adding two more employees. Three business that is increasing their purchase americanmade Construction Equipment by 2 million this year because of the tax code here. Were eager to Work Together to find common ground, keep our economy moving forward and keep us there. Today we played a lot of important things together on behalf our communes and right now we have a Strong Economy growing stronger with the help of tax reform. Were looking forward to continue to work for finetune the code for america and were excited to move forward with President Trump and especially you as well, secretary mnuchin. We look forward to your testimony. I yearold to mr. Neil nor purposes of his opening statement. Thank you, mr. Chairman, and welcome, secretary mnuchin. A budget it a reflection of americas values and this budget nose exception. The administration inted of middle class families. From attacking Americas Health care and Social Security to dismantling protections for struggling families, we have seen the trend. For example, the trump budget cuts medicare by over 500 billion, jeopardizing this Important Program for older americans. We saw the same priorities last year when the president and republicans rammed through a 2. 3 trillion tax cut for the wealthy and corp operate america and sowed confusion across the run can i. Republicans blame their bill will benefit average americans the evidence is clear 83 of the benefit goes to those directly at the very top. Lets be clear, republicans priority with tax legislation is wealth andy and big corporations and not the middle class. While Big Companies and the most well off and wellconnected reap massive bens, workers are being laid off and middle class families not seeing the gains. Saw this in massachusetts when the legislation passed. Their tax plan limits the deduction to 10,000 but the bill allowed taxpayers to plea pay 2018 property taxes before the close of 2017. In massachusetts there was a tremendous amount of interest in doing this and we saw an influx of lines at city halls and town halls in the state. In fact in an attempt to help my constituent find their way through the maize of confusion i asked the irs to issue guidance to help taxpayers, however, instead of issuing tax fair friendly guidance, the irs issued guidance that click mated matters and limited middle class families to take advantage. This is not put thing middle class first. The tax law is fiscally irresponsible. Adding 2. 3 trillion to the nations debt while giving massive tax cuts to people at the top. Republicans claim the massive tax cuts will pay for themselves, even the budget director has noted that is simply not true. However, tax cuts dont pay for themselves, we all pay for those tax cuts. The white house put director essentially admitted that yesterday, and to pay for these handouts speaker ryan and the trump budget are clear in their intentions to cut funding for programs like medicare, medicaid, and Social Security, vital benefits that hardworking americans have paid into and earned. We can do better. Instead of cutting programmed that middle class families rely on i call on colleagues to work on a bipartisan basis now to fix the many problems that at the tax bill has created. One example, mr. Secretary dish want to thank you for your kindness the issue of the multiemployer pension plan dilemma and we talked about it. Im hoping these American Workers who planned for retirement and year after year chose to contribute to their pensions instead of taking wage increases, will be in the position to seek some relief. After working for those 30 plus years, as iron workers, truck divers and auto workers think plan retirement were tan away from them, and taken away at a time when they no longer have the ability to prepare for retirement because theyre already living in retirement. We need to help these americans whose retirements are at risk by no fault of their own. This is a bipartisan issue and im hopeful the new joint select committee on solvency of multiemployer pence plans will be successful in developing solutions. Secretary, i ask the administration to help us with these efforts. Our goal is to work on this committee, with these families, and to put them first and act together to create opportunities for the middle class. I want to acknowledge your staff and you for your work on what is known as the crumbling foundations issue, across connecticut and massachusetts, and the staff reacted very swiftly and the irs was aligned with the position you took and many families will receive and derive that benefit. So on that basis i yield back my time. Thank you, todays sole witness is Steven Mnuchin, secretary of u. S. Department of treasury. Mr. Secretary, the Committee Received your written statement and will be made part of the record. We reserved to deliver your oral remarks. Welcome, and you may begin when youre ready. Thank you. Id also like to express my condolences for the tragic shooting and the thanks to the many First Responders and teachers that saved many peoples lives. Chairman brady, Ranking Member neil, and members of the committee, it is good to be here with you today. As treasury secretary i am focused on at vans thing president s policied that will bring prosperity to the American People through Economic Growth. This is a core focus of the president and he is delivering. Last year the economy had two straight quarters of 3 or higher gdp growth, and the growth rate was higher than the average of the previous 20 years. The cornerstone of returning to more robust growth is deregulation the tax cuts and jobs act. This law is already providing relief to middle income families by putting money directly back into the pockets of hard working American Families. Since the law was enacted over 350 companies have announced bonuses, wage increases, higher 401 k matches, new hiring, benefiting more than 4 million employees. Were seeing the fastest wage growth since 2009. This meaningful. Our reforms are making American Companies competitive g. O. P. Which is having an effect on the economic success of the enact. The act lowered the statutory corporate operate from 35 , one of the high nest the industrial world to 21 , below the average. It also encourages companies to bring back profits that have been sitting overseas by eliminating the tax incentive to keeping that money offshore. Turning to the budget, the fiscal 2019 budget reflects last years tax reform legislation which reduces the burden on taxpayers and sets the country for longterm growth. The policies and the budget will drive down spending and grow the economy. Which are both critical to putting the nation on sound fiscal path over the longterm, and reducing the budget deficit as a share of gdp. This past year has been an important step forward for the country. Well continue to progress by enacting policies that enable American People to succeed and i look forward to continuing to work with come and this committee to make it happen. Thank you very much. Thank you, mr. Secretary, for your excellent testimony. Given that the last folks a week are scheduled around 11 30 to make sure as many members have an opportunity to question the secretary, we will put question time at three minutes, and ill lead off with a previous question. One of the key pillars of tracks reform, letting americans keep more of their earned dollars. Once tax reform was enacted the administration updated the withholding tables which means this month, over 90 of americans will see a reduction in their taxes in bigger paychecks and takehome pay. Can you briefly talk about the treasurys development of the released became withholding guidance in your plans for putting out Additional Information that allows families to fine tune further their withholding. Thank you, mr. Chairman. So, were very pleased both the work at the office of tax policy within treasury is working very closely with the irs, and they have successfully updated the withholding tables, so, as you mentioned, over 90 of americans will see tax cuts women expect to release next week the irs will put up a calculator that will allow families to go and double check with holding based upon the new tax law and update their forms if necessary. So, were very pleased with the work thats been done at the irs on this. Thank you. Families will be able to finetune according to their unique situation. Yes. Mr. Secretary, following world car 2, labor ions created industrywide multiemployer Pension Plans, exchange for their hard work, worker were promise longterm football security in retirement. That system worked well for many years, deregulation and insolvency have led plans into trouble. Today more than a million americans are in multiemployer Pension Plans now facing insolvency. Its critical we address this crisis and help those retirees, and the retirement plans, still at risk. In november i introduced legislation that would offer troubled it in employer Pension Plans and those who are not in unions as well, low Interest Rate loans to pay retirees benefits. The loans would be funded through money from the private sector, through the issuance of bones. It does not allow for benefit cuts the department has a Critical Role in the pension regulation . Oversight of the nation and a large number of expertness the field are on your staff. Providing presources and other support to develop a solution, could you speak for a moment to what is about to bill clinton part of the crisis that america is facing in retirement security. So, thank you very much, and we agree that there are significant issues here. The treasury does play a significant role but has limited ability to approve certain changes, and we look forward to working with the bipartisan committee, and as i mentioned yesterday at the senate, we would be more than pleased to provide Technical Assistance to the committee as congress looks at solutions. Thank you, mr. Secretary. Thank you, mr. Chairman. Thank you, mr. Johnson, youre recognized. Thank you, mr. Chairman. Mr. Secretary, welcome. I see the budget includes a proposal to stop individuals who are not authorized to work, from claiming a child tax credit. I have long had a proposal to require the Social Security number or the refundable child tax credit. It is especially relevant now, given the ongoing debate on immigration. Mr. Secretary, for the record, can an individual claim the refundable credit with just an individual taxpayer Identification Number . Yes or. No. Yes. Thank you. Doesnt this mean the individuals who arent allowed to work, can get this, yes or no . Actually i just want to modify my last statement. Just to be clear, the irs has allowed that is an issue that we are looking at, the legal issues associated with. So i just want to clarify it, that im not making a commitment Going Forward. We are looking at the legal issues associated with this. Im glad youre getting into it. I just had a joint tax core on my bill that saves 13. 3 billion to address another issue, as you may know the 2016ndaa included significant retirement reforms such as a new match for Service Members retirement contributions. However, due to an inadvertent error some guard and reservists who have a civilian retirement account, wont be able to get the match and i think thats wrong. Why is that . Because the irs caps the amount an individual can save for their retirement through work each year. Mr. Secretary, the irs allows state and local government workers to contribute the maximum to both government and civilian retirement accounts. Dont you think our brave men and women in uniform should be allowed to do the same . Thank you very much. My staff has raised this issue with me and we are looking at it carefully and figure ought what we can do. Obviously we want to do everything we can to support the military and men and women supporting this country. Thank you. I appreciate that. Keep it up. Yield back. Thank you, mr. Levin, youre recognized. Welcome. Your statement talks about tax cuts for the middle class. Laster you said there would be no absolute tax cut for the upper class. And we now have joint Tax Committee data, and it shows that those with income over 1 million or more would receive an average tax cut of over 64,000 next year under the tax law. Do you disagree with that . I have no reason to disagree with the numbers. I dont have them in front of me but ill assume what youre citing is correct. Well, that i think that makes your glasses kind of rose colored. Again, i want to clarify this because what i said at the beginning of last year, which was the case, it whats president s objective to offsift any tax cuts with elimination of other deductions. We worked closely with the house and senate, and this was an issue we looked at very carrifully. I understand that. Ous you said last year there would be no absolute tax cut for the upper class and the data shows otherwise. You budget assumes a 3 increase, growth rate. Today theres an article by jason ferman that hoping for 3 or more is folly. Already this budget has an immense deficit. If the growth rate is 2 instead of 3 , do you know how much the deficit would increase next year . Well, again, first of all, its actually our prosex to 2. 9 and not 3 about close enough. I judge u jumper we stand behind our projections. Many people said we cant get. The we have had over 3 . President obama actually projected 4 gdp, and one of his budgets dish. Let me just interrupt you. I hate to do that but they give us the statements. Your statements i think to most gemmized of any statement i remember from a secretary. Do you know if youre wrong, and its not 2. 9 but 2 , most economists think, do you know how much the deficit would be next year . Again, what id be happy to say the static store was 1. 5 trillion. A trauma and a half next year. Over the ten year period. What about next year . I dont have that number in front of me but id be happy to get back to you on it. Thank you. Thank you, mr. Reichert, youre recognized. Thank you, mr. Chairman, welcome, mr. Secretary, beginning with chairman dave kemp years ago, and now through the leadership of chairman brady, we began ive been on this Committee Ten years, so seven or eight years ago the process of meet examination hearings and proposals, and we finally achieved something historic. Tax reform to benefit American Families and businesses. With each passing week, we see positive impacts all across the country. Businesses in my home state of washington have announced bonuses for employees, pay increases for their employees, and investment in Work Force Development and increases in employee match gift programs. I want to expand just a little bit on the question that chairman brady had. So, youve got the withholding tables, youve got the calculator. What other regulatory efforts are you putting forth to spread the good news to the United States citizens roos the country about this tax cut . How are you sharing information and how can we help you . Well, we have a massive effort to irs to implement the new tax bill. It touches everything from forms that were updating to make them userfriendly to customer service, to technology, and we are putting out guidance every week in an effort to help taxpayers understand and provide certainty. So, were very focused on that. Thank you. We all look forward to working with you to educate the public on the new tax code. In closing, building on last years accomplishments, the house has passed two bills with overwhelming bipartisan support to boost competitiveness of u. S. Companies. A renewal of dsp and mtb. Theres more we need to do in partnership with the administering. Want to finish this work with a successful nafta update and a fully operational exportimport bank. An estimated tens of billions of dollars of deals for the u. S. Companies are waiting in the banks pipeline if yield back. Thank you, mr. Reichert. Mr. Lewis,. Thank you, mr. Chairman. Mr. Secretary, i agree with mr. Neil, the budget is a reflection of our values and our priorities. I ask one simple question. Is there any money in the budget to deal with the proliferation of gun violence . I dont im not aware of that level of detail in the budget for me to be the expert to testify in light of what happened yesterday i will say personally i think the gun violence is a tragedy, what we have seen yesterday, and i urge congress to look at the issues. The proposed to do something . I have vast responsibilities as treasury secretary but this is of my lane. Youre part of the administration and were losing hundreds and thousands of people, young children, in school, trying to get an education, and theyre murdered. Teachers, football coach, youre saying to me, who represents the people in georgia, that the city of atlanta, we we have the cdc and someone in this government told the cdc to end the study of gun violence. We can do better. We must do better. We have to save our children. Our citizens. Our teachers. So do you have anything or are you willing to i d. Irashower you i appreciate the severity and the tragedy and i will speak to the president in and the other cabinet members. Thank you very much. If i may, mr. Secretary, in your seat yesterday was talking about the hhs budget. We spent a lot of time on increased funding for Opioid Crisis and row search but not on increased funding for Mental Health care and that often spurs unfortunately the tragic incidents as well. Not just to do something, to [inaudible] proliferation of gun violence. Too many guns. We may not be [inaudible] to good down this path, down this road. Thank you, mr. Lewis. Mr. Thank you. Mr. Secretary, the reason irs guidance related to prepayment of property taxes has created confusion for my constituents in illinois, here why. The diddans relates to prepayment of 2018 property tacks. By constituents in 2017 or actually prepaying their 2017 property taxes. We pay in arrears in illinois. And i would contend that as a result the todayance doesnt apply to them. In illinois theres further a longstanding culp, which i understand dates become for decades which the irs never octobered to whereby the sellers of Real Property prepay their share of the current property taxes even though the tax bill wouldnt arrive until the following year. This is because the seller is liable for their share under illinois law. This thank you longstanding custom is for the seller to estimate the amount of taxes they owe, and deduct that amount on their federal tax returns and, again to my knowledge, the irs has never objected to this. As far as i can tell, illinois is the only state in the country that pays in arrears, so said another way, if prepayments were disallowed, illinois citizens would be the only ones that were not allowed to pay their 2017 property taxes without limit, and again, were not asking about prepaying 2018 taxes. This is completely unique as the paying 27 tax 2017 taxeses. Would you be willing to work with me in meetings to resolve and bring clarity to this issue . Yes. So, fit of all, ive already had two meetings on the issue other. Aware of it. It is unique and wore working with the office of tax policy and the irs to get comfortable if they have the authority to issue guidance on the 2017 taxes. So, we dont have a decision yet but i can tell you we are actively working on this. Thank you. Let me shift gears quickly to iran and the commercial sales of aircraft. The last time we talk about this publicly was back in may. At that time you said that you were studying this issue. Theres there obviously have been no licensed issued by the department and for that it commend you and thank you profoundly. Since that time, robb has done nothing i would argue to make a case that is deserves commercial aircraft. The santa a drone into israel in an incredibly provocative way. Gone on their own citizens. Talker backing militants in yemen. Would you agree at the very least iran has done nothing to further its cause in daneing access to commercial aircraft . So, again as you point out we have not issued any licenses that shouldnt be interpreted as a decision that were not going to but it also shouldnt be interpreted as a decision that we are prepared to issue licenses. I can tell you, we are working with the Intel Community and this will be a decision that is further reviewed at the nsc and with the president before we issue any licenses. Thank you, yield back. Mr. Secretary, after repeated refusals to answer tax questions before the Committee Last year, finally we have an opportunity to ask you an entire three minutes of questions. Think its the Congressional Committee equivalent of government by tweet. I do have three questions for you. The first one is that according to the joint tax analysis, the rate drop for the top tax bracket cost the treasurely 220 billion. That is for people that earn a half a Million Dollars a year in income. You promised there would be no absolute tax cut for the upper class, and the president said much the same. The trump budget proposes to cut student aid programs over the budget period, about the same amount, 200 billion. I think thats the ticket to the middle class and the duct to keepunder 0 work force competitive. Wouldnt restoring that top rate allow us its a top rate that all of the republican members of the committee thought was perfect live adequate when it was voted out of this committee, as you know. Something that got added on in conference. Wouldnt that restoration allow us to void those student assistance cuts, or if you dont want to do that, at least moderate the harsh reduction in medicaid that the president said would never occur. Second question, i below just ask you to respond to all the at once. Concerns the claim that every American Household would get 4,000 every year in increased household income. In fact when you came out of hiding on december 17th on fox news, you said would be 4,500 for every family. Isnt it true do you disagree with the recent survey that 98 of americans have not received any additional compensation at all and while im very pleased that somebody gets even a 1. 50 a week in addition benefit from this bill, isnt it true that there are very few americans, if any, who actually have gotten 4,500 in additional wage increase out of this even though you gave a permanent tax increase and even though its been in place now for two months . I assume as well that while the president wants to take credit for the few that have happened, he doesnt want to take credit for the decision by pfizer to cut parkinsons and Alzheimer Research and terminate workers. Fortunately you said yesterday the rope that these stock buybacks may be occurring because the companies dont have a good rope to invest in america. Isnt that an indication that some of this tax bill was misplaced since so much of the money is going to corporate buybacks. The gentlemans tire is expired. Can we hear from excuse me are mdog get. Your time spired if if you would respond in writing to mr. Dogget well move forward with the hearing. Mr. Buchanan, youre recognized. Thank you, mr. Secretary. For being here today and thank you for your leadership. Let me talk about growth in terms terms of the next ten years. Quickly taking a look at the last ten years, we have had little or no growth. Slowest growth in 50 years. Run up a 10 trillion debt in those ten years. Plenty of blame to go around. I had a chance to speak in front of the Tax Foundation last week, they came up to me after. Theyre expect 5 trillion in growth because of the new tax law. I wanted to get your thoughts about the impact in terms of the growth its going to have on debt and deficits because we are all concerned about the 20 trim in debt, especially the last ten years we have accumulated 10 trillion. So as we look forward, can you expand in terms of your thoughts in terms of the growth and the impact on debt and deficits . Because what we have been doing for ten years is clearly not working and like to get your thoughts. Sure, thank you. So, i stand behind the numbers ive cited before, the difference between the 2. 2 and the 2. 9 gdp is 2. 5 trim. The static cost of the tax cuts was train and a half dollars but half a trundle of that was the difference between policy and baseline. So, we think effectively the right way to pier it is the trillion to 2. 5 trim if we get the credit. Just the impact ive chaired the local chamber in florida, the state chamber, most bonuses are 50 employees and less. You know that. Probably 90 of the businesses in the country. The 25 tax cut for them, seems like the enthusiasm at a record high in terms of nfib. Maybe you can comment on that. We have the highest level of confidence and i think as you know for Small Businesses, we have the lowest tax rate for the thursday the 1930s and very important because Small Businesses are big part of driving the growth and the economy. With that he yield back, mr. Chairman. Thank you. Mr. Larson, youre recognized. Thank you, mr. Chairman. Mr. Chairman, i thank you for your opening statement, and your sincerity and secretary mnuchin, yours as well, but frankly, were long overdue in the congress to stop as important as it is to express our condo helps, what is more response is that we vote and we act more spent important is that we vote and act. Secretary mnuchin issue its not your province but a in the province of the United States congress. Hailing from connecticut and experiencing sandy hook and the disasters that keep on coming, when they come for one of us and we do nothing, who is next . When will we stand up . And all thats required is that we do our constitutional responsibility and vote. Otherwise, we are all complicit. In what happens. Increasingly in and with devastating impact on our children. What are we . As a body . Or an institution, if were not going to stand up for our children, and if you disagree with universal background chengs, fine, at least vote, lead people snowy you stand on this issue. Families, victims, the country deserves it. Youre good people. Were a great nation. The nation deserves this congress to act. Secretary i do know you can carry that message back to the president and i do believe that this president can make a dramatic difference by calling upon this congress to act, on a multitude of areas. Not the least of which is this tragic issue we face. I want to thank you for the work the treasury has done on crumbling foundation, not up like china drywall. Want to think the representative for their help but the Treasury Department when overboard when what was rather a cruel thing, when they found when members found out first they could gate deduction and then the tax reformed, socalled, took it away. With that, i cant commend you enough, but also as mr. Neil pointed out, the inequality here, for connecticut residents. The double taxation that existed, when we find out that more than 750,000 people who make itemized deductions end up really supplementing everybody else others tax cut is unfire. Minutes does not allow me to discuss that more but i ask you to help me amend that travesty. Welcome mr. Secretary. Want to echo the thoughts of colleagues and tell you how encouraged to see the benties already of the tax cults and jobs act. Its been less than two months, since at the reform legislation became law were already seeing positive effects. Shortly after they were able to analysis effects or lower rates we had minnesota companied, u. S. Bank, best buy, wells fargo, all be able to give out special bonuses to their employees to increase their employee wages, to invest more in savings plans. The bottom line is this is really money that is going the pockets of hard working minnesotans and americans amerid theyre investing in their employees and because of the tax cuts and jobs act the Median Income family of four in the Third District of minnesota is going to have an acknowledge tax cut of 2,232, and a lot of folks, because the withholding tables dont have to wait until next year to see the dollars in their pocket. The new withholding rules are now put out by ther is anywheres january. Everybody know is checking the check and know theyll have the dollars in in market pocket. 90 of all americans see that in february. So, i want to thank you for your involvement and helping us move that through. I also want to mention, its really not surprising to see the other Economic Indicators that are really trending in a positive direction. For example, the bureau of Economic Analysis now reports that private Sector Investment was up actually 8. 8 in the last quarter. 2017. Compared to the growing of less than 1 in the First Quarter of 2017. And mr. Secretary, theres no doubt in my mind that businesses large and small were making these investments in large part of anticipation for tax reform passing and getting it across the finish line, and those investments now are resulting in growing competitive economy, and when a business makes equipment investments, it means theyll be hiring more people and theyre going to be increasing productivity and this is a good indicator of became growth yet to come. These are positive economic impacting helping taxpayers and helping middle income families. Look forward to continuing to open the newspaper to hear the positive stories on television, the reallife stories about the positive impacts of the tax reform legislation that is now law and with that, mr. Chairman, i will yield back. Thank you. Mr. Blumenauer. Were touching on a variety of areas, one you have influence on, deal with the financial crimes and enforcement network. I appreciate your testimony in the senate that you recognize the challenges where we have an emerging Legal Cannabis industry throughout the United States, that is over 8 billion now, moving past 20 billion. Over 200,000 employee and theres this air of uncertaintive about access to banking services. The Obama Administration issued some guidance to allow banks so open accounts for people who grow, process, and retail sales of marijuana. But still there are many of them that dont have access to banking services. It is a threat to public safety. Its an invasion for money laundering. Tax evasion and money laundering, theft. I hope the there would be a way for us to Work Together to seek further clarification and improvement. I would be would welcome an expression today of your if your supporting it and trying to move it forward. Understand youre reviewing it but i would hope at a minimum that we could work with our committee to try and develop with you appropriate rules for tax and banking for the cannabis industry that woe, work to develop access to traditional lending for this emerging part off our economy. Do you have any sense of what the timeline is going to be for the review that youre undertaking and how expansive it might be . So, first of all, let me say were always happy to meet with never committee and discuss these issues. This is a complicated issue. We are actively looking at this. In light of the doj decision. So, this is something i cant tell you exactly when were going to come out with guidance but its on the top of the list and were working on it as we speak. Mr. Chairman, this is one item that affects a variety of people on this committee, from washington to maine. As i mentioned its a growing part of the economy. 97 of the American Public have access to some storm of state Legal Marijuana product, and i would hope that the committee might be able to delve into this a little bit to seek clarification and prevent the insanity of having this state legal activity be forced to be conducted on an allcash basis. Thank you. Mr. Marchand, youre recognized. Thank you, mr. Chairman. Mr. Secretary, i live in the dallasfort worth area. We experiencing a building boon. I hope its the economy of the entire United States begins to look like over the next few years. I believe the tax cuts bill will become that engine that drives that economy. My cities are in and state is excited about the new infrastructure plan. They are beginning to scratch their heads a little bit about how they will finance that plan, and what projects will form what projects theyll put forward that will fit the formula. Is is there any thought to going back and creating an instrument sun as the build america bond we had that was so popular years ago . Is there any interest or any plans to go back and look at that kind of funding system that cities can tap and so that they can put their part of the capital into the projects or similar instrument to that . Its not currently being contemplated but let me just say we obviously look forward to working with congress on infrastructure, which is an important part of the president s agenda and how we fans it. Thank you, i yield. Excuse me, mr. Higgins, youre recognized. Thank you, mr. Chairman. I want to thank my colleagues for yielding. I cant see you, mr. Secretary, but i want oddon tuesday, september a 25th last year there was a meeting in the white house regarding the blueprint for the tax cut plan. You were present, the president was there, the Vice President was there the chief of staff was there. Gary cohen was there. Do you remember that meeting . I dont remember the exact specifics of it but, yes. I asked the president specifically about infrastructure, and he kind of went off him was very interested in the issue, ear exorcised and categorically we expected the viability of Public Private partnerships. In fact at that meeting, he pointed to the Vice President and told the group that Publicprivate Partnerships dont work relating to infrastructure and cited indiana as an example. Do you remember that . I do. And august of 2017 the wall street journal did a story, headlined indiana highway gives black eyes to Publicprivate Partnership in funding infrastructure. The president was referring specifically to a 21mile stretch of highway in indiana they refer to as the highway to hell. It was a project that was a private state partnership signed by the Vice President in 2014 when he was governor. The project was two years behind schedule, and only 60 built before the state took over the project and financed it in a more traditional way. The infrastructure plan is not the entire federal budget, sir, but certainly is the centerpiece of it. And when you have 56,000 structure hill defifth bridges in america, when everybody second after every day stencars drive on a bridge that is structurally deficient, that is an urgent call for a Real Infrastructure bill. The bill that you have put together or the white house put together, for every 6. 50 of state and local spending the federal got spends one dollar, thats it. So that means more state and local taxes on top of the gasoline tax they already pay and on top of the tolls that will come along with this. I just like you to respond to it. If it didnt wasnt workable in september of 2017, why is it workable now . I think as you have outlined, and you have heard, the president does have concerns in certain cases of things being privatized and privatepartnerships. Not an across the board, but as you outlined from the meeting there are certain areas he doesnt think we should be selling off. I yield back. Thank you. Thank you again to my colleague. Thank you, chairman black youre recognized. Thank you, mr. Chairman, and welcome, mr. Secretary good to have you here today. I want to go to the area that we looked a lot at in our budget, and that was fraud and abuse and i want to commend the president and omb for taking a look at that. Two areas that have been talked about in the commitow, ones is child tax credits and then mine is the tuition related tax expenses that required Social Security numbers for students and we all agree that we want to help those who really need the help but theres a lot of fraud and abuse out there. So, first of all i want to saw thank you for looking at this. Omb put out a statement that said that from the increased efforts from all forms of these tax credits and the youre are oversight enforcement could raise 43. 8 billion over the next decades which is a lot of money to use to help people that really deserve it and need it rather than those that are trying to go beyond the system. So, can you tell me, besides these two i have already mentioned, any others that you might be looking at where we would use Social Security numbers as the identifying number we all use for agency, that we might be looking at to save these dollars and these programs and prevent the fraud and abuse . Well, i can tell you actually its an issue that i started to spend a lot of time on because we administer a lot of tax credits through the irs, based upon Social Security numbers, and i am in the process of having meetings with the Social Security department and understanding how were going to move forward with technology, smart Social Security cards, how we can protect that information. I think as you know, on most credit cards today you have a unique identifier and other ways and we need to figure out how to use technology to protect us against fraud, which we think at the irs is quite significant. Well, thank you, because we know that we have heard it over and over again, right here in the ways and Means Committee, when we do the oversight hears, hear over and over again how people are going around the system and not getting something they dont deserve and so i applaud the administration. I look forward to hearing more about it and thank you very much. I yield back the balance of my time. Thank you, now mr. Conyer. Thank you for being here and engaging today. Ill ask you whether you as part of the president s Economic Team and budget team have any plans moving forward to get our fiscal house in order. Before i do that, you currently work for a boss who is quit quoted as saying, im the king of death. Im great with death. Nobody knows death better than me. Ive made a fortune by using debt and if things dont work out ill just renegotiate the debt. Thats the smart thing to do. He was also quoted at saying, i would borrow, knowing that if the economy crashed he would just make a deal. If the economy was good, its good. So therefore you cant lose. One of the problemmed have with the tax bill one he of the principles in working on a bipartisan tax reform bill is that it would be revenue neutral. Shut down egregious loop poles, tax breaks, the socalled expenditures. That clearly wasnt the case. Ended up with a tax cut bill where 83 of the benefit goes to wealthiest 1 . 1. 5 trim was not offset you include interest on the debt . Youre pushing 2 trillion of additional get our fiscal house. And its Little Wonder that right after last weeks budget bill where we blew through the caps, another half a trillion dollars on top of that, the administration submits a budget this week that calls for cuts to medicare and Social Security and medicaid of 2 trillion. Coincidence . I dont think so. I humbly submit that youre not going to be able to push through Congress Cuts of 2 trillion to medicare and medicaid over the next ten years, the American People wont stan for it. I mentioned during the debate that unlike the tax cuts of 81 or 2001 or 2003, its different this time because we are not in a position to make a huge fiscal mistake, not with 70 million babyboomers beginning massive retire, 10,000 a day, joining met care and Social Security. Yet thats exactly what this congress and this administration did in and your complicity made that huge fiscal mistake in seth future generates up for failure abuse the bank of china is open now and well have to borrow a lot of money in order to finance these cuts and the spending increases that were just passed last week in the budget. And that is not going to be good for the longterm Economic Growth. Theres going to be a day of reckoning. You give me or any member an opportunity to write 1. 5 trillion worth of hot checks andrile give you the illusion of wealth, illusion of growth, but there will be a day of reckoning and this is going to come home and hit is sooner rather than later and thats the challenge. So again issue ask you whether this administration is putting together a team to get serious about getting our longterm fiscal house in order or are we just going to renegotiate if things collapse on us . Time expired, mr. Reed, youre recognized. Thank you, mr. Chairman, thank you mr. Secretary and before i get into my comments i want to just start another a positive moat. I was proud to be part of the effort and i thank you and your team for the efforts done on tax reform, because i think tax reform is going to lead to huge amounts of opportunity across the country, and that is a cornerstone to getting our fiscal house in order to order to have growth and private sector job creation and that is a major part of the solution. But i do have to agree with my colleague from wisconsin on the other side of the aisle. I am afraid, i ran for congress in 2010 on the issue of the debt crisis. On the issue of the National Debt becoming too large to be sustainable for the future of america. And after last week, and after much soul searching, i come to the conclusion and re first one to say it publicly here on this committee, believe it the debt crisis is now upon us. This is the day of reckoning. It is not tomorrow, but we are starting to see that debt crisis explode as we speak. And i would ask you, and the administration, to make sure that if wore going through this debt crisis, that we have policies, proactively, to try to mitigate the impact of that crisis as we speak. Because as has been indicated, if Interest Rates go up, and we know theyre going to go up the magnitude of the debt service i dont think the American People can appreciate. Ive done some rough calculations and 3. 6 of Debt Service Obligations on an Interest Rate is an extra 520 billion a year. Just to pay interest. And people can relate to that when you talk to them about their credit cards, when you talk about their mortgage payments back home and you told them you had to come up with 520 billion of additional interest payments, they would then ask the question, where are you going to get the money . Then where do we spend money in the budget . 840 billion on social surety. Defense, were going to spend 700 billion. If Interest Rates go up i examined the panel of economy yes when i started to be the canary in the coal mine to say this is happening, if we dont get our fiscal house in order. 6. 83 , youre at a trillion dollars with for additional interest payments. I dont know how we sustain that. And youre a very smart man, mr. Treasury secretary. How do you sustain that type of debt load . And keep america strong and vibrant Going Forward . Well, i think first of all the president shares your concern that the debt has gone from 10 trim to 20 trillion over the last eight years, and these are issues we need to look at. We look forward to working with you. I appreciate that. Look forward to working with you. Its imperative we get this in order. Thank you. Mr. Secretary, welcome. The tax bill that was pushed through cost more than a trillion 500 billion does and thenned a the interest it goes on forever, money we borrowed from the future. 80 of the money we spent went to the top 1 . Some would say more than that. Wells fargo alone got a handout of 3. 4 billion from the u. S. Treasury. You are the secretary of the treasury. After they cheated millions of customers, opened fake accounts, overcharged veterans, they got this reward. But following this tax cut they were paying their shareholders 22. 5 billion, theyre shareholders. Thats 102 times the amount theyre putting into charity and wage increases combined. At the same time, mr. Secretary, theyre closing 900 branches. So, heres my first question, mr. Secretary. I heard you insult a lot of big states, many times. Lets get it straight here. Right from the horses mouth. You stated repeatedly last year that we needed to eliminate the state and local Tax Deduction because we had to get out of the business of subsidizing states. Who wrote that talking point for you . Bulls you seem to repeat it over and over again like a broken record. And i told you last year, and ill say it again, new jersey sub do ises low states in thats baloney. With my state getting back at 74 74cents on the dollar, it contributes to federal revenue. With the trump tax cuts well be arenting even more. How dare you insult those states and you also said in your statement that what they need to do is cut their taxes. We all try to cut taxes. But you know that bill went back to the civil war. Long before the tax code even came into existence to make sure the local communities, the county communities, state community, had enough money and resources to get by year after year. That is a insult. This week, the director of the national intelligence, the cia, the fbi, and other leading intelligence officials warn that russia might be meddling. They did meddle in the 2016 election and will use a Digital Strategy to worsen it this year i understand the administrations working on implementing sanctions required by the bipartisan sanctions act. The bill that garnered more than 400 votesle how many sanctions today the president direct you to impose. Thank you, time expired. Can i get answer anxious. In writing. Members know if yes or no. Give them team, leave. This item to do so. Mr. Chairman mr. Kelly, you are recognized. Mr. Secretary, thank you for being here. Want to correct something quick. This claim that only the 1 the benefits disgives 82 to the top 1 . Thats base owned a tax policy dat from 2027. In 2019 2019 alone over 100 billion in tax cuts from. Nationallies making under 200,000. Out of 1 0 billion in total tax cuts, of of the tack cut goes to families under 200,000 so please keep separating our people with tax code that only the wealthy. But i want to thank thank thanku for tax cutted. I spend time at the auto show, and they said thank you so much for the tax cuts bill. This is something that is working in such a positive manner. Not here, in this championer but when im back home the pennsylvania i had the same reaction from people who were glad to get the crumbs. And the business im in, sometimes four dollars a month makes a difference between somebody being able to by a car or truck or not so its all important. The big that i want to dish know youre already on this, and were looking on this together legislation. The public building renewal act which permits Tax Exemption financing of certain government owned building best expanding the definition and well talk about that with infrastructure. The iis on conservation easements. At you the conservation easement provisions were made permanent. This legislation that Mike Thompson and i have in a Previous Congress has had broad bipartisan language. Unfortunately theres language that turns the corner and doesnt present net the right way so ill appreciate working with you on this. I want to make this i cant tell you hutch i appreciate the administration for stepping out of the private sector and coming into washington, dc and the poster i thick remember morning anything i this beat little will continue until morale improves. When we see the massive economic re in the only cart we can play is we still hate trump, when millions and millions of people are receiving the benefits of legislation that is taking place and what the president has been able to do mostly on his own in the first year to improve the lives of everyday hard working american taxpayers and it . S, thats something to the beladied. So its hard to come in here and here everything e else out there. The brave talk about entitlement reform is only going to take place before election time. Never take place when he actually have to make cuts and 70 of the budget is automatic and has absolutely no ceiling, that is a huge problem. Adopt care if youre running a car dealership, candy shop or a big company. This is the problem we have had and i love this rip van winkle effect that for almost 15 years the other side sat in a slumber mr. Chairman and all of a sudden debt is now regular honored. For your time appreciateover you lets keep moving forward. Mr. Crowley, you had talking out of order to the secretary at the beginning. So i was continue in regular order. Mr. Chairman in crowley, youre recognized. When was i out of order. Questioning the speaker would without your microphone on. Mr. Chairman issue fail to recognize when i asked the gentleman any question. I respect your position, you hold one of the highest positions in our government. I take it at your word you will talk to the president about what he can do to protect our children from the onslaught that happening on a weekly and biweekly basis. 18 this year alone and we are only into february, thats incredibly disturbing if not to you, to the president and my republican colleagues as well. Secretary, the president said on page 7, 2015 when he was running for president he made a promise. He said i quote, i was the first and only potential gop candidate to say there will be no cuts to Social Security and medicaid yet in this Budget Proposal the president hasproposed a 65 billion cut to Social Security, a 500 billion, half 1 trillion cuts to medicare and over 1. 5 trillion over the next 10 years in cuts to the medicaid custom. That apolitical promise the president apparently is never going to keep because his budget does not reflect that at all. Mister secretary, on january 12 you were quoted in the daily text in reference to the issue of high state taxes looking for creative ways to get around the tax law that kept 10,000 of state and local taxes you said and i quote, i can assure you we will audit the Real Estate Tax issue. That was at the january 12 economics summit in washington. Do you remember making that statement . I donts i would like to enter that into the record i think i said specifically does that sound like something you would have said . I would have to read the whole thing in context. I would like to read into the record that statement. I would think my republican colleagues would be concerned. We also mentioned whats happening in illinois. I appreciate the crocodile tears from my colleague from new york on the epiphany that he had, the soulsearching that took place after december 22 when he voted to increase the National Debt by 4. 2 trillion, and the tax bill that was bad. Additionally last week by another 300 billion. That comes to a total of 2. 7 trillion that just last week my republican colleagues voted for but the up if any now that they are worried about what the National Debt is. Why werent they worried about before the biggest tax cut in the history of the world to the wealthiest in this nation . 83 percent going to the wealthiest one percent, the wealthiest multinational corporations in the history of the world and now theyre worried aboutthis . I can understand why the president is putting medicare and the medicare system because hes going back to that promise. As i recognize you id remind everyone in attendance thatour democrat colleagues raised the National Debt by 2 trillion in one year. One year and medicaid by 700 billion. Mister macy, you are recognized. Thank you mister chairman and thank you secretary mnuchin for being here today and your continued service to this country. Tax cuts are being more apparent every day and i appreciate you coming out to see even in ohio is growing our economy but still there is work to be done in congress and the technical clarification that the treasury implementation and that the irs with this administration. Every day tax reform passed, every day since tax reform passed, is workers in the form of bonuses and higher wages. We saw that in ohio, this is in addition to the direct payments these workers are receiving due to reduced taxes. As my colleague mister kelly said, the dcg noted families making between 40,000 and 50,000 in the security taxes that go alone over 100 billion in taxes to the families like these. So there again that my colleagues on the other side continue to say that this is a way to corporations and wealthy americans is ridiculous and i traveled the state of ohio i continue to hear people thanking us for those tax cuts. I would talk about the debt crisis, i disagree with my colleague from new york. The debt crisis started about 10 years ago. We do have to worry about the debt crisis. One thing we have to do is get growth and i think we are getting that out of the taxes and jobs bill cut but youve also got to get spending down and were going to have to look at mandatory spending. Im on the Budget Committee so i continue to look at as well. One thing i do here is my colleagues on the other side are concerned and im glad to hear that. I hope we can Work Together to come up with solutions so that our children and grandchildren dont have to deal with the debt crisis again. The tax cuts will grow our economy and allow a revenue base that will help. We cannot continue down the stagnant path weve had the last eight years. I want to bring to you an issue, a number of ohio restaurants reached out to my office this month asking for help in addressing a drafting error, more specifically when writing the tax reform legislation we intended to consolidate three types of regulations and the qualified improvement category, were also signing a 15 year Recovery Period which it had under the old law. However, due to a drafting error it now appears the qualified improvement will default into 39 year Recovery Period. Our committee is looking at it but i want to make sure that you are aware of it which i assume you are and what would you say to retailers and restaurants that are nervous that Neither Congress nor the treasury will be able to quickly resolve this issue to mark. First of all, i am aware of the error and obviously it was unintended. Were looking at whether theres anything we can do with regulations. Its likely this is something that may need to be fixed in the bill and we look forward toworking with you. Doctor davis, you are recognized. Thank you mister chairman. Secretary, im appalled at this budget. After 1. 5 trillion tax cut to the wealthiest corporations and donors, the trunk budget proposes to cut basic necessities of everyday americans. Medicare, medicaid, Social Security. Food assistance, housing and even just to name a few. At a time when this administration and acted complicated tax cuts, the trunk budget fails to provide substantial increases to the primary services that help real americans with their taxes. , low income tax spending, tax counseling for the elderly and the taxpayer advocate. At a time when tens of millions of bills passed taxpayers and some states will be grappling with tax increases and a secretary who threatened them with audits, do you propose a budget of increases for a substantive on the ground assistance to help taxpayers. Further im disturbed that the trunk budget calls for an investment in enforcement when your private Debt Collection this year targeted ssdi and si recipients, subjected in progress Social Security recipients to be leveraged even though they were impoverished and put 45 percent of the taxpayers into installment agreements they could afford. It seems that your enforcement focuses on increasing the profits ofdebt collectors at the expense of the disabled , the impoverished from our irs policy in dc. I cannot understand why you refuse to allow the taxpayer advocates to monitor these collections or to understand these inappropriate actions. I know theres thousands of hardworking irs employees educating themselves to helping taxpayers, yet your failure to prioritize every daytaxpayers , the current enforcement practices for taxpayers in a forprofit Debt Collection and your own threat to aggressively audit taxpayers in states like illinois with high expenses make me wary of this budget. Id like to ask you, what are you doing to remedy the harms to vulnerable taxpayers by your private Debt Collection programs . I look forward to, i will follow up with the irs on the issue of the private debt collectors to see why they dont want the taxpayer advocates to monitor, im not familiar with that issue but i will follow up. Thank you and i yield back. Thank you mister chairman and thank you mister secretary. Chairman, thank you mister secretary, thank you for being with us today. So much of the real benefit of the hard work that you did passing tax reform goes down to the Small Businesses and others, the real engine of job growth and Economic Growth in our country. When they do well, the country does well and im seeing enthusiasm when im out here talking to the grassroots. One group that has challenges and a lot of them admittedly are contractors, ive got a lot of Small Businesses, family owned that have been working in pension plan issues because they are part of a multiemployer plan. You sit on the pbgc and i got questions, can you tell me what the pbgc may be recommending about ways in which we might be able to resolve the concerns that employers, particularly small employers have in that . And in a related way, i think there are many Small Businesses that are passed through those who are tired about the opportunities for investments, particularly taking the that they now have to grow their businesses and can you give me insight on what kind of priorities you are going to have in terms of making recommendations or clarifying with further guidance what the passthrough movement deduction opportunities may be for Small Businesses . Thank you, so first of all on the multiple employer, this is a complicated issue. It is a significant risk that the dgc as you mentioned and we look forward to working with you and others in congress and trying to find a solution and as regards passthroughs, we are working with the irs in tax policy to put together guidance so that Small Businesses can take advantage of the Investment Opportunities on the one hand and on the other hand sure there areguardrails that dont get abused. You are recognized. I want to thank the secretary for joining us today but i have to say in course with some of my other colleagues that i am shocked although maybe i shouldnt be that less than two months after the republicans passed the largest tax giveaway to multinational corporations in our nations history, we are here discussing a Budget Proposal that takes even more money away from the hardworking people that i represent. At every turn, this Administration Never misses an opportunity to shift more of the burden onto the poor and middleclass families in the communities in which they live. Those in my district are already staring down impossible budget choices thanks to the republican tax cuts. The law gutted state and income Tax Deductions for my constituents and through city budgets into certain chaos but the republican Budget Proposal before us today makes that difficulty a step further from my new municipalities and when city budgets are tighter, tangible services in our communities suffer. That means that teachers dont get the supplies they need, fire stations dont get the new equipment and Police Departments cant hire a new deputy. These would be the very real effects if this preposterous Budget Proposal were to become law. Many cities i represent are in desperate need of infrastructure updates, from crumbling bridges to unsafe rail crossings and overdue highway projects, there are massive projects that need federal support and federal dollars but instead, the budget pushes localities out on an island, forcing them to do even more with even less. How can already squeeze cities put even more of the bill for transportation projects as the president proposes in his budget . But perhaps the single most offensive proposal in this budget is the republican rationing box for snap recipients. I am out of words to describe how amazed i am at the steps this budget stoops to hurt people but i couldnt let my time go without saying that. How in good conscience, president contain more than 1. 5 billion in tax cuts that heavily favors billionaires and corporations that stash money overseas and then turn around and literally take fresh food out of the mouths of children. Is this our shining example of democracy to the world . I sit every year at this hearing, budgets are about priorities and if this budget doesnt show exactly what this administrations true priorities are, i dont know what does. This takes people in the teeth that are struggling to support their families and to contribute to this country. It is despicable and with that mister chairman, i yield back. You are recognized. Thank you mister chairman and thank you mister secretary for appearing here today. I wanted to touch on a couple tax issues. Its my hope that we can resolve the 190 9a issue, there are concerns among agriculture producers that theres a problem there and i hope that we can address that. Also i would like to draw your attention to the issue of cash accounting for agriculture syndicates and despite longstanding law and practice allowing Tax Accounting for familyowned agriculture production under the active participation exemption, the irs attempted to argue in the fifth turkish that familyowned for more than 100 years was ineligible for this exemption because a family owned X Corporation was a limited partner in the ranch. The district and correctly ruled in favor of the burnouts in this decision and across texas, louisiana and mississippi, however the irs has indicated it may continue to hold this position and other circuits, creating uncertainty for producers and the other 47 states so it seems the position is contrary to the administrations efforts to provide regulatory relief for american businesses and i strongly encourage the irs to stand down from this position. Thank you for being here today and i yieldback. You are recognized. Mister secretary, i wanted to ask my question about the Treasury Departments proposed elimination of the Community Development Financial Institution fund. In a report, your department issued june 2017, it was said quote, ev fis and mdis, minority depository institutions are often the only source of credit and Financial Services and impoverished urban and rural low and moderate income areas and limited access to the banks. Mister secretary, i submit to you that nothing has changed its june 2017. This years budget again calls to effectively eliminate the arm of the Treasury Department that a economically distressed communities. Many of which are in my district. The cdfi fund runs a number of programs that encourage investment in poor communities around the country. They help businesses and low income communities garner financing and they are an integral part of the illustration of the new Market Tax Credit Program which provides tax credits to investors who provide organizations and low income communities. The new market tax credit has enjoyed bipartisan support from many members of congress. It is on the support due to the proven record of such a program. The cdf i fund leverages federal funds roughly 12 to 1 , leading to the investment of about 3 billion in low income distressed communities. I was wondering if you could explain to my constituents who depend on this why you would, why your department would issue such a report that talks about its benefits and yet effectively eliminate such a fund . Im especially curious as to why you would eliminate such a fund when it has been said time and time again by this administration has added 1. 5 trillion to the budget due to a tax cut. I think its really hypocritical, frankly that you would add to our debt and at the same time take away tools that actually help low income and distressed communities. Especially since we live in a time when we are asking our communities to do more with less so i dont know if you could answer that question sir but id like for you to try. Im happy to answer. First of all, let me acknowledge i do think the cdfi funds have done tremendous work for many communities. The treasury is proud to have been part of the administration. Why would you eliminate it . The trillion and a half dollars is paid to do different things. The cdfi was a difficult decision in looking for savings and putting more money i just want to reclaim my time. I only have a few seconds but why would you choose to make that kind of calculated choice which frankly if you do not have the kind of growth that youre saying and i can tell you in distressed communities i represent we have been waiting for the trickledown of economics to affect us. With all due respect, mister holden, you are recognized. Mister secretary, it was a pleasure to work with you on tax reform. Families in my state of North Carolina have begun seeing the benefits of the historic law, much like the growing trend we see through the country, businesses in North Carolina are giving out bonuses, increasing wages and granting enhanced benefits and greater retirement plans as a result of the tax reform that we passed together. Allied financial and charlotte packaging, wilmington and in charlotte, it insurance, fishmarket auto sales, to name a few have given out bonuses with 1000 or more. Further, b and d in western salem across the Financial Holdings and cornelius and metlife which just turned around on a second location in my district all raised employee wages with a minimum wage with at least 60 an hour. In addition to these funds, the average family and my district in North Carolina will see their taxes rise by approximately 2150. While my friends on the other side of the aisle have characterized this benefit for working families as crumbs, North Carolina and know otherwise and have directly seen a positive impact in their paycheck. I want to briefly touch on the importance of the change to a system that we accomplished on tax reform and finally level the Playing Field for companies around the globe and i look forward to continuing to work on that to ensure its implementation. To increase the indebtedness but also i look forward to working with you and this committee to ensure that we work towards a territorial system of our american systems abroad and finally end a draconian citizen based taxation regime. This move, much like territoriality for corporations will increase the competitiveness of americans in the global job market and level the Playing Field for individuals that is currently tilted towards their foreign counterparts. Then, we will finally have a system that allows talent, not taxes to determine the business and hiring decisions of global corporations. With that mister chairman, i yield back. Mister durbin, you are recognized. Thank you mister secretary. The administrations entire infrastructure plan is about leveraging a small federal investment through profit driven investors and if theres no profit to be made, it sounds like the same folks who been left behind before are going to be left behind again so can you tell me, do those investors plan to Fund Projects in thestruggling Rural Communities like concrete or carrington in my district or similar communities across the country. When these communities dont necessarily provide a lucrative return, but they desperately need Infrastructure Investments to support farmers and families and Small Businesses. I agree with you completely that there are many projects that wont have returns for investors and they need to be funded either through federal dollars or state dollars. Publicprivate partnerships are not appropriate for everything. Well, we have few federal dollars but its very concerning, in fact according to the white house, how the project will spur economic and social returns on investment ranks at the bottom in terms of deciding where dollars would go. Its just five percent of the formula for choosing versus 70 percent for the ability to secure nonfederal funding. Its very concerning for Rural Communities and when we talk about state and local governments having resources, i wanted to ask you about marketplace fairness. You told the Senate Banking committee in januaryof this year that the president and is supportive of the idea and looks forward to working with lawmakers on this issue. Ive been working on this issue with a Bipartisan Group since before i was in congress and i ran the department of revenue for the state of washington and its absolutely critical for state and local budgets that we resolve this issue, yet weve had good bipartisan legislation, leadership has refused to allow that to move. We havent even had a Committee Markup so is this a priority for the administration and can i have your commitment that you will help us move forward on fairness legislation . Im very pleased to her because i will change my comments from supportive. I have personally spoken to him about this and without comment on any specific bill, it he does feel strongly that the taxes should be collected. Well, we had a specific bill out there that is bipartisan and we needed to move so i would appreciate the commitment to make sure that moves because its something thats been languishing for years. Bipartisan legislation and its critical for our state and local governments and i yield back. Mister lahood you are recognized. Having passed a onceinalifetime tax reform and obviously the effect that having on our economy is significant and our economy continues to grow, i would hate to see us do to ourselves in the foot by withdrawing from nafta and the consequences of withdrawing from nafta would have Significant Impact on manufacturing and lots of other things but as i look at those negotiations and where we are headed, that causes me concern and a lot of other folks in congress. You told us the role that you played on the trade negotiations and the consequences of withdrawing from nafta to our economy. So im actively involved in that, mister pfizer is leading this but im meeting weekly with him and other members of the Economic Team and im cautiously hopeful that investor will heiser will be renegotiated in this deal so it is a major priority of hours to renegotiate. Can you talk about the consequences to the us economy if we did withdraw . I dont want to go through the consequences because thats not our first priority. Our priority is to renegotiate the deal and as i said, we are actively having discussions on this. I dont want to go into the details in this public setting but id be happy to follow up with you privately. I look forward to following up. When the new administration came in and talked about bilateral trade agreements so we are 1400 now and we havent had a bilateral trade agreement for but even a template or example or model for bilateral trade agreements, can you talk about what you see in terms of bilateral trade and how important that is . I think its very important. So as i said, this is one of the top issues we are meeting on constantly. The president priority is bilateral but i think he is openminded and in dominoes he commented that if we could renegotiate the dvd, you would consider going into multilateral and we are in discussions. Again, i dont want to go through it here but i assure you we are in active discussions on enhancing our ability to export and creating more fair trade. For American Companies, its a very big focus of the president. Thank you for those comments. Obviously i think you understand the importance of international trade, what it means to our economy moving forward and i look forward to your input on that and your advice on this administration because its vitally important tothis country moving forward, thank you very much. Mnuchin. Secretary mnuchin, the gop tax plan is terrific for the top one percent, the wealthiest of the corporations. Now the top one percent had but not one mention but you and corporations like Amberly Clark which makes kleenex and huggies send the savings they received from the new tax cut law will help them pay for a Restructuring Program that includes layoffs. Layoffs of about 5000 to 5500 people or 12 to 13 percent of its workforce. And who is paying for this windfall . In my state its 6. 1 million california families who are immediately bearing the burden of limits to the state and local Tax Deduction. The average californian deducts 18,000 and local taxes each year. While a 100 years deduction ensures that they wouldnt be taxed twice on their hardearned money. But with the 10,000, california and our elections collected 8000 more. Already my constituents have told me they are filled with dread when attempting to plan their family finances. These dollars tax because they help our state and local economies by paying for better schools, better roads and other Important Services like fire and police. By what can be deducted, republicans are hollowing out our state essential services. Thats not enough, mister mnuchin, in an attempt to pay for those tax cuts, the budget strikes another blow to california by cut putting critical grants and programs that help the most at risk populations in my state. The budget completely eliminate programs like the social Services Block grant which provides Critical Services to our most vulnerable and victims of child abuse. Cut funding of 21 billion to the temporary assistance for families program, which helps the neediest families put food on the table. Completely got the Community Development block grants program and the low income and Home Energy Assistance program. Which funds Affordable House projects and ensures that families dont have to pick between paying their energy bills and paying for their medicine or other bills. Mister mnuchin, these changes will affect over 3 million seniors, children, working parents or disabled and other families in my state who are struggling to make ends meet. California stands to lose over 1 billion a year based solely on the cuts to these four programs alone. All this mister secretary at the same time that the republicans tax scan wants to seek california turned into even more of a donor state. And our taxes rising to pay for republicans tax cuts for corporations and the wealthiest view. Thistax plan is responsible. Your time had expired. Id like to thank you for appearing today, please be advised members of congress and the committee two weeks of questions and your answers , they will be made part of the formal hearing but with that mister secretary, thank you for joining us and the committee stands adjourned. [inaudible conversation] join us tonight for a discussion on the security and vulnerabilities of us election infrastructure. The top democrat on the Senate Administration committee, minnesota senator 80 clover chart and former Homeland Security secretary jay johnson addressed the issues recently at the center for american progress. See their comments tonight morning at 8 pm eastern here on cspan2. Former president ial candidate mitt romney announced today he is seeking the Utah Senate Seat of retiring senator or in. We may hear more about his plans tonight when the former Massachusetts Governor and twotime republican president ial candidate speaks at the lincoln day dinner, the Utah County Republican Party fundraiser in utah. Watch live coverage beginning at 9 pm eastern on our companion network, cspan and saturday night on cspan, its former florida president ial candidate jeb bush. He talks about School Choice and education savings accounts. Speaking at the American Enterprise institute earlier this year, he discussed his efforts as Florida Governor which included implementing the first statewide School Voucher program. Watch his comments tomorrow at 8 pm eastern over on cspan. Our live coverage of the savanna book festival starts saturday at nine eastern and includes robert latta with his book future war, preparing for the new global battlefield. Authors Scott Schapiro with the internationalist, a radical plan to outlaw war remade the world and hadley with her book we need to talk how to have conversations that matter. Watch live coverage of the savanna book festival saturday at nine eastern on cspan2s book tv. Now its a discussion on the issuing of security clearances for Trump Administration officials. From this mornings washington journal, this is about half an hour. Host joining us from new york, jeff ringel who is a former fbi agent is here to talk about a couple issues and we will start with the shooting in florida. Its reported that if you look at the front pages of the newspapers for example, the washington post, wording signs, scrutinized in florida. A call to the fbi and concerns