Transcripts For CSPAN3 WH 20240703

Minutes. This hearing will come to order but welcome to the committee on the Budget Hearing regarding the president s fiscal year 2025 budget request. I welcome director Shalonda Young director of Office Management and budget. Thank you for being here. I have enjoyed working with you. You are one of the most likable people on capitol hill and in my experience in politics and kudos to you. As ive said before i like you a lot i do not like the president s budget im going to outline that with respect. But probably some sharp criticism. But i appreciate your service to our country as a former staff person here on capitol hill and now in this very important job as the director of omb. Welcome back to capitol hill and thank you for your time this morning. Im going to yield such time as i may consume for an Opening Statement that you thought that was my Opening Statement. Im not going to read my statement, i just want to talk to you i want to talk to my colleagues i want to talk to the American People. The president says i wholeheartedly agree with him budgets are more the numbers on a ledger they are a statement of value. They are a vision for this country. They are a set of policies. And so when he says show meet your budget, i will show your values i agree i stated differently. Show me your budget i will show your beliefs. Im not going to question his motives or your motives about your beliefs and your values and the policies outlined in the budget. I am simply going to say there is not a clearer or starker contrast between the president s of beliefs and the beliefs of at least the folks republicans who served with me on the Budget Committee. And so what the beliefs i am talking about are the beliefs and the role of government in the lives of its citizens. The role of government in solving the problems of our country. Beliefs and where we are, the conditions we are living in, and the causeandeffect of the policies of this president over the last few years. And beliefs, quite frankly what the president thanks the American People think about the last three years in the policies and the outcomes and the Current Conditions that people are living with. The better way to say that is if the president is going to double down on the last three years, ive got to give him credit and i mean this with all respects. He puts it on paper and he continues to stay committed to his beliefs on the policies he has advanced over the last three years. Now, i would say it is disconnected from the American People and their reality and their needs and their desire for a different direction. I think it is disconnected from the pain they are feeling. Especially when it comes to their pocketbook. And the record inflation the interest of the payments on their home, the payments on their car. We have more Consumer Debt than weve ever had it got more Credit Card Debt than we have ever had. People are taking more money out of their 401 k than they ever have it. It is a crisis. I know we all have a view of whats a crisis. And i hear a lot about the Climate Crisis for my democrat colleagues. Now folks in west texas and i grant you i do not travel as much around the country as i do my own district. But my folks which say the biggest crisis right now is the safety and security of their families because of the policies at the border and the flow of crime and criminals and drugs that threaten their neighborhoods, their families, their friends, and their fellow citizens. And they would say their pocketbook and the cost of living. The groceries, the gas, their quality of life. That is why i think the American People you look at the polls and approval and i dont put a lot of stock in polls. I think it is representative of our citizenry saying we want something wholly different. Here are some things ive taken away from the beliefs. This budget suggests the president and those who support the president believe we should expand entitlements when we have not even paid for the two most important in my opinion, Social Security and medicare. They are going to be insolvent before creating more. We have more people trapped in my opinion on dependency of the government than we have ever had because we do not have real consideration for work capable people going back to work who receive assistance. So we expand medicaid i say we, the president without consideration are the kind of work requirements he supported when he was senator. There is an expansion of obamacare subsidies to people making 400, 500 even 600,000 because you all repealed the eligibility for the studies show during the ira or during the temporary expansion of obamacare more than half of the people on that were above the four 100 poverty level. You suggest the president suggests in the budget he is going to use somehow the ira drug price control savings which was 100 billion at last i will be expanded 200 billion in savings you are going to use that somehow to shore up medicare. Listen, we ought to Work Together to shore up medicare, no question. Kudos to the president for at least outlining a way to do that. He grabs for a tax hike of about 750 billions in the savings from the drug price control. I disagree with that strategy in that policy. Nevertheless that is what is articulated. But heres the question why should we believe the president is going to do make use those savings when the last time to the ira there were savings it medicare reads to subsidize Green Energy Tax giveaways. It did not go back to medicare and shorted out. You are saying things in this budget and practice have not been. Let me be clear that things republicans and said that we have not followed up on. We got a piece of paper very different in terms of our beliefs. I guess you could go back to the biblical admonition show meet the fruit of your works. Faith is dead and belief is dead without works. Let me tell you there is as much deficiency on following through with our balancedbudget summit criticism im loving on you and the president. You understand . Im trying to be an equal opportunity criticize her. Now, our budget is different. We do not leave 16 trillion, 17 trillion or 18 trillion in debt we take that off the next 10 years to balance. You all raise taxes to 5 trillion in the economy is teetering on recession on the taxes be passed in higher expenses to people exacerbating inflation but we do not use taxes. We try to reinvest and reignite growth through tax reform and regulatory reform. There are two different worlds, two different Belief Systems. But i think of some rice to say in closing is my democrat colleagues in this president believe and more government and more spending and more taxing. As the answers to the problems our country faces. And i think very strong with our belief system into articulated in our budget suggests we believe in Less Government. Less spending, left taxes more empowerment of the American People and more freedom for better quality of life for prosperity the berets all folks create the greatest Antipoverty Program known to man which is more jobs, or opportunities, higher paychecks, better quality of life and standard of living. That is my perspective. I think those two world views those two Belief Systems are as clear to the American People as you can get. I respect the president not just staying with the horses writing on he isnt galloping at a pace we have not seen yet. Which i think will end and even greater disaster than what we have been experiencing with that i know ive got over my time i will let you have as much time as you can consume for the Ranking Members opening, or. Thank you, mr. Chairman its great to have you back here director young. It is common this time of year end the cycle to hear the question, are you better off than you were four years ago . Well, four years ago today then President Trump was busy tweeting out crazy conspiracy theories about covid19. By the end of the month a million and half americans would lose their jobs. By the end of the following month a record 20 and a half million americans would lose their jobs. Many American Families were stuck inside. Probably like my family. I was on zoom and a Little Office in my house. My wife is teaching her second grade class from our dining room on zoom and our daughter, a kindergartner at the time in her kindergarten class sitting at our kitchen table. Most American Families were worried about keeping ends meet and frankly keeping their mental health. Lets look at where instead we are today. All of the jobs lost during covid have been earned back and more. Unemployment has been below 4 for a record to record 75 consecutive months the longest and more than half a century. In 2023 contrary to what we heard about supposedly teetering on recession and despite the predictions of all the naysayers and doomsayers, 2. 5 economic growth. More than any other. Economy in the world. Inflation has cooled considerably. We are now almost at the fed target and whats confirmed yesterdays project of the fed will cut rates by 75 basis points over the course of this year. It has gotten so good, mr. Chairman, the center right economists with this latest headline americas pumped up economy. So when we consider the fact this economy has come all the weight back from the depths of where we were four years ago today, why in the world we ever go back to where we were just four short years ago . Well that is exactly what will republicans want to lead us. Just yesterday afternoon and i appreciate the timing for this hearing today, Republican Study Committee released is 2025 budget. Heres what they propose. Cutting Social Security by one and a half trillion dollars. Raising the retirement age. Cuts are promised retirement age. Medicare, 1 trillion with of cuts. It would end the medicare guarantee turn medicare into a premium support system. Seniors we have to fend for themselves on the open market with nothing but a coupon to offset as much of the cost of insurance as they could find. Medicaid chip in the Affordable Care act cut by an additional four and a half trillion dollars. This is the republican budget and what they plan to do if they were to gain full control here in washington d. C. So mr. Chairman, you are right there is a stark and clear difference between the two visions. One is a vision that would take us back to the depths of where we were just four years ago. The other is a vision that has literally led the world in economic growth. I look forward to hearing more about the details of both of those visions today. I look forward to your testimony here director young. Thank you. In the interest of time if any other members of Opening Statements, i ask that you submitted for the record. Well hold the record open until the end of the day to accompany those members who may not have prepared written statements. Now, i like to recognize director young. Again thank you for being with us. The floor is yours and i yelled five minutes per. Thank you im going to Say Something and mean it some witnesses may not mean but it is a pleasure to be here with you its a little like coming home proud to think the staff of the chairman noted i was a staffer in the house for the Appropriations Committee working for the Budget Committee i take back anything bad about the Budget Committee before as it is earlier for chairman errington and a Ranking Member boyle were heads of the sistine committee. A lot of my remarks will be about contrast. Where this president stands and i am proud to present his fourth budget. The fiscal year 2025 budget from day one of this administration present by nist tackle challenges head on while delivering longlasting results. Over the past three years he has overseen a strong economic recovery, a mass were the most successful legislative records and generations grow the economy for that middle out and the bottom up and delivered important progress for the American People. Under the president s leadership weve added about 15 million jobs. Unemployment rate has remained below 4 for over two years more than 50 year record. While inflation has fallen by two thirds. This administration has taken action to lower costs for working families hide everything from Prescription Drug costs and Health Insurance premiums to everyday goods and services. The president s top priority remains lower costs for hardworking americans. At the same time the president s also resort u. S. Leadership on the world stage while keeping americans safe and promoting democracy here and abroad. The president has deliver this progress for the American People all while fulfilling his commitment to fiscal responsibility. The deficit is more than 1 trillion lower than when the president took office. Thanks in large part to a strong economic recovery. In addition the president s also enacted another roughly 1 trillion in savings over the next decade to the fiscal responsibility act. The president s 2025 budget details the president s vision for a more equitable, prosperous and powerful america with proposals for responsible progrowth investment in the American People. The budget protects and builds on the progress made over the last three years proposes additional policies to lower costs for hardworking families. Including for Health Insurance, Prescription Drugs, childcare, utilities, housing, college, energy and more. These investors will help working families keep more of their hard earned paycheck and strengthen our economy. It also invests in america working families. President biden has shown us we can be both fiscally responsible and invest in america. The budget will bolster manufacturing and industry across the nation. Making our communitys healthier and safer provide paid leave, support research and cancer deliver for our veterans. Cut taxes for families of children, promote flexible dynamic workforce and more. The budget protects medicare and Social Security. Bedrock programs to generations of americans have counted on and seniors have paid into their entire working lives. Extend medicare solvency indefinitely. By requiring wealthy people to pay their fair share toward medicare reducing Prescription Drug costs. It reflects the president s commitment to reject any benefit cuts to Social Security, extend solvency by asking the highest income americans to pay their fair share. Improve Financial Security for seniors and people with disabilities. In short americans can access the benefits they earn. What will be a decisive decade for america and the world this budget reflects the National Security strategy. By including robust investments in military readiness, or diplomatic developments tools and art of the sacred commitment to our veterans the budget achieves all of this while building on the president s proven record of fiscal responsibility. Honoring the president s promise that no and earning less that 400,000 per year will pay a penny more and new taxes. His budget reduces the deficit by roughly 3 trillion over the next 10 years on top of paying for new investments like cracking down on fraud, wasteful spending and abuse including by reducing Prescription Drug costs. Making the wealthy corporations pay their fair share. Thank you, mr. Chairman, thinking Ranking Member boyle thank you offer the opportunity to appear here today. Thank you director young we will now move to the question and answer portion of the hearing. I yield myself five minutes. You mentioned the president s of policies have lowered the debt by about a trillion dollars. Lets be clear here. The president was in hiding for about 100 days for Chuck Schumer swore he would never negotiate a debt ceiling. Collect some this committee saying it is reckless. You should never do it they were the sky is falling. Because republicans said we cannot just have a clean and debt ceiling where we dont consider the 34 trillion record debt for this country for the 20 trillion that will be added this this is the truth i can look you in the eye and tight republicans led to bring democrats to the negotiating table and we together it reduced spending yearoveryear. Over the 10 year window not actually in a laugh or something close to that. I appreciate the president and the administration worked with us but had republicans not pushed back. Had we not led Ranking Member we would not have that record. The people need to understand that is the kind of pushback and political courage republicans and democrats have to exercise if are going to bring the debt down. I do not believe that the president is fiscally responsible. Not because he says he is or doesnt say he is in speeches it is because the last three years we have seen six plus trillion dollars in new debt added to the National Debt. Because his budget we are talking about today puts us on a path of the highest sustained spending taxes and debt in the history of the country be that as a fact too. Theres something fiscally responsible about that. Leaving an average debt of 1. 6 trillion a year is not fiscally responsible. That is a deferred tax on our children but we are going to bankrupt the country again theres no perfect plan republicans have not make the knot of profiling and courage on reducing spending like i think is the driver of our debts. This is making things worse this is gasoline on the fire that is consuming not only the money in the pocketbooks of our fellow americans it is going to burn up any hope for a bright and prosperous future for our children. Now you thought i had a question here, didnt you . My question is if i asked you i do not want to trap you are gotcha we had fra agreement the fiscal responsibility a group it was a spending cap. I thought it was a pretty good deal and i still think it is a good deal but is not not nearly as good as i thought most members feel the same way. Because, you are an expert eighth degree black belt in appropriations jiujitsu, we had a bunch of side deals Office Spending American People have no clue no clue about what is Budget Authority and what his outlays. What we do is to be stuff the turkey of emergency spending we stuff the turkey of other gimmicks like chimps and rescissions the American People they receive it we go out and do press conferences and press releases and say you got a topflight one point 59 trillion. We reduce spending does that bother you . I think if the American People deploy the same budget gimmicks the accounting fraud there go to prison literally. Think its a criminal republicans do it. Every bit as much as democrats. Do you agree with that . We work with me too clean that up at a minimum . Whether the spending is more or less or the same can we all agree we cannot hide the ball from the American People this is accounting fraud. I yield. Mr. Chairman, you wont be surprised to hear my response. I think you see two different press releases that came out of that budget deal. Democrats were very happy to point out we were going to be able to maintain spending for childcare and nih and all the other things and produce what we called nondiscretionary in a flat scenario. We are very honest about that. That was necessary to see 76 of democrats in the house vote for that package frequents a wide and we put in the Budget Authority . Why do we have to stick nonemergency items in emergency . Why do we put chimps and suggest we are reducing spending but we are actually adding more to spending . Its fair enough for you to say we committed to spending more. We think that is a good thing but its not the 159 this is money in addition to it. Shouldnt we at least tilt the numbers the American People can understand so that they know what their government leaders are doing what theyre paying for their government question thats all im saying but im not saying you were arguing for more spending we were arguing for less there is no question about that. More bureaucracy, more government, less a bureaucracy Less Government it grew 40 the peoples governments in scope and we thought we had the right size of a bureaucracy. Fair enough to debate that. I am just talking about transparency can we Work Together making that a more transparent . Mr. Chairman, what matters to me, what matters to the present is what we are able to invest in. These programs that help working families across the country. Whether its what you called chimps which are changes to mandatory programs or emergency spending, what matters is how much goes to childcare block grants how much goes to headstart . Mr. Chairman if there is interest in doing that straight Budget Authority we are with you. We were negotiating in good faith within Speaker Mccarthy who had his own outline of how he would like to see the numbers come in. And a week, as you point out came to the table and worked out a deal. The bill you all see today and you are going to vote on fiscal year 24 complies with that deal but i appreciate the complaints about it. It is a show of bipartisanship that both parties were able to come together for six months late we certainly hope youll hear from the president that bill has passed as soon as possible to prevent a shut down but you have my commitment to work if the other side once this all in Budget Authority or chimps it does not matter to us what matters the investments we are able to make for the American People. I will reserve my comments might Ranking Member and other colleagues can ask their questions. Correct thank you, mr. Chairman. I cited this weeks cover of the economists. Not just the a covenant all of the news outlets as well but i thought i would read off a couple in terms of the performance of the economy under the Biden Administration. Washington post u. S. Economy rising growth following falling, quells recession fears. Bloomberg, u. S. Is still worlds biggest economy as it extends its lead over china. Pvc u. S. Economy is powering ahead of europes. Cnn and other shockingly good jobs report shows americas economy is booming. The guardian, biden right to set u. S. Economy is worlds strongest, trump alley says. I could go on and on about the record of this administration. As it relates to economic strength. Let me turn there to Social Security and medicare. It talks about the republican budget just released yesterday. The Republican Study Committee concludes 80 of House Republicans. Proposing trillions of cuts in Social Security and medicare that does seem aligned with what laura President Trump said. Just last week on cnbc former President Trump said quote theres a lot you could do in terms of entitlements, in terms of cutting. I am wondering if the president agrees of President Biden agrees with former President Trumps of you about a lot to do in terms of cutting entitlements for the House Republican budget, which cuts Social Security and medicare. Do you agree with that approach and what approach does President Bidens administration taken his new fiscal year budget . Ranking member you hurt for the present of himself at the state of the union. It will not assign any legislation. We will do anything to prevent benefit cuts and they sprayed her we speak about this. These are not just programs, people put into them their entire lives. Imagine have the rug pulled from under you, thinking of going to retire thinking Social Security medicare going to be there for you. We think there should be plans to make sure they are solvent in addition to no benefit cuts we believe the highest income earners in this country pink more into both of those programs would create a solvency situation without having to cut benefits prickled let me interject their just to segue to what he think about you speak to where there has been bipartisan agreement a number of votes both the chair and me as Ranking Member have acknowledged that was Social Security, the trust fund is expected to expire in 2034. And medicare of the trust funds are set to go insolvent before that. No one up your saying we cant do anything. I was one if you could address that and talk about the president s approach. Will talk about the principles he believes in it Social Security. One that does not get as much attention including no benefit cuts thats in the wealthiest americans to pay more into Social Security. We need to make sure americans can access her Social Security benefits. Look at the Social Security menstruation budget as beneficiaries grow the number of staff and resources are in a complete opposite curve on the way down. We have asked for increases non discretion it we dont fun things like Social Security ministration. We import you please pass it Social Security increase the president is asking for medicare solvency, you have seen this proposal before from the president that asks the wealthiest individuals to pay one point to percent more into medicare of the chairman is right also Prescription Drug savings if we expand Prescription Drug provisions allowing medicare to negotiate that saves seniors and saves the government. We also close tax loopholes. Those who find ways to pay not pay into medicare those things would extend medicare insolvency in perpetuity. That is a big deal. I hope we can take that proposal seriously and get it debated because i would remind folks the ability, for the First Time Ever for medicare to negotiate down the cost of Prescription Drugs was thanks to the Inflation Reduction Act every single republican member of the house and senate voted against but that i think the director and the yield back. I think the gentleman for only use the five minutes. Democratic efficiency again mr. Chair. [laughter] it that up ralph norman for the palmetto state five minutes. Thank you. Thank you for your call you are always good about that. As the chairman mention the press has been in hiding he did come out of hiding i dont call state of the union i called state of the screen he pretty much screamed the whole time he did read a teleprompter pretty well. Let me ask you this how do you define and pay your fair share . To find that for me. Thank you mr. Norman. Our suite of proposals on revenues i can talk about a few of them. One, corporations before 2017 tax law paid 35 we would ask corporations go to 28 not even as far back as they were paying before the 2017 tax law. Taking Capitol Gains. Paying ordinary income. We are trying to get revenues back to what we talk about surplus in 2,002,001 back to those historical averages that allowed for the room to create surpluses for club if you ask Everyday Americans would they agree with a 4. 7 billion southwest Border Security fund that absorbs illegal it doesnt stop up at absorbs them into a country with the average american agree with threepoint to billion for advanced gender equity and equality worldwide . Whatever that means. Would they agree to. 5 billion for the centers of Disease Control to address the causes of violence in the communities. Define that for me. He is let everybody from 160 countries including gang members come into america. 60 million for Gun Violence Research across the cdc and the National Institutes of health. When you are letting everyone come in at seeing the crime skyrocketing what americans agree with that . When americans inquiry with 11 million to preserve stories of culture and history across america . Somebody defined that for me i would love to follow those checks and see where they are going too. My issue is the priorities. If you ask Everyday Americans they would revolt against this thats what his approval rings are in the tank and going even lower. I question that i have that its buried somewhere you through the budget or the appropriations in 2018 there is a bill but put up to basically set up gps backup system. Which is the security of america every 2018. Up to this date cbo scored as a revenue producer. It has not been enacted since 2018. This may not be a fair question because you may not know about could i get an answer on why this is not a top priority . Who is stopping this at the dot or whoever . The omb has undermined this but it is a National Security concern could you give it back to me in writing . Looks happy to come a, congressn pretty happy to look into it. I assume its enacted youre trying to figure out implementation for. Implementation of the gps system everyone listening to this and in this room uses its a National Security issue. The facts, as he chairman mentioned 35 joint and debt and rising. We can ignore the other agencies if we want too. They are running in the red too for medicare, medicaid, Social Security, how a trust fund. It is unconscionable with this administration is doing to not solve the problem. Now particularly as it got National Threats being highlighted by our own people in this administrations cabin at the fbi director saying the red light the blinken lights are going off. I dont know how to mark sentinel deaths we have to have as a direct result of this administration ignoring the immigration issue. I dont know how many lake and riley need to get the name out during the screen but he did not get it right. How many deaths we have to have before we say enough is enough the priorities of got to be redirected. Ive got 20 seconds if you like to respond. I would. Immigration but in this town for 20 years, is a difficult issue as any that faces congress or any present or administration progressive President Trump address it with the wall . We had a chance to do something on a bipartisan basis in the senate that would help stem the flow and allowed us to have an orderly border 5000 a day you call that . With the resources needed. Quickset is not right thank you per share comment. Think a gentleman from South Carolina i now yield five minutes to my friend scott peters from california. Thank you, mr. Chairman root we have reached the point we do not like the content of the speech you insult the person who gave it. Doesnt have the energy to be present now here he has too much energy whatever were here to talk about budget i am sorry to hear that. Thats a common thing we get now. President bidens proposal for fiscal year 2025 with over the cause of child care for family scout make healthcare more accessible to all helper relays are Clean Energy Future will cutting the deficit by nearly 3 trillion. I dont agree with everything in it. I think this 400,000dollar tax lure is probably unrealistic. I am concerned the lack of appreciation for private investment in Life Sciences we have the Life Sciences leadership in our country were about to spend 50 billion to bring back an industry that we let go. I am concerned about undervaluing the Public Private partnership that Life Sciences is in this country. The president s budget outlines a vision for america that i share. Now we have to talk about appropriations to implement that. Just this week republicans started to shut down ice, cbp of the Homeland Security for their own political gain. The system has been broken for far too long for democrats agree we need more resources of the southern border. That is why President Biden proposed billions of new funding led bipartisan negotiations with the senate on a comprehensive border package it would propose more than 20 billion for Border Security. Increase the number Border Patrol agents and asylum officers we could have deployed more scanners to prevent the flow of fentanyl through ports of entry. We could have streamlined the asylum process in a way that wouldve made adjudication faster cap people out who did not qualify it which is about 90 of folks. And the 5000 limit was the point at which you would be required to shut the board a mandatory shutdown. People complain about hundreds of thousands of people coming across, 5000 was a point you had your mandatory shutdown we had a bipartisan agreement on that apparently 22 25 republican senators were willing to vote for until donald trump came out and said he was against it because he wanted the problem for his campaign he did not want us to solve the problem independently elected people in the Senate People a six year terms, two thirds of them are not up for reelection. The deal is supported by the national Border Patrol council. They would rather complain about the problem than actually do anything about it. I think it is quite appalling. Americans are tired of the political theater. They want leaders who will make the choices needed to solve big problems and i have proposed a very practical thing which is bipartisan. To help a number of hard decisions on taxes and spending through a Bipartisan Fiscal Commission the arp was here it whenwe did the hearing on it. Ive heard from all of the groups they dont to drinking ag with Social Security even though we watched 10 years from now we are looking acrosstheboard cuts but they say dont touch Social Security thats the wrong answer. Newt gingrich have come out hard against it. They are afraid it will raise taxes. We must be in the right place. The point is the politics here are as real as the numbers. When he votes in both side of the aisle to get this thing under control. I much prefer the value set out values set outin the bite adminn budget. This process is not working. Personal insults will not solve it either pretty want to thank you, director, for the work you did in this last agreement will vote on tomorrow. And it is a threat to not just our communities but navy seals who train in the water i wonderful colleagues we dont we have all the money we need to get started. I think thats great. Want to thank you for your work. Im proud to be part of a group thats more concerned about getting things done and solving problems. Then killing at the other side i will continue to work with you im sorry i dont have a question for you. That supports the critical project. The water is so dangerous to swim in. I am hoping we can find a way to get this done before its even fiscal year 25 project. Bouncing from one friend from california into another Tom Mcclintock five minutes. Thank you. Madam director as i listen to my democratic colleagues i just wonder if you are ever going to learn that you cannot spin the economy. Everybody knows their own lives how theyre doing you try to spin then you end up looking foolish and out of touch. The fact is gasoline cost 2. 39 a gallon. Inflation 1. 4 . I cost 1. 9 . The jobs you both to bring back are largely parttime jobs taken largely by foreign immigrants and not americans. 18 inflation since you took office. That means Retirement Fund on Inauguration Day of 100,000 now only buys 82000 in goods. Thats the price of the free money handed out for you deliberately allowed more than 60 million illegal aliens in the country over the past three years that is a population larger than the entire state of missouri. Which is zappe billions of dollars in Public Schools, public hospitals, Public Housing, law enforcement, homeless shelters, food banks produce driving up housing prices and depressing working families wages for the one thing i do agree with this most important questions americans are going to be asking themselves is simply this, are you better off today than you were four years ago . Please do not sit here and try to gaslight as per your not feeling anybody except yourself. Now you produce a budget with nearly 5 trillion in new tax increases over the next 10 years. You divide that by the nerve households in america thats roughly 40000 the average earnings of every family in this country. I know you will say dont worry those are men the Corporate Taxes that we paid for by wealthy corporations. Families do not need to be concerned. Corporations dont pay Corporate Taxes. Theres only three possible ways Corporate Tax can be paid. It is paid by employees to lower wages. It is paid by consumers through higher prices. It is paid by investors through lower earnings productive 401 k . I dont know how Corporate Tax could be paid, do you . Mr. Mcclintock corporations can stop doing is many stock buybacks and not pay their people less. Not pass on cost of the American People. Us out to that comes directly out of the earnings they used to pay their employees. The earnings they used to keep prices down in a competitive market. And the earnings they paid to investors which are peoples Retirement Fund. You already required taxpayers to pay after 132 billion in loans taken out by College Students. How much more are you proposing in this budget . I am having a hard time hearing it. What was a question . What you have now required taxpayers to pay half a wonder to 32 billion in loans from College Students but how much more you proposing . Mr. Mcclintock the president s been unapologetic and saying we need to do whatever we can to reduce the burden Student Loans have had for students. Thats fair i think he should be very apologetic in this respect for you take to young people. Buntings have a loan to get a degree say ethnic and gender studies. That gives them a dea position at the university of michigan. Average pay is 96000 for such a staff position. The other young person takes out 100,000dollar loan to buy a truck. Brings an average of 48000 for a truck in a year paid to bring all the things we need in life. How is it fair for the truck driver to be forced to pay for College Graduate loans in addition to paying off his own loans . Mr. Mcclintock there also Truck Drivers have taken on Student Loan Debt hoping for brighter future. In no big. Are you proposing 96000 to help out the truckers truck loan . Using one example there are many trackers of Student Loans who benefit from this policy. In a free society every consumer votes every day with every dollar he spends on what the economy will produce. When government takes that dollar from them it reduces by just so much. Not only the choices he could make for his own family. It reduces by just so much the incentive he has two produce goods and service for others for socialism has poverty and society yields the highest peace time Government Spending ever buy that text with the choice of individual consumers to meet their own needs. With their own earnings. And it destroys the incentives of individual producers to meet consumer needs. That in turn describes the pot prospering to be mustered for granted. Nothing good will come of this. If you cannot understand that its time you be replaced by those who do. I yield back at brick oxen think the judgment from california and a yield five minutes to visit barbara lee from california for. Thank you very much, good to see you. Thank you so much for your leadership and a budget, does reflect the values of our country. But also let me just say i believe the budget is a moral documents. Director young i think it is fundamentally wrong to allow the size of the Defense Budget to increase. Even though the pentagon recently failed i believe six audit in a row. The president s budget request now 184. 5 billion more than nondefense programs. On so i guess, speaking about the morality of this. How did we allow this to happen . Why should we have confidence the pentagon will spend taxpayer dollars responsibly when they cannot pass an audit or rather six audit. And secondly where could we spend and how could we spend to support key people out of poverty. I know their programs consistently underfunded because of defense spending increases. I do not understand how the department can make this kind of a commitment that they cant pass one clean audit yet six audit sprint how do we allow that to happen director young . We penalized taxpayers were scamming the system. For cheating on their taxes. Something is fundamentally wrong. Thank you congresswoman. The budget we put forth with the responsibility act, many of the members here supported. This president from day one to pull donation sacred obligation. To protect, equip and prepare our Service Members but i appreciate the concerns on audits. I sure those and defense that all those agencies we expect to be good stewards. Complies with the fra deal but also meets the needs of our troops. We are in a complicated world as you see. We are also believe in diplomacy. The subcu mate your Ranking Member on. We believe it put a balanced approach between our military and diplomatic presence in the budget we put forth. That we are ready, our readiness is where it should be but for the life of me cant understand why taxpayers spend hardearned dollars now added ask for increase when the Defense Budget continues to get scammed. Failing six audits is unacceptable. But as you pointed out and i pointed out the mission of the department means that we have to put forward an agenda aligned with National Security strategy which means we have to provide funds to update our equipment and provide for Service Members, a lot of the budget is pay increase for military personnel and we have to remain prepared given the complexities around the world. I understand that. How is for pentagon penalized . What, what triggers if you fail schism audits how do you recoup that invest those investments, taxpayer dollars and what penalties. Ordinary folks get penalized for wrongdoing for not living by the rules. Part of the pentagons issue on audit and one, they need to knowledge of what they own and how to cost that out. We are committed to working with them just as we work with other agencies who have management and budget challenges and weve got to great this right. Youre absolutely, correct. The president is asking for 187 billiondollar increase. You would think until they got it right we would at least ensure that all of our National Security because if they are not penalized and they dont get it under control and taxpayers to know why in the world are they being penalized rather than getting increase. There are a lot of things in the budget that i wonder about. You think we have such high improper payment rate this is the time to bring more people. Millions of working families across this country are absolutely concerned and we report proper payments as a part of report they get that from us. I would be remiss if i didnt see similarities between last two questions, and try to fix a program to those who need it most. Ive never been a fan. Employers who hire people to take advantage of itc. And as far as employers, they see as the earned income tax credit people dont want to work for them, right . It discourages work. Youre discouraging working by taking itc at the same time housing and everything else. Are you aware of the fact discouraged work and employers particularly when youre employing people. We had similar Exchange Last year with eitc and Child Tax Credit we have not seen data that supports that. Some men are able to reenter the workforce. Weve not seen that data. Discouraged work. Right. We heard complaints amongst constituents that they dont get pell grants who dont work as much, set up poverty. Do you ever hear complaints of people saying im middle class, my child has to take out the Student Loans. My sister is not working, her child gets free college. Are you aware of that incentive in there . You brought up constituents. Ive not heard that complaint about pell grants before. We have been committed to doubling the pell grant. It doesnt bother you that the pell grants are not eligible, getting more generous grants . I think we have a larger issue of College Affordability we have to do something about. Youre absolutely right. Cost of debt, even people with pell grants have to take on debt. We have to find solutions. Its wonderful to see so many people helping out people. When i tour food banks in my district, all of the food is called healthy food. When going to a food bank privately operated, what have you, you never see mountain dew or pop tarts on the shelf. Its always better stuff. Would you consider restricting it more, no longer unhealthy food. We have an obesity epidemic and we have a problem with diabetes. Snap program to make it more like the wic . Congressman the gentlemans time expired. Im happy to talk to the secretary of agriculture. The gentleman from wisconsin and now the general lady of illinois for five minutes. Thank you so much for what you have done and i really think that this budget reflects what the president and democrats in congress have wanted to see and to ask the wealthiest people to pay more which i think is absolutely fair. I wanted to just ask you what would actually be the effect of asking a small amount of people to pay an additional 25 in in taxes which i know and you can correct me if wrong would raise about 500 million for our economy over the the next decade how many people would be subject today the larger tax and what is their average net worth . Talking about the tax proposal. We call the billionaire tax. It affects the wealthiest 0. 1 of taxpayers. Its the top 1 billionaires and hundreds of millionaires and raises 500 billion even on the small population. That speaks to the wealth and population that speaks to the ability for them to use minimum wage not available to working families most of whom work, get a paycheck, and have no idea of the cannot avail themselves with the same loopholes that the 5 can. We think its common sense, omb and cba at the white house have a report that says some of these hundreds of millionaires and billionaires, 40 millionaires pay tax rate. That compares to the average america . Thats right. Most americans think that but most americans also think that what is in this budget is really going to help them and isnt that what we are supposed to be about. Tax credits which we saw in the oneyear work that reduced poverty by almost half that are going to have universal preschool. Pell grants which would help so many people that would two to go to college. We are going to see lowering of cost of health care for most americans. This budget answers the needs of most americans. Im just wondering if theres anything else that you want to add. As a parent of 2 and a halfyearold we thankfully live in a place, universal prek through 4. The path its researched sets path on, you would americans should have access to that. Family leave. Common sense, one shouldnt have to choose. Think of hourly workers. It is about how we ourselves as americans and what should be available to people and what is treated as rights for people. Also what we believe creates economic growth. This isnt just about spending and taxes, we want to also invest in programs that will allow the economy to stretch. Bring more people into the workforce. We believe child care, prek, paid leave will help do that. So no we help the economy and the American People. Thank you, i yield back. Thank the general lady from illinois. Mr. Chairman, i dont want to take mr. Smockers five minutes, you arent making me cry. Im having allergy problems. Feel free to have that, i promise. Wait for these five minutes. Please be gentle with the director here. I think they are tears of joy. I am. Youve read the 2023 report . Ive seen highlights . What would you say what are the outcomes over the next 75 years . It depends if it is a baseline. Based on the president s budget it is enacted, is it going to show something similar to our baseline budget. Im sorry . The debt will increase if we dont do things like the okay, we will get to that. Will go to 97 to 500 in the next 75 years. In the report the treasury, your administration says, you can put that away now but changes in fiscal policy are not so not sustainable. I think thats the underlying conclusion drawn from that. Couldnt agree more with what they are saying here. What are the drivers of that increase in debt . What programs . That the is not true. I would like to submit for the Record Record from the foundation that if we indeed did what Biden Administration raising the taxes for those over 400,000, 3 trillion over. The shortfall without objection. Thank you, mr. Chairman. The shortfall over 30year period in these programs as outlined in this report, shows that that short fall is 78 trillion raising revenue close to fixing long term, do you agree with that . The cost over longer period. 78 trillion is far more than 3 times. It will not. The facts are what they are, raising revenue. Its why i agree with scott peterson, peterson that we need to have a real conversation with the American People about how we fix this going forward. It will not work. Its not sustainable. Its impossible. The numbers are what they are. The School Commission is to critical so that we can come together. Fiscal commission was not included in the latest package and disappointed that the Biden Administration does not support and id like to hear from you why that may be and would there will be a time in the Biden Administration that would support this kind of discussion. Mr. Smocker probably for Different Reasons the Biden Administration has different issues and shown issues with the Fiscal Commission probably for Different Reasons than we do. Benefits cuts and not tax proposals and not asking highincome earners. It would be born on the backs that paid into the system and rely on this program to retire in peace. But your administration produced a report that said this is not sustainable over a long period of time. We do you believe that taxing highincome earners would add to the solvency. That does not make it solvent. Thats not true. I hope we can get to the point where the American People have a better understanding of the situation that we are in. I hope we can get to a point where we can have a real conversation about this and i think a Fiscal Commission would be a really great way to do that. Thank you. Thank you, gentleman for his line on the bipartisan path, mechanism and for addressing the solvency and the longterm liability. Im only speaking because you mentioned the leadership, the republican leadership. Our speaker supports this. It was a priority coming into the speakership as a new speaker and we marked it up and got bipartisan outcome that said everything is on the table and so theres plenty of criticism on both sides as scott peters said. You have folks saying its a back door way to cut Social Security and some people say its a back door to raise taxes. I generally think when you have criticism from both sides youre probably in the sweet spot and doing something meaningful. Mr. Smocker has encouraged through the process that the white house be at the table even when people say its a liability. I would encourage you to take that back and think long and hard to Work Together to solve the biggest problems, one of the biggest problems for the country. I yield 5 minutes to the gentle lady from virginia. [inaudible] or im going to come back to the general lady from virginia and im going yield to the gentleman from who should i pick on . Oh, we will let the Hoosier State champion with fife minutes. Thank you, mr. Chairman. Director young the southern border secured . We absolutely need more resources and authorities. Southern border crossings to the 37 months to the last six president ial terms. Can you tell me which one of the lines represents the Biden Administration . You picked me on a bad eye date but even if it wasnt i tend not to guess in these situations so im sure youll tell me. It would clearly be the top line showing the highest number of border crossings, last six president ial terms. You talk about needing more resources. The House Republicans, the very second bill that we passed is hr2 and the senate has done absolutely nothing about that. This border, the southern border crisis is a crisis of President Bidens own making. He created this crisis with a stroke of a pen, he can fix it with a stroke of a pen and mr. Chairman, id ask unanimous consent to submit a record into the record a list of 64 executive actions all of which they refuse to take to overturn their own executive actions which would fix the southern border. Instead of acknowledging the crisis at the border, the playbook has been to cast blame on others and downplay it. Its the same playbook that we have seen with inflation when we were told it would only be temporary or transitory but Americans Still feel the pain inflicted by binomics wherever they turn. This one is the cumulative inflation for all items to the first 38 months of the last 6 president ial terms. Can you tell me which one of those lines would you believe would be the Biden Administrations inflation . Im sure youll tell me. You have a guess . I dont guess. You dont guess . Not usually. Anyone listening at home that the top line showing the highest inflation for the last six first president ial terms is, indeed, the Biden Administration. I think its fair to contrast that with House Republican budget framework which proposes no new taxes and actually balances the budget over the course of next ten years. Director young, what will adding additional 18. 2 trillion to the National Debt of 50 increase over where we are today in terms of National Debt, what do you believe that will do to inflation which, again, is your Budget Proposal . I would ask you to please look at our Budget Proposals, thats why we are asking the top 1 to not only pay for things like child care and pay leave but also reduce deficit by 2 trillion and stabilize debt. How do you get to the 3. 3 trillion reduction . We are here to talk about the president s policies and how they put us on a better fiscal path. We are going to add addition 20. 3 trillion to the debt by 2033. They revised that after the republican fra, your budget calls for 18 trillion of debt thats with 5 trillion of tax increases so im a little bit confused on how the Biden Administration says they saved 3 trillion where on the current baseline as you say 18. 9 trillion but you are posing 18. 3 trillion Additional Debt on top of 5 trillion of increases. This president supported where we ended up. We never believed the debt ceiling should be used as Political Tool which would jeopardize 8 million jobs. We did this deal and signed this deal and the president worked in a bipartisan way and democrats voted for it in a bipartisan way to save a trillion dollars over the next decade. Director young, the president said wages are up more than prices, inflation is down dramatically, is that true . That is true. Inflation is moderated twothirds. I have another chart to show you and this is the first 37 months of the president s terms. One of those is inflation and the other one is real wage growth. Which one do you think would be inflation . Have you ever thought about labeling these lines . Im sure youll tell us. The top line on there is inflation. Inflation continues to grow at a pace that is faster than, faster than real wage growth. These numbers are pulled from your own federal agencies, the bureau of labor and statistics. Who is right and who is wrong here. The president of the United States or his agency the bureau of labor institutes . If youre worried about lowering costs for the American People which we are we give you a lot of proposals to help families with child care costs, to help families with healthcare costs, with energy costs. The ts own words are in conflict with his own agencies. All i want to know who is wrong here, the president of the United States or the federal agency that is reports . Inflation has come down twothirds, theres more work to do and thats why we have the proposal in the budget . I thank the gentle lady of indiana. My colleague from virginia shes battling Health Condition we all know that and theres some limitations but shes fighting through that and im inspired by her. There are people that make Committee Meetings that dont make Committee Meetings. We are all busy people. She shows up, she shows up every time we have Committee Hearings and she represents her people and, god bless her and the people shes representing are getting a hell of a tale with her and so [applause] thank you. The floor is yours. I yield 5 minutes. Thank you, mr. Chairman, as some of you may know last year i was diagnosed with progressive Super Nuclear palsy, a type of parkinsons on steroid which limits my ability to speak. I want to thank Committee Members for allowing me to do so today. Director young is good to see you again. Thank you for being with us today. Ensure families have the support they need to drive. It is estimated that the u. S. Economy, due to child care challenges, reliable child care helps parents reenter or stay in the workforce. We must break down the cost of child care which in my district costs many families more than Public College tuition and ensure our kids are set up for lifelong success. I have been proud to advocate for policies to bring down the price of child care and address child educator status in the United States including sewering funding for a program in my district to expand the number of Early Childhood educators. Including creating a Historic Program to guaranty child care for lower and middle income families. I have a threepart question for you about President Bidens proposed plan, first, how will this program work . Second, what would the monthly cost of child care be for most families under the president s plan . Thank you and to echo the chairman, thank you for being an inspiration to me. I touched on preschool a little with congresswoman but we believe and the biden budget reinforces that preschools should be free and would be free for all families as someone who relies on child care i wouldnt have this job if it wasnt for child care and ability to take my child somewhere. So we believe the research, i have personal experience that suggest women would be able to reenter the workforce in larger numbers if we gave them affordable quality child care and too many families have to leave their children in places where frankly they dont feel comfortable doing so but they have little other choice. Second, you already fund a program that is helpful but we believe we need to full Child Care Program and this budget keeps the discretionary program, block grants, this budget would add a billion dollars in 23 level to that program and Head Start Program both critical for families who need healthcare or child care slots to make sure they can work and their children are properly taken care of. Thank you. To make President Bidens plan work we need to ensure that there are enough child care workers with knowledge of Early Childhood education and early development, how does the president s plan work to include the p a proposal that would make Community College free and those students who are given the opportunity to go to school and to it in a affordable way and not taking on and choose education as career path like my grandmother and it is a profession disproportionately chosen by woman and we believe one of the ways to make sure people continue to choose that noble profession is to make sure college is affordable and we have proposals to do that. I think the gentle lady, again for her steadfast commitment to her committee, to constituents and great country. We are just all better off and well served. Ben klein from virginia, yield 25 minutes to you, sir. Thank you, mr. Chairman, i want to also echo your comments about our friend the gentle lady of virginia. You are blessed, you have four virginians on this committee and two on each side and so we bring with us a wealth of knowledge and the gentle lady and Work Together on appropriations and we can agree and seek the better man for the people of the country. So director young, thank you very much for being here and as a former appropriations director, thank you for your service on that committee as well. As you know, our country is currently on the hook for 34 and a half trillion dollars in debt with Interest Payment rising and the federal Balance Sheet to the second highest government expense. The Budget Proposal presented by the Biden Administration with one last opportunity to change course before the American People are presented with the opportunity to make the decision for him instead the president has decided to double down on tax and policies that broughttous this point that further subject American Families and transitory inflationary pressures while increasing National Debt to 52 trilliondollar, we can look to the president s record over the past 3 years and see the bleak trajectory that bidens proposals would take our nation. This will only serve to slow our economy and put increase price pressures on families. Perhaps one of the most incredulous tax proposal of the lot minimum tack on assets and unrealized gains that would turn the irs into floor fied property assessor. Director young, i dont know of a single country that has this sort of a tax, do you . If its good enough to use as that kind of collateral, shouldnt be it be taxed like income . Okay, if such a tax were created, what would stop the government from expanding it and the future to apply to middleclass families . This president , the one asking for as you know has iron clad commitment. Hes not going to sign a bill that taxes those making under 400,000 and certainly unrealized gains is only applied to billionaires and hundreds of millionaires, certainly not middleclass families, not even close to middle class families. Youre saying there isnt anything in your proposal . The law. Our proposal stops at millionaires. You think those who are millionaires according to assets should be able to select snap benefits currently . Mr. Klein, on snap benefits those who are eligible as you know we as part of the debt deal painstakingly found ways to ensure that those who were eligible and provided waivers in common sense ways, so we have saw reforms with republicans in ways that protected that program, therefore, those who need it most, im not aware of millionaires who are who are getting snap benefits. Well, there is something called the broad base categorical loophole that has resulted in over 5 Million People who shouldnt who dont pass asset test but are collecting snap benefits today, this is a big problem and thats why i introduced budget legislation to close the loophole and i would hope to get the administrations support on that because millionaires should not be eligible or collecting snap benefits and i think, i heard agreement on that. Well, like i said im not aware of anyone doing that but im happy to look at that piece of legislation. Thank you. Continuing on that theme in august 2021 President Biden, the department of agriculture defied congressional intent and evaluation of the thrifty food plan leading to increase of snap benefits 30 billion over ten years, as former approach staffer, do you think the president is justified in ignoring congress and expanding these programs to the tune of hundreds of billions of dollars a year without in violation of the 96 Congressional Review Act which requires agencies to submit policy updates to congress. Mr. Klein we believe we are in strong legal setting that we have every authority to take the food plan. That was a major policy change and you ignored the cra, correct . We have every legal ability to undertake that plan to provide a hundred people with more resources. I will disagree and yield back, thank you, mr. Chairman . I thank the gentleman from virginia. Thank you, thank you, mr. Chairman. As appropriator im keenly aware of your great work on this side of congress and admire your efforts and your commit met to our nation. You seen an effort to weponized immigration once again as it happens every four years when we peddle some narrative to try to get votes to get reelected yet this is the Budget Committee but i will share with you some statements that we may have gotten but that i think we will all remember. I believe in the idea of amnesty for those who have put roots here in 1984, ronald reagan, we must bring undocumented workers already in the country out to have shadows. George w. Bush, and rather george bush and george w. Bush proposed to sign into law a Guest Worker Program in efforts to address immigration so immigration is not a new thing. Its been dragging a long for decades. And this house has failed in its duties to address comprehensive immigration reform. To try to say that is something that happened now under the Biden Administration is an effort to weponize it politically and they do that because they want to talk about day care and child care, they do that director young because the president budgets includes significant funding level for child care, new program with families making under 200,000 a year would guaranty affordable highquality day care. Day care has become really expensive. In my district it could be 700. It could be half or even at the levels of rent every month. So moms that want to get back to the workforce cant do it because its so expensive but yet the president has to address that in his budget and the other side fails to engage in this discussion, they want to talk about immigration because they are weponizing it once again as they do every four years so i want to ask you, director young, how important is this an issue . Im in the middle of it now. It is unaffordable. I dont have the words to quite due unaffordable but if i had i would use that and we have a proposal that says families, some families wouldnt pay more than 10 a day for affordable quality child care. Theres a bipartisan program, the grant block program. Head start which i know retains bipartisan support, billion dollar increase but to really affect the affordability crisis we have to do Something Like the president s mandatory proposal so that families are not burdened frankly with child care and left with decisions where they have to leave their children in places that are not of quality and that they have they cannot enter the workforce because of those decisions. Another issue that they dont want to talk about and they want to weponized immigration, director young, is included in this budget and thats head start, so important for head start. The longest surviving Program Since the 60s and it literally gives kids a head start. So talk to me about pay parity, how important is that . We cant recruit the teachers we need for head start because of pay constraints. They are often not paid what a teacher could get going to public kindergarten. So we need to ensure that we have the funding necessary to recruit quality certified teachers to teach our kids and give them a head start. We have to make sure that we fund the teacher proposal. And im very worried that we we dont keep up and will continue to lose slots in the very Critical Program in communities like the one im from . Thank you, i yield back, mr. Chairman. I thank the gentleman from new york and yield to my friend from virginia mr. Bob good for five minutes . This new budget proposed 4 trillion more in spending, 5 trillion more in taxes on the American People. Last time you were with us you had a little trouble with this question, i assumed that you wont have trouble today, the National Debt is how much now . As you know, National Debt is about 34 trillion. How quickly are we acquiring another trillion right now . I dont believe we take on debt average a day. Its inrassing by a trillion dollars every so how often . Interest rates as you know the debt is going up by a trillion dollars approximately how many days or weeks or months would you say . Are you aware of that . Let me point out, one of the cost drivers reclaiming my time, thank you, thank you, mr. Chairman. Thank you. Do you know how quickly the debt is going up by trillion dollars . I think we i just think that would be important thing to know. A hundred days or so another trillion is add today the debt. What will the debt per taxpayer be by the end to have president s projected tenyear budget, how much would an average citizen owe and how much per citizen would be owed in debt by the president s projection . The president projected budget is going to go from 35 trillion roughly to how much the debt is going by his projection this is without extra supplemental. To how much in ten years . First, mr. Good, debt is cumulative. Im asking for a number. Parliamentary inquiry, is the witness allowed to answer the question without constantly being interrupted. The clock is still running. We will give you the we will give you more time. Hes asking a question, director young, answer his question to the best of your ability, if you dont know say i dont know and we will keep going, so whats the question. Let me reask my question. At the end of the its in writing proposed budget our National Debt in ten years would be how much . I just want a dollar, i dont want an explanation, i just want a dollar. If you look at the only thing i want to hear is a dollar amount. Well, you will hear my answer. Then i will stop you and reclaim my time. Its 52 trillion. Fiftytwo dollars is what his proposed budget 52 trillion in ten years. What does that amount equate to her citizen, the Census Bureau says we will have 350 million americans in ten years, 350 million, so if you take the 52 trillion divide by 350 million americans about how much per citizen is that . Mr. Good, thats a false narrative. The reclaiming my time. Reclaiming my time. If we take 52 trillion, we divide to 350 Million People. Its 150,000 per citizen is what the president is projecting without any emergency supplemental extra spending to take National Debt which equates 400,000 per household by his projection. Now, we have never had this level of debt in history. Weve never had this level of debt to gdp since world war ii and im sure youre aware of that. How would the president propose we would respond to a major crisis say world war iii or some other, the next virus situation with this level of debt. Isnt it interesting isnt it interesting reclaiming my time, thank you. Reclaiming my time the gentleman reclaims his time. Its interesting that the first thing that you proclaim that the crisis going on in ukraine. Proposes to make it worse over the next ten years. He has created a border crisis which has further exacerbated by this budget by the way which does nothing to address the border crisis that he has created but when you speak of crisis you bring up ukraine because the president wants to borrow, borrow or print, what, some 60 billion and send it overseas to ukraine. I think its great that you are illustrating for the American People what the president s priorities are illustrated by the budget today and debt hes willfully creating and you go back to ukraine. Border supplemental. The gentleman is going to get 30 more seconds and im going to give the gentle lady to respond. You get 30 more seconds. Does the president have an understanding what the impact is of his spending, growing debt on biden inflation which American People are suffering, does he understand the impact of spending, borrowing, printing, his debt causing the biden inflation which American People are suffering. Does he understand that . You will have as much time as you want to answer. Mr. Chairman, i get why people dont want to give the president credit for 15 million jobs low, under 4 for two years, i get that. I get the grand standing. If you want to do something about the heard which i heard about there was a bill right in front of congress to provide resources and authorities more than anybody could ever dreamed of. The amnesty bill. Bipartisan scenario but we choose to come in rooms like this to talk about the budget and blast the president who tried to do something about it. You are the budget director and ought to answer budget questions. The border has a cost. Its fair to bring it up. Its significant cost but the time has expired. Thank you, director young for being here. We do truly appreciate your professionalism and your expertise. Youre not new to the hill and we appreciate the time that youve given us today. I have a question. We just heard this back and forth about the debt. It was quite a bit of talking over your answers. My understanding is that President Trump added 8. 4 trillion to the debt and im wondering if i have that correct. You do and the point i was trying to make is debt is cumulative over administrations. And do you know was that the largest increase in the debt in modern history . In modern history, yes. Thank you. Appreciate that direct answer. One of the things that i talk about a lot in this committee is housing and not just because its greatly impacting vermonters, we have the second highest rate per capita of homelessness in the nation which is surprising to people because we are a rural state. Its something that cuts across party lines and opportunity matter what Congressional District youre representing, youre probably experiencing housing crisis and it is a growing crisis in Rural America and so across the country we have seen skyrocketing rates. We have seen predatory landlords, hedge funds buying up half a million homes. I know for me i think about housing as the basis of stability for families and so it enables children to thrive, it enables people to get better healthcare outcomes and i know that we can end homelessness through more humane costeffective solutions that ensure that everyone has access not just to permanent housing but also with Supportive Services and im wondering if you could this morning tell us how does the president s budget advance goals of ending homelessness to stay housed . When we talk about lowering costs which i think i heard agreements that we need solutions, the president has put forward many proposals on housing and id like to talk about if you are firsttime buyer, credit and affordability for middle class firsttime home buyers and also unlook starter Home Inventory for firsttime home buyers and helps middleclass families that are locked in because of rates. Rates are going to come down over two years. Its a twoyear bridge so the middleclass families can move to larger homes with their families and unlock starter homes budget also provides 10 billion budget for first generation down payment assistance program. We believe that its critical, we know most americans hold wealth through home ownership. My family being one of them and also to address critical shortage of Affordable Housing communities the budget provides 10 to the billion in funding for Innovation Fund for housing experience which would be Competitive Grant Program for communities that want to expand housing supply. This is critical as part of, you know, lowering costs what families will tell you they are hurting over is housing costs. We need more Affordable Housing. I think people really discount the impact that a program like down payment assistance can really have on helping people build up equity. I know that was true and i remember being in a Committee Meeting with some members of my committee, does this really make a difference to offer a down payment assistance program. It was so successful in vermont we reauthorized it numerous times because the takeup rate was incredible. It gives people an opportunity get into homes and build up that e question. Im wondering too if you could just touch a little bit on the housing supply issue. It is theres a critical need right now, how us the the president s budget address the shortage and supply overall because it is locking up basically at every level of the housing market. Yeah, the 20 billion that i spoke about, and wanted to apply to grants, this would allow communities to take their own local approach. Each has their own issues as to why they cant build enough housing and that is why we would have a Competitive Program so people could send in proposals that work for them and work with our housing agencies to develop things that are that fit for your communities. I really appreciate it. I know im over time. I just want to say how important it is for me to know that the president and the administration understands how how housing and this is a way for us to have solid footing for individuals for families, for communities and i just really appreciate the attention to this issue. Thank you, director young, i appreciate it. I lost control of the clock a long time ago so we are just thats okay. We need to make our points. They are important and my friend the general ranking officer here in the house and classmate from michigan take it over. Thank you, mr. Chairman. As a marine im used to sometimes high intensity situations. This is not one of them but as ive listened here reminds me of a time 40 years ago when i was probably 5 years into the private sector medical market and i had the opportunity to work for a wonderful leader and lose who believed that all life would be down analogies of two types, sports and family living. So lets talk about, you know, family living. Myself in the mind of my daughters at the time who were 16. But they would think of the conversation here. How would it apply to them . Theres probably not a person in this room that does not say that what we are trying to do here is for the betterment of our kids, or our grandkids. So, i would suggest to you until in this case we figure out a way to repair the relationship between the parents, which in this case is the executive branch and the legislative branch and all that are within each. We are still going to go further down the abyss where we cannot climb out. I would just suggest to all of my colleagues that we stop with the rhetoric that does not add value to what we are leaving for our kids, our grandkids and her Great Grandkids in whatever future generations. I think we can all do better. First term, the chairman mentioned some of us who are freshman eight years ago from Budget Committee, there was a data point in front of us. You can tax the wealthy one 100 . It still does not come anywhere near to what we need to begin grabbing fiscal control of our country for the betterment of our people. I would suggest we could stop without. So lets get now i have sucked up three minutes of oxygen here with my time. This cycle, we as the Budget Committee created taskforces of the honor of leading the task force on improper payments. I like to focus on that for the remainder of my time. So let me read something here despite improper payments totaling more than 236 billion in fy 2023, which is up from 150 billion in 2017 alone, the president s budget does not propose a governmentwide effort to begin to solve the issue. I am not saying were going to completely solve it but begin to take a deep look. So what specific actions is omb taking to improve the accuracy and the efficiency of Payment Systems to reduce the rate of improper payments . One, thank you for your remarks congressman. I believe you tell me what our children would be left with and we have an opinion on that as well. Respectful dialogue is very to fix these complex problems in the country for it you know the ui program is one of the largest drivers of improper payments. The things that make that difficult its state run. You see one program. Is look at the federal level. Lets talk about the federal level. Admittedly some things about tht the state level. Lets talk about what we could look at right here in her own on backyard. In our budget we have significant new proposals. We are seeing some traction and committees of jurisdiction to move on legislation. We have a proposal that would save about 2 billion for modernizing and protecting and strengthening the ui program. I am saying there is a federal responsibility. The difficulty is each state runs a different one. We have a proposal to improve that system which will save about 2 billion. I know my time is past i dont want to abuse the time. But unless we look at, and one example is the fraud that relate to the covid19 pandemic, which is federal, we are missing an opportunity and get further behind without a yield i think the gentleman from michigan. Doctor young we passed the first bipartisan process reform the budget process reform legislation in a decade. Then this week on the committee my colleague served as the Ranking Member. I have got to say watch your back she was that she was good. I appreciate her leadership and support for. Requests i fully supporther pro. That is only because ms. Omar you have five minutes the gentle lady from illinois. Think you chairman. I do not want to get in trouble. Give for joining us. I want to talk a little bit about addressing the Opioid Crisis we are seeing throughout the country. Especially in my district. According to the cdc the National Overdose rates topped over 100,000 text again. From 2023. Federal spending on the crisis has surged with roughly 40 more dollars flowing to our states free states like minnesota have recently been allocated hundreds of millions of dollars for Overdose Prevention as well. With all this funding there so much more to be done. Its very encouraging to see the president s budget requests continue to prioritize vital investments. These programs promote mental health. Prevent substance misuse and provide treatment and recovery support. Director youngkin you outline the new Funding Priorities in this proposal that could better support our state and Community Organizations and the frontline of this epidemic . I dont think theres anyone here who disagree we have to use every tool at our proposal to do something about the Opioid Epidemic in this country. This president has put forth robust budgets. Even in a flat budget and fiscal responsibility act this president showing it is his priority to do something about this epidemic, congresswoman. Fortyfour and a half billion dollars for the National Drug control Program Agencies almost 900 million increase over continuing resolution level funding. The budget prioritizes expanding evidencebased Harm Reduction expanding access to treatment for Substance Abuse disorder. Combating Narcotics Trafficking Networks counseling illicit fentanyl at the border disrupting the synthetic drug trade. I know weve got into a little backandforth about the border bill. One place that is always had bipartisan support was the president border supplemental request to put more of the equipment at the ports of entry to catch financial coming into our southern border. I hope we can find a way to work in a bipartisan way to do something about this. Thank you so much i hope so too. I want to talk a little bit about the housing shortage as well that many of our communities are experiencing. Flood the Budget Proposal keeps pushing for policies it especially to time the dream of homeownership seems increasingly unreachable. To address her housing shortage we must have more Affordable Housing different types of housing. This idea is core it is the core of homes for all. Investing billions of dollars in development of permanent affordable public and private Housing Units with a focus on mitigating residential displacement and segregation. Congress can and must lead here since it has done before by delivering funds or Public Housing authority. To build so much housing. We renovated prepared homes provided subsidies to increase homeownership on a massive scale. It is time to appeal the amendment and get back to directly assisting all localitis with developing and guaranteeing stable housing for all. Director young is prioritizing to improve Affordable Housing. Again inflation is moderating two thirds. Families are still struggling. One place is in housing for it lack of Affordable Housing. That is why this president was it lower in cost is the theme of the budget, housings center to that. Helping firsttime phone owners. Helping families with tax credits. Who might be locked in with low Interest Rates pretty a bigger house for a surprise third child for the need to move to a bigger house and for same haute owners boat ownershave access to more g stock. This budget would do something about that to allow a twoyear tax credit. Also, 20 billion in funding to have localities and municipalities apply. If they have a zone problem is the funding to do something about that build Affordable Housing but we know every solution is different depending upon where you live. We look forward to working with those who want to take on those pieces of legislation. Know a little bit about that surprise third child. [laughter] i felt like those directed at me. It wasnt actually. [laughter] but i appreciate the concern and care that is given to increasing more Affordable Housing both in ownership interest in stock. Thank you so much. I think the gentle lady from minnesota and go to our representative from georgia. I appreciate you breaching reaching out and doing that. First of all, i want to say ive been pretty vocal about this, i think a lot of what were doingg here is talking about ideology and different views on how you accomplish various things. I hate to see us rely consistently argued backandforth on congressional budget numbers off Congressional Budget Office numbers that are consistently wrong. Weve had the director in here. We conveniently use those numbers when they help us. We dismiss them when they dont and thats true of both sides. So, while i respect you have your opinions on how to sell some of the challenges facing america, many of us on the other side see things differently. One thing that i want to address right off the bat because i think its really important is a discussion on Social Security. Well have the new administrator in today i am the chairman of that to discuss his budget. Look forward to that discussion. But, lets be real about the rhetoric and commentary on Social Security right now. We hear costly for my colleagues on the other side of the aisle we have seen nothing but harsh language from President Biden over Social Security constantly. First of all, i can tell you is chairman of the Social Security subcommittee there will be no cuts to those who are in Social Security benefits to those retirees are those near retirement. Ive said that consistently. Weve got to be intellectually honest about what we are doing and how we are talking about it. Its going to be bipartisan solution. It will require adjustments to the program. That includes adjustments to revenue. I think we are realistic in that discussion. I would just make this simple request that we have an honest discussion. Let me give you an example. The president has really hammered us and hammered republicans with the false narrative we want to cut Social Security. In this very budget, and this very budget you are going to cut Social Security payroll tax receipts by 17 billion over the tenure. How do you square that . We have a solvency problem we have a huge spending problem is Social Security administration. And yet, when you look at this this budget cuts 17 billion out of receipts. Congressman is an effort to take you up on your create an honesty and budgeting, 17 billion is pure interaction in the prayer its not a cut set a policy decision its an interaction with the president s revenue proposal projects at the end of the day doesnt that move money away from recipients on the road . It does not compare to the sheer amount of money that comes to Social Security payroll taxes are around 15 trillion we are trapped on a small amount based on revenue proposals interaction. It also does not take into account the president s ask we ask high income americans to pay pate mortgages Social Security program. So in a roundabout way you kind of said yes sometimes you say what you would to say i hear what i want to hear but i think we all heard it does take revenue away even if it is in your words a smaller amount. As you know your colleague from treasury, secretary yell is over the senate right now having her discussions with the senate now. In that she had an exchange with senator kennedy. In that she said went senator candace going down the road of saying what is the number generated by people making over 40000 . In essence she said that president does not have a plan, he has principles of most work with congress to protect Social Security and extended solvency. We have not had the Administration Come to us and talk to us about a plan. So when we when the president makes a Campaign Issue at a Social Security get his own treasury secretary says he doesnt have a plan, this ghostly problem im talking about Social Security. Just tough words come out of his mouth but he does not even have a plan according to his own treasury secretary. So again mr. Chairman i know we are out of time. I just hope on an important issue like this, we put down the political swords. We drop the rhetoric. We work in a bipartisan way to get the system as clean and efficient as possible. Hen then, as we do that lets find a way to protect this Great Program together that i yield back. To quickly associate myselfwithn eliminating these issues as political fodder. The big big, something great something important which is a good step for our seniors for our country. Which is a good segue to the gentleman has been a leader on a bipartisan effort to address the solvency of the safety net issues or programs rather than the longterm viability of longterm finances. With that jimmy from california for. Thank you and appreciate your introduction freethinking Ranking Member as well pate director younger to have you back and i was good to see you. I appreciate the hurt and make it for her george had been to lot not just him it says a lot about you. You are willing to reach out to members understand how important Member Engagement is. I push it that we always have based on your interaction with you. Today obviously we want to talk about the Administration Budget priorities. Also finalizing administration regulations. August is probably sentiment of both sides of that we wish we could be focused on fiscal year 2025 a symptom with fiscal year 2020 for six months late. I want to first say a word that probably only you and maybe one other person in this room and myself will understand and thank you for what you have done to help secure significant amounts of funding including a recent 38. 5 million for emergency repairs to the Flood Risk Management Program out to plot the administration for making strong investments in something thats very, very important to my district that comes we talk about Affordable Housing a thespecial outcomes of tax incentives and yes, mental health. I want to note this budget increases Medicare Trust fund indefinitely. We misted the same thing by putting forward concrete solutions. Part of that is what ive seen this committee and fiscal responsibility thanks to a leadership of the chairman and Ranking Member this responsibility is a priority. As you heard and i firmly believe in most members support the creation of a Fiscal Commission to draft a plan to get our fiscal house in order. Hopefully it is one that congress will take a vote on. I know there has been skepticism about the commission trust may have heard in my district. If there are other ways to clear the political hurdles needed for deficit reduction i am well open to hearing about them. Today i commend you on this budget which i believe such a good example for fiscal responsibility. It is i have said in my District Housing is the top issue. Which can help families afford the higher cost in districts like might have interest legislation Centers White house and heinrich tigre to 15000 tax credit for eligible firsttime homebuyers and making it available at the point of sale which is an important aspect of that bill. Director, why is it important to have these types of credits in this budget to encourage homeownership . Most people come as you know while they may be able to afford a mortgage need help anyone who bought a house knows the expense needed upfronts. During their tax season to get that money back up this was adopted with the simple matter we want more people to own homes. We need to provide this kind of credit especially for firsttime home owner weed out people who second or third homes get to use but they made on those homes to help them move into a larger home. Firsttime homeowners do not have that ability. Exactly, thank you for it and introduce legislation obviously prioritizes low Income Housing tax credits. I also want you to be aware of a piece of legislation i introduced in a bipartisan bicameral fashion called the Workforce Housing credit many people in my district who actually work and cannot make too much afford low Income Housing. More homes on the market bill which doubles the exemption for the Capitol Gains on home sale so we can but more homes on the market and incentivize people to sell their homes that want to protect their nest egg. I want to bring up Something Real quick. Yesterday speaking to a group of finances low Income Housing they noted hud had proposed regulations to streamline permitting but they need approval from the omb. How can omb play a part in streamlining hud permitting requirements . Im happy to look at that specific rule. We often are place where agencies rule and guidance come in to make sure they are when they have other agencies have had a chance to look at them we have interagency process. I am happy to look at that particular piece and make sure that it is on track. Outstanding, thank you director. Think the gentleman from california i now yield five minutes to my friend from the great state of texas, chip roy. Thank you chairman. Thank you ms. Young for appearing before the committee and for your service. A couple of questions. The first question is in respect to revenue assumptions or the president s budget. I believe and have it assumes revenue will average a percentage of gdp year over year of the course of the windows that correct . Is correct i believe it goes up a little from that level at the end there. Its 19. 4 of the when it when youre in 2031 it assumes 20 of gdp. My question putting it aside to tobeat their attacks by what it does or doesnt get revenue we can have a debate on that have a whole hearing on that. True or false 20 of gdp revenue to the federal treasury ive never actually been achieved . Rights. The 2001 2000 is closer. It was like 19point but weve never actually got 20 this budget assumes 20 in 203119. 7 with a gentle lady agree weve only achieved something in that zip code three times in our history postworld war ii. Com time directly describe round 2000 or 2001 and then in 2022. We achieved 19. 6 ish as a percentage of gdp as revenue coming to the treasury would you agree roughly question. At those time frames you laid out yes. My point is not withstanding that reality the budget the president put forward and you are offending assumes revenue over course at 19. 7 weve only achieved three times in history. At spikes. Spikes on the chart you hold a chart up ive got one on my screen but not to show you but youve seen it. Spiked up three times at that level. Weve got it going up as high as 20 which we have never achieved. It begs the question of tax policy could achieve such a thing . They have a tax rate is high as 90 . Corporate tax rate is highest 40 weve had tax rates lower. Its been over the entirety of the history its all over the place. So we could debate that but my question is not withstanding those assumptions, if thats the revenue needed to be brought in in order to achieve the objective of what youve got in the budget still produces a rather large amount of deficit spending for the truth is with respect to interest, we will pass the amount of interest spending passes defense spending this year, is that correct . Yes by a small amount but yes progress interest spending cracks a trillion dollars in 2026 under the president s budget a trillion dollars will crack 2026. Every year of this proposed budget interest spending is estimated to be greater then defense spending over the entirety of the tenure budget is that correct . You know this it depends where Interest Rates are they are a great parable but our estimates are it will go up very. Yes every year end they can budget the whole budget is an estimate. The further you get out yes. You are putting that in there. If you look at the total amount of deficit the total amount of debt we are racking up, all of that is under that rosie is revenue model we can possibly come up with. A very rosy revenue model as a percentage of gdp coming into the treasury. So that to me is concerning because history would tell you the average amount of revenue coming into the treasury at 17. 5 . I say that in the one last point. Today weve got 24 hours to review this omnibus spending bill thats roughly 1. 2 trillion dollars over 1000 pages. Weve got to say the next 24 hours of were going to support it. You can probably guess whether i will support it out. As we look ahead and look at the bill my question for you is just this. You came to the negotiating table along with the president of the United States of the administration with a certain set of priorities. Republican leaders in the house of representatives came to the negotiating table at the white house and Chuck Schumer but that certain set of priorities. Yesterdays report of the Democratic Caucus meeting the highlights for my democratic colleague. This no poison pills on antiabortion lgbtq or di policy writers significant increase in child care medic, dod climate resilience, humanitarian assistance, afghan, increased title i funding, rejected hrt provision. Would you say you achieve the priorities that you wanted to achieve and that the president wanted to achieve in your negotiations on the omnibus spending bill . I know we are over. My most thoughtful way and i really mean this, is this the bill we would have written . If it was not a divided government . Absolutely not. This bill, and i mean this, is a reflection of divided government i certainly hope it passes because the alternative is avoidable shut down. I appreciate neither side got what they wanted. U. S. This side they are unhappy with a lot of things to precook sealed backlogs to think that jon from texas yield to the gentle lady from the great state of texas mrs. Sheila jackson lever five minutes. First of all let me think the director for years of service to this nation. We do not often get to speak positively to a person that is young but has a long history of service. We thank you for having that kind of record. And being expert enough to have been on this side like the legislative cited knowing the difficulty we have of trying to put a budget together or assessing the executive budget because the whole question is about revenue. To be able to ensure that we have enough revenue coming in. So first i want to make the point, i like gospel music the aftermath of the george floyd horrific killing a young black boy either saying or wrote a song that said i just want to live. The passionate emotional song i commend any of you to put up on youtuber however. It is a theme that i want to use that we are not trying to create an atmosphere where American Families, no matter where they started in life are just surviving. They are just barely making it. Vision and budget that makes us comfortable. The budget would pay for the investments to help families thrive as you say, to have child care, paid leave, universal care in this country and also achieve 3. 2 trillion in deficit reductions because he does ask the wealthiest in the country to pay more. In some proposals, congresswoman, not even back to levels before the 2017 tax law so we provided a path to show we would invest in American People and also achieve deficit reduction. So American Families would be thriving as opposed to surviving, that would be the goal . I would hope that is all our goals and weve put forward proposals we think to allow middleclass and working middle class and working families to thrive. I have corporations paying their fair share and every time we use that terminology its like we are attacking Corporate America and this is one country corporations flocked to be able to come and build. I have a number that says if they pay their fair share we get an extra 2. 2 trillion and again that may be a number that can move. The budget includes an important income tax that wouldnt be painful but would require the top 1 of households or those with over 100 million to pay minimum tax of 25 . Let me pose the question how extensive will our commitment to be to protecting medicare and medicaid, two different lines of payment with two different lines of treatment if you will. What we strengthen both of these in the president s budget . Medicare the proposal would sustain medicare and improve insolvency indefinitely. Again the wealthiest top 1 would go to 5 and that would take the Medicare Trust fund into solvency indefinitely. The cms the professionals the curb your team that looked at that, so we believe that expanded health care, medicaid and the Affordable Care act in the country and we have a budget that would expand upon that. Its really been the achilles heel for our people for so long but with the few seconds i have let me get you to give a collective answer. We want better housing, childcare. Thats been one of my issues and housing. Affordable housing made a commitment. Give me that as you close your remarks and i have no more time left. The housing, ability and childcare. Housing, childcare, healthcare, all those things middle class and working families need help with in this country this budget would do it and pay for it. I think that is a budget that has the words thriving versus surviving and im standing with the president s budget and we will find a way to move forward on moving america and americas families forward. Last i would say moving people out of poverty i want people to know we are concerned about the status of poverty. Thank you very much, and i yield back. The time has expired. The gentleman from utah. Thank you, chairman. Director, ive only been here to terms on the lower tenure. Other than witnesses weve invited typically have a natural briefing to chat with them youre the only person thats weve reached out. Sorry for this week i wasnt able to make that a schedule but i do appreciate it. We have a massive catastrophic hold of this week which my wife refers to as a man cold. She also says everyone has to know about it which i actually guess im fulfilling that prophecy at this very moment. But i do appreciate that and i look forward to as much dialogue as possible at any moment. That means a lot. Back to my cold, i get to the point where you have weeks like this and its a nononsense type of moment. Ive been disappointed we passed this act into theres so much fear mongering going on about trying to get something done that we all recognize we have a massive problem if we dont get ahead of our debt and deficit that have persisted. Its been frustrating to watch. I dont really need you to expound on it. I dont know to what extent but my ask to you would be can you commit to cut through the nonsense going on . The fear mongering about Social Security and the cuts to the programs and also from the right its a way would you be willing to commit or dialogue in a nonpolitical tone among folks you interact with . You have my commitment to do that. Theres different ways to dialogue and i appreciate the hearings its five minutes of back and forth it doesnt really lend itself to a real dialogue but i hope to have a conversation with you longer. I have lots of ideas on things and you have my commitment to always be available for those conversations. I will never forget when she responded and it was in an easy way to grasp tax policy. Many businesses were among the range its easier to split the difference. Do you have specific an analysis that can prove raising the Corporate Tax rate in the current environment wont impose burdens on low and middle income americans and wont be putting our companies at a disadvantage globally by raising the tax rate of 7 . Thank you, congressman. We used to have about 2 of our gdp from Corporate Tax rates and we are down about 1 . Other economies have about 3 of their gdp from Corporate Tax rates so we are underachieving and also have to remember something the secretary worked on some countries have taken us up on that proposal. Our budget asked congress to do that and it prevents companies from looking offshore and countries have signed on and have done that to make sure you cant just go to a third country and hide from your tax obligations. So the proposal means we ensure our corporations dont offshore which they are doing today and we bring the Corporate Tax rates and gdp back to the norm not even let other countries are doing. This becomes an arbitrary number and i know theres industries out there that skirt but i and others will be hit hard with the tax increase. These are hardworking American Companies that will be affected. 99 of businesses are categorized as Small Businesses but they do their taxes on an individual basis. Raising the tax rate to 39. 6 , will that affect the Small Businesses . We dont believe so. Over the last three years we believe his policies are the reason weve seen over 16 million new applications in the first three years and we are committed i wont go into the proposals but we are truly committed. We are talking about going after those highvalue high earning corporations and not a Small Businesses thank you chairman, i yield back. The gentleman from kansas for five minutes of questions. Thank you for being with us today to answer questions and provide insight into the request i want to correct the record on something. You stated that the president wouldnt sign the bill but the president has already signed a bill raising taxes on those making under 400,000 in fact according to the Congressional Budget Office the socalled Inflation Reduction Act raised taxes on those under 400,000. I ask unanimous consent to enter into the record to the Ranking Member. Without objection so ordered. Its not really a concern some of my colleagues have concerns about the proposal we are talking about today from the tax increases to expanding the bureaucracies theres a lot for us not to like in the budget but i want to focus on something at least outside the hearing theres bipartisan support that is growing and thats addressing the fiscal crisis and where we are. Im sure you are aware of the country is borrowing roughly 95,000 a second and thats more than the Median Income of an individual in kansas for the household income. So literally and just one second the federal debt increased 95,000. Democrats and republicans all agree this is a dangerously unsustainable and im part of a Bipartisan Group that is working to address this. In the president s budget request, theres not really a meaningful way to address the crisis. Even worse, the president proposed tax increases which are not offsetting the new spending proposed and it seems like the plan is to have a continued deficit and continue growing that debt. I know that sometimes in the doublespeak its easy to say the president likes to talk about his deficit. In reality though just because you proposed a large deficit thats less than a larger deficit proposed before, thats not a cut. Its still increases the debt. And in fact its going to increase to 52. 7 trillion in ten years based on this budget from the already staggering 34. 5 trillion. Can you help us understand where the president s priorities are on the Fiscal Health of the nation and particularly why he didnt propose balancing the budget if we truly do have a strong economic recovery . I want to make sure we are not completing deficit and debt. The president has in fact when he began. Lets not confuse the covid to spending democrats and republicans agreed to for the disaster. When i look at if we take out covid and the extra spending and look for the next ten years from with the president proposed, it is increasing the debt. From the amount being spent when the president took office until now, there has been over a trillion dollars in deficit reduction. I appreciate you dont want to count that base because we are in the middle of covid but i dont want people to forget where we were and he led a successful Vaccine Campaign and ensured we had one of the strongest economic recovery is than any other major economy in this world. He was the beneficiary of the operation warp speed President Trump put in place and that started rolling out before President Biden came into office and was helping make that economy get started and i think we can all agree Alexander Hamilton brought up that the necessity for borrowing during a particular emergency cannot be doubted but im just looking forward. Over the next ten years, the president looks and proposes increasing our debt instead of lowering our debt and what is is supposedly strong economics. He has shown a path. Theres a disagreement on how we get there by asking the wealthiest to pay more with a deficit reduction, and the risk is you asked me about a balanced budget. The risk is that program like Social Security, medicare, medicaid, the Affordable Care act, those are where the government has most of its outlays if you want to balance and a short amount of time theres no other place to go but for those to come down. I know my time has run out, but the data does increase, that is the fact of the matter the Budget Proposal is going to increase over the next ten years and unfortunately my time has run out but i will yield back. The chair recognizes the gentlelady for five minutes of questions. Thank you mr. Chair. Director, thank you for being here. I just want to point out a couple of things. President bidens budget seems to cater without taking into consideration whats best for the American People, and just this week the epa announced a new rule forcing consumers to buy electric vehicles over gas and its flawed for so many reasons. First of all the electric grid may not be able to handle all these changes. It will increase reliance on china as they control the supply chain. The Auto Industry made clear that its going to hurt them and this may be nearly impossible where people regularly drive long distances and fuel act charging stations. We saw that not that long ago so im curious how much of the funding in the president s budget between the increases for the epa and the department of energy will be used to produce the rule that reduces the everyday furnishes because it seems like theres a lot of rules that are affecting people. Congresswoman, the bill released last night that hopefully will be voted on friday. Epa finalized the tailpipe rule and now the administrators speak from an investment standpoint and ensuring they have the charging stations they need to make this transition because we believe Climate Change is an existential crisis to the budget. Look how much we spent on disasters that we put the infrastructure in place in order to support more electric vehicles to ensure that we do something about the Climate Change. About does it address at all both issues i mentioned, the performance of a battery . I saw it on the news two months ago i think it was now where they were not performing at people were stuck and couldnt get it charged and there were huge issues at these departments into the question was about how much are they going to commit to these rules, and maybe you just talk about in general theres been a proliferation of these rules that are banning things and really getting at things because obviously i think if the questions are on the tailpipe rule, i will let epa explain its own rule but i will say as far as infrastructure, we do have budgets based on the Inflation Reduction Act to make sure we have the infrastructure to deal with those issues you just pointed out, people who need more charging stations. We want to see that infrastructure. Communities shouldnt be left behind. The last time i went to my home state i saw charging stations and places frankly i never thought i would see charging stations and so that work is happening all across the country theres more to do and we are committed to making those investments. Will there be in the budget but the president has proposed, how much of it is going to be used to write of those rules that influential in peoples ability to make choices . We dont believe the regulatory actions infringe. We think they have different points of life for americans specifically we think it is going to lead usually to the needed to address emissions in the country and i appreciate the difference of opinion but also Health Outcomes. Children suffer from asthma. There is a reason the association and other organizations supported that rule but Agency Budgets that support the rulemaking and did the epa operations accounts support employees that do that rulemaking. To reclaim my time because i have one more followup question and im almost out of time i wasnt paying attention. Theres obviously these switches whether it be gas stove, battery part, how does the president s budget account for the cost to the consumer, to the middleclass families because they are still very expensive . The cost of changing a stove for any of those items is expensive. No one has any intention of banning gas stoves, but that is why the Inflation Reduction Act provided tax credits for americans who want to buy if they cant even begin to afford it, the tax credits are one thing but they cant even start to afford these and i dont understand how we are going to continue to impose these ridiculous rules and i am out of time. The time has expired. Im to recognize the gentleman from oklahoma for five minutes of questions. Thank you, mr. Chairman. Director, appreciate you being here. I want to provide some quotes from former president bill clinton. A decade ago he stated that he raised the Corporate Tax to reduce the deficit. He specifically stated i agree as to the Corporate Tax to international average to make a contribution to drive down the debt. Similarly in 1993, president clinton advocating for the tax in his own words he said he was advocating for is the best way to provide us with revenue to lower the deficit. In both of those one is im doing this about the debt and about the deficit. The democrats held at the goal to reduce the loading with her tax increases. In this budget proposed by President Biden, the leader of the Democratic Party wants to increase taxes by 5 trillion but i dont see it being used at all to reduce the deficit. According to the cbo the debt held by the public would increase if nothing changes from the current spending habits. With this plan, the biden plan, 5 trillion is going to be raised in taxes, tax increases, yet the 18 trillion Additional Debt in the ten year window will also occur. That means with your budget, the bidens budget, 5 trillion in tax increases. 000000 americans over the next ten years to increase spending but it does nothing to address deficits and debt. So i appreciate anyone who wants to talk about hypocrisy among the republican party. I want to say this tactfully this is kind of a rhetorical question where does the ideology of bill clinton president s the ideology of the democratic president go where once upon a time they would say we want to tax increases because we think the debt and deficits are an issue. The tax increases, spending increases and yet no deficit reduction is in the plan. He has said show me your budget and i will show you your biden news. The dollars in this are clear i dont see the deficit and Debt Reduction as a part of true emphasis. Radical taxes spend no deficit reduction when democratic leaning constituents back home asked me why we dont raise taxes on the top 1 to pay on the dead, i go through some stats to back up what has been twisted about what they are told. According to the Tax Foundation the top 1 already pay 46 of all income taxes, the top revenue stream coming in. 46 of all income taxes to the top 1 . Further you take the top 50 of all income earners they pay 97 of all income taxes. That means the bottom 50 paid 2. 3 of all taxes. So this tax the wealthy mentality, weve got to make sure people understand the democrats in oklahoma that this administration would raise taxes to address debt loading but this budget shows the debt and deficit reduction isnt really a priority for you all. Its a radical ideology that is leaning this administration again and that really saddens me. Again i ask you where has the ideology of bill clinton gone for this democratic president and what 30 years ago democrats were focused on the debt and deficit spending. Both parties are to blame. When we talk about fiscal discipline, and im doing this to say im concerned about where the Democratic Party has drifted. And we can close with this this budget has radical claimant priorities. Housing cost increases, the new Program Seeks to provide families with 10,000dollar mortgage credits over the next ten years. Its going to cost 47 billion unpaid for and its going to lose needed to be an increase because deficit spending drives inflation thats where Interest Rates are coming from. We look at different statistics when President Biden took office, it was 100,000 more. The average income for the same families has risen by about 10,000 before this administration to now so im going to wrap it up by saying i believe the budget is compounding the problems you said here trying to fix. Where is this administrations focus . Each 139 in the budget. Deficit reduced by 3 trillion. The debt number and policy is 48. 3 trillion. Policy 45. 1, 3 trillion left. With all due respect it says 18. 9. Because they dont look at de policy, they look at baseline. Its 18 trillion, so to try to have these different numbers i just dont see i appreciate the extreme gently wish we could continue but in the interest of time, lets go to our colleague from the great state of texas for five minutes. Thank you mr. Chairman and congratulations for leading the first bipartisan budget process reform i think ever on the floor of the house of representatives. Its a remarkable achievement. I do have two unanimous consent requests i ask for consent that the report from the Public Policy Fund Foundation with medicaid recipients actually have worse Health Outcomes compared to the uninsured and then the second one unanimous consent a memo from the committee on taxation that 54 of the Inflation Reduction Acts expanded subsidies will go to breakin over 400 of the federal without objection so ordered. First off, thank you for the call. I heard the back and forth on charging stations. Ive been a student of the hybrid Technology Since 2004, consumer of hybrid Technology Since the first toyota car came out with that in the early 2000. And it strikes me weve missed the mark hereby trying to force the entire country to go completely from internal combustion engines to electric vehicles is where the resources are directed towards hybrid technology, plugin hybrid technology, the resources required to make one big electronic vehicle battery that can go 300 miles between charges could be used to make four, five, six or seven batteries in the hybrid technology it seems that would be a use of resources. I know you cannot as the director of the house budget you get to review the rules so i added that for what its worth of that we shouldnt. Its unbelievable to get that many miles to the gallon in the regular hybrid car. The last one i bought was a plug. I was founded how the hybrid technology has improved since the last even though its not a plugin hybrid it does run a significant amount. Its increasing the miles per gallon. 1993, talking about healthcare the president just delivered a famous address to congress on healthcare the security act was going to be passed by the congress he thought. Proposing five new entitlement programs that we couldnt afford the ones we already had. I was astounded to hear him admit that and he further went on to talk about if we dont do something, he projected and we are already past that point and at some point there will be a generational conflict because people coming up who are paying the taxes are not going to be willing to support the people that are being supported. I would like to have your opinion on that. Its not going to be earth shattering here. I appreciate hearing your perspective. I wasnt following politics in the mid90s but where we are now people depend on many of those programs. Social security and medicare. There is no plan b if we dont figure out a way. Reclaiming my time briefly the problem is the people that are going to replace us will be voting on the same things and their constituents will tell them we cant carry that load any longer and i hope that we can do something before we reach that crisis point. Five minutes now to our friend from virginia. Thank you for being here. Frequently the democrats routinely prioritize reducing deficits sacrificing the safety net programs that are so important that every democratic president since kennedy left it better for the republican successors to better situations they inherited without extension and every Republican Administration since nixon has left for the democrats a worse situation. Is it larger or smaller than the deficit inherited . Its accurate that its a trillion dollars lower than when the president took office and he worked with then Speaker Mccarthy and assigned a bill to save another trillion dollars over ten years and its accurate that deficits would reduce in his budget by 3. 2 trillion while paying for the proposals he has in his budget. The republican budget has cuts particularly in education. Can you tell me what the president s budget has for title i that supports serving lowincome students . Thank you for your leadership. That is the main way to provide resources to Public Schools in this country as 200 million over 2023 levels that is probably a new level out since the bill was released overnight. This president is committed to ensure its been underfunded and we need to ensure that its a partner local taxes and districts but this is a way for the government to ensure they have more than adequate good education. The American Rescue plan that was distributed by the title i a formula showing how valuable the resources were, so i appreciate that answer. The Child Tax Credit was made refundable. At the house passed a budget that had a Child Tax Credit nowhere nearly as robust as what we passed in the American Rescue plan. Can you tell me what the president s budget has for the tax credit . We would support and the president has included yet again the child tax care proposal that mirrors what was in the arp bill passed in the beginning of the administration which we saw lead to the reduction in this country. My district includes a lot of shipbuilding and many other small to medium repair yards. What is the budget doing for shipbuilding particularly in the agreement . The budget with of the fiscal responsibility act the department of defense complies with that but we were able to make the key investments necessary to keep the agreement into the budget provides 1. 7 million more in the submarine Industrial Base for the rates and operational availability and increases the procurement funding by 2. 3 billion more than was previously planned and finally 1. 6 billion to procure the worship. We also have living the bill had to comply, we have a future years budget that shows the commitment to shipbuilding in the country and frankly we need to the supplemental also to be a companion to the budget, which has robust funding to invest in the kind of submarine Industrial Base in the country to increase production capability. Thank you. At the projections are important in the Industrial Base a lot of businesses might go out of business if they are not convinced of contracts for the future. Its increasing the production capability. I think the gentleman from virginia and yield five minutes to my friend from georgia. Thank you mr. Chairman. Thank you for being here. I know its been a long day. I will try to be concise about what time concerned about. This budget is five weeks later. Now granted this is not the only president whos been late with his budget, but i hope that the administration understands that that puts us behind. We wont be on time. Granted we may not be on time, but when we start we are already behind, thats why ive submitted our legislation send us budget materials, and what it does is it says republican, democrat, however, if they dont send a budget in time, that they are not going to be invited to give a state of the Union Address and again it doesnt apply to the democratic president , our, only if it applies to every president so i want you to take the message back that we really need this information on time and i hope you understand where im coming from. Im very concerned about the data as everyone is. Right now we are spending in this country 202,000 every second. The speed of light is only 186 miles per second and we are spending money faster than the speed of light. I know you have concerns about the deficit. To tell me what your concerns are about the deficit . Hopefully the chairman will let us go back and forth a little. You give me a budget by october 1st and i will give you a budget that is on time. With all due respect it puts us behind on production budgets when they are six months late im sitting here trying to get a read out of a bill that finishes the budget from last year and presenting the budget for next year so i think speaking of the process we all need to Work Together to find a way to get this back on track. So you can start your budget until we finish hours . We made a decision not to wait any further. That was your decision but you can to submit the budget for next fiscal year. To get a budget that is frankly out of date so a lot of kitchen tables compared to wrong numbers but it does put us behind. Also one debt and deficits while you may disagree with our tax policies, it does allow us to pay for our new investments in this budget and have have a reduction pass. We disagree with that. We would refute that point. Nevertheless lets talk about rulemaking. Right now theres 170 regulations pending before your office. Whenever you make these rules and improve them you do you ever take into consideration the cost of the rules . Thats the whole reason to get a rule from an agency it is the agencys role. The reason it is involved in our offices because weve estimated the Economic Impact so we think its important, administrations since bill clinton have set the rules because we think economically the significant rule should come and have a larger run. Let me ask about two in particular. I had the privilege of representing the entire coast of georgia. Ive been up and down the seabirds. And right now is being proposed by noah to adhere to a 10mile per our speed limit which is going to just crush recreational fishing. Its going to have a negative impact. We have two major seaports at my district. Thats one of the examples. 27,000 direct jobs. Nationwide its up to 340,000. It will have an Economic Impact of 84 billion. This administration laughingly says it will only have 46 million impact. I chaired the subcommittee on environment and energy and commerce. The next rule being proposed for particulate matter will have a devastating impact on manufacturers here in america. What does the administration do with the rules . Anything that is insignificant has to come to make sure. We made it easy to walk in and provide comments because we want to hear the rules based on the comment. On specific rules absolutely they have changed and that is the point of Public Comment we dont know everything until the rules go out and people have the chance to look at them and we take in information. The role is to make sure we hear from all stakeholders and make sure we strike. Now to the final member for comment and question. I am happy to close it out. I was pleased to see the 25 minimum tax of the wealthiest. Quadruple spent buybacks and close the tax loopholes lower the tax rates and lower the listing company. In 2020, 55 of the largest corporations paid no federal income tax. To put this in perspective if amazon, just amazon was asked to pay the u. S. Tax rate of 21 that would be enough snap benefits. Thats a pretty good tradeoff. They could easily afford it. America doesnt have a spending problem. Weve got a revenue problem and that is what you are working to correct. Can you elaborate the impact of the Corporate Income tax rates and closing these loopholes. Given your Business History and success makes one set up and no that these tax policies asking large corporations and the top one and 2 will not impact the investments. If anything it will and sure we are able to provide investments in programs to expand our economy and i keep coming back to childcare. This is not. All through the tax fairness proposals we had and omb report that said 400 billionaires pay just 8 in their tax rate from 2010 to 2018. Something has to be done and the president is putting forth a proposal to do that. Businesses dont make decisions on investments which creates the job based on the tax rate. In my past life hundreds of decisions each year are based on budgets and to build New Buildings and what you are looking at is can you do it better than the other competitor and the tax rate it does after so its completely faulty like people have never run a business. They dont have a clue what they are talking about. No child care yet the Early Childhood care thats how we get equity across the nation. Talk a bit more about that because i was excited about the tax credit and also what youre doing on how we get prek everywhere because we know that is going to pay dividends later. We know kids that have access to the quality prek three and four. Graduation rates go up, they have a better chance of going to college and getting a College Degree which is a pathway to middle class and those are facts and it goes back to a budget that tries to grow the middle class and we can pay for all of those investments. My child decided to be born a month late. The parent shall have access and some shouldnt pay more than 10,000 affordable childcare. We need prek and the solutions this budget provides us. Thank you for the hard work and god bless. Another hearing. I think the gentleman from maryland. We are now at the end of where i want to make a few closing comments. I appreciate you taking the questions from our colleagues. I hate what i think the budget would do to this country which is more than has happened in the last few years. I dont think republicans have all the answers and i dont think there are things that the democrats propose that should be dismissed out of hand and i think most of the big problems will only be solved when democrats, republicans get in the room and hash it out which is why im so interested in the Bipartisan Fiscal Commission. I dont have much hope. This set of policies that reflect the values of the democratic colleagues. Heres one thing we cant disagree on. People will make those decisions in november but heres what is not up for debate the unsustainability of the path that we are on and this is what i want to say from my heart in the deepest concern for the countrys future both parties have contributed. I do not give my republican colleagues pass for where we are today, where we are going which could be catastrophic. With current policies we are already paying more almost a trillion in interest more than we pay for our National Defense and in 30 years its going to be about 150 trillion. The sheriff that per family will go to 250,000 to a million and the annual deficit will be over 7,000,000,000,030 years. We are going to spend 75 and what we borrowed to fund this government on interest alone, not a safety net or sailors and soldiers, not on Climate Policy and programs. Lets debate those programs, the strategies to solve problems the American People believe we ought to be responsible in doing that weve got to pay for this because im just quoting you i think its a statement a lot of people believe here we dont tax the citizens on the debt. We tax our children on the deck. Its a deferred tax on our kids, and its not only not courageous, it is immoral for both sides can lead us on this unsustainable path. So just find it in your heart and push hard while you are still serving our country and this president to encourage your colleagues on the democratic side as i encourage my democratic colleagues to get in the room so to speak, hash it out and lets leave this country because if this dips into a sovereign, i believe that it will undermine everything good about the country. Everything. The greatest economy in the world, the greatest military in the world, our leadership in the world, and most importantly our childrens future here. Its why we are here. So i appreciate my democratic and republican colleagues and i appreciate you and your service. Thanks for committing so much time to the Budget Committee. God bless america. And with that, we have questions members can submit their questions to be answered leader in writing and your answers will be a part of the hearing record. Any members that wish to submit questions or extraneous material for the record may do so. I want the record to reflect that hes still here when the buzzer goes off into the gavel goes down the committee stands adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversat commissioner. The hearing is about two