Analyst. Kevin brady chairs the house ways and Means Committee. Mr. Chairman. And i think my good friend from pennsylvania for talking about the need to have the facts. It wouldve been great to have the facts here. It wouldve been great if we had one witness, one expert. Instead we will have to go back and forth for arguments. I would like to submit the facts about the impact. He was the bill, and i understand may ask you a question . Later on . E submitting will it correct the bill further . We will continue to correct improve this bill. The gentleman can review the amendment. We dont have that information and we have not been allowed in the expert testimony and you cant understand why we are upset. You can understand why there are 41 of the people, 41 make those deductions. Asked, what have your colleague described in new york is happening in massachusetts and new jersey and maryland and in california and washington state. Coincidentally, blue states. Having said that, what you are this to them as having regional shift of money. You are asking them to pay more. It is double taxation and you are taxing the success of professionals because they have been successful in what they have done. You are doing it without a single expert or public hearing. That is what we are met about. We started out with what we thought was on the same page with everyone saying, yes, we certainly would like to see lowerindividual rates and Corporate Tax rates. And yes, we thought it would be a good idea also if they were both revenue neutral as they were in 1986 and as mr. Neil has pointed out time and again that mutual proportionately as well. We also thought it would be a good idea to simplify the tax cut but this neither simplifies it nor is it revenue neutral, and i wouldutral like to submit for the record connecticut, from mr. Peter grossi talks about the impact on the Engineering Firm and what it does because there are always winners and losers. And when there is no expert testimony and when you just gymnast him because you want a political win, not a win for the theican people but for republican conference. Congratulations. You will probably get that win for your conference but at the expense of many, Many American people. And it is so not only, and i quote mr. Brady here, but it was on morning joe how you will possible make up this money, this huge debt you are placing on the American People and he said well, actually you are right about that. You make a good point. We are not going to see this growth. This is just phase one. The next phase is were going to make these cuts. What are those cuts . Those cuts come in the way of Social Security and medicare. So, for all of you out there to understand why there is no expert testimony it is because you know what that will do to you. Not are out to cut entitlements because Social Security is an entitlement, it is the insurance all of you hate for. So is medicare. It comes in under the code under something we call fica, the federal insurance countries and act. His countries and, yours. What do they hope to cut . Your benefits. I yield back. Well. Im sitting here thinking if the American People are watching this here today they are wondering what is going on here. Are taking the American Peoples money and where using this billrly and actually starts to fix it and give it back to them. So when you shake your head yes let me finish the sentence, because that is the problem. The American People are saying im working everyday and i dont have enough money to pay my bills and i end up paying these taxes and they go to washington and by the way, you know who puts his books together . You guys did. The ways in Means Committee did. If you are here with these laws were being passed, and mean, everybody on this committee is laws and taxes are being passed, you have been with this section of laws and we are trying to fix this section of laws by burning it down to a better tax system. So dont blame the ones putting the books together, blame the committee for putting the books together. That is to put all those laws together. Lets talk about what we keep talking him up. You guys keep talking about stuff and i really dont get it. I mean, these are itemized deductions. Works . Realize how that summary has a loss. They have insurance. It pays for as much as a loss as they can and then what is left over, there is a an amount, 1 of adjusted gross income and then it becomes in the demised deduction. Deductionse itemized where, as youve already said, youve doubled the standard deduction on average. I realize there is no district like connecticut. Youre right, connecticut has a unique situation. But how many people, with you double the standard deduction, eighttemize . Combination of doubled standard deduction it was a combination of the double ,tandard deduction and another six percent. You also said the majority of the people are primarily d wealthier people. Cap the top half. This bill, we are affecting people who are not able to itemized reform. Who were not able to get the opportunity. Who were not able to get discredited now they will get an opportunity to save taxes. That includes state and local taxes, casualty loss, interest on homes and mortgages, all of the stuff. You want to keep talking about this . Can we at least make sure were talking about 6 except for some unique situations. That is really the key hair. That is really big key hair. How do i get some help. We can talk about whatever you guys want to talk about. We going to them to itemize benchmark that is 6 . In the end, think what we need to talk about is the hardworking american taxpayer and making sure they are getting a little bit more takehome pay so they can make ends meet and stay bloom of money. And i think my friend said, he represents so i i represent firefighters. I represent all of those same people. I represent all of the same people who will get that tax break and want that tax break. I think that is important. 94 of these people, 94 , will not be itemizing on the average. Youve got to start thinking come ofose firefighters this police officers, who will now have the opportunity to bring some more tax money home. I think you and i gild back. Thank you mr. Chairman. It is kind of fun watching the opening bid of the process. My friends have been acting way from there proposal. Now that we are finding other things, we wont know probably till he gets to the floor but as a tactical matter, what is clear is that they are focusing benefits on those who need it the least in this country. Very large corporations, very wealthy individuals. Hedge Fund Managers and athletes and professionals are going to pretend to be Small Businesses and be able to exploit a new loophole. What is clear is that our friends on the republican side have established up to a trillion and a half dollars in extra debt we will take on. Several of my colleagues have pointed out, we pay interest on that debt. Over 21. 5 will be trillion. 1 increase in the historically low Interest Rates we are facing. That will add another trillion and a half. I remember many of my friends on the committee used to be upset about deficits. We are wiring and a significant amount. There is an additional fact that concerns me. If you really want to help low and moderate and middle income people, we could have worked together to fashion things that would do that. We have republicans in the expandwho are willing to the earned income tax credit and make it refundable to deal with the 35 of the people your proposal leaves out altogether. We could further reward work. This was a proposal that came in reaganagan in the administration. If you wanted to work with us in the grand committee of this tradition, i am wearing the ways and means bowtie i created rating. O chairman i found a way to cut it down and turned it until bowtie, we couldve done that. There are some interesting proposals here dealing with what happens to the mortgage reduction. Your knowledge the benefit is focused on people who need it the least. We couldve crafted something that would be acceptable to the homebuilders and to the realtors and help americans who are struggling to deal with housing. Not the most wealthy. But you chose not to do that. You are breaking a commitment with the Wind Energy Industry that a number of us worked together on a bipartisan basis to have a fiveyear phaseout and by the way, there were more jobs and patrolrgy ben him. Good family waged jobs. Made in america industry. And the industry stepped forward with some 50 billion because congress, this committee included, worked out a compromise. I think it is the only provision you have included that is retroactive. Why cannot we have added hearings to figure out what that is going to do to the wind energy in texas, in the upper midwest. But no, you are going to pull the plug on this. Mr. Kelly and i have been working on private i do but he warned. A pretty easy way to invest in infrastructure. Gone. On whyu have a hearing those should be sacrificed he concentrate benefits on those who need it the least . Anything like that. It goes on and on. The number of you are from states that is the cap and raised the guests tax. In South Carolina was passed over the governors veto. Couple of each, we could put together a Broad Coalition of people who are going to come in and say invest in american jobs. Renew and rebuild american. Se my taxes we couldve done this and bring people together rather than divide them. But we have not had those hearings. Instead, we come in and get something dropped on us that will continue to change until it is on the floor of the house and then it will be changed again in the senate because a number of these things are absolutely nonstarters. It did not have to be this way. The traditions of this committee and what happened the last time this happened on a bipartisan basis with president reagan. I find it unfortunate. Thank you. Thank you mr. Chairman. I am very excited about being here today. I have been waiting 11 months. Ive been on this committee. Cuts and atax simpler and more fair tax code to middle close class families. We all know it is broken. American people are reminded everyday. I am excited we are taking action to actually help middleclass families. Day has been years in the making. Scores of hearings have let his hair for families. Elivering tax cuts a tax code so simple you can file it on a postcard. We are enhancing the child tax credit. Encouraging people to say for retirement. Streamlining subfamily doesnt have to dig through legalese to figure out what works and what does not. Were doubling the standard deductions. We are allowing hardworking hoosiers to keep more of their money. Take thelers already standard deductions and for the vast majority of my district they can keep the standard deduction and keep even more of their own money. Many of the remaining of 20 to itemize will now be able to save time, money, and stress by taking the standard deduction. I have been traveling. My constituents are excited. They are excited for a simpler, quicker process that makes it more painfree. Vital Small Businesses in a lower rate of 25 . Family businesses past down for generations will not have to worry about estate tax. We are repealing it. This makes america far more competitive against foreign impediments. The tax code discourages companies from bringing back profits. It discourages companies from creating facilities here. No more. Hr one lowers the rate, making it more attractive for companies to make new investments here or grow the one sailor you have. Ncentivizing u. S. Companies mr. Chairman, there is a lot to like in this bill. We have a long week ahead but i am excited to work with you and my colleagues today as we allow all ships to rise. I yield back. To strike the last word. Mr. Chairman, i think what you are hearing so far is a whole lot of pentup frustration about the process that lead us to this point. It is unfortunate because it did not have to be this way. I think there is great consensus 31oughout the country that years to take a serious run at the tax code is too long. There was bipartisan agreement concept. Overlying to simplify, simplify, simplify the code to make it more repetitive with what the world has done in to make it more fair. And families in wisconsin. Were hoping we would not see a redo of more trouble down economics that have failed in the past. Tax cuts for the most wealthy thatultinationals hoping would affect everyone else. We are meant down the road before. What is most troubling about this is that in order to develop that, this committee has to do the homework, the hardware, having proper hearings on discussions across the aisle. Proper vetting. Listening to the people back home. Too many of my republican colleagues have chosen not even to a public listening sessions anymore. Thehould be running toward criticism. Finding out what people are concerned about and quite frankly, other Things Congress is and is are not doing end run to that criticism and learn from it. To adopt those principles. None of that work has taken place. We have been shut off from the process. It did not have to be that way. Our i partisan muscles have atrophied. We are a shell of what this congress should look like. It is all behind closed doors. Dark of night legislation. Elseown directing everyone to fall in line. The great loser in this is the American People who should be us, testifying. Raising alarms and telling us, you may want to think about this or the unintended consequence of that. We had none of that. We are flying in the dark hoping for a safe landing zone. We have been down this road before. The reagan tax cuts. The trickle down that was expected to lift all boats. Economic data shows under your plan you will get the tape of birth we need but what is different this time and i asked the staff to put up a chart to help me illustrate the point is from 2001, 2 thousand three, where we are today we have run out of time. We do not have the luxury of making a huge fiscal mistake and having enough time to recover before we have 70 million baby boomers who are beginning to start their Massive Retirement, 10,000 a day entering Social Security and medicare. We make that today and there is no time to recover. Gdp ratiour debt to under the president reagan because of the exploding deficit and the old bush tax cuts, roughly 25 . Followed with the 2003 tax cuts, 57. 5 gdp. Today, 103 mr. Chairman. The clock has run out. We cannot take this gamble of hoping for some mythical Economic Growth that will somehow bail us out from unfundedtrillion of tax cuts in your own budget resolution, none of it take for. At the extras, at the expiring tax provisions that are gimmicks in this tax proposal because we know future congresses are going to be hardpressed not to extend is out. Then youre talking 2. 3 trillion or 2. 4 trillion worth of Additional Debt just when the timebomb is going off with no time to recover. That will be the end of the longterm solvency of Social Security and medicare. Under your own budget resolution youve called for 1. 5 trillion worth of cuts to medicare and medicaid. We know where you are going with this if we have exploding budget deficits facing us. That is unfortunately because of history is any guide then while there has been some time to recover from physical mistakes in the past, we have run out of time. Not with the Massive Retirement taking place today. I would ask my colleagues to consider that as we move forward. I yield back. You stated the 6 were in the upper half of income. The middle income quintile dollar. O 72,000, one the averages 67,832. Do you think people with income over 56,000 are wealthy . That is, the middle income . Do you think taxpayers for whom the mortgage interest reduction and the charitable deduction are Still Available likely will make around 56,000 . Lets get our numbers straight here. Taxes would rise for many in the working class. The analysis just came out at 3 30 five this afternoon. 28 of americans would receive a tax increase by 2027. I heard from a constituent today in my district named david who lives in new jersey. A governor christie fan. George washington bridge. David is a 50yearold holding trades union worker who was injured in a car accident. You will get a lot of anecdotal stories. You cannot overcome those stories. Injuries he can no longer work by collect pension and disability. His wife works for the post office. They have no Children Home and share the home with his elderly parents. They currently rely on the medical expense deduction for his medical costs that can be upwards of 12,000 per year and they pay more than 50,000 in a pretty taxes. Property taxes. They are able to just break even each year. If this bill passes, david and his family will lose the ability to deduct his high medical expenses. All of his state and local income and sales tax and a portion of his property taxes and the state of pennsylvania you can tax the local governments. Your local tax, income tax. That adds up to more than 15,000 he can no longer deduct. Only if this bill passes, he will have to move out of his wife until from his she can retire. You are tearing families apart. Of these stories. Youre going to listen to them somehow someway over the next four days. Why should these hardworking families have to make that choice . What kind of middleclass tax break did they just give me . This is garbage. It will burythis, me. Not only will it hurt a family like this, it will affect home values. About highof hearing taxes of new jersey. We have a densely populated state. Every state has a different culture. A different situation. Like we are just throwing money out, just tax the people, throat into the hudson river. That is not what we do in the state of new jersey. We are for from perfect but you better take a look at your own treasury. Will remember what happened in 2008 1 home prices fell. Go back to your history. Youve not only dont know culture, you dont know history. We cannot afford to go through this again, especially because of selfinflicted wounds. Is the perfect record. We are sending all kinds of money offshore. Hasmuch, which corporation 250 billion sitting offshore . Which has 93 billion sitt