[inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] the committee will come to order. Before we get started i want to offer our deepest condolences to those impacted by yesterdays tragic shooting. Our hearts go out to the victims and their loved ones. Please know you are in our prayers. Its our honor to welcomes elimination to testify on the 2019 Budget Proposal for the Treasury Department. We appreciate your time and look for to testimony. The annual hearing plays a key role in our work on behalf of the American People. We have important work ahead of us. Last year you said your number one priority was Economic Growth for america. Then and now we sure that priority. Last year working together with you we overhauled our nations tax code for the first time in 31 years. We now have a tax code built for growth to deliver were jobs the bigger paychecks to americans nationwide. Families can keep more of their money until their income exceeds 61000 until their income exceeds 61000. In my district a typical middle income family of four with two kids will see a tax cut of over 2600. This will have real impact for many. The benefits dont stop there. Utility companies are announcing lower rates. Businesses are announcing new jobs. Companies are bringing home money to invest in our community and work. This is only the beginning. There are still benefits to cover workers and families as this unleashes the growth of jobs in our economy. Theres still more we can do to advance tax reform. Thats why todays hearing is important. We have areas eager to discuss. We know theres no such thing as a perfect tax system. We have responsibility to provide real workable solutions. Retaking the approach that relates to the bill which offers a 20 deduction to pastor business income. Thats incredibly important. We know certain parts are having unintended consequences. Im committed to working with their ways and means members and stakeholders to develop the right solution, one thats thoughtful, carefully crafted and successful the objective is to make sure farmers and ranchers can reap the benefits of tax reform. Were committed to taking action as soon as possible. Now that we have a new tax code this committee has a shared responsibility to ensure its working on behalf of all americans. We need to hold the irs accountable we also have the opportunity to build on success in tax reform to ensure the economy continues to grow. The slow Growth Status quo is not working. We decided to change that and create jobs along main street. The last two days in town Hall Meetings i have heard from local Restaurant Owners were added new workers, dealers were adding more employees. From a business thats increasing their purchase of americanmade equipment by 2 million in a dinner the other night i ran into a Business Owner who has a hundred 60 workers and everyone got a 10 pay raise because of this. Its happening all over america. For the first time in years theres a new sense of optimism. Its our job to make sure this continues for years to come. We are pleased to see proposals and egrets Work Together to find Common Ground to keep the economy growing. More importantly, to keep us there. Weve accomplished a lot of important things together on behalf of our communities. We have a Strong Economy thats growing stronger. We look forward to finetuning a move forward with President Trump and you as well. We look forward to your testimony. Now i yield to the ranking member. Thank you. A budget is a reflection of american values. Time and again the administration is focused on the needs of the wealthy and powerful from attacking the healthcare to dismantling weve seen the trend. The trump budget cuts medicare by 500 billion jeopardizing this we saw this last year when the president ran through with tax cuts for the wealthy and Corporate America while republicans claimed the bill will benefit average americans the evidence is clear, 83 goes to those at the top. Republicans priorities with the wealthy and corporations not the middle class. Tens of thousands of workers are being laid off middleclass families are not seen the gains promised. I saw this when the legislation first past. The bill allow for taxpayers to prepare their property taxes before the close of 2017. There is a tremendous amount of interest we saw an influx. An attempt to help my constituents find their ways i asked to find guidance. Instead of issuing guidance they issued guidance to complicate matters unlimited middleclass families ability to take advantage of this. Thats not put in the middle class first. The tax laws fiscally irresponsible. It as to the nations debt while giving massive tax breaks to people at the top. They claim this will pay for themselves but that is simply not true. Tax cuts dont pay for themselves, we pay for them. The white house budget director essentially noted that. Its clear vital benefits and hardworking americans have paid into an earned this. We can do better. Instead it cutting programs we need to work on a bipartisan basis to fix the many problems created. One example we address the issue of the multi player plan. Im hoping American Workers who plan for retirement and contribute to their pension will be in a position to secretly. After working plan retirements were taken away. There taken away at a time when they cannot prepare for retirement because there are ready living it. These retirements are at risk by no fault of their own. Hoping these plans will be successful. I also asked the administration to help with these efforts. Our goal is to work and create opportunities for the middle class. I want to acknowledge your staff the staff reacted quickly many families will receive and drive that benefit. I yield back. Today soul when this is stephen mnuchin. The committee has received a written statement. You have five minutes to deliver your oral remarks. He may begin. I like to express my condolences for the tragic shooting and also thanks to the many First Responders and teachers that save so many lives. Chairman and members of the committee, its good to be here. I focused on avenging the president s policy. We have 3 higher gdp growth more robust growth in the tax cut. Its already providing money by putting money back into the pockets of hardworking families. Since the small 350 companies have announced higher 4o1k matches, new hiring, benefiting more than 4 million employees. Receive the fastest wage growth since 2000 on. Our reforms are making Companies Competitive again. Its happening on the economic success of the nation. We lower the corporate rate from 35 to 21 , below the average. It encourages companies to bring back profits overseas by eliminating the tax incentives, turning the budget reflects the tax reform legislation which reduces the burden on taxpayers. Policies will drive down spending the drive the economy. It will reduce the budget deficit is a share of gdp. This past year has been important will continue to policies that enable American People to succeed. I look forward to working with congress to make this happen. Thank you. We want to make sure as many members have an opportunity will put the time in three minutes. A lead off with a brief question. We wanna let them keep more of their hardened trawlers. This means over 90 of americans will see a reduction in their taxes and bigger paychecks and takehome pay. You want to talk about your plans of putting additional information. Thank you. We are pleased about the work at the office were working closely with the irs may have successfully updated the withholding tables. Over 90 of americans will see tax cuts. The irs will put up a calculator that will allow families to double check their withholding based on the new tax law and update their forms. Were pleased with the work thats been done. Families can finetune according to their situation. Following world war ii labor unions negotiated to negotiate Pension Plans in exchange for their hard work they were promised longterm Financial Security in retirement. It has put many plans in trouble. More than a million americans are multiemployer Pension Plans facing insolvency. We need to help these retirees. In november i introduced legislation on those not in unions as well low Interest Rate loans. They would be funding through the private sector through bonds. My belt is not allow for benefit cuts. A large number of experts in the field or in your staff. Providing resources another to provide a solution could you speak to us about to become what others are facing in Retirement Security . We agree there are significant issues the treasury does play a significant role but has limited ability to approve certain changes. We look forward to working with a bipartisan committee. Will be more than pleased to provide technical solution as we look at solutions. Thank you mr. Johnson. Mr. Secretary, welcome. I see the budget includes the proposal to stop individuals not authorized to work from claiming the child tax credit. Ive had a proposal to require the Social Security numbers or refundable child tax credit. It is relevant now given the ongoing debate on immigration. For the record, can an individual claimed the refundable credit with just a taxpayer number . Doesnt this mean the individuals who werent allowed to work can get this . Yes or no. I just want to modify my last statement. The irs has allowed, its looking at the legal issues associated so im not making a commitment Going Forward, we are looking at the legal issues associated with the. I had a joint tax for all my bill that saves 13 billion to address another issue the 2016 and daa included significant retirement reforms such as a new match for the Service Members contributions. Due to an error, some guard and reservists who have a civilian retirement account wont be able to get the match, and i think thats wrong. The irs caps the amount an individual can save each year. The irs allows state local government workers to contribute the maximum to both the government and civilian accounts. Dont you think are brave men and women should be allowed to do the same . My staff has raised this issue. Were looking at a carefully to figure out what we can do. We want to do it we can to support the military and the men and women who are supporting. Thank you. Your statement talks about tax cuts for the middle class. When you are here last year you said there would be no tax cut for the upper class. We now have joint Tax Committee data and it shows those with income over 1 million would receive an average tax code of over 64000 next year under the tax law. Do you disagree with that . I have no reason to disagree with the numbers. I assume what youre saying is correct. I think that makes your glasses rosecolored. What i said the beginning of last year to offset tax cuts with the elimination of deductions we work closely with the house and senate. This was an issue we looked at carefully. You said there be no tax cuts for the upper class. In the data shows otherwise. Your budget assumes a 3 increase. Today theres an article that hoping for 3 or more, already this budget has a deficit. If the growth rate is 2 instead of 3 , to know how much the deficit would increase the year . Our projection is 2. 9, not three. We stand behind the projections. Many people have said we cant get there but weve had over 3 . President obama have projected 4 . They only give us three minutes in your statement was the most generalized of any statement i remember. If youre wrong and its not 2. 9 most economists think to know how much the deficit would be next year . The static score was one and a half trillion dollars. If we got no growth that would be the difference. So it would be a trillion and a half next year . That was over ten years. I dont have the number front of me. Thank you. Welcome mr. Secretary. Beginning with chairman dave, years ago it now through the leadership of chairman brady ive been on this committee a think my tenth year. The process of meetings and hearings and proposals and we finally achieve something historic, tax reform to benefit American Families and businesses. With each week we see positive impacts across the country. Businesses have announced bonuses, pay increases in investments and Workforce Development and increases an employee match give programs. I want to expand on a question chairman brady have. You have the withholding tables and the calculator, what are the regulatory efforts are you putting forward to spread the good news to citizens across this country. How are you sharing information and how can we help you . We have a massive effort to implement the new tax bill touches everything from forms rotating to Customer Service to technology. Were putting out guidance every week to help taxpayers understand. Were focused on the. Thank you. We look forward to working with you to educate the public. Building on lesters accomplishments, the house has passed two bills with overwhelming bipartisan support to boost competitiveness of u. S. Companies. I renew a lot of gsp there is more we need to do in partnership with the ministration. I want to finish this work with the successful nafta update an estimated tens of billions of dollars of deals for u. S. Companies are waiting in the banks pipeline. Thank you mr. Chairman. Mr. Secretary i agree with mr. Neil. The budget is a reflection of our values and our priority. Is there any money in the budget to deal with the proliferation . Im not aware of that level of detail for me to be the expert. In light of what happened yesterday i think the gun violence is a tragedy what we have seen. I urge congress to look at these issues. Do you propose to do something . I have best responsibilities but this is out of my lane. Your part of this administration. Were losing hundreds of thousands of people, young children, in school trying to get an education, theyre murdered. Teachers a football coach, and youre saying to me who represent the people in georgia and the city of atlanta that we have the cdc and someone in this government told the cdc we can do better. We must do better. We have to save our children, our citizens, our teachers. So do you have anything . I appreciate the severity of the tragedy and i will speak to the president and the other cabinet members. Thank you mr. Secretary, yesterday you talked about the budget and we spent time on increase funding for opiate crisis but we did not spend time for increase funding on Mental Health which often spurs these tragic instances. We need to do something to control the proliferation of got gun violence, too many guns. We cannot continue to good down this path. Mr. Secretary, the reason the guidance has created confusion heres why, the guidance relates to the 2018 my constituents were prepaying their 2017 taxes. As a result, the guidance does not apply to them. There is a longstanding custom that dates back that the irs has never objected to where the sellers prepay their share of the current taxes even though it would not arrive to the following year. Its because the seller is liable. The seller needs to estimate the taxes theyll deduct that amount on their tax return. To my knowledge the irs is not objected. Illinois is the only state in the country that pays this way. The payments were disallowed citizens would be the only ones not allowed to pay the 2017 property taxes without limit. This is completely unique. Could you work with me in resolving and bringing clarity to this issue . Ive had two meetings on this issue. I am aware that its unique and were working to try to get comfortable with the if authority but they can offer guidance. We are actively working on it. Thank you. The me talk about iran and the commercial sales of aircraft. Last time we talked about this was in may. You said you are studying this issue. There have been no licenses issued by the department. Since that time iran has said nothing to make a case that it deserves commercial aircraft. They have gone after their own citizens they are active in yemen backing militants and so forth, would you agree that at the very least they have done nothing to further its cause and gaining access to commercial aircraft . We have not issued any licenses thats not be interpreted as a decision that we are not going to. We are working with the intel community. This will be further reviewed. After repeated refusals to answer text question year finally we have an Opportunity Task you three minutes of questions. I think its a Congressional Committee government equivalent by tweet. According to the joint tax analysis the rate drop cost the treasury 220 billion. Its for people who are in half a million a year in income. You promised there would be no tax cut and the president said much the same. The trump budget proposes to cut student aid programs over the budget. About the same amount, i think thats the ticket to the middle class and also to keeping our workforce competitive. When it restoring that top rate allow us in the republican members thought was pretty perfectly adequate it was something that got added almond conference. Wouldnt that allow us to avoid those cuts are at least moderate the second question concerns the claim that every American Household would get 4000 every year and increased household income. When you came out of hiding on fox news you said it would be 4500 for every family. Do you disagree with a recent survey that 98 of americans have not received any additional compensation at all . Please somebody gets even a dollar 50 a week an additional benefit from this bill, theres very few americans, if any who have gotten 4500 in additional wages increase out of this . Even they gave a permanent tax increase is been in place for two months. I said that while the president wants to take credit for the few that happened he doesnt want to take responsibility to cut parkinsons and Alzheimers Resea