Morrow. The book cost 8. 95 plus shipping and handling. To get your copy go to cspan. Org landmark cases. Yesterday treasury secretary Steven Mnuchin testified before the house ways and Means Committee regarding the president s 2019 budget request for his agency. On most of the questions from lawmakers focus on the budget and tax reform related matters, the secretary was asked about his thoughts on gun violence after 17 people were killed in a shooting in parkland, florida. The treasury secretary urged congress to look at these issues and said he would talk to the president and other cabinet members by how to address it. This hearing is one hour 40 minutes. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] the meeting will come to order. Before we get started today i want to take a moment to offer our committees deepest condolences to all those impacted by yesterday tragic shooting in florida. Our hearts go out to all the victims and their loved ones. Please know youre in our prayers. Today our committee is on the market welcome secretary Steven Mnuchin to testify on a fiscal 2019 Budget Proposal for the Treasury Department. We appreciate your time and look forward to your testimony. Our committees annual hearing with the treasury secretary plays a key role in our work on behalf of the American People and we have a lot of important work ahead of us. Mr. Secretary, when you your last you told your number one priority was the Economic Growth for america. Then and now we shared that priority especially on tax reform. Last year working together with you, President Trump and the senate we successfully overhauled our nations tax code for the first time in 31 years. With the tax cuts and jobs act we now have a tax code that is specifically built for growth to deliver more jobs, lower taxes and bigger paychecks to americans nationwide. With this law, families will be able to keep more of their hardearned money to use as they see fit. A fourperson family with no income tax under the new law into the income exceeds 61,000. They pay no income tax intel their income exceeds 61,000. In my district back in texas, the typical middle income family of four, parents with two kids will sit total tax cut of over 2600. This is real money and will have a real impact for so many hardworking families. The benefits dont stop there. You killed a companies are rates. This is as are announcing more jobs and new investments in america. Companies are bringing a the my from overseas to invest in our communities and in our workers. As encouraging as this is its only the beginning. There is still a lot of benefits to, for workers and families across the country as this new tax code unleashes the growth of jobs in paychecks and our economy. Same time, theres still moree can do. Thats why at todays hearing with you its so important. Looking at we have a couple specific areas where eager to discuss today. First as we all know theres no such thing as a perfect tax system. We have responsibility to provide real workable solutions. We are taking this approach now as relates to section 190 9a of the bill which offers first ever 20 deduction for pastdue business income, incredibly important for our main street businesses, farmers and ranchers. We know certain parts of this provision having unintended consequences for our farmers and ranchers due to treatments of farm coops. Im committed to working with our ways and means members, senator hatch of the Senate Finance committee and administration and stakeholders to develop the right solution now. One that gestapo, carefully crafted and successful in restoring balance competition in the marketplace. The urgent object is to make sure all our farmers and ranchers can reap the benefits of tax reform and were committed to taking action on solutions as soon as possible. Next, now that we have a new tax code built for new era of american prosperity, this committee and the Treasury Department have shared responsibility to ensure this new tax law is working half of all americans. This includes holding the irs accountable, making sure the agency administers our tax code with a renewed focus on fairness, integrity and taxpayers service. We had the opportunity to build on success of tax reform to ensure that americas economy continues to grow. Our local businesses told us the slow Growth Status quo of 2 for the past decade simply isnt working. We decided to go bold and change that with historical reforms to help them grow and create jobs along main street. Just in the last few days in town Hall Meetings across our district, ive heard from local Restaurant Owners who are adding new workers, from auto dealers were adding two more employees. Three business that is increasing their purchase americanmade Construction Equipment by 2 million this year because of the tax code here. Were eager to Work Together to find common ground, keep our economy moving forward and keep us there. Today we played a lot of important things together on behalf our communes and right now we have a Strong Economy growing stronger with the help of tax reform. Were looking forward to continue to work for finetune the code for america and were excited to move forward with President Trump and especially you as well, secretary mnuchin. We look forward to your testimony. I yearold to mr. Neil nor purposes of his opening statement. Thank you, mr. Chairman, and welcome, secretary mnuchin. A budget it a reflection of americas values and this budget nose exception. The administration inted of middle class families. From attacking Americas Health care and Social Security to dismantling protections for struggling families, we have seen the trend. For example, the trump budget cuts medicare by over 500 billion, jeopardizing this Important Program for older americans. We saw the same priorities last year when the president and republicans rammed through a 2. 3 trillion tax cut for the wealthy and corp operate america and sowed confusion across the run can i. Republicans blame their bill will benefit average americans the evidence is clear 83 of the benefit goes to those directly at the very top. Lets be clear, republicans priority with tax legislation is wealth andy and big corporations and not the middle class. While Big Companies and the most well off and wellconnected reap massive bens, workers are being laid off and middle class families not seeing the gains. Saw this in massachusetts when the legislation passed. Their tax plan limits the deduction to 10,000 but the bill allowed taxpayers to plea pay 2018 property taxes before the close of 2017. In massachusetts there was a tremendous amount of interest in doing this and we saw an influx of lines at city halls and town halls in the state. In fact in an attempt to help my constituent find their way through the maize of confusion i asked the irs to issue guidance to help taxpayers, however, instead of issuing tax fair friendly guidance, the irs issued guidance that click mated matters and limited middle class families to take advantage. This is not put thing middle class first. The tax law is fiscally irresponsible. Adding 2. 3 trillion to the nations debt while giving massive tax cuts to people at the top. Republicans claim the massive tax cuts will pay for themselves, even the budget director has noted that is simply not true. However, tax cuts dont pay for themselves, we all pay for those tax cuts. The white house put director essentially admitted that yesterday, and to pay for these handouts speaker ryan and the trump budget are clear in their intentions to cut funding for programs like medicare, medicaid, and Social Security, vital benefits that hardworking americans have paid into and earned. We can do better. Instead of cutting programmed that middle class families rely on i call on colleagues to work on a bipartisan basis now to fix the many problems that at the tax bill has created. One example, mr. Secretary dish want to thank you for your kindness the issue of the multiemployer pension plan dilemma and we talked about it. Im hoping these American Workers who planned for retirement and year after year chose to contribute to their pensions instead of taking wage increases, will be in the position to seek some relief. After working for those 30 plus years, as iron workers, truck divers and auto workers think plan retirement were tan away from them, and taken away at a time when they no longer have the ability to prepare for retirement because theyre already living in retirement. We need to help these americans whose retirements are at risk by no fault of their own. This is a bipartisan issue and im hopeful the new joint select committee on solvency of multiemployer pence plans will be successful in developing solutions. Secretary, i ask the administration to help us with these efforts. Our goal is to work on this committee, with these families, and to put them first and act together to create opportunities for the middle class. I want to acknowledge your staff and you for your work on what is known as the crumbling foundations issue, across connecticut and massachusetts, and the staff reacted very swiftly and the irs was aligned with the position you took and many families will receive and derive that benefit. So on that basis i yield back my time. Thank you, todays sole witness is Steven Mnuchin, secretary of u. S. Department of treasury. Mr. Secretary, the Committee Received your written statement and will be made part of the record. We reserved to deliver your oral remarks. Welcome, and you may begin when youre ready. Thank you. Id also like to express my condolences for the tragic shooting and the thanks to the many First Responders and teachers that saved many peoples lives. Chairman brady, Ranking Member neil, and members of the committee, it is good to be here with you today. As treasury secretary i am focused on at vans thing president s policied that will bring prosperity to the American People through Economic Growth. This is a core focus of the president and he is delivering. Last year the economy had two straight quarters of 3 or higher gdp growth, and the growth rate was higher than the average of the previous 20 years. The cornerstone of returning to more robust growth is deregulation the tax cuts and jobs act. This law is already providing relief to middle income families by putting money directly back into the pockets of hard working American Families. Since the law was enacted over 350 companies have announced bonuses, wage increases, higher 401 k matches, new hiring, benefiting more than 4 million employees. Were seeing the fastest wage growth since 2009. This meaningful. Our reforms are making American Companies competitive g. O. P. Which is having an effect on the economic success of the enact. The act lowered the statutory corporate operate from 35 , one of the high nest the industrial world to 21 , below the average. It also encourages companies to bring back profits that have been sitting overseas by eliminating the tax incentive to keeping that money offshore. Turning to the budget, the fiscal 2019 budget reflects last years tax reform legislation which reduces the burden on taxpayers and sets the country for longterm growth. The policies and the budget will drive down spending and grow the economy. Which are both critical to putting the nation on sound fiscal path over the longterm, and reducing the budget deficit as a share of gdp. This past year has been an important step forward for the country. Well continue to progress by enacting policies that enable American People to succeed and i look forward to continuing to work with come and this committee to make it happen. Thank you very much. Thank you, mr. Secretary, for your excellent testimony. Given that the last folks a week are scheduled around 11 30 to make sure as many members have an opportunity to question the secretary, we will put question time at three minutes, and ill lead off with a previous question. One of the key pillars of tracks reform, letting americans keep more of their earned dollars. Once tax reform was enacted the administration updated the withholding tables which means this month, over 90 of americans will see a reduction in their taxes in bigger paychecks and takehome pay. Can you briefly talk about the treasurys development of the released became withholding guidance in your plans for putting out Additional Information that allows families to fine tune further their withholding. Thank you, mr. Chairman. So, were very pleased both the work at the office of tax policy within treasury is working very closely with the irs, and they have successfully updated the withholding tables, so, as you mentioned, over 90 of americans will see tax cuts women expect to release next week the irs will put up a calculator that will allow families to go and double check with holding based upon the new tax law and update their forms if necessary. So, were very pleased with the work thats been done at the irs on this. Thank you. Families will be able to finetune according to their unique situation. Yes. Mr. Secretary, following world car 2, labor ions created industrywide multiemployer Pension Plans, exchange for their hard work, worker were promise longterm football security in retirement. That system worked well for many years, deregulation and insolvency have led plans into trouble. Today more than a million americans are in multiemployer Pension Plans now facing insolvency. Its critical we address this crisis and help those retirees, and the retirement plans, still at risk. In november i introduced legislation that would offer troubled it in employer Pension Plans and those who are not in unions as well, low Interest Rate loans to pay retirees benefits. The loans would be funded through money from the private sector, through the issuance of bones. It does not allow for benefit cuts the department has a Critical Role in the pension regulation . Oversight of the nation and a large number of expertness the field are on your staff. Providing presources and other support to develop a solution, could you speak for a moment to what is about to bill clinton part of the crisis that america is facing in retirement security. So, thank you very much, and we agree that there are significant issues here. The treasury does play a significant role but has limited ability to approve certain changes, and we look forward to working with the bipartisan committee, and as i mentioned yesterday at the senate, we would be more than pleased to provide Technical Assistance to the committee as congress looks at solutions. Thank you, mr. Secretary. Thank you, mr. Chairman. Thank you, mr. Johnson, youre recognized. Thank you, mr. Chairman. Mr. Secretary, welcome. I see the budget includes a proposal to stop individuals who are not authorized to work, from claiming a child tax credit. I have long had a proposal to require the Social Security number or the refundable child tax credit. It is especially relevant now, given the ongoing debate on immigration. Mr. Secretary, for the record, can an individual claim the refundable credit with just an individual taxpayer Identification Number . Yes or. No. Yes. Thank you. Doesnt this mean the individuals who arent allowed to work, can get this, yes or no . Actually i just want to modify my last statement. Just to be clear, the irs has allowed that is an issue that we are looking at, the legal issues associated with. So i just want to clarify it, that im not making a commitment Going Forward. We are looking at the legal issues associated with this. Im glad youre getting into it. I just had a joint tax core on my bill that saves 13. 3 billion to address another issue, as you may know the 2016ndaa included significant retirement reforms such as a new match for Service Members retirement contributions. However, due to an inadvertent error some guard and reservists who have a civilian retirement account, wont be able to get the match and i think thats wrong. Why is that . Because the irs caps the amount an individual can save for their retirement through work each year. Mr. Secretary, the irs allows state and local government workers to contribute the maximum to both government and civilian retirement accounts. Dont you think our brave men and women in uniform should be allowed to do the same . Thank you very much. My staff has raised this issue with me and we are looking at it carefully and figure ought what we can do. Obviously we want to do everything we can to support the military and men and women supporting this country. Thank you. I appreciate that. Keep it up. Yield back. Thank you, mr. Levin, youre recognized. Welcome. Your statement talks about tax cuts for the middle class. Laster you said there would be no absolute tax cut for the upper class. And we now have joint Tax Committee data, and it shows that those with income over 1 million or more would receive an average tax cut of over 64,000 next year under the tax law. Do you disagree with that . I have no reason to disagree with the numbers. I dont have them in front of me but ill assume what youre citing is correct. Well, that i think that makes your glasses kind of rose colored. Again, i want to clarify this because what i said at the beginning of last year, which was the case, it whats president s objective to off