Transcripts For CSPAN Treasury Secretary Says Government To

Attorney general in february. You can watch on cspan3, cspan. Org, and you can listen on the cspan radio app. Now, treasury secretary Steve Mnuchin testifying on the 2018 proposal. Most focused on various programs under theup for cut president s proposal. This is one hour and 35 minutes. Good afternoon. We will call this hearing to order. I thank everyone for coming. I want to welcome our guest with us, secretary of the treasury mr. Mnuchin. Thank you for joining us. We look forward to discussing the departments budget request as well as some of the a some shoulds and policies included in the president s overall request for this upcoming year of 2018. The president s budget proposes cutting spending by 3. 6 trillion over the next 10 years while making key investments to spur Economic Growth and job creation. We have heard what the critics have said and there might be a few critics in here today but mr. Secretary, i am not one of them. I believe the president legit is the president s budget is honest and it is impressive and includes major middle income and business tax cuts. Through tax reform allowing individuals and constituents across the country to keep more of their paycheck for themselves. It also has a trillion dollar public and private plan for national infrastructure. It rescues families from a Failing Health care law. It builds upon our spending cuts and further reduces the size of many federal agencies if not eliminating the agencies altogether. The president wants to have fewer bureaucrats around to regulate our lives and in doing that it will free up funding for Border Security and strengthening our military. I look forward to continuing this discussion on the president s vision for balancing the budget here today. The department of treasurys mission is vast and it plays a vital role in helping to shape and implement the president s economic policies. This includes working to perform the tax code, monitoring risk and fostering growth in the Financial System, increasing access to credit for Small Businesses, and promoting Economic Prosperity for all americans. The department is requesting to spend 11. 2 billion which is nearly 400 million less than last year, that is a cut over last year. The treasurys Largest Bureau is the Internal Revenue service, accounting for more than 94 of all the treasurys budget request and while the budget topline by 2 it is prioritized proposes cutting topline by 2 it is prioritized by requesting to support infrastructure in the i. T. Department and improving Cyber Security overall. Im interested in hearing from you today on how funding for these priorities will improve the taxpayer experience. The request also includes 117 million for the office of terrorism and Financial Intelligence. This is a 5 million reduction from last year as well. This office does a lot and it is not just oversees policy. But it is also as a Critical Role of enforcing sanctions against rogue nations and nuclear proliferators. Freezing accounts of terrorists, money launderers, and drug lords and producing intelligence for treasury leadership and National Security officials. This office has the dual purpose of safeguarding our Financial System against illicit use and protecting our citizens from National Security threats. Im also interested to know about the challenges facing the treasury dealing with so many looming threats and ensuring that the department has adequate resources to keep our country safe. The secretarys budget includes 27 million for a newly created Cyber Security enhancement account. This account was established in our most recent government funding bill to strengthen the treasurys Cyber Security posture and mitigate threats to the u. S. And financial infrastructure. Cyber security is one of the most urgent challenges facing the country. I hope to hear from you today, mr. Secretary, on how the treasury will use these resources that were recently provided to protect against and respond quickly to the Cyber Threats that we have seen. Before closing, i want to say that i am grateful for the swift action that the administration has taken to jumpstart our economy. For the last few months, the administration has issued executive orders to right size and streamline the government, reduce waste and duplication and , cut red tape. The positive effects are being felt. Since january 20, less than five months ago, business enthusiasm has risen at extraordinary rates. Our Gross Domestic Product has increased 1. 2 . Nearly 600,000 new jobs have been created and unemployment is down another half a percent to 4. 3 the lowest in a decade. , that is exciting. What does all this mean . This means that more people are experiencing the dignity of work and the fulfillment of providing for their families. Mr. Secretary, i look forward to learning more about the treasurys continued role in spurring our Economic Growth and job creation. Mr. Mnuchin, thank you for taking the time to meet with us and to be with us here today. We look forward to hearing her to hearing your testimony in a few minutes. I would like to recognize a Ranking Member for any opening remarks he may have. Thank you, thank you for being here today. The role of the Treasury Department cannot be overstated. Not only do you oversee the federal governments ability to collect revenue but you are charged with investigating and protecting our Financial System from the illicit and criminal activities of both foreign and domestic adversaries. This is why i am disappointed which slashes funding. For the irs, this means a cut of 260 million. Built intoring in costs like inflation and infrastructure maintenance, this is closer to 630 million, on top of the 1 billion cut from the agency since 2010. In order to meet this new draconian funding level the irs would have to reduce staffing by 6000, adding to the more than 17,000 at the agency that has last years. Er the this formula for expanding the tax cap, empowering tax cheats and confusing honest taxpayers. I was deeply troubled by the elimination of the Community Enrollment Financial Institutions fund which plays a vital role in spurring Economic Growth and revitalization and in our most underserved and neglected communities. In my hometown of chicago, they are investing tens of millions every year to provide low income families with Affordable Housing and neighborhoods with safety safe and Small Businesses Community Centers with Capital Growth and hiring local workers. At a cost of less than . 80 per american, this Program Helps cdfis support the creation of tens of thousands of jobs, financing for 13,000 businesses, and more than 33,000 Affordable Housing units and that is just for last year. This is not only a hugely successful program, but it is bipartisan. Which is evidenced in the increased funding it received in this years omnibus. There are numerous other cuts that are harmful including questionable reductions the Cyber Security enhancement at a time when hacking and Identity Theft are at an alltime high. Cuts to programs that safeguard our Financial System from criminals and forced trade and economic sanctions and unwise reductions to various inspectors general offices. The premature 50 cut to the special Inspector General for tarp which is charged with auditing the programs that will last until 2023. I want to touch upon something that you bring up in your written testimony and that is the issue of financial regulation. Last friday, the president tweeted his support for the house bill to repeal. Frank. Dodd frank. Less than a decade ago, the financial crisis sparked the diggers global recession since the Great Depression and pushed our economy to the brink of collapse. Main street businesses and families suffered even greater and greater losses than wall street as home values declined, Retirement Savings shrink, and credit dried up. How did we get there . A disastrous combination of irresponsible lending, overly complex highly leveraged and , undercapitalized banks and inadequate territory oversight. No serious person would argue that the status quo that most crippled our economy was working before the crisis. We need to make Financial Markets safer, more transparent, and more accountable and that is exactly what dodd frank has done. We need to make sure that banks are not overly burdened with rules intended for those who pose a Systemic Risk to our k came upand dodd fran short of reforming fannie mae. The answer lies in democrats, and republicans working together and bipartisan in a bipartisan way to improve the safety and soundness of our Financial System. I look forward to discussing these and other issues with you today. Thank you, mr. Chairman. I would like to recognize the chairman. I want to welcome secretary mnuchin to the committee. The buck to you, mr. Secretary. You, mr. Uck to secretary. We look forward to your testimony and hearing your frank and candid views on many issues, some of which were already brought up. Todays hearing is part of atax. After all, the power it is ligation to make spending decisions on behalf of the American People. There is a lot of focus at home on the issue of viability of the Internal Revenue service. I share some of those concerns. We obviously want an agency that is responsible and helpful to our constituents and while i am congress will be able to reform our tax code to make filing taxes a simpler process, i am still troubled by the problems that appear to plate thatagency plague agency. I am eager to hear how you plan to address these concerns. Like the chairman, i share concern about the treasurys office of intelligence which Critical Role in keeping our nation safe by safeguarding our Financial System against illicit use and ,ombating rogue nations terrorists, facilitators, as well as money launderers, drug campaigns, and other security threats. These efforts include disrupting isis financing and they are constantly trying to penetrate our system and do it damage. Given the current National Security challenges we face, we must and sure the department continues to invest in these critical programs. I welcome you to the committee and i think the chairman for his time. I would like to recognize the Ranking Member of the full committee. I would like to thank chairman graves and Ranking Member quickly for holding the Ranking Member for holding this hearing. Andome secretary mnuchin thank you for being here today. Your fiscal year 2018 budget request does not prioritize the taxpayers, economic development, or the ability of your terrorist to combat financing and other National Security threats. Instead, your budget would decrease in the irs funding by 260 million, eliminate all discretionary Grant Programs in the Community Development Financial Institutions fund, and this is shocking to me as a former new yorker, it would reduce the office of terrorism 6 Financial Intelligence by million. According to the Taxpayer Advocate during the 2017 tax season, americans who call the irs for assistance were on hold for an average of 47 minutes. Callshen, only 40 of the were even answered. With these cuts, taxpayer worse. S will become even the ability of the irs to identify wrongdoing is also in jeopardy. Without Adequate Funding levels for irs enforcement, we will simply not have enough manpower itcatch bad actors, making very clear, if you want to cheat on your taxes, this budget is for you. In the fightt against phishing scams, which appeared to be never ending. To be responsible to taxpayers seeking clarity on taxcut. Originated 3. 6 billion in loan and investment. Financed 13,000 businesses. Affordable housing units. In our home state of new york, there are 79 certified cdf 950s that have financed businesses for a total of 163 million in loans and fiscal year 2016 alone. Supports a National Network of community lenders. This program is elimination is incomprehensible to me. Secretary,like this, that make it clear this budget request is merely an ideological document fulfilling Campaign Promises and knocked an attempt to improve the lives of taxpayers. Said, mr. Secretary, i do look forward to a productive discussion this afternoon and to working with you to achieve the Treasury Department goals of serving the best interest of the american taxpayers. Thank you for appearing before us. Mr. Secretary we welcome you today and we certainly welcome a fiveminute statement from you and if you have a statement that is longer than the calm i think we already have here that we would be happy to include that in the record and we appreciate you and joining us today. Thank you. It is a pleasure to be here today. Thank you for inviting me to meet today. I look forward to working with the subcommittee on funding key priorities for the benefit of the American People. One of the president ial promises to the american taxpayer was he would make sure their money is spent wisely. A budget should not be an end in two itself but a means of improving the lives of americans. More money does not necessarily translate to better policies of the president has challenged every agency and department to identify greater efficiencies and savings that could be realized immediately and in years to come. The administration is proud to submit a budget that achieves his goal. This budget make some difficult choices. Thearefully evaluate allocation of resources to each department important functions and made reductions where needed. These choices in no way diminish our ability to operate the government effectively. The president has made it clear National Security is the top therity and in accordance, treasury request prioritizes Cyber Security. It is creating sustained Economic Growth. With all the treasury does, we have this mission in mind. This can be achieved through a combination of tax reform, realtor reform, and trade. This means working with congress to pass legislation to allow taxpayers to keep more of their paychecks. If we develop the right policies we will secure a prosperous future for our children and grandchildren. The difference between recent sluggish growth and a return to a 3 or higher gdp is trillions of dollars in the economy, making a meaningful difference in the lives of all americans. This budget prioritizes the funding for a wider array of financial tools, including sanctions. Our enemies have changed. So have our weapons. Economic and the financial pulls in our arsenal to disrupt the Financial Resources and print chemical of those who wish to do us harm. This includes actions against destabilizing regimes, terrorist networks, and drug traffickers. Stopping the flow of funding to dangerous nonstate actors, working to keep Financial Systems secure, these key programs are critical to the continued safety and stability of the nation. Protecting treasury and the Financial System from cyber attack is critical to our financial stability. Cyber attacks against our agencies are the Financial System had the potential to impact markets, the economy, and National Security. The Cyber Security enhancement account makes treasury better able to defend against Cyber Attacks and more efficiently respond when it does occur. Ins makes investments Critical Infrastructure protection, allowing treasury to work collaboratively to increase operational resilience. As i mentioned earlier, hacks and Regulatory Reform our items for Economic Growth and job creation. It has been over 30 years, too long since we have had comprehensive tax reform in this country. Changingmmitted to that. A simplified code that provides simpler taxes and relief to middle americans while making us repetitive again. With taken a comprehensive approac