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▶ 0:17:57the committee will come to order good morning I want to welcome everyone to the first Ways and Means hearing with President Trump back in the White House the the committee has been preparing itself for this moment for two years and we are immediately getting to work to advance um the agenda of the American people this member day hearing is a a continuation of a member-driven process to get the right policies to the president's desk last Congress Our member day
▶ 0:18:28had the most participation of any committee 50% of the policies discussed at our last member day hearing went beyond this committee policies like foster care reforms Border Protection and expanding educational choice for parents were all Advance after member day today's hearing will'll have even more members testify than last year we also invited off committee members to participate in all 14 hearings we held
▶ 0:18:58outside of Washington in the 118th Congress including those on the state of the American economy we are holding our member day hearing earlier than last Congress because speed is of the essence to deliver much needed relief to Working Families and to give small businesses the certainty that their taxes will not be going up to deliver on President Trump's economic agenda this committee needs to hear from the representatives from every corner
▶ 0:19:28of this great country during the first Trump Administration tax cuts ignited the largest economic boom of my lifetime particularly for the middle class families taxpayers making less than $100,000 got a 16% tax cut while the top 1% paid a larger share of income taxes we doubled the child tax credit and the guarantee deduction families in the bottom 10% saw
▶ 0:19:59their incomes rise faster than wealthy families in the top 10% unemployment and poverty both fell to the lowest levels ever recorded the economic boom of the first Trump presidency fueled by progrowth policies grew Federal revenues 1.6 trillion beyond what was even projected the bottom line workers had more money in their pockets and businesses had more freedom and capital to grow and invest in their operation and
▶ 0:20:29employees the stakes are high if Congress does not act quickly to extend tax relief Capital will remain on the sidelines as businesses fear a 43% federal tax rate good paying jobs will be lost while we risk further weakening our Competitive Edge against communist China 40 million parents will have their child tax credit slashed in half 2 million Family Farms will see the death
▶ 0:20:59tax exemption slashed in half 91% of all taxpayers will see their guaranteed deduction slashed in half 26 million small businesses will be hit with a 43.4% top tax rate more than 20 points higher than what businesses pay in communist China people across the country know that we need to act and act last
▶ 0:21:29week at the first policy hearing across the 119th Congress an accountant testified before this committee that quote my phone is ringing off the hook close quotes with calls from Farmers and small businesses worried about the future of their businesses these folks are the builders behind the economic boom the 2017 tax cuts ignited and they are making decisions today not months from now but today as to whether to open new facilities
▶ 0:22:00hire new employees and invest in their communities families and small businesses they need the certainty provided by permanent tax relief at the same time there is more we can do and must do to further unleash America's economic potential whether it is greater incentives for investments in American manufacturing and jobs here at home greater support for folks looking to start a family are grow a family new
▶ 0:22:30tax relief to secure critical Supply chains and combat China's harmful influence over our economy and National Security every single American will be affected by the policies that this committee will consider in the days weeks and months ahead so it is critical we hear from their representatives about their priorities to the people watching at home know that your representatives in Congress are not shy about fighting for you
▶ 0:23:00I know and I speak for members of this committee when I say that I look forward to hearing from my colleagues about their ideas to deliver timely economic relief to the American people this year I will now turn to ranking member Mr nil for the purposes of an opening statement thanks chairman I want to thank the members of the committee who are participating this morning in this important and time honor tradition called member day we perhaps remember things a bit differently on this side of the including $8 trillion of debt that was added
▶ 0:23:30during the first Administration military spending that now with the help of some of us myself included has gone $850 billion pandemic relief money which is now coming to an end but a rebounding economy that the financial times and The Economist have said is the Envy of the world 16 million jobs were created during the last four years unemployment 4 .1% not one month during those
▶ 0:24:01four years did unemployment go up a staggering achievement so sensible tax policy is what we want to adhere to here but in understanding it's hard for us to imagine that individual members of Congress can argue for more tax cuts and then simultaneously complain about the size of the national debt or at least to include it in the course of the conversation so we have some big dates coming up not the least of which is a government shutdown that seems more and more likely could
▶ 0:24:31occur mid-march uh accompanied by another very consideration the responsibility of the majority party now to raise the national ceiling understanding that when you have control of the White House the Senate and the house that it is a responsibility of the majority party in those instances to raise the debt ceiling after all all members of Congress voted in some measure to add to the national debt so we're pleased that 44 of our
▶ 0:25:01colleagues today are going to make and offer their recommendations from both sides of the aisle as it relates to tax policy to improve the lives of the people members come from all parts of America and this is an opportunity to hear diverse viewpoints on a range of priorities one of the reminders on an occasion like this that in the Ways and Committee we get to debate some great issues for sure but we're also obligated to find solutions to the many challenges
▶ 0:25:31that face the American family so that's why we're all here today we hope that the people's work will come first and indeed strengthen our nation's future and with that I yield back my time thank you I'd now like to welcome our first panel of the day thank you for taking the time away from your busy schedules to testify before our committee you each will have five minutes to deliver your remark the gentleman from Indiana Mr Barrett is a veteran of the Vietnam War where he earned a bronze star and two purple
▶ 0:26:01hearts for his service to his country and he continues his Service as a dedic dedicated advocate for his constituents bar good morning and thank you chairman Smith and ranking member Neil and distinguished uh members of the House Ways and Means Committee I appreciate the invitation to speak with you today the American people are eager for Republicans to write the wrongs of the past four years and I commend you on organizing this
▶ 0:26:31important hearing so quickly like many of you I've spent countless hours traveling across my district and listening to constituents in Indiana about what issues matter most to them way too often hoers say their pocketbooks are being stretched thinner and thinner every day on top of this farmers and industries are facing uncertainty regarding the future of the Trump tax cuts that are set to expire at the end of the year I here today not only as your colleague
▶ 0:27:02but as a concerned American many of you probably don't know this but before being elected to congress I served on the Indiana General assembly's house Ways and Means Committee where we had a balanc budget by anually during this time Indiana successfully repealed the inheritance tax with a republican majority in 2013 it is my hope that in this congress with can work together to achieve accomplishments inheritance
▶ 0:27:32tax can have devastating impacts on our farmers and ranchers some have been forced to sell land they had had in the family for Generations just to keep their head afloat during the unexpected life event this is especially concerning as Family Farms which have been a pillar of the egg sector have been declining in the United States since 2007 right now the average cost per acre in the US is is $4,000 $480 an acre and in our area in Indiana
▶ 0:28:03some of it has gone as high as1 19 and $20,000 an acre the federal estate tax requires individuals who inherit over 13.6 million in assets pay a 40% tax on anything over that cap that means an individual on average who has more than 3,336 Acres pays a 40% tax on any other assets this does not include include equipment Equity retirement funds which can be much higher in value further adding
▶ 0:28:33to this devastating tax burden I also want to share my concern about the unrealized gains bonus depreciation investment tax credit 45z tax credit the salt cap elimination or increase and everyone's favorite topic the corporate tax rate I like the inheritance tax taxes are unrealized gains Family Farm and deeply harm rural communities by forcing them to sell land and assets
▶ 0:29:03we need to be investing in our Farmers not burdening them with additional taxes on speculative income next I would recommend that the committee extend the current Provisions in president Trump's tax cut and jobs act that prioritizes American businesses and keeps the corporate rate at 21% as president Trump has mentioned businesses have been incentivized to move offshore by excessively High tax rates in the United States prior to the tax cut and jobs Act Congress needs to let
▶ 0:29:34the free market take control a lower tax rate incentivizes more capital investment that can result in hiring more workers raising workers rages and increasing productivity instead of driving jobs overseas finally as you already know two weeks ago the US Department of Treasury released a guidance on the 45z tax credit I believe that as a republican majority we should focus our attention to the domestic feed stocks and biofuels and the eligibility
▶ 0:30:04should only apply to our domestic producers this will help us deliver our promise to producers and this will help us lower the taxes and lower the cost for Americans and restore our energy and dominance again I thank the committee for taking the time to hear my comments and I would be happy to answer any questions that you may have I look forward to working with you and the committee and the Trump Administration thank you and I yield back
▶ 0:30:35thank you Mr Barrett we have um I now recognize representative Andrew Clyde the gentleman from Georgia Mr Clyde is a is a veteran of the United States Navy a small business owner and a dedicated Champion for the people of Georgia's n9th congressional district at ways and means we know Mr Clyde as the man that beat the IRS so it's good to have you with us Mr Clyde well thank you chairman Smith ranking member Neil and members of the Ways and Means Committee thank you for this opportunity
▶ 0:31:06it's an honor to address the first Committee of the United States Congress the tax cuts and jobs act signed into law by President Trump in 2017 fueled historic economic growth raised wages boosted real median household income and surpassed GDP expectations however many of its progrowth policies will expire in 2025 risking a significant tax increase for hardworking American families and small businesses across the country we must deliver on our promises to the American people by extending these tax cuts but
▶ 0:31:36before I talk about the tax cuts and jobs act I would like to highlight concerns about the taxation of a fundamental constitutional right the right to keep in be arms the Bill of Rights was intended to enumerate rights to which the government cannot infringe unquestionably infringement exists when the government taxes those rights in order to limit the people's ability to exercise them currently there is an excise tax or transfer tax imposed on every firearm under the purview of the National Firearms Act of 1934 the only exclusions are
▶ 0:32:06purchases by the Department of Defense Federal Reserve or state and local law enforcement so it is primarily the citizens who are taxed this tax infringes on American Second Amendment Liberties by creating a massive Financial barrier to every purchase and risks placing this constitutional right Out Of Reach of many law-abiding hardworking Americans it also sets a danger precedent for using taxation to limit access to other rights in 1819 Chief Justice John Marshall stated the power
▶ 0:32:36to tax includes the power to destroy and he was totally correct the heler decision of 2008 declared that the second amendment protects an individual right to keep and bear arms and that the right existed prior to the formation of the new government under the Constitution therefore it was a natural right an unalienable right and if you can legally tax an unalienable right natural right even just a little bit then you can legally tax it a lot and eventually
▶ 0:33:06tax it out of existence and destroy it for for the everyday citizen just as Chief Justice John Marshall stated in 189 therefore I strongly advocate for eliminating the federal excise tax and transfer tax on these National Firearms Act Firearms I also want to caution Congress about the deficit impacts of any reconciliation package under President Biden the national debt soared to over $36 trillion more than 100,000 per person 250,000 per average household
▶ 0:33:36every dollar of deficit spending is a tax on our country's future deficit spending equals inflation I am committed to working with this committee and house Republican leadership to deliver on the promise of cutting $2.5 trillion in spending ensuring fiscal responsibility in a bill that reduces tax revenues in the short term as a small business owner myself I have seen firsthand the positive impacts of the tax cuts and jobs acts act what it has had in boosting small
▶ 0:34:06businesses across the country one provision in particular set to expire is the section 199 Alpha 20% pass through business deduction of qualified business income if this deduction expires nine out of 10 small businesses could face significant tax he hikes with effective tax rates rising up to 43.4% I urge Congress to make the 199a pass through deduction permanent in this year's budget reconciliation process to provide certainty boost small business investment and ensure
▶ 0:34:37that Main Street small businesses survive another key progrowth policy is the 100% accelerated depreciation for short-lived assets and R&D also known as full expensing which is set to fully expire by 2026 full expensing allows businesses to immediately deduct Capital Equipment and R&D costs reducing Capital expenses boosting productivity driving Innovation and attracting investment like the 199a deduction I advocate for making full
▶ 0:35:07expensing permanent to provide businesses the certainty needed for long-term investment investment these two progrowth policies along with the tax cuts and jobs act Provisions help drive a strong economy during President Trump's first term I look forward to working with the new Trump Administration this committee and my colleagues to deliver an affordable economy for all Americans thank you again for the opportunity to testify before you today and I'll be happy to answer any questions the committee may have and I yield back thank you Mr Clyde I now recognize
▶ 0:35:37representative Warren Davidson the gentleman from Ohio Mr Davidson serves on the financial services and Foreign Affairs committee and is a dedicated dedicated advocate for the people of the Ohio's eth District thank you chairman and to the members of the committee for uh this member day uh and to ranking member Neil uh thank you you for giving me uh the opportunity to discuss priorities for the upcoming budget reconciliation uh package and before entering Public Service I spent 15 years uh owning and
▶ 0:36:08operating manufacturing businesses in Southwest Ohio I understand firsthand the challenges that businesses face in our global economy challenges that include excessively high taxes excessively complicated regulatory burdens and a tax policy that actually discourages investment in America particularly in manufact manfacturing manufacturing is the backbone of our economy and as we work towards restoring America's competitiveness we must create a tax framework and a trade policy that empowers American businesses
▶ 0:36:38to thrive uh firstly I believe that the committee should work to make full and immediate expensing permanent as it was when it passed the house in 2017 these expenses should include expenses on research and development uh investment in technology and equipment and it should incentivize companies to invest more more which in the long run not just generates more tax revenue and more revenue for our economy but it raises worker productivity boosts their wages and creates more jobs
▶ 0:37:08uh to further increase uh these investments in productivity growth Congress should ensure that 100% of the interest paid by companies is also fully deductible as a business expense it would lower the cost of uh access to Capital and make it easier for businesses to invest in themselves where they can deploy their cap cash flow growing their businesses uh rather than servicing debt I I also support maintaining the carried interest provision uh this is a controversial treatment but it has been vital to
▶ 0:37:38ensure investment uh from Venture Capital private Equity Angel Investors and also real estate profess uh investors it drives job growth and creation and investment in our economy I I urge the committee to consider a provision you might not be familiar with uh it's the people Care Act this legislation would established a person- centered assistance reform effort so our social service workers could look at a comprehensive view of the
▶ 0:38:09person not just administer programs we have more than 90 programs that spend over a trillion dollars a year and if nothing else this bipartisan commission two Republicans two Democrats they get time to work together they could hopefully end benefit Cliffs they could have one simple income and asset test and maybe a coherent work requirement that the American people support uh our current welfare system has good intentions but over time it's created all kinds of things that uh have been
▶ 0:38:39ineffective and hopefully this very uh politically polarizing approach that we normally do could be kind of you know disarmed and create a way for this commission to do their work and at the end we would simply vote yes or no on their suggestions it will generate savings and a better performing so social safety net uh however I think it's important as the committee deals with the child tax credit that it shouldn't be part of this reconciliation package it's a bipartisan approach uh and using the in
▶ 0:39:09the the uh tax system as a means of redistribution hasn't worked well it is part of the challenge that we had as Republicans working together to pass the Bill uh last year and I hope we do that in a bipartisan way outside of reconciliation uh as the committee reang re evaluates the tax code it should also remove Provisions that have had a very harmful effect on financial technology uh in the infrastructure Bill the Biden Administration uh put cryptocurrency
▶ 0:39:39taxes in there that clearly don't even understand how the technology works the 1050i provision is particularly troubling where you have to collect all kinds of personally identifiable information file reports for transactions if you operate a node it's so dysfunctional that the Biden Treasury Department had to issue a statement saying the plain language of the bill doesn't mean what the plain language of the bill says and so I hope you guys correct it uh lastly but certainly not least I strongly recommend transitioning from the use
▶ 0:40:09of taxpayer identification numbers to Social Security numbers uh particularly for any kind of tax credit so this would uh work hand inand with the president's policy to eliminate Birthright citizenship and rightly apply the 14th Amendment uh this change will enhance the Integrity of our tax system and ensure that benefits are received for Citizens and address long-standing concerns about unauthorized use of taxpayer resources
▶ 0:40:40Social Security numbers should be uniquely tied to individual American citizens and this transition will strengthen our tax systems Integrity by boosting compliance and curbing fraud in addition to providing more revenue for the treasury including in conclusion these priorities and additions designate are designed to bolster our economy encourage Innovation ensure fairness in our tax system and I urge the committee to consider uh these points and the many others uh as you uh move forward
▶ 0:41:10towards reconciliation thank you so much for the opportunity to testify before your committee I appreciate your work and I look forward to the great outcome that you guys are working towards I yo back thank you Mr Davidson um I now recognize representative Emanuel Cleaver the gentleman from the great state of Missouri former mayor of Kansas City and the constitu the the congressman for the best football team in the NFL the Kansas City Chiefs go ahead Mr Cleaver oh man
▶ 0:41:40um thank you Mr chairman uh and ranking member Neil I appreciate the opportunity to testify before you today uh I'm pleased to be testifying before a committee headed by uh my friend and fellow Missourian uh chairman Smith uh I have uh great appreciation for for him and for those who don't know uh chairman Smith uh does believe red and wears red uh as a
▶ 0:42:11commitment to the uh Super Bowl champs twice now um I know that has nothing to do with this committee but you need to know especially my friend Dwight Evans uh from uh uh where the Eagles no longer fly um I'm sorry um whether whether a rural area of the state or
▶ 0:42:41a Suburban or urban area our delegations found ways to work toward common interest over the years Americans generally share many of the same dreams and desires regardless of where they are from also proudly serve as the ranking member of the financial Services housing and insurance uh subcommittee uh I doubt that anyone will disagree that access to affordable housing that housing that costs a family no more than 30% of household income is Central to a
▶ 0:43:11good quality of life uh for an American family our committee share jurisdiction and expanding access to Affordable uh housing and uh helping Americans uh become homeowners the United States is not building enough housing to meet demand and high housing prices have pushed millions of Americans away from home ownership increased cost burdens on households and limited the ability of employers to attract workers
▶ 0:43:42especially in rural areas uh before redistricting uh I served many uh rural uh areas uh in our state uh and there were and still are communities in the state of M Miss Miss and probably all around the country where there where a new house is not built in more than two decades home ownership is important because it is the primary way that Americans accumulate wealth and Achieve Financial stability we all want the Next
▶ 0:44:12Generation to have the ability to achieve the American dream by owning a home and whether a homeowner or renter the monthly housing payment is the single largest expense for most American families families who cannot afford housing food health care or other family Necessities are increasingly ending up in homelessness according to HUD the United States saw an in an 18.1 increase in homelessness last year more than 770,000 people
▶ 0:44:42were experiencing homelessness on a single given night in the United States of America last year many are without a place uh to lay their heads for the first time housing Supply is influenced by inflation zoning rules and regulations labor challenges material cost and credit availability among other factors importantly housing is the single largest category over a third of the Consumer Price Index used to track inflation and
▶ 0:45:13addressing inflation means addressing housing by addressing only one factor will not be sufficient lowering the cost requires the nation to overcome multiple factors across multiple committees to build millions of more housing last year Congress uh myself serving as chair of the housing and insurance subcommittee and other me members of our committee on both sides of the aisle came together to advance yes in my backyard act this bill
▶ 0:45:43that requires localities to examine how unnecessary regulations are increasing housing costs addressing local uh regulations also has the added benefit of saving the federal government and taxpayers money uh many of the largest sources for assistance for developing affordable housing are under this committee's jurisdiction such as the lowincome housing tax credit which is the most effective affordable rental housing program in history we have many
▶ 0:46:13projects in Kanas City Missouri such as one called parade Park Homes which have attracted significant private capital and federal investment and needed limited tax credits to move forward I urge this committee to continue its leadership been examining bipartisan legislation such as chairman uh former member Raa Hood's affordable housing act uh and Kelly's neighborhood home investment act there are great existing ideas on how we can move forward thank you Mr chairman
▶ 0:46:43thank you Mr Cleaver I now recognize representative Tom Barrett the gentleman from Michigan Mr Barrett is a veteran of the United States Army and was a member of the Michigan legislature prior to joining us in Congress Mr Barrett thank you Mr Mr chairman and ranking member Neil thank you so much for your uh attention today and for having me before your committee to uh discuss these important issues that you have before you um I want to take a moment to address the Urgent issue uh that directly impacts the hardworking families and constituents and small businesses
▶ 0:47:13and Michigan's 7th congressional district the district that sent me here to be their voice um the tax cuts and tax reforms that were passed under the 2017 tax CBS and jobs act are essential for us to continue so that our economy can grow and prosper the tax reforms which brought relief to millions of Americans are of course set to expire at the end of this year if Congress does not act nearly every household and small business in our communities will face a significant tax hike let's put
▶ 0:47:43this into perspect perspective Michigan's 7th District is home to nearly half a million taxpayers if these tax cuts expire the typical person will see their taxes increase by for a family of four earning the median household income in my district that would equate to over $1,600 in taxes every single year or about 10 weeks worth of groceries a staggering burden especially given the lost wages due to inflation
▶ 0:48:13that families have suffered but the impact doesn't stop there more than 880,000 families in my district will see their child tax credit cut in half a vital support for parents trying to provide for their children 92% of taxpayers will lose half of their guaranteed deduction significantly reducing the amount of income shielded from taxation our small business owners the backbone of our local economies will face an even greater challenge for example 44,000 small businesses
▶ 0:48:44are in my district and we'll see their taxes rise raise to 43% if the small business deduction expires and our farming families who work tirelessly to feed us and pre preserve our agricultural heritage we'll see the death death tax exemption slashed in half making it a tremendous financial burden for the more than 4,000 family-owned farms in my district to pass their oper operations On to the Next Generation these numbers aren't just statistics they are stories of struggle and sacrifice every
▶ 0:49:14single dollar that our federal treasury takes in is taken from the productivity of the men and women of our districts that sent here they repres these stories represent deciding between paying their bills or putting money aside for the future and while the major Global corporations with their Gucci loafer lobbyists get billions in handouts small business owners are left weighing whether they can afford their next month's payroll and farmers are grappling with the uncertainty of passing on their legacy to their
▶ 0:49:44children and grandchildren let me be clear this shouldn't be a partisan issue the tax increase iceberg is right in front of us but with your help this committee can take Swift action to steer the ship in the right direction this is about protecting the livelihoods of the people we serve who sent us here allowing these reforms to expire would roll back years of progress and place an entirely preventable burden on our communities but there's more that we can do to lift up families in MidMichigan I believe it's time we take the
▶ 0:50:14child text credit one step further by extending it to expecting mothers and families families preparing to welcome a baby already face Financial challenges from medical expenses maternal care the cost of setting up a home buying a crib by extending the child tax credit to mothers of unborn children we can provide critical relief at a time when families need it most and affirm our commitment to protecting to supporting life affirming and pro- family policies as my District's voice here in the people's house I'm
▶ 0:50:44committed to fighting to not only extend these tax cut but expand them where it makes sense because I believe fighting to ensure families can keep more of what they earn that small businesses maintain competitive their Competitive Edge and that the American dream is kept alive for future Generations Mr chairman the people of my district sent me here to deliver a message we will not stand for tax Heights that hikes that hurt our families our small businesses our farmers and our families it's time for Congress to act I'm excited to be here with you today
▶ 0:51:14and I'm excited to get to work on this thank you so much and I yield back thank you Mr Barrett I now recognize representative Andy Bar the gentleman from Kentucky he's a dedicated advocate for small businesses and a strong leader on the financial services committee welcome back to member day thank you chairman Smith and ranking member Neil and all members of the Ways and Means Committee I appreciate the opportunity to advocate for the Commonwealth of Kentucky and I come from the land of horses and bourbon and so let me start with those two topics and then move to opportunity
▶ 0:51:45zones and capital gains taxes uh as you all know I represent the horse capital of the world uh we are home in my district the sixth district of Kentucky to 400 of the world's greatest horse breeding operations and we need bonus depreciation restored uh not only for trainers and owners but breeders farms and smaller businesses in the ecoin industry many of whom would not be able to participate if it wasn't for full 100% bonus depreciation I urge this committee to incorporate into
▶ 0:52:15extension of the tax cuts and jobs act my bill the racehorse cost Recovery Act which would make permanent the modification of accelerated depreciation allowance for race horses to allow a a three-year recover recovery period for any racehorse uh this will supercharge the the sale of our racing stock our breeding stock uh and it matches the useful life of a racehorse um the default is seven years in permanent law this does not match the useful life for investment in race horses it needs to be three years so that they have the
▶ 0:52:45option of bonus or the three-year depreciation schedule and then finally the racehorse tax parody act Believe it or or not the holding period for long-term capital gains for an equity is of course as you know 12 months but not for racehorses this asset class is discriminated against in the code you have to hold a racehorse for 24 months in order to get the long-term capital gains treatment end the discrimination against this asset class end the discrimination against racehorses and adopt the racehorse tax parody act which would level the playing field with
▶ 0:53:15this asset class and make it a 12-month holding period in order to get capital gain treatment instead of that ordinary income uh treatment um let me talk about opportun I'm sorry let me talk about bourbon uh first so Duty drawback clarification act this bill would clarify that all whiskey products are Comm are commercially interchangeable and eligible for the drawback program by creating a single eight-digit harmonized tariff schedule for code for whiskies under the current HTS Spirits categories such as whiskies have several HTS numbers at the eight-digit
▶ 0:53:45level for example Scotch whiskey and bourbon each have their own codes at the H eight-digit level meaning that these products are not commercially interchangeable for purposes of a drawback claim Duty drawback was created as an export incentive so why would we not allow America's signature Spirit to compete on a Level Playing Field if tariffs come back especially the EU Snapback tariffs 50% tariffs on our whiskey exports we need the duty drawback to to level the playing field for American whiskey exports
▶ 0:54:16the EU trade tariffs um are something of great concern for uh Kentucky bourbon makers and we've got to secure the permanent return for zero for zero tariffs on Spirits with the EU before the scheduled reintroduction of the retaliatory tariffs on American whiskies March 31st 2025 I've talked uh to um incoming Commerce Secretary Howard lutnick about this this is a big deal a multi-billion dollar industry and I look forward to working with you all uh on that issue the rum cover
▶ 0:54:46over the rum cover over has expired in the Virgin Islands in Puerto Rico rum distilleries work in tandem with many of our us-based Spirits companies including distilleries in Central kentucky the territories and the companies rely on the cover over to meet their fiscal obligations making the cover over part of the tax package looking back to 2021 and Ford would be the responsible course of action extending the cover over would be beneficial not only to the territories but also to the Commonwealth of Kentucky real quick on opportunity zones you know taxpaying Banks always want to level the playing field
▶ 0:55:17with credit unions uh I urge this committee to look especially chairman Kelly who's been a real leader on opportunity zones enhancement um there's there's been modest progress in helping those distressed areas of our country but we can supercharge opportunity zones by giving tax incentives uh to taxpaying Banks to encourage more lending and private Capital deployment to individuals and small businesses in low and moderate income communities and my bill would do that I'm going to reintroduce that bill um which would
▶ 0:55:47uh provide those incentives and um decrease taxes on on banks that deploy uh loans into those opportunity zones finally I want to um uh mentioned uh the capital gains tax you know the interesting thing about the capital gains tax right now is that uh the long-term uh uh capital gains tax uh the U the the uh 20% is not matched with the actual brackets right now uh we could extend middle class uh tax cuts uh capital
▶ 0:56:17gains tax relief if we tied uh the um the uh the 0% rate to the lower three brackets a % rate to the the the N would get that 20% rate on capital gains um right now those income thresholds don't match in terms of the tax brackets for in income versus uh those triggers for uh capital gains tax the zero the 15 and the 20 only the top uh tier should pay the 20 uh the
▶ 0:56:47next levels should pay the 15 but middle class Savers we have a personal savings crisis in this country this this they should get a zero capital gains tax for the first three brackets so anyone individual making less than a hundred or a couple making a couple hundred, we need to incentivize and make it easier for those middle- class families to save supercharging Capital formation as well um tie that uh that that 15% rate that 0% rate to the actual brackets
▶ 0:57:18it's tax Simplicity and it's also encouraging middle class savings with that thanks for your uh time and I yield back thank you I want to thank all of the um members for their testimony today you're all dismissed from the panel and I would love for the clerk to set up the second panel Mr chairman yes while we're doing that uh could I be recognized to uh submit an article uh to the record from the National Shooting Sports Federation who are uh lotting the
▶ 0:57:48fact that we have this uh voluntary I guess it's called voluntary because it it came about voluntarily uh uh excise tax on firearms and ammunition and then all that money goes back into all of our districts in regard to Habitat enhancement and expansion so ordered thank you thank you I would now like to welcome our second panel of the day thank you all for taking time
▶ 0:58:18out of your busy schedules to testify before the Ways and Means Committee you each will have five minutes to deliver your remarks I I now recognize represent Brad finat the gentleman from Minnesota this is not his first time joining the Ways and Means Committee he attended um our trade Hearing in Minnesota last Congress so back thank you Mr chairman uh and at the risk of not offending anybody on this panel it's nice to see Larry Curley and mo sitting in the front row here uh but I appreciate your leadership Mr chairman uh
▶ 0:58:48thank you for holding this important uh member uh day hearing and thank you ranking member Neil it's an honor to be here on behalf of the families and far fers and small businesses across 21 counties I represent in southern Minnesota as a proud fourth generation corn and soybean farmer uh raising the fifth generation I know firsthand the importance of tax policies that allow Farmers to fuel and Feed the World while ensuring that they have the opportunity to pass their operations on down to the Generation moreover the
▶ 0:59:18size of the US biodiesel indust uh excuse me here sorry that uh Minnesota I'm going to talk about Minnesota biofuels very quickly Mr chairman Minnesota is currently the fifth largest ethanol producer in the United States with a capacity of over 1.3 billion gallons annually from 18 ethanol plants moreover the size of the US biodiesel industry uh in Minnesota has uh doubled since 2022 built on major Investments and we have uh
▶ 0:59:48we have some counties that uh are leading counties in the country in soybean production Minnesota was the first state to require the use of biodiesel and is home to three biodiesel plants with a combined production capacity of 85.5 million gallons per year as you know there's been a lot of conversations around tax credits ahead of reconciliation one tax credit I want to focus on today is 45z or the clean fuel production tax credit America First needs American
▶ 1:00:19biofuels American farmers and Rural communities will be essential to the unleashing of America's energy dominance hom gr American ethanol and biodiesel hold down gas prices strengthen our domestic energy production bring jobs and prosperities to rule America and deliver cleaner air Minnesota Farmers and biofuel producers are optimistic that sustainable aviation fuel could be another promising marking Market helping to create a consistent demand and return value and revenue streams to rural communities
▶ 1:00:4945z is essential to achieving these goals I ask you to preserve 45z but I also believe it should be EXT ended to give an adequate foundation for lasting Investments biofuel producers and Farmers cannot make sound business decisions when confronted with regulatory and fiscal uncertainty both of which have been consistent in 45z up to this point through delays in the final guidance and a limited three-year window of eligibility now just last week we saw a rule come out of Treasury that lays
▶ 1:01:19out the guidance the guidelines of 45z this long overdue guidance is far from complete and it still lacks the critical details that are needed to help ensure the American biofuel producers and their Farm Partners can lead the world in clean fuel production that is where we that is where we here in Congress and specifically this great committee can step in and work with President Trump to provide Farmers with a new Pathway to drive the farm economy one that is all-encompassing and
▶ 1:01:49correctly accounts for the many ways biofuel producers and Farmers innovate on the farm and at the according to real science not political science a strong rural economy depends on strong American biofuels industry and vice versa this credit can offer a path forward for all of our agriculture stakeholders and I look forward to working with you here on this committee and the Trump Administration to assure biofuel producers play a central role in successful efforts to revitalize Rural America as we as we act to implement our
▶ 1:02:19important work in the 119th Congress I look forward to working with the committee on ways and means to write and pass strong conservative tax policies that will benefit families farmers and small businesses across southern Minnesota and all of America and with that Mr chairman thank you for having me here today thank you sir I now recognize representative Rosa deloro the gentoman from Connecticut and the ranking member of the Appropriations Committee good morning I want to say a thank you to you chairman Smith and to ranking member Neil for hosting this hearing
▶ 1:02:50today as we prepare for one of the most important tasks ahead of this Congress negotiating a tax bill that responds to the cost of living crisis in this country but first if I may I want to pay tribute to a dear friend Bill Harris who recently passed away and fought for decades for the expanded child tax credit he recognized and he understood its ability to address the economic security of middleclass families Working
▶ 1:03:20Families and vulnerable families today families live paycheck to payche check in the United States their wages have not kept up with costs the economy is not working for them and it is children who suffer the most whose Futures are dimmed by the policies that we choose in the present while families struggle corporations are richer than ever their price gouging has driven prices even higher Dish Network FedEx sales force
▶ 1:03:50t-mo T-Mobile these corporations and dozens of others paid no federal income tax from 2018 to 2020 under the Trump tax law 95 companies in the Fortune 500 and the S&P 500 paid less than 10% tax rate up from 58 in the pre-tax cuts and jobs act era yet the 2024 tax rate for a married couple making just over $23,000 is
▶ 1:04:2212% how do we address this deeply unjust system the answer is to pass my American Family act which would restore the largest middle class tax cut in a generation and which is the antidote to inflation and to child poverty the expanded monthly child tax credit when we passed the child tax credit in the American Rescue plan it reached nearly 36 million households 61 million children it gave real money back to millions of Working Families
▶ 1:04:52in the form of monthly checks cut child hunger by a fourth and brought child poverty to the lowest recorded levels in history and the expanded monthly child tax credit returns $10 for every dollar spent how because the child tax credit helps children learn more earn more and grow up healthier it improves educational attainment lowers health care costs reduces encounters with the justice system and boosts lifetime earnings making the expanded child tax credit permanent through my legislation
▶ 1:05:23the American Family Act is how we make a lasting positive impact on all of these issues all at once indexing the child tax credit is an essential aspect of the bill which will make sure that the value of the credit is not diminished over time I am pleased to see that recent Republican proposals agree this is a good idea in addition to increasing the value of the credit Beyond $2,000 too many programs lose Effectiveness because they do not keep
▶ 1:05:53up with natural inflation over time indexing the credit creates stability and predictability for American families the American Family act would be one of the largest investments in American families and children ever it would change the game and level the playing field for millions of Americans massively reduce poverty and provide tax relief for middle class and workingclass families the time to act is now when we discuss the tax priorities for this Congress we must ask ourselves are we on the side
▶ 1:06:23of American families and children or that of the wealthiest corporations and unchecked billionaires over the past few months members of this committee will hear uh from corporate lobbyist after corporate lobbyist begging you to make their tax breaks permanent they will claim that unless you do they will have to lay people off close stores or move overseas I will simply urge you to ask them a few questions ask them why when groceries and other cost like Child Care skyrocketed families wor the brunt
▶ 1:06:53of inflation and high interest rates but corporate profits skyrocketed to a recular a record $3 trillion in 2023 ask them why according to the international monetary fund study of S&P 500 firms only about one5 of their free cash from the Trump corporate tax cut was used for Capital and R&D spending while the rest was used primarily for stock BuyBacks and dividends and asked them why was stock BuyBacks projected to top $1 trillion
▶ 1:07:24this year for the first time ever we should leave more children behind in order to further pad their balance sheets this committee has a choice ahead at the same time as the Trump tax giveaway expires the child the current child tax credit Will revert to only $1,000 with partial refundability chairman Smith in your District three and 10 children were left behind under the tax cuts and jobs act they do not receive the full credit because their parents or grandparents did not earn enough to qualify
▶ 1:07:54and it is not that they are not working they are just not earning enough yet parents who do not work but collect dividends from their stocks are eligible your requirement is not about work it is about income and that is wrong you can make sure that does not happen again you can make sure that all the campaigned rhetoric about making this economy work for all Americans was not just rhetoric you can do what you promised by passing the American Family act The Proven method to cut
▶ 1:08:24taxes in a way that helps the middle class thank you and I yield back thank you I now recognize represent representative nil dun the gentleman from Florida Dr Dunn is an army veteran and a surgeon and serves on the house Energy and Commerce Committee he also testified at our member day um hearing last Congress welcome back Mr D thank you very much Mr chairman it's good to be with you I look forward to supporting my colleagues on this committee while you work to renew the tax cuts and jobs act the pass under the first Trump Administration is someone who was in Congress
▶ 1:08:55when we passed pass that tcga 17 please consider me an ally to your efforts during this reconciliation year uh in Florida's Panhandle economic growth is driven by tourism agriculture defense and a defense diverse array of small businesses and small businesses in Florida rely on the full expensing tax Provisions that allow 100% write-offs for Investments made in the year that they are made these profession along with other business friendly incentives are more crucial now than ever As Americans compete
▶ 1:09:25with Chinese companies to keep manufacturing and R&D in America we should always prioritize American companies when Innovation over Chinese competitors that are often beholden to the Chinese Communist party this is also why I've been a longtime supporter of reforming the DI Minimus threshold I believe that lowering the threshold from the current risky level of $800 is a no-brainer and a substantial pay for the Ways and Means Committee can include for reconciliation I was fully supportive
▶ 1:09:55of the ways and means Rec Republican trade package that passed the committee last spring in fact you were gracious enough to let me include a bill on that package that prohibits China from participating in the general system of preferences on tariffs reauthorization of which is way overdue I also have a bill with my colleague representative swazi uh the import security and Fairness Act that eliminates China and Russia from receiving di Minimus benefits I believe this is important important
▶ 1:10:26this is a bipartisan solution to tackle the recent explosions in e-commerce packages that the Dom Minimus provision allows to enter the United States currently over two million packages per day I want to emphasize this is a pay for lastly I want to highlight my tax bill that will catapult both our national security and Global competitiveness in space uh I wrote a bill called the secure us leadership and space act that amends the IRS code to treat space ports
▶ 1:10:56the same way we treat air ports and SE ports by allowing the space ports to receive tax exempt bonds airports and SE ports are critical government Investments That Advance our economic interest and are currently eligible to receive tax exemp bonds space ports are equally important as uh we rely more and more on satellites telecommunications security operations rocket launch protocols and more there are already 10 states that have uh
▶ 1:11:27active spaceports and others are joining the club we need more National investment including tax incentives if we want to remain a global leader in space and my bill ensures that all space ports in America are eligible to receive greater investment from the public often used in the construction of airports and other infrastructure projects investments in space facilities Will Keep Us competitive as adversaries such as China pour money into their space important work is conducted
▶ 1:11:57in this committee and the tax Bas that I know Ways and Means will fulfill its charge to deliver relief and growth the American people and the American economy I would be remiss if I did not touch on the overlap between Ways and Means and the committee on which I sit Energy and Commerce uh there's a lot of Health reform that our committees will work on together in reconciliation I look forward to partnering with my colleagues on this committee on a RI of issues from transparency CMS payment PBM reforms
▶ 1:12:27all of which I think are very important payforce in the reconciliation process and I appreciate the opportunity to testify here today I hope uh to have Ways and Means consideration on these incredibly important issues as we proceed through reconciliation with that Mr chairman thank you and I yield back thank you Dr Dunn I now recognize representative Julia fedorek the gentlewoman from North Dakota prior to coming to Congress um Miss fedorek spent over a decade in public service
▶ 1:12:57in North Dakota and she now serves on the powerful Energy and Commerce Committee getting on there as a freshman thank you chair Smith and members of the committee I'm honored to be here and thank you for this opportunity I'm here and my top goal is to preserve reliable affordable sustainable energy policy in our country and I'm here today to talk about part of the tax code that threatens that and quite honestly threatens the power grid that all American families and businesses rely
▶ 1:13:28upon for all daily functions and quite honestly daily survival specifically I want to discuss the clean electricity production tax credit this policy has been so effective in its 33 years that it's time to rethink and amend it this policy is triggering a massive investment in new wind and solar resources faster than can be safely incorporated into our grid and is having adverse impacts on the power grid and energy markets enacted in 1992
▶ 1:13:58this program sought to boost investment in wind energy by offering a tax credit for every kilowatt hour of energy produced at the time the US had less than 1 and a half gwatt of installed wind capacity today that figure has increased by nearly 10,000% under the inflation reduction act the credit was broughten to cover all zero emission electricity generators the IRA was also made the IRA also made the clean electricity production tax credit transferable
▶ 1:14:29meaning utilities can sell their tax credits to financial institutions this transferable credit is a major Catalyst for renewable energy development and it's created a sizable Market while the growth of these renewable energy resources is the policy of many states most Americans especially lawmakers don't realize the threat this rapid expansion is having on the reliability and affordability of our electric grid in your packet is a map provided by the North American
▶ 1:14:59Electric reliability Corporation it shows that up to 2third of our nation is that elevated risk of having enough power to meet demand for electricity today for the last 12 years I was utility regulator in North Dakota and in this role I was a liaison from my state to the power grid myo which operates a power grid in central us it's serves 16 States and faces increasing grid reliability
▶ 1:15:29risks from one simple thing installed capacity is increasing and accredited capacity is decreasing again in your chart there's a massive Gap in layman's terms that means that the stuff you can turn on and count on is being replaced with the stuff that provides power only when the weather cooperates this is an unsustainable Gap and we must correct it we're in danger of building a weather depend end electricity grid and why is this happening because the federal government
▶ 1:16:00is providing a very generous and expensive tax credit to encourage it we have the opportunity to do something about this uh the clean electricity production tax credit and its predecessors were intended to be temporary for emerging Technologies and has become a misalign market incentive without it Renewables would still be competitive since 2010 the cost of both onshore wind and solar have fallen by
▶ 1:16:3166% and 79% respectively and wind facilities continue to become more efficient the average wind capacity Factor Grew From 31% in 20 2004 to 40% in 2021 in my state capacity factors reach 50% or higher instead of allowing Renewables to Pete to to compete on these merits our tax policy incentivizes investment in Renewables at an unsustainable
▶ 1:17:01Pace inflates Americans utility builds adds to our growing debt and jeopardizes reliabilities we all want clean sustainable energy Technologies but no energy solution is sustainable un let it unless is first affordable and reliable my staff is currently developing a menu of legislative options to address these outdated incentive structures of this program
▶ 1:17:31and I look forward to working with my colleagues on the ways of Means Committee to pursue reforms that preserve the Integrity of our grid thank you thank you I now recognize representative Vince Fong the gentleman from California Mr Fong is a former Aid to his the two men who were his predecessors the former chairman of this committee um chairman Bill Thomas and the former Speaker of the House my friend Kevin McCarthy it's great to have you here uh thank you Mr chairman for hosting this uh
▶ 1:18:01opportunity for members to share their thoughts on tax reform uh as I talk to people in the in California's Central Valley about potential tax hikes it's clear America needs a tax code that enables taxpayers to provide for their families and invest in their communities here's the reality in the 20th District of California if the Trump tax cuts expire workers families farmers and small businesses will pay 21% more in taxes this means for a family of four in my district with a medium family income
▶ 1:18:32they would pay $2,000 more in taxes a year the equivalent of nine weeks worth of groceries that's why I'd like to thank you chairman Smith and all the members of the committee for beginning this important work last Congress of progrowth tax incentives to guarantee relief for American families strengthen our small businesses and reinvest in our supply chain in American Manufacturing to build upon that work I would like to highlight some tax ideas to consider as we work to extend the Trump tax cuts and Revitalize opportunities
▶ 1:19:03across California and our nation my district is filled with family farmers and small business owners addressing the death tax would significantly relieve a burden for many Family Farms where relief from this unfair tax would allow future generations to continue their farming legacies in rural communities in in addition to that to the important extension of lower marginal tax rates Farms Across America would continue to benefit from increased and immediate expensing especially in the Central
▶ 1:19:33Valley where we produce nearly half of the nation's specialty crops crops which require specialized machinery for harvesting planting and irrigation small businesses are the backbone of American of the American economy employing almost half of the US Workforce this is no different in my district while we must continue to keep corporate tax rates low so American companies can compete with forign competitors small businesses must also be built to compete and the small business pass through tax deduction will allow
▶ 1:20:03them to continue to create and invest in our communities the Central Valley which I'm proud to call home is the energy capital of California we produce 70% of the oil and gas in California and nearly 60% of California's renewable energy but demand will continue to grow especially with the growth of even more data centers requ requ iring more and more energy to fuel AI capabilities and applications as a nation America must work not only toward energy Independence
▶ 1:20:33but energy abundance allowing geological and geophysical expenditures to be recovered is critical to incentivize further domestic oil exploration and ultimately allow Americans to see lower prices at the pump finally we must prioritize tax policy that supports American families the child tax credit supports parents as they strive to meet the financial challenges of the day it helps relieve parents Financial stress whether they're saving for emergencies or college education
▶ 1:21:04being a parent is one of the most important jobs there is that's why it's critical to maintain a strong child tax credit to relieve Financial strain on families as our country recovers from high inflation I urge Congress to quickly work to extend the Trump tax cuts there are real world implications in hardworking American americ an are relying on us it is our duty as members of Congress to ensure a strong economy for our fellow Americans doing so will ensure that Congress delivers on
▶ 1:21:34President Trump's promise of a vibrant economy for all Americans including the Working Families farmers and small businesses in my district I want to thank you Mr chairman and I yield back thank you I now recognize representative Margery Taylor green the gentle woman from Georgia along with her service on the homeland security committee Miss screen serves as the chairwoman of the newly the new subcommittee on the department of government efficiency on the oversight and government reform committee welcome thank you Mr
▶ 1:22:04chairman president Trump's policies in the tax cuts and jobs act in 2017 provided much needed relief to so many American families and businesses including in my district and also for my own business and my own family individual income tax rates went down the standard deduction was doubled the child tax credit went up and the death tax and corporate tax were slashed my district Georgia 14 is home to over
▶ 1:22:37taxpayers the average taxpayer in Georgia 14 would see a 25% tax height if Trump's tax cuts expire a family of four $7,495 which is the medium income in my district would see a $1,389 tax increase if the cuts expire this is worth about 8 weeks of groceries to typical families of four in the region 93,173
▶ 1:23:24they cannot go through and handle their monthly expenses expenses if this 31,8 120 small businesses in Georgia 14 would be hit with a 43.4% tax rate if the small business deductions expires let me tell you that would ensure certain failure for many of these small businesses 7,267 of my constituents would be impacted by the the return
▶ 1:23:55of the Alternative Minimum Tax 3,226 family-owned farms in my district would have their death tax exemption slashed in half in the half next year let me tell you these people will lose their family farms American businesses and individuals also deal with burdensome regulations simply to trade Securities and invest for their families for all these reasons it is extremely important that we in Congress
▶ 1:24:25support chairman Smith and support president Trump's plan to extend these crucial policies we need to deliver a historic mandate for the American people including by supporting president Trump's campaign Promises of no tax on tips no tax on social security no tax on overtime and tax credits for caregivers let me reemphasize that I traveled the country with president Trump for almost
▶ 1:24:56four solid years and I went to many of his rallies probably more than any member of Congress that I serve with I stood with him in every single state in every single City and when I saw him and heard him campaign saying loudly no tax on tips no tax on social security and no tax on overtime people Rose to their feet and cheered loudly standing ovation after Standing Ovation
▶ 1:25:26we have a mandate from the American people to deliver these campaign promises and I promise you president Trump especially for Republicans is more popular than you are in your District so we need to make sure we don't follow any one person's idea of what we need to do here with this this historic mandate we need to follow what president Trump campaigned on and what the people overwhelmingly voted for I thank chairman Smith and the committee here ways and means and I look forward
▶ 1:25:56to working together on these crucial pieces of legislation thank you Mr chairman I yield back thank you Miss green I want to thank um all the members for their testimony you are dismissed from the panel and will the clerk please set for panel
▶ 1:26:53for for
▶ 1:27:32all right I would now like to welcome our third panel of the day thank you all for taking time away from your busy schedules to to be here before the committee you each will have five minutes to deliver your remarks um I now recognize representative Laura Gillan and gent uh the gentle woman from New York prior to joining us in Congress um this year Miss Gillan spent her career and public service to the people of Nasa County thank you chairman Smith ranking member Neil members of the House committee
▶ 1:28:02on ways and means thank you for the opportunity to appear before you today to highlight a critical priority for my constituents in the fourth congressional district of New York as members of the chief tax writing Committee in Congress you will play a major role in the upcoming reauthorization of the 2017 tax bill without a a doubt the single most urgent and important tax priority for my constituents on Long Island is the need to eliminate the cap
▶ 1:28:32and fully restore the state and local tax deduction as you know since the federal income tax was first established in 1913 Congress made state and local taxes deductible from federal income they did so at of recognition that double taxations of Americans is simply unfair the salt deduction allowed the hardworking men and women I represent on Long Island who pay some of the highest property taxes in the country to reduce their federally taxable income by
▶ 1:29:02deducting the full amount that they pay in state income and local property taxes this important bipartisan feature of the tax code stood the test of time for more than a 100 years as you know the 2017 tax bill did away with this provision gutting and capping the salt deduction and as a result imposing double taxation on my constit isance some 1 uh some 11 million rather Americans who hit the cap according to treasury Inspector General for Tax
▶ 1:29:33Administration by capping and scrapping the full salt deduction the 2017 tax bill has made life even more expensive for my constituents prior to the cap nearly 50% of all the taxpayers in my district use the salt deduction with Nassau County residents deducting 26,29 9 on average more than the double double the current $10,000 cap I've heard from countless hardworking families in my district over the
▶ 1:30:03past few years who've had to pay tens of thousands of dollars more in taxes making their lives more expensive and adding to the cost of living crisis on Long Island for example a police officer and a teacher in my district each making $120,000 paying about 7,000 in income taxes with 15,000 in property taxes would have been able to deduct about $29,000 in state and local taxes with the cap they can now only deduct $10,000 so they lose about $199,000
▶ 1:30:33that they were previously able to deduct I'm committed to reversing the harmful salt cap and cutting taxes for my constituents this is a critical Common Sense concern in my district that affects hardworking middle class families that is why in my first week in Congress I sent a letter to the House and Senate leadership call calling for the immediate bipartisan negotiations to reinstate the salt deduction the full salt deduction I know there is strong support for getting this done in the upcoming
▶ 1:31:03reconciliation package among many House Republicans and Democrats from New York and from many other states as well as from president Trump as we all know he promised in my district to get salt back that is why I recently sat down with my colleagues in the bipartisan salt caucus to discuss a path forward on reconciliation and our belief in the need to restore salt for all of our constituents last week I was also proud to join my Republican colleague representative Andrew Garbarino and 20
▶ 1:31:34co-sponsors on both sides of the aisle in introducing HR 430 the salt deductibility act has strongly urged the committee to swiftly consider this important bill to restore the full deduction that taxpayers had before and they still deserve I will continue working across the aisle on good faith negotiations to deliver tax relief for Long Island Mr chairman and ranking member thank you so much for the time today for your work on this committee to help and serve the American people I
▶ 1:32:04look forward to working with you and all our colleagues to help preserve salt lower taxes and cut costs for the families that I'm honored to represent thank you thank you I now recognize representative Aaron howchin the gentlewoman from Indiana Miss howchin is a small business owner which makes her an incredible advocate for small businesses and working families and her District in addition to serving on the financial services committee she is our house elected conference secretary and Leadership welcome thank you chairman Smith um
▶ 1:32:34and ranking member Neil thank you for the opportunity to speak here today on the tax issues that are most important to families and small businesses in my district I want to start by discussing one of the most important Provisions we have in the federal tax code the lowincome housing tax credit since litec was first created as part of the tax reform Act of 1986 this program has become the most important and Powerful tool at the federal level for the development of affordable housing from districts like mine in Southern Indiana
▶ 1:33:04to Urban centers like Chicago and New York litec has been used to build and maintain lowcost housing for Americans across the country as this committee Begins the work in this Congress to incentivize growth and give more families the tools they need to achieve the American dream I hope the committee also takes time to consider legis ation to expand and improve this program including through proposals like my friend representative L Hood's affordable housing credit Improvement act which I was proud to co-sponsor
▶ 1:33:35last Congress another issue that is of a of great importance to my constituents is the immediate expensive for research and development expenditures beginning in 2022 companies that invest in R&D are no longer able to immediately deduct these expenses marking the first time since 19 54 that these expenses have been author amortised over 5 years while this change may seem insignificant the truth is it has made it more difficult for American companies to innovate
▶ 1:34:05and compete with foreign firms this is why I was proud to co-sponsor representative Estus say American innovation and R&D competitiveness act last Congress which would revert this change and again allow continued expensive expensing for these expenditures in the years in which they they are incurred I also want to briefly touch on a topic that I've heard from about from many stakeholders in my district energy tax credits under President Trump Americans are excited to see in all
▶ 1:34:35of the above approach to energy embracing new and old Technologies to address our energy crisis and decrease decrease costs for all Americans As you move forward I ask you to proceed with caution when addressing Provisions that have incentivized the onshoring of Technology and Manufacturing resulting in billions of dollars in US Investments and thousands of jobs both throughout my district and across the country appending these incentives could have severe economic consequences if not approached thoughtfully so when
▶ 1:35:05considering the future of energy tax credits I urge the committee to take a surgical approach with particular interest in the Investments that have already been made finally I want to mention how important it is that we move expeditiously toward a single powerful Rec reconciliation Bill one of the Great greatest accomplishments of the previous Trump Administration was the enactment of the tax cuts and job act under the Trump tax cuts American families and workers had more money in their pockets businesses were given more tools to flourish and
▶ 1:35:35our economy grew at a faster rate than what projections thought was possible with President Trump back in office Americans across the country including in my district are excited about the possibility of a new golden age of growth and prosperity in order to achieve this however we need to build upon the previous Trump administra Administration success and protect Working Families from impending tax hikes chairman Smith I know you are aware of how important it is that we provide the ne necessary tax relief to American workers
▶ 1:36:06families and businesses to ensure that our economy stays competitive and continues to grow toward its full potential if we don't we risk fa falling behind and losing what makes the United States the best place to work to innovate and succeed that is why it is important that we get to work on one big beautiful bill that will set America on the right track by securing our border ensuring energy Independence and making sure that Americans can keep more of their hard-earned money thank you again to Chairman
▶ 1:36:36Smith and ranking member Neil for the opportunity to discuss the important priorities for the 9th District of the state of Indiana I yield back one big beautiful Bill thank you Miss hin I now recognize representative John James the gentleman from Michigan Mr James served our our in the United States Army for8 years and continues his Service as a dedicated advocate for Michigan's 10th District this is his second time testifying before the Ways and Means Committee welcome back my friend thank you Mr chairman I appreciate your time I'll
▶ 1:37:06just cut right to the chase uh let's not get it twisted every single Democrat is going to vote against this tax package and I fear that our Republican colleagues are being played for their fools giving cart blanch to Blue State Governors to continue to enact laws and regulations that will hurt their people and increase with perverse incentives to do the right things is not necessarily what we should be doing um there are Republicans our very good friends and colleagues Jess bazito Molinaro Garcia and steel who are at
▶ 1:37:36home right now who made the same salt argument and for the remaining five of our very dear colleagues who are pushing very hard for the salt cap raising for the increase in cost of $225 billion over the next decade that's $45 billion per seat how much are we willing to pay for a seat we need to ask ourselves this question are we willing to pay for certain things for at the expense of the rest of America I think that we have a number of things that would benefit all Americans regardless of where we live and that is where I would like
▶ 1:38:07to focus today Mr chairman it's great to be back here in the9th Congress and I believe that we have to make sure that we ensure that many Avenues of prosperity the best Avenue of prosperity through education I particularly want to highlight this path of prosperity to the educational choice for children act legislation intended to expand education freedom and opportunity for students and I appreciate our colleague from Nebraska Mr Adrien Smith for leading on these efforts and I look forward to working with all my colleagues in these months ahead to get this bill for consideration
▶ 1:38:37on the house floor we must continue to prioritize reforms education that expand choice and the best way to do that is to put parents back in the driver's seat I believe firmly that when you give Parents Choice you give students a chance in addition I believe the child tax credit a responsible approach to addressing the provisions in the inflation reduction act must also be a part of this important debate on how we restore economic Prosperity here in America again a much better use of money for all Americans than just a few on the coast my bill from the
▶ 1:39:07118th Congress reignite hope act would increase the child tax credit from $4,500 for each child from 0 to 5 and $3,500 for each child 6 to 17 after four years of Reckless federal spending and terrible economic policies out of the Biden Harris Administration parents in my district and districts all over the country are pleading for some relief theyve paid upwards of $6 for gas $10 for dozen eggs and $7 for milk now more than ever parents across the country deserve relief proven relief the child
▶ 1:39:37tax credit Works lastly everyone in this room knows there are a multitude of of of concerns about Ira I I share those concerns the IRA which did exactly the opposite of its name was a radical attempt to Institute the left-wing wish list of the green New Deal agenda EV mandates which have already cost thousands of good paying jobs in Michigan removed consumer Choice from the free market and made us reliant on China enabl child slave labor in the Congo and
▶ 1:40:07widely prevalent um EV supply chain risks I'm thrilled that the house along with President Trump have made the elimination of job killing EV mandates of priority as I led the EVC last Congress we're going to redouble those efforts and I would like like to Echo the comments of uh my great friend and colleague rep howchin when she mentioned we have to go at this with a scalpel and not a chainsaw I ask that we proceed with caution when looking to address the provisions of the IRA that have incentivized on shuring
▶ 1:40:37the future of automotive jobs manufacturing and increasing our capacity I do believe that history will show the United States government does have a role in increasing capacity and our ability to bring economic prosperity to our people and to defend ourselves through our manufacturing prowess while while the bulk of the IRA is damaging policy we must not neglect the sector-wide energy tax Provisions that manufacturers and job creators rely on in my district and around the country additionally it's critical that we continue to manufacture and assemble
▶ 1:41:08semiconductor chips here in America we cannot rely on our foreign adversaries to produce and manufacture our means of self-defense and survival we can and we must repatriate American jobs reinvigorate manufacturing golden age in this country while mitigating the national security risk if we continue to assemble semiconductor chips here in America we will be in a much better position I encourage this committee to continue to consider addressing Provisions from past legislation regarding our chip supply chain we have to walk and shoe gum at the same time Mr
▶ 1:41:38chairman and I'm confident with your leadership we will I appreciate the time here to speak today and I want to say particular thank you for working with your staff we are working on a way that we can help in a conservative manner students with their loan debt while also addressing our mandatory spending and the liability we have in the long term and with that Mr chairman thank you for your time I yield thank you Mr James I now recognize Representative Keith self gentleman from Texas as well he is a 25-year Army veteran
▶ 1:42:08who is now serving the people of North Texas Mr self is a champion for tax fairness for every region of the country Mr self thank you Mr chairman and members of the committee I am here today to express my opposition to raising the the state and local tax deduction cap commonly referred to as the salt cap the implications of this deduction are severe and it's imperative that we consider who in this nation truly Bears the cost raising the salt cap would unfairly
▶ 1:42:39punish residents of places like my home state of Texas in other states that have no state income tax and are properly governed residents in these states have made deliberate choices to keep taxes and prioritize fiscal responsibility yet under a higher uh salt deduction their hard-earned dollars would effectively subsidize residents of high tax states that often demonstrate a pattern of fiscal IR
▶ 1:43:09responsibility is it fair to ask a hardworking Texan to shoulder the financial B burden of another State's poor policy choices let's take a closer look at some of these policy choices High tax States like New York and California have adopted agendas that prioritize wasteful spending over sound governance they funnel billions into programs that promote divisive diversity equity and initiatives burden businesses with costly
▶ 1:43:40uh regulations under the guise of a green New Deal and allocate taxpayer dollars to provide benefits to illegal immigrants these are policies that not only strain their budgets but also fail to address the core needs of their residents such as Public Safety infrastructure and education supporters of raising the salt cap often argue that it's about fairness claiming that it will ease the tax burden on middleclass families and high tax states but let's
▶ 1:44:10clear this is a tax break for overwhelm that overwhelmingly benefits the households according to the nonpartisan tax policy Center nearly 90% of the benefits of removing the salt cap would go to households earning $200,000 or more per year meanwhile middleclass families in fiscally responsible States see no relief only an increasing federal tax burden because of these subsidized
▶ 1:44:40deductions raising the salt deduction incentivizes states to cons continue their irresponsible practices knowing they can shift the financial burden to the federal level and to Texans this undermines accountability and creates a moral hazard where leaders in high tech states have little incentive to enact reforms or control their spending our tax polic policy should reward responsibility not
▶ 1:45:10penalize it it should encourage states to live within their means not enable fiscal Rec recklessness raising the salt deduction cap does the opposite it's a give way to the wealthy in states that prioritize the woke agenda over good governance and it's paid for by the hardworking taxpayers in states that do things right in the words of uh President Reagan we can lecture our children about extravagance until we run out of voice and breath
▶ 1:45:41or we can cut their extravagance by simply reducing their allowance Reagan's words res ReSound profoundly today eliminating the ass salt deduction is a critical step toward curbing the fiscal excesses of high tax states while ensuring fairness for taxpayers Nationwide thank you Mr chairman thank you Mr self I now recognize representative Chuck Edwards a gentleman from North Carolina Mr Edwards serves on the Appropriations
▶ 1:46:12and budget committees and and this is his second time testifying at the member day so welcome back Mr chairman and fellow committee members I'd like to start by thanking you for the chance to speak speak on behalf of the people of my district during this uh member session on four ideas uh and I'll I'll be brief on each of those first is wasteful spending I'm sure that we can all agree that one of the former administration's most Troublesome traits
▶ 1:46:42was finding new ways to waste taxpayer money one prime example is the direct file program by the Internal Revenue Service in 2024 the IRS spent over $24 million launching the direct file tax preparation program which has less than 1% use rate this year the IRS is spending Millions more to relaunch that program last week representative Adrien Smith and I and thank you representative
▶ 1:47:13Smith uh the fair preparation act which would prohibit the IRS from implementing the direct file program or any other similar tax preparation program simply put the IRS should not be both tax prepare and tax auditor for the American people shifting gears last year I spoke to this committee about an issue plaguing a Nationals unemployment system Federal Law requires that
▶ 1:47:43Americans on unemployment search for and accept work but it does not require that they interview for a job when offered which is arguably the the most important part of a job search we must protect the Integrity of our unemployment system and that's why I introduced the unemployment Integrity act last Congress and I plan to do so again this year the unemployment Integrity act makes showing up to an interview a mandatory part of the job search and it strengthens audit
▶ 1:48:13requirements to protect against further abuse of our unemployment system this is a simple Common Sense way to protect against fraud and to return dignity to our unemployment system last year I also spoke to you about difficulties communities face getting environmentally contaminated sites called brownfields and Superfund sites developed to address this issue and to spark economic development in historically untouched areas I introduced The Economic Opportunity
▶ 1:48:43for distress communities act this act would designate hazardous way sites as opportunity zones encouraging cleanup develop and revitalization of areas that may otherwise sit contaminated for decades to come this act is a must and a very simple modification to the tax Cubs and tax cuts and jobs Act 2017 finally
▶ 1:49:13last September my district was ravaged by Hurricane heling water crested as high as 40 ft in some areas of North Carolina's mountains and Recovery continues to be a challenge one solution that I'm urging this committee to consider is designating disaster declared areas from Hurricane Helen as zones as was done in 2005 in the Gulf opportunity Zone act while the gozone act of 2005 is markedly different
▶ 1:49:44than the current opportunity Zone program that we know today I believe that the Western North Carolina Mountains who uh is occupied by hardworking folks uh would and were uprooted by Helen and deserve the same important Investments as communities affected by hurricanes Katrina Rita and Wilma in the early 2000s I'm currently working on legislation in this area and I ask you to work with me to ensure Western North Carolina
▶ 1:50:14has access to every available resource to recover from the devastation of Hurricane Helen thank you thank you Mr Edwards I now recognize representative Wesley hunt the gentleman from Texas Mr Hunt is a decorated military veteran who serves on the natural resources and Judiciary committees welcome thank you Mr chairman thank you re manil for the opportunity to speak in support of my bill the power act this bill will establish a tax credit for Americans who have been affected by natural disasters to purchase an emergency
▶ 1:50:45generator as a native houstonian I'm too familiar with hurricanes and a devastating impact they can have on cities and families I also know the life-saving impact that generators can have during these tragic times natural disasters such as tornadoes fires hurricanes and blizzards are un or an unfortunate part of life in our country and each state encounters its own unique type of natural disaster California endures wildfires as we have tragically recently witnessed Gulf
▶ 1:51:15States like mine and Texas including many more endure hurricanes and nor easterners endure debilitating blizzards as we know as well as a realtime example in North Carolina Americans are still waiting in long lines in the cold for propane tanks and heaters to stay warm after their Community was destroyed by Hurricane Helen just a few months ago access to generator can help all Americans weather the storm no matter which storm
▶ 1:51:45they face generators help families keep the lights on keep medication and refrigerators cold and keep the house War when they need it the most Americans need help when their electricity goes out American need Americans need help purchasing life-saving emergency generators that's why my bill the power Act is necessary today the power act will give Americans and disaster Affiliated excuse me disaster affected communities a tax credit of up to $500 to purchase
▶ 1:52:16an emergency generator that will be valid for only 2 years after enactment even better the power act allows this tax credit to be used only for generators made right here in the United States under the power act Americans will be safer and American companies will be stronger one way this tax credit could be paid for is by instituting a 50% tax credit on remittances from illegal aliens the Texas public policy Foundation estimates that a remittance
▶ 1:52:46tax could generate around 23 billion triple what the power act would cost in not only is this issue important to me my friends and Neighbors in Texas and the American people but it's also important to president Trump president Trump posted on Truth social about this very issue on October 11th 2024 Mr chairman I like to submit a record of President Trump's October 11th 2024 truth social post concerning a tax credit for generators so ordered
▶ 1:53:16while I'm here also to strongly advocate for the 45q tax credit that allows oil and gas companies to invest in carbon capture and sequestration 45q is one of the biggest tax credits the federal government provides that allows energy companies to innovate for the future for for example for a large part to 45q the energy the energy industry has reduced American carbon footprint immensely but more importantly they can utilize the the captured carbon for what's known as enhanced
▶ 1:53:46oil recovery which has resulted in the highest oil recovery efficiency of over a 100 years to put it another way 45q is responsible for one of the largest Innovative Technologies in the world and that is hydraulic fracturing and thank God we have that today i' like to thank you so much for your time thank you for your consideration and thank you for your work on this issue sir thank you for having me thank you so much Mr Hunt and I want to thank you all for your testimonies you're dismissed from the panel and will the clerk please set up a panel number
▶ 1:54:21four for
▶ 1:55:08I would now i' like to welcome our fourth panel of the day thank you all for taking time away from your busy schedules to testify to our committee you each will have five minutes to deliver your remarks I now represent recognize representative Kevin Kylie the gentleman from California Mr Kylie is an attorney and a teacher and is currently serving in a second term in Congress he's a member of the Judiciary education and Workforce and transportation infrastructure committees welcome thank you Mr chair I appreciate the opportunity to testify and uh
▶ 1:55:38I want to take a moment today uh to strongly urge uh the committee uh to raise the cap on the state and local tax deduction uh that was put in place in 2017 uh in California uh my constituents and and all Californians pay uh among the highest taxes in the country uh and placing this cap on the salt deduction uh cause them to pay even more and so this year we have an opportunity uh to provide some much needed tax relief uh and I'll be
▶ 1:56:08strongly uh advocating for that uh every step of the way as we consider an extension uh and throughout the reconciliation process so uh as uh we're all aware the salt deduction allows filers to deduct up to $10,000 of certain state and local tax from their ta uh their taxable income this cap was a major change from long-standing federal policy which respected fiscal federalism between the federal government and state and local governments and work to protect taxpayers from a form of double taxation by forcing them to pay taxes on income
▶ 1:56:38that went uh to not to their expenses but to local governments the average itemized filer in each of the 10 counties in my district reported assault burden from $ 122,000 to $28,000 in 2021 in a state which already contributes more than any other in federal taxes this add digital burden is difficult to bear as the committee starts work on a new tax P package I'm asking you to support raising the salt deduction cap the ways of Means Committee has an opportunity here to adjust the previous policy in a way that will help hard hit consumers and taxpayers
▶ 1:57:09by limiting double Taxation and demonstrate that this Congress uh heares their concerns a second item that I'd like to bring to the committee's attention uh is a bill that I have recently introduced called the no Medicaid for legal immigrants act uh this bill prohibits States from using both Federal and State Medicaid funds to provide services for illegal immigrants I recognize that much of this jurisdiction might fall within other committees but there are significant opportunities here to ensure that
▶ 1:57:39scarce Healthcare dollars are properly focused on Americans and not those who have violated the law uh coming in to this country border security of course is going to be uh a top priority uh for this Congress and this is a particularly powerful Tool uh to provide an added measure of security at our border and ensuring fiscal responsibility uh to take my state for example California has been steadily increasing the number of illegal immigrants who can receive Medicaid
▶ 1:58:09uh we call it medical since 2019 in 2024 California completed its expansion of medical uh for illegal immigrants allowing individuals between the ages of 26 and 29 to receive all benefits as fored to to Citizens and legal immigrants California's nonpartisan legislative analyst office estimates that this will cost Californians $6.5 billion annually that's $6.5 billion annually in
▶ 1:58:39taxpayer funds going to support free health care uh for those in our state illegally uh my legislation will prevent States from spending billions of taxpayer dollars on benefits for those who are here illegally promoting fairness and fiscal responsibility finally uh I want to thank the this committee uh for all its work on the federal disaster Tax Relief act last Congress uh this legislation was vital to my constituents because it allows Wildfire settlements to be Exempted from federal
▶ 1:59:09income taxes uh many of my constituents have been victims of wildfires uh in which there was a uh link to uh utility and uh for them to have to then pay taxes on their recoveries was fundamentally unjust uh and this legislation uh corrected that Injustice and uh uh goes a long way certainly doesn't uh restore make them whole but goes a long way towards uh giving folks the uh support that they need as they're recovering so I thank uh the committee uh for considering these very important issues
▶ 1:59:40for uh my district for my constituents and my state thank you Mr Kylie and now recognize representative Nick Loda the gentleman from North Carolina Mr Loda is atire New New York definitely not Mr chairman we anticipate what he's going to say I'm looking forward to it um he's a champion for the people of New York um and has probably talked to me more about Tac tax policy than most members of this conference
▶ 2:00:10especially with a provision called salt it's great to have you here Mr Loda uh thank you Mr chairman U Mr chairman my constituents need more salt and we in Congress should give it to them in this upcoming budget reconciliation the state and local tax deduction commonly called the salt deduction is the number one federal tax issue for long Islanders discussions of salt dominate not just the editorial pages but conversations in diners and pizza places and deli and bagel stores all around Long Island
▶ 2:00:40and we long Islanders need salt relief for reasons of federal fairness and Equity first salt bars double taxation of income allowing the amount a federal taxpayer pays to towards their state income and property taxes to be deducted from income taxable by the federal government second salts roots in our tax code are as old as the federal income tax itself both established in 1913 third Salt's foundational principle is based in federalism where
▶ 2:01:10states were meant to be a unique and driving governing force and the federal government was meant to have limited power and spending finally since New York taxpayers receive far less less back from Washington than we give salt helps make us a little more even with Uncle Sam despite these points some of my Democrat colleagues argue that salt relief is welfare for the wealthy with due respect that couldn't be further from the truth my district has the highest cost of living in the
▶ 2:01:40entire nation driven by New York's staggering tax burden the highest in the country what might be considered a high income elsewhere barely keeps Pace with expenses on Long Island and some of my own party argue that salt relief is an improper subsidy for big bloated State budgets like New York's and I won't deny that Alan's government is oversized wasteful and mismanaged but there's An Inconvenient Truth when it comes to Federal subsidies the largest blue States like California
▶ 2:02:11and New York contribute far more to Washington than they get in return California taxpayers $263 billion more to the federal government than it receives while New York taxpayers send 136 billion more to Washington than we receive said another way California is ranked 43rd of the 50 states getting just 65 cents back for every dollar they sent to Washington and New York has ranked
▶ 2:02:4141st of the 50 states receiving just 74 cents back for every dollar New Jersey who's for salt as well is ranked 48 of 50 getting a mere 56 cents back for every dollar it sends to Washington in fact while the poorly run government of New York gets 74 cents back for every dollar weent to Washington efficiently Run state governments like Kentucky get a $189 for every dollar Arizona a171 and South Carolina
▶ 2:03:11to gets $1.71 for every every dollar it sends to Washington I'm not here to defend the tax and spend policies of my state for those ill- fated policies are the primary reason that New York is leaving for places like Florida and the Carolinas but I am here to say the assertion that my State's big bloated government gets more than its fair share from Washington is not grounded in fact to the contrary hardworking long Islanders and millions of others in high tax stes already subsidizing the rest of the country
▶ 2:03:42salt relief simply ensures they aren't taxed twice on the same income a higher cap on salt my colleagues from the Ways and Means Committee will bring fairness and Equity to this disparity thank you chairman for your time and I yield back thank you sir um I now recognize representative Ashley Henson the gentlewoman from Iowa she joined us back in August for our hearing at the Iowa State Fair so we we heard from you the priorities of Ians and the Trump
▶ 2:04:12tax cuts it's great to have you back with us thank you Mr chairman and thank you ranking member Neil and my colleagues on this committee for having this very important member day hearing uh to hear about uh the most important tax issues facing uh Iowa families and American families we're really approaching a critical inflection point in our tax policy this year as we all know the 2017 tax cuts and jobs act provided tremendous opportunities for our Iowa businesses to grow and expand and for Working Families to truly thrive in sectors like manufacturing the tax cuts and jobs
▶ 2:04:42act spurred 5 million new jobs one of the many resulting accomplishments of this legislation and members of Congress and this committee have the chance now to build on the success of these tax cuts to continue to Foster economic growth especially in rural communities like those continue to invest in research and work to gain control of critical Supply chains it has never been more important for Congress to commit to progrowth tax policy that secures American leadership on the global stage to do so reaffirming
▶ 2:05:12our support for American small businesses will be a vital step to ensure the United States Remains the best place to do business globally small businesses are the foundation of Iowa's economy making up over 99% of Iowa businesses and employing over half of our state's Workforce permanently extending key provisions of the tcja including section 199a deduction will help small businesses continue to invest in their operations and employees additionally Congress can continue
▶ 2:05:42to support research and development by domestic manufacturers by extending key policies like immediate expensing for research and development Congress should also maintain and expand policies that allow Americans to pass their operations On to the Next Generation preserving essential tax tools like stepped up basis will ensure that Iowa farmers can keep those farms in the family I'm also supportive of efforts led by my fellow Iowan Congressman Randy finstra to permanently eliminate the death tax which would
▶ 2:06:13help Iowans pass on those Family Farms and small businesses without extreme tax burdens from the federal government as a mom to boys I know the importance of providing taxx relief to Working Families the Trump tax cuts significantly expanded the child tax credit providing necessary support to millions of American families building on those improvements I uh introduced the providing for Life act to continue prioritizing the needs of families and ensure that they have the resources to thrive this comprehensive
▶ 2:06:43package supports families at every stage of life including Provisions for Paid Family Leave support for expecting parents and Pregnant centers and an expanded child tax credit with increased refundability and extended eligibility so these improvements combined with continued commitment to support access to child care through the child and dependent care tax credit will help to reduce Financial pressure on Rural Working Families who often face really unique challenges such as limited job opportunities
▶ 2:07:14longer commutes and higher costs for many essential services and finally I encourage the committee to double down on policies that help help to support American Energy dominance tax Provisions that incentivize new investment in the production of liquid Transportation fuels like biofuels many made right in Iowa will be a critical component of an energy strategy that bolsters our energy Independence and lowers cost for consumers this is especially important for my state the biofuels industry contributes over
▶ 2:07:44$7 billion to our economy annually and supports nearly 57,000 jobs across Iowa I appreciate the committee's attention to potential improvements for tax incentives like the 45z clean fuel production credit and the 40b sustainable aviation fuel credit ensuring that these are preserved and effectively implemented will support new opportunities for homegrown liquid Transportation fuels and continue to bring millions of dollars in private sector Investments to States like Iowa
▶ 2:08:14as we like to say it's an all of the above and all of the below strategy Congress should ensure these credits are driven by the needs of producing ERS providing Farmers with the flexibility that rewards them for their good practices while providing long-term certainty to make those new Investments so again I'd like to thank the chairman members of the committee for being here today and listening to us for the opportunity to testify Before You by allowing Americans to keep more of their hard-earned money keep it in their pockets we are going to continue to support American comp competitiveness on the global stage
▶ 2:08:44and enact policies that will facilitate American Energy dominance we will continue to promote that economic growth and prosperity across the country thank you Mr chairman I yield back thank you Miss Henson I now recognize the resident commissioner Pablo Jose herandez the gentleman from Puerto Rico uh Mr her Hernandez is a graduate of Harvard University and Stanford law school and just recently joined us this Congress so welcome thank you chairman
▶ 2:09:15chairman Smith ranking member Neil and distinguished members of the was and Means Committee thank you for the opportunity to testify before you today and share the issues that are critical to Puerto Rico's success as Puerto Rico's resident commissioner I have three priorities one Economic Development particularly through tax incentives that take advantage of Puerto Rico's unique status two equal treatment in federal programs and three the islands energy grids reconstruction since this is the Ways and Means Committee I will focus on priority number
▶ 2:09:45one tax incentives my written statement will address the other two points Puerto Rico prese presents a valuable opportunity to help strengthen our supply chain resilience reduce our Reliance on China and counter Chinese influence in the Americas our Island combines a skilled Workforce a strategic location and a special tax status as Puerto Rico is generally exempt from federal income tax laws this along with being part of the US has
▶ 2:10:15made us an attractive hub for manufacturing particularly Pharmaceuticals and an emerging Air and Space industry for example Puerto Rico leads the US in pharmaceutical manufacturing and exports contributing 19% of the $66 billion in Pharmaceuticals exported in 2020 additionally in 2022 Puerto Rico's Aerospace industry generated $625 million in annual revenue but Puerto Rico needs additional incentives to offset the cost of doing business in an island
▶ 2:10:45we had incentives like that in the past and they worked for the US for Puerto Rico and for the cause of freedom and democracy in the Caribbean region during the height of the Cold War the face out of section 936 as that incentive was known triggered an economic recession and Puerto Rico's eventual bankruptcy since then Puerto Rico has barely seen any positive economic indicators we need to do better I urge this committee to explore modern tax incentives
▶ 2:11:15tailored to Puerto Rico's potential and America's challenges one promising by part an initiative is the supply chain growth and Recovery Act introduced by congresswoman malot Takis of this committee which incentivizes investments in Puerto Rico to restore critical Supply chains to the United States this legislation not only supports our local economy and boosts domestic production but also strengthens us supply chain resilience and reduces Reliance on foreign
▶ 2:11:45adversaries like China another promising initiative is the territorial econom ecomic Recovery Act introduced by congresswoman Stacy plasket of this committee which would restore favorable tax treatment for investments in US territories and commonwealths including the Virgin Islands and Puerto Rico I rarely agree with him but as White House trade councelor Pete Navaro said this is our chance to say China is fired Puerto Rico is
▶ 2:12:16hired Mr chairman I ask for unanimous consent to enter my full written test for the record without objection thank you thank you sir um I now recognize representative young Kim the gentoman from California Miss Kim made history when she became the first Korean American woman to ever serve in the United States Congress she serves on the financial services and the Foreign Affairs committee welcome thank you chairman Smith and ranking member Neil members
▶ 2:12:46of this committee thank you for having this uh member day hearing to learn about our our priorities for our respective districts I represent the hardworking people of California's 40th District my constituents primarily reside in the counties of orange and San berardino and a small portion of Corona in the San beradino uh Riverside County for most of my constituents as I'm sure many of your constituents increasing living costs
▶ 2:13:17and home affordability are top of mind as the ways and mins committee begins the process of writing a tax package I ask that your members consider fixing the state and local tax salt deduction cap that is imposed by the tax cuts and jobs act the tcja Sal cab also discriminated against families who file their taxes jointly because it imposed the same 10,000 cap as
▶ 2:13:47individual filers the committee must also cons consider fixing this marriage penalty the salt deduction originated from the Revenue Act of 1913 which included a provision that allowed the deduction of state and local States in order to prevent double taxation for over a century the salt deduction was a ro Bedrock of tax law and allowed more families to keep more of their hard earned money in their pockets
▶ 2:14:18unfortunately the salt cap made homeowners ship unattainable for districts like mine according to the federal Housing Finance agency's National house price index a metric of how selling prices for single family homes have changed we saw an increase of 60% from July 2019 to July 2024 all the while the Sal cap Remains Same fixing the Sal capab is
▶ 2:14:48not a red or blue State issue it is all about making homes affordable for my constituents no matter who they voted for I also would like to encourage the committee to consider representative lahood's affordable housing credit Improvement act which I have strongly supported as an original co-sponsor the bill would Finance more affordable housing by expending and strengthening the low-income housing tax credit additionally
▶ 2:15:18I urge the committee to follow the speaker thinking on the energy tax credit enacted by the inflation reduction act and use a scalpel not a sledgehammer when thinking about which tax credits to repeal so chairman Smith members of the committee I look forward to continuing to work with you and your team to address many of my constituents concerns so thank you again for listening and for the opportunity to speak with you today I Y back thank
▶ 2:15:48you Miss Kim um I now recognize represent Mike Kennedy the gentleman from Utah Mr Kennedy is a family physician attorney small business owner and comes to Congress following his service in the Utah State Legislature welcome chairman Smith thank you very much and ranking member Neil I'm honored to be here frankly I'll just say I didn't know freshman were even allowed in this room let alone to be able to testify to this a gust body thank you very much for allowing me to be here and also for leading the charge to craft what president Trump has called
▶ 2:16:18one big beautiful bill which I want to call B3 as a result of the way he alliterates that your vision and Leadership will be crucial as we work to extend tax relief for workers families and businesses while reigniting our nation's economic engine president Trump's tax cuts and jobs Act was a Monumental step forward for our economy it lowered taxes for hardworking Americans created a surge in business investment and increased opportunities for families across the country including my own
▶ 2:16:49many of the key provisions of this has historic law are set to expire and we cannot allow the progress we have made to unravel it is imperative that we extend these tax cuts as soon as possible to provide the stability and certainty that American families and businesses need to plan grow and Thrive acting now ensures that we avoid unnecessary economic disruptions and solidify the foundation for sustained Prosperity at the same time we must honor president Trump's Vision by ensuring this effort remains truly beautiful that means cutting
▶ 2:17:19away any unnecessary complex it or provision that does not directly Serve American taxpayers a clean focused and effective approach will deliver the maximum benefit to the American people and ensure this relief is felt where it is needed most equally important is addressing the growing challenge of mandatory spending without reform programs such as Medicaid will continue to drain our fi fiscal resources limiting our ability to invest in key priorities these programs are riddled with unchecked and unnecessary
▶ 2:17:49spending that diminishes their Effectiveness and severely jeopardizes their financial sustainability B3 will provide a critical opportunity to cut wasteful spending and improve program efficiency and I'll just say to the body I am invested in Medicaid reform and any ideas that I can bring to the table I would be honored to share those with you Mr chairman president Trump is counting on us to deliver results and so are the American people let's make his one big beautiful Bill a reality by extending his tax
▶ 2:18:19cuts refining the system syst eliminating wasteful spending and doubling down on economic policies that work for our country thank you for your leadership and I look forward to working with you in this committee to achieve these critical results and I yield back thank you Mr chairman thank you for your testimony you are dismissed from the panel the clerk will set up panel five
▶ 2:19:16I'd now like to welcome our fifth panel of the day and thank everyone for their their uh time for their busy schedule right now you all have five minutes to deliver your remarks I now recognize representative Rich McCormack the gentleman from Georgia Dr McCormack is a decorated veteran and an emergency room physician and brings his expertise to the house armed services committee science space and Technology committees welcome thank you Mr chair and thank you for hosting and
▶ 2:19:46all my esteemed colleagues on this committee that is so important to our future America uh I'm really excited about the opportunities we have to trim some of the fat that we have and actually address some issues that are going to lock in our uh prosperity for the next several years uh our nation's taxo is a massive tool to drive the economic engine or to hinder it uh with the impending tax cuts and jobs Act tax Provisions that we must sustain it's not a tax cut it's a sustainment
▶ 2:20:17of something that keeps us competitive in the world market something that without which we will have higher tax corporate rates than those of China and Russia we'll have headquarters moving overseas so it's imperative to lock these in as soon as possible and I don't think we'll have any dispute there most importantly the American innovation needs to be Unshackled through the tax code when you look at the policies for R&D to lock in the ability to ride off those without extending the over a period of 5 years which
▶ 2:20:47really hampers small businesses that don't have that sort of Leverage we need to lock that in as well I support extending the 45x advancing manufacturing production tax credit all these things which aren't very controversial the tax incentives not governed handouts should also be our motto now one thing I want to talk about that will be the controversy and the thing that holds us up we have some things that we need to get to and we need to get to quick if we're going to solve this before the last minute a lot of times we pin ourselves on the back
▶ 2:21:17marker in other words if we wait till the last minute to vote on these things and we don't have consensus we will hamper our big beautiful bill from being passed now I have my own concerns whether it be about specifically giving people tax deferment or even tax credits because they have a special sort of service in other words people who get tips I get it it's something great and I know they work hard but so do police firefighters military people child
▶ 2:21:48care providers teachers a lot of great people work for money that makes less than uh those people who receive tips I think we have to be really even-handed when we apply the Constitution to our Americans that's our promise to sustain and defend the Constitution of the United States furthermore our salt Provisions I know we're probably going to have to come to some sort of compromise but we better come to it quick and we better have some specifics quickly because if we don't we'll be mired down
▶ 2:22:18and we'll put our backs against the walls we'll end up with another CR and it won't be what the American people want we have a very short opportunity a window of about 100 days to get done what we have to get done with compromise but we want to hear specifics we as Congress members and you guys are in control you guys get to drive this boat but we want to hear what the specifics are on the salt provision so we can start that debate on what specifically we need to come to the table with what I don't want to have salt at all but we
▶ 2:22:48probably will so let's talk specifics I'm willing to compromise on some issues maybe some things that I don't want all of us are going to have to do that in order to get this across the line but let's get down to specifics sooner rather than later I think that is the main point because we all want to sustain Trump's promises deliver to the people the tax cuts that we we promised deliver an economy that's robust and brings us into the future and cut down on the deficit spending so that we don't bankrupt our system if we don't address Medicare
▶ 2:23:18and Social Security in this Congress the next two years we will have automatic cuts of 21% on Social Security and 11% on Medicare it's not going to be addressed by somebody else it has to be us this is our one opportunity I leave it to you Jason Smith our our illustrious chair and this illustrious B uh uh my my peers and those people who have it uh the finer details than I do to get this done I'm ready to work
▶ 2:23:49with you and with that I thank you sir I now recognize representative Ryan Mckenzie the gentleman from Pennsylvania Mr McKenzie is one of our newest members and comes to us from the Pennsylvania House of welcome thank you Mr chairman for that introduction and for allowing me the opportunity to speak with the committee today in 2017 Congress and the president secured the passage of the tax cuts and jobs act
▶ 2:24:19a piece of legisl that helped in many ways restore our competitiveness grow our economy and raise wages for working people I'm here today to talk about what we can do to build on that and actually improve the standing for working families with new and expanded tax credits specifically I'm proposing expanding four areas of relief that we can provide to Working Families the first is expanding
▶ 2:24:49paid Family and Medical Leave benefits for businesses that offer that to their employees the second is expanding and actually creating a child care tax credit third is an expansion of a tax credit for children and the fourth is the expansion of an adoption tax credit with an additional inclusion of a tax credit for IVF today as we consider these extensions
▶ 2:25:20and and the many components of the tax cuts and jobs act which could help build on the foundation of a new era of prosperity in our country we need to focus on Working Families in the Greater Lehigh Valley and across the country we want to see more than just an expans an extension or an expansion of the law we need to see that these Working Families receive immediate relief from inflation and high prices that have plagued them for the last number of years as the committee is well aware for four years
▶ 2:25:51the American people have faced difficult economic challenges prices have skyrocketed wage as wages have stagnated and homeownership is increasingly Out Of Reach This has created hardship for people across socioeconomic and demographic spectrums but it is especially impacted Working Families who already faced high costes costs relating to raising children as we get begin the work of revitalizing the American economy
▶ 2:26:21I hope that we can work to deliver immediate relief to those families that starts with untangling the increasingly complex Financial knot of Parenthood starting at the beginning for parents the stress and financial difficulty of raising children starts early according to the Department of Labor only 27% of Civilian workers have access to paid family leave that means the majority of workers especially prospective mothers face major strains
▶ 2:26:51and tough choices in the early and first couple months of Parenthood many parents cannot afford to take time off of work in order to be with their newborns some families may be able to rely on friends and relatives but many don't have that luxury that's why I'm proposing that the employer tax credit for Paid Family and Medical Leave be doubled and be made permanent this credit created by the tax cuts and jobs act for 2018 2019 and then extend through this year
▶ 2:27:21has had a meaningful difference for millions of parents now we have the opportunity to go even further and make Paid Family Leave a reality for even more Americans we also know that the challenges facing Working Families go far beyond the first weeks of a newborn's life child care costs have become an extraordinarily challenging topic for millions of parents in the greater Lei Valley the area that I represent the Department of Labor has said that the median cost of child care
▶ 2:27:52$1,000 per year in 2024 which is about 11% of the median family income factoring the surge in prices of things such as food and energy housing and health care and it's clear that Working Families are facing an extraordinary challenge in paying for health in child care this also means that working parents face tough questions on whether or not to join the labor force for many the take-home pay after a count for the cost of child care is negligible
▶ 2:28:22leading many to stay at home who may otherwise be interested in working at a time when many employers say that they need workers we don't want parents wrestling with the question of whether it makes more financial sense to work or stay at home we can help solve this problem we can support Working Families and Revitalize the labor force by creating a child care tax credit such a credit provided to working parents of young children would help offset the enormous cost of child care and reduce the growing
▶ 2:28:52financial burden on families at a time when they need help and again uh I'll say that the child tax credit which has received a lot of attention could certainly used expanding and the final point is that for many families who are not able to uh have children of their own adoption is a great resource an opportunity for them expanding that tax credit and adding an additional tax credit for IVF would help those families that are looking to grow their family have the ability and the financial
▶ 2:29:23opportunity to do so I would like to thank the community and the chairman for this opportunity to present these four ideas for you and I appreciate your consideration thank you again thank you sir I now recognize uh representative Dan muser the gentleman from Pennsylvania Mr muser is a small businessman and serves on the financial services committee he also testified at our member day hearing last um Congress so welcome back well thank you very much Mr chairman and to all members of ways and means um appreciate it very very much
▶ 2:29:53certainly the uh the work here is going to be be done very carefully as our our Focus needs to be on tax Investments that that create uh growth uh while we're at the same time trying to reduce our our incredibly excessive uh deficit so that's very much appreciate and I also appreciate the fact that uh the only red line I have is that there are no red lines uh but what I have to offer here I think fits
▶ 2:30:24within what I um as I express return on investment uh tax reductions because the the whole idea of course is to create more taxpayers while we have less taxes which which is the result of less taxes so I um this Congress uh Mr chairman uh this Committee in particular has a chance to deliver significant relief to the American people uh by of course extending the uh tcga uh especially
▶ 2:30:54for for small business tax credits I do urge the committee to consider something chairman you and I have talked about before uh my bill known as the USA batteries act which has deductions for intang or excuse me as well as deductions for intangible drilling costs and needed Health Care Provisions that will bring stability ensure access to care particularly in rural areas foremost the committee uh needs to strongly consider the progrowth policies again of the tcga uh
▶ 2:31:25that certainly cannot be overstated um as I mentioned the USA batteries act uh is a bill uh would would repeal attacks Mr chairman on manufacturers okay batteries made in the United States have a uh this tax placed on them by the Biden Administration where imported batteries do not have such a tax uh so it's it's really upside down and backwards which
▶ 2:31:55is a lot of what we've seen before uh the US leads the world in in lead battery production um infrastructure investment and jobs act did introduce a Superfund chemical tax uh which again uh gave advantages uh for the forign battery manufacturers so the increased cost for American manufacturers has forced an unfair disadvantage
▶ 2:32:25um uh while dealing with all the other economic pressures that that of course uh that that we had so I just urge very much consideration of the USA batteries act as as well president Trump's agenda seeks to unleash American Energy dominance uh in Pennsylvania we have a generational opportunity to unsure American jobs and win the a AI uh but that is going to take an immense amount of Basel load power uh and new manufacturing
▶ 2:32:55to create these new manufacturing data centers currently base load nuclear energy is critical to supporting the existing grid uh it would be a mistake to repeal the 45u nuclear production tax credit a performance-based mean tested tax credit that supports 94 nuclear reactors Nationwide I certainly encourage my colleagues to consider this very important tax credit as we consider the future of AI growth and how nuclear energy uh will
▶ 2:33:25will will assure that that uh allows USA to be dominant um the committee also should give strong consideration to restore the tax deductibility for intangible drilling costs which has been something that's existed for for a long time uh here here in the United States this of course promotes domestic energy production um uh in in a in a significant manner along as uh as well there is
▶ 2:33:56something known as the DME relief uh which is a fix for uh the DME suppliers the over the past uh the DME uh has been reduced um due to uh frankly unfair treatment uh by by by CMS uh and we need to restart a blended program via the competitive bidding program this flawed reimbursement
▶ 2:34:26rate has caused a 21% reduction in the in the medicare payment uh and it's known as the the DME post Relief act uh and I strongly encourage that to be included in reconciliation another area that the committee must also examine to ensure patient access to health care services is the need to fix the physician fee schedule uh which I think you're very well aware of uh whereby from anesthesiologists particularly in rural areas receive
▶ 2:34:57far less in in reimbursement than it costs them to perform the service so uh with that Mr P chairman and and all those members of the committee uh we certainly appreciate your consideration I yield back thank you I now recognize representative William Timmons the gentleman from South Carolina in addition to his Service uh to Congress on the Financial Services committee um Mr timens also serves as a Jag officer for and captain for the South Carolina
▶ 2:35:27Air National Guard welcome to the Ways and Means Committee thank you Mr chairman chairman Smith and members of the Ways and Means Committee thank you for holding this hearing and allowing us to testify before you today I'm grateful for this opportunity because I am excited to work with President Trump and his administration to quickly deliver economic relief to the American people by extending his successful tax reforms as soon as possible to get our country and our economy back on track American American workers and families are counting on us and it's time to roll up our sleeves and get to work while many of us have unique ideas and our priorities
▶ 2:35:57of what should be included in the reconciliation bill today I would like to focus on something I believe should be included as an offset yes Mr chairman I here to help you find ways to pay for a Reconciliation um I would like to bring uh to this committee's attention my bill to Crackdown on pandemic era fraud HR 324 the PPP shell company Discovery act uh it represents a decisive St steep in cracking down on the unprecedented fraud that plagued the paycheck Protection Program during the pandemic PPP was a Lifeline
▶ 2:36:27during one of the darkest periods in recent history it was designed to save jobs support struggling businesses and ensure hardworking Americans could weather the storm but while millions of small businesses used this program to stay afloat some unscrupulous individuals saw it as an opportunity to steal from the American people with estimates of PPP loan fraud reaching as high as a hundred billion doar I'm going to say it again 100 it is evident that action must be taken to ensure accountability the PPP shell company Discovery act does just that
▶ 2:36:57this bill creates a simple yet effective report to identify potential fraudulent activity by targeting two critical discrepancies recipients who had no tax withholdings in 2019 and those who received loans far exceeding their actual payroll expenses these red flags provide a clear road map for the Department of Justice to investigate and prosecute those who defrauded this vital to be clear all I'm asking is to instruct the IRS and the SBA to run a report to give the department and of justice and the FBI
▶ 2:37:28a road map to holding these criminals accountable and recover as much of the stolen money as possible all this would do was give the FBI probable cause to get a warrant to uh proceed with their investigation but if either one of these U metrics is accurate um and the discrepancy is substantial it's very clear that this is all that the FBI would need to hold them accountable this legislation is about cutting through the ex existing bureaucratic hurdles that are holding us back from bridging from bringing these
▶ 2:37:58criminals to Justice the tools to identify fraud already exist what we need to do is act and get the federal government to share information the scale of this fraud is staggering it represents one of the largest THS thefts in American history for every dollar stolen a legitimate small business was left hanging for every fraudulent loan approved an honest employer strugg to make payroll this isn't just theft from the federal government it it is theft from hardworking Americans my bill will allow us to not only bring these fraudsters
▶ 2:38:28to justice but also reclaim tens of billions of dollars that rightfully belong to the American people and then allow us to use it reconciliation um as an offset president Trump was given a mandate from the American people and our Republican majority must keep our promises to deliver much needed economic relief cut government waste and restore the rule of law again I would like to thank chairman Smith and the members of the this committee for having me today I look forward to working with you to deliver timely economic relief to the American people this year and with that Mr chairman I yield back thank you thank you Mr Timmons I now recognize
▶ 2:38:59representative Miller Meeks the gentle woman from Iowa not only is she a doctor and a leader in public health but she's a strong voice for family farmers in Iowa welcome to the Ways and Means Committee thank you so much chairman Smith ranking member Neil members of the committee thank you for allowing me to testify before this committee to today like you all I am very excited to get to work on uh the uh president Trump's agenda and the American first agenda thank you for the opportunity to share
▶ 2:39:29my tax priorities for the 119th Congress as the representative for Iowa's first district and a member of the Energy and Commerce Committee and the chairwoman of the conservative climate caucus I represent America's Heartland where Agriculture and enemy and energy production come together to strengthen our nation's energy Independence while maintaining some of the lowest electricity prices in the country this success story shows the vital role that American energy production plays in supporting our economy strengthening our national security and providing good jobs to Working
▶ 2:39:59Families however our energy sector faces significant challenges that demand bold action Rising Global energy demand geopolitical instability and the need for greater resilience in our Energy Systems all underscore the urgency of developing a comprehensive American Energy strategy we must act now to secure our Energy Future low lower cost for consumers increase accessibility and maintain our nation's compe competitive advantage that's why I'm here today to advocate for an any of the above energy approach that leverages
▶ 2:40:30American innovation and unlocks the full potential of our diverse energy resources by responsibly developing our oil and gas reserves supporting the growth of Renewables and investing in cuttingedge Clean Energy Technologies we can enhance America's domestic energy production boost our economy and strengthen our national this approach allows us to enhance the reliability of our energy grid and allows for greater flexibility in meeting the growing energy demands of our economy while reducing the risk associated with relying
▶ 2:41:00too heavily on one source and importantly it puts America First not Brazil while I believe the partisan uh processes used to pass the inflation reduction Act created a deeply flawed bill in many respects it did include some important energy tax credits that are already driving transformative Investments across the US energ sector many of these credits have historically enjoyed bipartisan support and some of those were pre-existing many of these credits have historically enjoyed bipartisan support as I mentioned
▶ 2:41:30and American companies are utilizing them right now to develop critical new energy infrastructure spur Innovation and create good jobs in communities Nationwide including many in our districts prematurely raling repealing these tax credits would jeopardize the private Investments and economic benefits they are delivering as Republicans we should take a thoughtful approach and seek to refine and improve the Ira's energy Provisions in a way that promote Market certainty and continues to incentivize a comprehensive
▶ 2:42:01energy strategy as a surgeon I would say use a scapel not a sledgehammer as part of the strategy I want to highlight five tax credits from the inflation reduction act that are already driving transformative investments in American Energy the clean fuel production credit 45z this credit is critical for AG ultural States like Iowa it is accelerating the deployment of low carbon Transportation fuels including sustainable aviation fuel produced from Iowa grown feed stocks not from Brazil uh Brazilian feed stocks
▶ 2:42:31in 2021 Iowa was the top producer of ethanol in the United States generating over 4.4 billion gallons by creating new markets for our farmers and biofuel producers 45 45z can help Iowa build on this leadership while significantly reducing Transportation emissions maintaining this Market is especially important for producers and farmers who have already made important Investments planting decisions and sacrifices as corn has dropped to around4 dollars a Bushell the advanced manufacturing
▶ 2:43:01production credit 45x this credit is powering a Resurgence of domestic clean energy manufacturing including in Republican districts from wind turbine blades to solar panels to battery components 45x is helping the US build resilient Supply chains and reduce dependence on foreign import imports from countries like like China the carbon oxide sequestration credit 45q this credit is driving innovation in carbon capture a technology that enjoys broad bipartisan support because of its potential to reduce emissions while supporting American
▶ 2:43:32energy production supplementing the manufacturing Boom by storing industrial admissions keeping America beautiful Iowa has long been at the Forefront of carbon capture deployment with products like the ADM facility indicator sequestering over 1 million tons of carbon dioxide annually Indian 45q can build on this extending 45q can build on this progress and submit leadership us leadership in this essential technology 45y and 458 clean energy production investment credits the IRA brought in a new wave of investment by expanding
▶ 2:44:02the scope of these long-standing credits I know that my time is almost over so let me just say by m maintaining smart incentives turbocharging Innovation and harnessing the power of markets we can secure America's Energy Future while creating lasting jobs and opportunities repealing these credits without regard for Investments already made would be a setback to clean energy and importantly economic growth and put Brazil first not America first I look forward to working with my colleagues to shape an energy agenda that puts America first
▶ 2:44:32thank you and I yell back thank you um thank you Miss Miller Meeks um I now recognize representative Celeste Malloy the gentle woman from Utah Miss Malloy is an attorney and serves on the powerful um House Appropriations Committee she previously attended our Ways and Means Committee filled Hearing in Salt Lake City back in July so welcome back thank you Mr chairman I'm excited to be here I'm grateful for the opportunity to testify on critical tax reforms
▶ 2:45:02in order to create a prosperous future for all Americans and especially for the utown I represent I urge the committee to repeal the death tax also known as the estate tax uh the death tax is a levy on the transfer of wealth from one generation to the next and I know there's a perception out there that repealing it would help the the most prosperous Americans who don't need this help but the reality is it penalizes families who've spent their lives building businesses farms and Legacies that they want to pass on to their children and grandchildren in Utah small family-owned businesses
▶ 2:45:32and farms are the backbone of our economy Utah has more than 300,000 small businesses including about 14,000 Family Farms repealing this tax will allow families to pass on their hard-earned assets without the fear of financial ruin for the Next Generation the generation for which they've been working to build up a business a study performed by usda's economic research service indicated that 98% of American Farms are still family-owned and operated these families that work tirelessly for decades to build a successful small business
▶ 2:46:03investing their time energy and resources into creating jobs contributing to the local economy and providing for their loved ones shouldn't have to face a hefty tax bill they may not be able to afford especially after losing a loved one um I served on the small business Committee in the last Congress and we need need those Main Street businesses to stay strong and when they stay in families they stay in towns and they're the anchors of the economy especially in rural areas um so thank you for your work I want to see this tax bill get done in a way that makes Americans Freer more prosperous and more likely to start
▶ 2:46:33a family business and pass it down thank you for your time I yield back thank you very much and I want to I want to thank everyone for their testimonies you are all dismissed from the panel um and so will the clerk please add panel
▶ 2:47:17e e
▶ 2:47:52okay we're now uh ready to welcome our sixth panel of the day thank you for taking time away from your busy schedules to testify to our our committee you each have five minutes to deliver your remarks representa Nelly pow of New Jersey you're recognized for five minutes thank you so very much Mr chairman good afternoon my name is NY Poe and I am the new Congress Congress woman representing the Ninth District of the great state of New
▶ 2:48:22Jersey it is my pleasure to offer testimony to the house Ways and Means Committee as you set your agenda for the N for the 119th Congress the consideration of comprehensive changes to our federal tax code this year is a mo momentous occasion for this committee and for our nation it is an opportunity to enshrine positive reform that benefit regular Americans their families and
▶ 2:48:52our small businesses as as our neighbors have been hurt by inflation and high prices these last few years tax relief relief is essential for tens of millions of squeezed Americans my state of New Jersey is no exception to these negative pressures like all Americans Garden State residents have struggled mightily but our struggle has also been compound by the capping
▶ 2:49:22of the state and local tax deduction by the state tax law enacted in 2017 any Financial relief for our state begins with undoing this mistake I'm here today to urge you to remove the cap on the state and local tax deduction the simplest action this committee could uh could take would be taking no action at all allowing the
▶ 2:49:542017 cap to expired as was written into the law new jerseyans pay some of the highest property taxes in our ho in the entire country for many years the state and and local tax deduction helped us shoulder this burden the state and local tax deduction provided a vital conduit for our families by putting money into the pockets of regular Americans there there are many
▶ 2:50:24misconceptions or outright falsehood circulating about the state and local tax deduction let me be clear the state and local tax deduction benefits regular Americans in New Jersey and and States Across the Nation I am speaking about middle class families who are trying to make ends me including teachers seeking to meet mortgages police officers making tuition payments and firefighters looking to pay for uh for f for their family's vacations these are
▶ 2:50:55these are not multi-millionaires they are just hardworking Americans at the same time the former state and local tax deduction has helped our cities and towns shoulder their own burden burdens it has helped our local government pay for essential Services upon which our communities rely every single day the limiting of our state and local tax deduction has in turn hampered the ability of our Municipal governments to function at their
▶ 2:51:25best even though I am new to the US Congress I understand the role of this Committee in developing our tax laws for almost 20 years my predecessor Congressman Bill pascarell Jr was a member of this panel many of you know Bill well or new bill while he sat on your deis he argued passionately in vehemently against the salt cap for its restoration for him its restoration may have been his biggest
▶ 2:51:56priority like Congressman pascarell I believe the capping of the state and local tax deduction has been deeply unfair to new jerseyans I share his passion on this subject the Garden State residents are known for their directness and I am no exception any comprehensive federal tax law legislation must undo the state and local tax deduction cap to earned my support I look forward to working with
▶ 2:52:26the committee on this issue and all and on all other ways to help hardworking families from New Jersey like expanding the child tax credit reducing health care costs and strengthening Social Security I thank you for the opportunity to testify before this committee thank you m now Rec recogniz representative Burgess Owens from Utah uh Mr Owens is no stranger the Ways and Means Committee having joined us for our field Hearing in Salt Lake City
▶ 2:52:56in Our member day hearing last Congress and he is now the second NFL Super Bowl champion to have testified before the committee thank Mr thank you Mr chair I appreciate that uh chairman chairman um ranking member and members of the committee thank you for the opportunity to testify today I'm here to advocate for legislation shared between this committee and the committee of on education Workforce on which I serve as Vice chair uh here shortly I will be introducing the educational choice for children's
▶ 2:53:27act ECA along with my friend Adrien Smith Senior member of this committee and and retir advocate for CH school choice the ecca passed through this committee last September I'm I first introduced this in 117th congress with my late colleague and our beloved friend Jackie War wosi Jackie was a joyful uh um champion of policiy is to ensure every child every parent had resources and education they needed to succeed uh this bill is a fitting tribute
▶ 2:53:57to her Legacy by offering parents and students more educational options we create more and better options that Empower generations to make their American dream a reality this was true for me growing up in the segregated South and it can be for so many children to St trapped in a cycle of Forgotten Dreams and lost hope our bill is based on a wildly popular and incredible successful State program like the the children first education Fund in my home state of Utah these programs are designed to address many concerns of direct
▶ 2:54:27Government funding for scholarships because the ecca provides a refundable tax credit to support scholarships it diverts no existing funding away from public schools any fear mongering saying otherwise is just that fear mongering effort to keep choice and money out of the hands of parents the ecca can be compared to other existing tax programs such as low low-income housing tax credits and the new market tax credit which benefits from robust bipartisan support
▶ 2:54:58the ecca tax credits and scholarships are administered through an independent scholarship granting organization sgos these SOS both allocate nonrefundable credits to donors and select those families who will receive scholarships guaranteeing that students in all parts of the country not just cities and suburbs can participate the choice model has already proven to be both sustainable and successful for recipients of scholar children's scholarship funds across the country in Philadelphia 98% of eth graders
▶ 2:55:28graduated from high school on time and 70% of enrollments uh in in in some of these uh some form of postgraduate postsecondary education within one year of graduating from high school in New York 97% graduated from high school on time in 2024 compared to the most recent average in New York's Public School graduation rates of 83.7 in Baltimore 97% graduation rate with 84% enrollment into college
▶ 2:55:59compare this to a 2017 California Department of Education study in which 75% in the most anti-choice state in our Union could not pass standard Reading Writing tests an educational system that normalized the failure to to read and write is unconscionable and should not be linked with the word education educ uh ignorant free can never be hearkens to the vision and foresight of our Founders who considered education in pursuit of knowledge as fundamental to free free and an open Society
▶ 2:56:29our constitution enshrines the right for life liberty and pursuit of happiness as a vision of our heavenly father that puts value on on every child and every and in every life regardless of race Creed color or zip code unfortunately many children across this country particularly black and brown children lack basic reading and writing skills are discouraged from fost and pride in our country and are taught to embrace victimhood as a virtue while perceiving hard work and Merit as vices
▶ 2:57:00this combination of challenges make the the pursuit of life living and pursuit of happiness unattainable Adrian Smith and I are fighting today for the heart and soul of our nation this committee cannot accept the intellectual and educational failure of our own children as normal this legislation assures a winwin win win a win for the parent to see their children reach their potential a win for educational Community to allow competition and meritocracy a win for American citizen donors seeking to reduce their tax burden and a win to allow
▶ 2:57:30the investment of our most precious product our children to become happy productive citizens in our country and in our communities I look forward to continue working with my colleagues here today to again pass this bill to the Ways and Means Committee the ECA is a transformative innovative empowering for parents and liberating for their children all based on the agreement that every parent should have the opportunity to choose the best educational pathway for their own child urge this
▶ 2:58:00committee to expeditiously consider and pass the educational choice of children's act our children desperately need it thank you and now you back thank you now recognized representative Dina Titus the gentoman from Nevada Miss Titus has been a staunch advocate for the people of Las M Titus you have five minutes thank you very much and thank you for this opportunity uh I would like to start by addressing several outdated Provisions in the tax code that directly impact the gaming industry
▶ 2:58:31now I do represent Las Vegas and Southern Nevada where we've long been known for gaming but this is something that's very widespread now and affects many different districts and many of you and different ways uh for example Sports Bing is now legal and operational in 38 States and Washington DC the legal gaming industry supports 1.8 million jobs and 52.7 billion in direct tax revenue many of these jobs are located in my district
▶ 2:59:01but as I said they're across the country despite Gaming's widespread acceptance though and economic importance to many of our communities the federal government still imposes an outdated excise tax on legal Sports Wagers the O the 0.025 5% Sports Bing handles tax as it's called and the accompanying $50 per person head tax for sports book employees really serves no purpose and only empowers the illegal Market
▶ 2:59:31by enabling it to offer better odds than the legitimate ones you know I I once asked the IRS where does this money go what do you use it for and they couldn't even answer me they couldn't even find it it just went in some pile somewhere I guess uh additionally a second outdated tax on gaming is that the IRS requires casinos to furnish tax forms for any jackpot over $1,200 from a slot machine now this $1,200 threshold has not been updated since
▶ 3:00:021977 that means that the IRS is just flooded with hundreds of thousands of these tax forms for customers who hit minimal jackpots and don't owe any taxes at the end of the day furthermore the patrons have to wait a long time for the tax forms to come get filled out they shut down the machines closes off the floor uh this slows down the industry as well as the customer updating this threshold to $5,000 and indexing it to inflation is what the
▶ 3:00:33irs's own advisory committee has endorsed and if we do that it would be beneficial as I said to operators customers and the government so I strongly urge this committee to look at those two outdated provisions of the tax code I'm the co-chair of the gaming caucus we'll be coming with this legislation it has bipartisan support and I hope you that you'll consider it this Congress next I want to turn to another business that has outdated tax uh treatment
▶ 3:01:03and that's the Cannabis industry I seem to be advocating for all the vices here this morning I apologize for that like gaming cannabis has now spread to many states and it's a legitimate source of jobs and tax revenue it's it's legal for medical purposes in 39 States and Regional uses in 24 States despite this the outdated scheduling of cannabis as a schedule one drug means that those who work in the legitimate industry in those states where it's
▶ 3:01:33legal have to jump through hoops to operate just like any other small business does under the purview of this committee is section 280e of the tax code that prohibits businesses that traffic in schedule one and two drugs from deducting ordinary business expenses section 280e drastically increases prices for consumers and harms businesses that are legitimate in these states thereby sending people to the illegitimate Market where prices are lower
▶ 3:02:03again as co-chair of the Cannabis caucus I hope we can I can work with this committee to see that we can't begin to treat cannabis businesses like any other small businesses that operate in so many of our districts third and you've been hearing a lot about this lately I want to touch on taxation of tax tipped income I'm supportive of exempting tips from taxation only if it's coupled with an increase in the minimum wage elimination of the tipped subminimum wage and protections
▶ 3:02:34to prevent abuse we have to ensure that the tax code uplifts everyone but does so in a fair way finally an issue that's very important in my district is social security I have a lot of seniors in my district as many of you do and Social Security is uh unquestionably one of the most successful programs we've had in our history over 144,000 people who live in my first congressional district receive 250 million a month from Social
▶ 3:03:04Security benefits the program is 89 years old it's been working well I hope that the committee will build on the Social Security Fairness Act that was passed by the last Congress and continue to look for ways to strengthen Social Security and perhaps broaden it so that it stays solvent and stays there as that uh Lifesaver that so many of our constituents need so those are our uh priorities things that I look forward to working with you all on and thank you for your attention
▶ 3:03:34yes ma'am thank you Mr Titus now recognize representative Derek van Orton the gentleman from Wisconsin Mr van Orton is a Navy SEAL who served multiple tours overseas and continues his Service as an outspoken Champion for South Western Wisconsin in Congress Mr van Orton you recognized for five minutes thank you Mr chairman I I uh deeply appreciate the opportunity to come here and speak in this rather fancy room I'll give it to you I'm on the agriculture committee uh VA committee and also on armed services and it's
▶ 3:04:05wonderful to be here and i' I'd like to thank all the distinguished members for having me today um as we're discussing the upcoming reconciliation package of the expiration of various tax Provisions at the end of the fiscal year I'm here today to emphasize three key points that must be included in this package first is the no tax on tips no tax on social security and the extension of President Trump's tax cuts and jobs Acts or the tcga I have been supporting myself financially since I was
▶ 3:04:3516 years old I joined the Navy at 18 those intervening years I worked in the hospitality industry in restaurants and as a Young Man a teenager uh having to pay this tax bill on my tips that would come in every day was uh very disconcerting and it made life very very difficult our service workers and people that are are uh depending on these tips uh often times are not recognized and they need to be so
▶ 3:05:05uh recognized and we have to understand uh the Dignity of Labor and getting them to stay in these critical Fields so I very very strongly support the no tax on tips our seniors Built This Nation they're responsible for the building that we're sitting in they're responsible for the freedoms that we enjoy and they must be respected as so uh to have our seniors being concerned that their social security benefits are being taxed and making it more
▶ 3:05:35difficult for them to live is simply unacceptable so I stand very strongly in support and I was very happy to co-sponsor the senior citizens tax elimination act last Congress and I'll be doing so again this Congress and hopefully we will get this into the reconciliation package so that our seniors can live a little bit easier in this tough economy um and finally we need to extend the historic tax cuts that were put in place by
▶ 3:06:05President Trump in 2017 these tax cuts were responsible for the incredibly strong economy we saw under President Trump's first term Provisions such as the reduction of individual income taxes and the expansion of the standard deduction have provided significant relief to Wisconsin families letting them expire would be a huge hit to the working class wisconsinites that I represent in my district moreover measures like the 1099a deduction have played an essential role in enabling small and medium-sized
▶ 3:06:36businesses to achieve greater greater tax Equity or equality with larger corporations and eliminate by and by eliminating this deduction it would Jeet prize over 2.5 million jobs I realize there's been a lot of conversations around the cost of these extensions but I urge my colleagues here to be cautious uh by following the cbo's advice the Congressional budget office has consistently proven to be uh inaccurate in their estimates so I want to make sure that everybody understands that let's
▶ 3:07:06go into this with our eyes wide open and really look at the the cbo's estimates and take them for what they are which is nearly useless uh Mr chairman and members of the committee the policies I've outlined today no tax on tips no tax on social security and the extension of President Trump's tcga tcga are essential to safeguarding the Financial Security of families in Wisconsin and across this country these measures will support hardworking Americans alleviate the burden of inflation and continue the economic momentum
▶ 3:07:37that we're starting to build under President Trump's second term with that I yield back Mr Orton again thank you for your service we now recognize representative Moore the gentleman from West Virginia Mr Moore is a former member of the West Virginia House of delegates and he served as West Virginia's 25th state treasurer prior to being elected to congress Mr Moore five minutes thank you Mr chairman and thank you for hosting this member day hearing uh I think the American people spoke
▶ 3:08:07loudly and clearly on November 5th they sent president Trump back to the White House with a resounding Victory and a clear mandate to put America first and to make us a secure and prosperous Nation once again the American people also entrusted us with majorities in both houses of Congress to help president Trump achieve this historic mandate a key pillar of President Trump's mandate is to make America an
▶ 3:08:37energy superpower that means prioritizing our reliable Basel load energy sources such as coal oil and na natural gas as I like to say we need to prioritize and we need to PR prioritize an all the below the ground strategy to make us energy dominant again however for too long this town has crushed our reliable base load energy sources
▶ 3:09:07with devastating regulations and harmful policies that put ideology over energy security policies like Obama's clean power plan better known as the war on coal which cost West Virginia thousands of coal jobs and the so-called inflation reduction act which was a trojan horse for the radical Green New Deal have gotten us further and further away from energy security we should
▶ 3:09:38be a net exporter instead President Biden had to beg Saudi Arabia not to raise oil prices and our Coal Fired power plants are being shuttered at record rates this must change if we truly want to make America great again we need to reprioritize our baseload energy sources as we look to repeal the inflation reduction act Green New Deals tax credits
▶ 3:10:08in reconciliation we should simultaneously consider harnessing our tax code to offer incentives for increasing reliable energy production one way to do that is offering a tax credit to defay operations and maintenance costs for energy producers that meet certain production benchmarks in 2018 Larry bushan of Indiana along with the entire West Virginia
▶ 3:10:38delegation introduced the electricity reliability and F uh fuel Security Act which offered Coal Fired power plants a temporary tax credit to recover up to 30% of the plants operations and maintenance expenses while I fully support the original proposal focused on coal I believe we can expand the idea to ensure we aren't picking winners and losers and helping bring about a total energy Renaissance in this country
▶ 3:11:09we should consider broadening this tax credit proposal to make all forms of energy eligible for this 30% onm tax credit if that producer can maintain a certain required x amount of megawatts produced we can consult with experts to help us determine the right amount of megawatts that must be produced to reserve receive this tax credit but I believe this proposal will both reward Dependable Basel
▶ 3:11:39load production while also incentivizing other forms of energy to innovate and become more reliable and I would note that currently in the inflation reduction act this 30% tax credit does exist on operations and maintenance for green Energy Products currently right now while coal and uh coal and natural gas receive zero tax credits for operations and maintenance so I thank the chairman for the opportunity to testify
▶ 3:12:09today and I'm glad to work with the committee on this proposal and I'm glad to answer any questions thank you so much Mr chairman I yield back thank you we now recognize representative Amelia Sykes from Ohio a gentle woman uh comes from a family of leaders in her State and we are glad to have her here serving in congress with us miss syes thank you uh Mr chair and thank you to ranking member Neil for holding this hearing today and offering members an opportunity to speak on tax priorities that are
▶ 3:12:39so important to our districts I appreciate the both of you for your leadership in this committee and I look forward to working with you to improve our nation tax code for the people of Ohio's 13th congressional district and for Americans all of around the country in this 119th Congress before speaking on priorities for the upcoming Congress I want to highlight a policy from the 118th that is driving the conversation in my home District it's the Social Security Fairness Act the Social Security Fairness Act eliminates the windfall elimination
▶ 3:13:10provision and the government pension offset from the Social Security Act which previously prevented Public Service employees from receiving their full Social Security benefits if they also received other forms of retirement benefits such as a pension there is no good reason why teachers firefighters and other Public Service employees who have earned their retirement benefits should not receive them again they earned these benefits and they should not have been penalized for working hard Ohio is especially uh going to benefit
▶ 3:13:40from this piece of legislation with the Congressional research commission indicating over 230,000 Ohioans will be eligible for increased benefits because of this law the Social Security Fairness Act is not just important because it provides relief to thousands of my constituents who were frustrated and are frustrated they couldn't receive their full benefits it also demonstrates what Congress is capable of when we work together in a bipartisan fashion Mr chairman and member of the committee there is not a single
▶ 3:14:10place I have gone in the last few weeks back at home where someone has not stopped me to thank me for the work that Congress did to ensure that the social security Fairness Act was passed and signed into law whether it was a retired firefighter or a widowed teacher who could not get the full benefits survivor benefits from her late husband there are people all across Ohio's 13th congressional district and this country who have much more greater economic opportunities because of this bill we should
▶ 3:14:41keep this example of bipartisanship in mind as we prepare for the upcoming tax debate with so many provisions from the tax cuts and job acts expiring we have a great opportunity to lower costs for the American people and give families a better chance at the American dream for example Congress could expand the Earned Income Tax Credit by doubling the credit percentage for families with children and reinstate the expansion of the child tax credit which cut poverty nearly in half when it was fully implemented putting more money in people's
▶ 3:15:11pockets of the individuals who work hard uh but struggle to make ends meets should be a top priority for all of us both of these policies are included in my first bill of the 119th Congress the lower year taxes act which if implemented would expand the middle class by reducing costs and expanding opportunity for everyday Working Families further this legislation incentivizes work and self-sufficiency a goal that I know everyone in this room and on this committee has this bill would also reverse some of the unpopular policies of
▶ 3:15:41the tax cuts and job act by Shifting the tax burden from low and middle class Americans back to the corporations who are currently not paying their fair share there is no reason why line Cooks firefighters and teachers are taking more more of the tax burden on than Rich corporate corporations we uh instead know that the best way to deliver for American families and workers is to invest in American families and workers and not greedy corporations this year
▶ 3:16:11tax debate gives us a chance to do right by the American public and ensure that they can make ends meet in the face of rising costs and put more money in their pockets which by the way Mr chair is their money I hope this committee takes these issues into consideration as we look to improve the lives of America's hardest workers including those in my community in my district the birthplace of Champions Ohio's 13th congressional district thank you Mr chair I appreciate the opportunity to address the committee and I yield back thank you I now represent
▶ 3:16:41I recognize representative D strong the gentleman from Alabama with a heart for Mr strong has spent his entire career as a dedicated first responder he now serves the community as a member of Congress and on the Appropriations Homeland Security welcome to the committee thank you chairman Smith um distinguished members of this community uh committee thank you for the opportunity to stand up for businesses and workers in north Alabama I'm proud to speak on behalf of American jobs
▶ 3:17:12competitiveness and our future as the world's leader in innovation the 2017 tax cuts and jobs Act was a game Cher for our nation it unleashed the full potential of our economy strengthen America's businesses and help create high-paying jobs in communities across our country to keep the United States competitive on the global stage create new jobs and grow our economy we must restore these these crucial tax Provisions
▶ 3:17:43starting with the immediate expensing of research and devel development throughout North Alabama businesses depend on the ability to immediately deduct R&D expenses so they can reinvest in their products their employees and their communities this is truly an in an investment in America immediately expensing isn't just a tax provision it's a job Creator a growth accelerator and a fundamental tool that keeps American businesses
▶ 3:18:13at The Cutting Edge of the global economy unfortun ently Nations like China continue to pour more and more into R&D and Technology the US has fallen behind We Are One of only two developed countries that do not allow businesses to immediately write off the full cost of machinery and equipment it means fewer jobs for American workers less investment in American innovation and a weak weakening of our Global competitiveness
▶ 3:18:43it is not just business that benefits from pressent Donald Trump's tax cuts Working Families due too the personal income tax cut provided Working Families with more take-home pay which they use to reinvest in their communities and local economies Americans America's economic success depends on tax code that rewards Innovation supports job creation and prioritizes American workers over foreign competitors
▶ 3:19:14America first if we seriously talk about keeping competitive we want to ensure that we're the economic leader that we are the economic leader of the world stage we cannot afford to let these Provisions expire our time is now Mr chairman I back thank you I now recognize the congresswoman from American Samoa Miss Miss rat wagon this is not her first time
▶ 3:19:45um with the Ways and Means Committee we had the great opportunity to travel together to Southeast Asia um to discuss the issues of China's aggression over there um it's great to have you back with us on the committee thank you chairman Smith and ranking member Neil for allowing me to submit testimony on my bill HR 399 to permanently extend the American SWA Economic Development tax credit American sore relies upon the operation of atuna canri to provide economic
▶ 3:20:15Vitality to the Island this cry has become the largest private sector employer on the island providing 2,450 jobs or approximately 25% of the Island's employment despite the economic challenges the operation of this cry is crucial for the economic sustainability of American sore as it along with its Associated fishing operations contributes to a third of the Island's gross domestic product other related Industries on the island such as
▶ 3:20:46fueling shipping and storing depend on the ongoing activities of the canri to support their own operations this economic activity has allowed American San citizens to retain meaningful employment along with a reliable income and valuable fringe benefits my bill HR 399 would permanently extend the American Sama Economic Development credit or ASC which expired on January 1 2022
▶ 3:21:16after repeated renewals the asdc was designed to encourage investment in the US insular areas and create jobs by reducing the federal taxes on income earned by qualifying us businesses the credit has helped to alleviate significant competitive disadvantages facing businesses in the territory helping companies including the caner continue operations on us soil while competitors increasingly move business overseas
▶ 3:21:46to take advantage of cheap labor and foreign subsidies the ASC was routinely extended as part of an annual package of tax extenders since its Creation in 1996 until it expired on January 1 2022 the credit was typically extended for 1 to three years at a time and had been renewed and made retroactive nine times since 1996 since the credit's expiration companies in American Samo
▶ 3:22:17have had to consider either significantly reducing their operations or exploring the possibility of relocating to more viable economic environments the American samon government estimates that such relocations could cause a financial crisis from which the island economy may never recover the credit represents an offset of approximately a quarter of the Canary's annual labor costs for comparison relocation of the canri to outside the US
▶ 3:22:47would cut costs by nearly 34s competing canaries in Asia pay their workers the equivalent of less than $2 an hour under harsh and unsafe conditions to be Frank starkist has expressed a strong desire to remain in American Sama under the US flag where us work workers rights are better protected but the fact remains that they require government support to remain competitive a 2023 GAO report noted
▶ 3:23:17that reductions in the tuna canning industry would likely also affect support Industries such as transportation and warehousing retail and wholesale and Construction in American sore the tax credit also represents an opportunity for further development of the American Samo economy while we're primarily a fishing town the credit could be used to attract other Industries and revenue streams for the island thank you again chairman Smith smth ranking member
▶ 3:23:47Neil and the rest of the Ways and Means Committee for the opportunity to speak today given the low cost of the credit compared to its immense economic benefit to American sore I strongly encourage my colleagues to pass HR 399 to permanently extend the asdc thank you Mr chairman I yield back thank you I now recognize representative Jen kiggins the general woman from Virginia Miss kiggins is a is a United States Naval veteran helicopter
▶ 3:24:18pilot and is a proud Navy wife and mom she uh is also a member a former member of the Virginia state senate so welcome thank you so much Mr chairman and distinguished members of the committee as we begin a new era of conservative leadership it's important for Republicans to use our voices in energy and climate conversations so we can find Common Sense conservative solutions that will address our nation's energy security needs one way to do that is by protecting the existing clean energy tax credits as Republicans
▶ 3:24:48we support all the above approach to energy development while the inflation reduction Act contained countless harmful Provisions that led to our conference wholly opposing its package some of the energy tax credits included in the bill have led to a significant increase in domestic manufacturing and energy production across the country including in my district that's why I joined 17 of my Republican colleagues this past August and sending a letter to speaker Johnson in support or protecting the Ira's clean energy tax credits they have spurred Innova Innovation driven
▶ 3:25:18billions of dollars in investment and created good jobs in many parts of the country including my district and many districts represented by members of our Republican conference in Virginia alone over $445 million in Ira supported private Investments have been announced supporting over 250 jobs that's not to mention a new report showing that the combination of federal programs clean energy tax credits and clean energy investment will add $ 37 billion to the commonwealths economy by 20 35 it's important to note that the Ira's
▶ 3:25:49clean energy tax credits have been traditionally bipartisan with many being in existence and some former Fashions since the George Bush George W Bush Administration and others gaining bipartisan support when they were introduced as individual individual legislative proposals I've seen the benefits of clean energy firsthand again in my district through investments in offshore wind which has not only brought significant economic gains and job growth but is benefiting our United States Navy bases upgrading and improving our military bases continues to be a top priority
▶ 3:26:19of mine as a Navy veteran and offshore wind has allowed us to harness the power of America's renewable energy to support the countless military installations along the Atlantic coast as someone who represents one of the most military heavy districts in the country I know that energy security is National Security the public private partnership with the wind turban industry in my district will allow upgrades to a very outdated power grid at our Navy's East Coast Master jet base Naval Air Station ocean oana while we continue working to unleash American
▶ 3:26:49Energy we cannot turn a blind eye to the benefits these clean energy tax credits provide and how they are actively helping our Armed Forces small businesses and American families the bottom line is that in order to increase American Energy dominance and bolst star domestic energy security we need to protect as much production and Innovation as possible these clean energy tax credits have helped to accomplish that goal at a time when energy demands continue to Skyrocket the repeal of these credits would has significant negative impact on the United States ability to counter growing threats
▶ 3:27:19from the Chinese Communist party's activity in the energy sector we need to be pragmatic in our approach to unleashing American Energy Independence we must put America First by prioritizing domestic energy production and protecting our existing clean energy tax credits I hope I can count on your support to do just that thank you and I back thank you very much I now recognize representative GT Thompson the gentleman from Pennsylvania as the chairman of the great agriculture committee
▶ 3:27:50uh he understands firsthand of how tax policy imp impacts our farmers and and our families it's great to have you back to member day chairman thank you so much thanks for this opportunity ranking member Neil members of the House committee on ways and means uh good afternoon and thank you for providing the opportunity to share my priorities for the 119th Congress uh within the committee's jurisdiction and I believe the policies described will enhance the quality of life not just from my constituents but for all Americans I was proud to recently introduce HR
▶ 3:28:20464 the skills investment act it's a bipartisan legislation designed to expand tax advantage savings opportunities for Americans pursuing new job skills and better career prospects this legislation would change existing Coverdale education savings accounts esas to create lifelong learning accounts by raising the age-based contribution limit to 70 and expanding the scope of distributions to cover a broader array of in- demand education
▶ 3:28:50and skills training forums these expanded uses include for programs offered by career and technal education institutions adult education and literacy programming and other ferally recognized Workforce Development initiatives additionally employers would receive a 25% tax credit for contributions to a worker's account to ensure the skills and training provided meet labor market demands as employers face tight labor markets and skills Gap throughout the workforce this legislation
▶ 3:29:21directly addresses those needs by expanding access to skills-based educational opportunities for Learners of all ages is my hope that these needed reforms will be included in the upcoming reconciliation package we would also like to address several tax issues that significantly impact Rural and agricultural communities as chairman of the committee on a on committee on agriculture I'm acutely aware of substantial challenges facing Farmers Across the Nation as this committee turns its attention to tax reform I
▶ 3:29:51urge you to prioritize several key Provisions in the code that are important to maintaining and protecting ongoing farming operations and ultimately food security which is National Security first and foremost is essential that tax reform protect a number of Provisions that were made permanent in the tax cuts and jobs act including section 197 expensing the indefinite carryover carry forward of deductions and a 21% corporate tax rate these permanent tools are critical
▶ 3:30:21to Farmers abilities to plan and to manage their operations each year similarly there are Provisions slated to expire that I strongly encourage the committee to either extend or make permanent these include the corporate pass through rates and the expanded tax brackets the section 199a deduction and the bonus appreciation provision together these Provisions help preserve farm profitability and ensure stability for agricultural businesses in addition to preserving the essential aspects of tcga
▶ 3:30:51Congress has an opportunity to provide new tools to support farmers and ranchers during these times of economic dislocation in farm country many of these proposals are further detailed in my written testimony but they include the creation of farmer savings accounts to allow producers to better manage their cash across the agricultural business cycle incentivizing the consumption of domestically sourced agriculture products and and finally scrapping the death tax once and for all as many of you know the death tax PL places an
▶ 3:31:21incredible burden on anyone trying to plan for an orderly transition of a family business at a time when older farmers and ranchers are passing their operations on their operations the return of this tax and the elimination of stepped up bases threaten the transition with devastating tax bills beyond the policies that directly affect farmers the committee should also consider the broader impact of tax policies on the agriculture of producers and Rural economy it's essential that discussions surrounding these tax credits
▶ 3:31:52prioritize the productivity of Farmland incentives that encourage the conversion of large areas of productive Farmland to non-agricultural uses could have long-term negative consequences for food production and food security similar tax credits related to farming methods should be guided by clear practical policies that support the real world benefits of today's agriculture practices for example the Biden Harris administration's recent 45z tax credit guidance reflects a lack of understanding of the emissions reducing
▶ 3:32:22benefits inherent in American agriculture it is my hope that any forthcoming tax package would Implement policies to genuinely Empower farmers in line with the realities of modern farming I have additional priorities within the committee's jurisdiction that I've submitted for the record including legislation that could yield significant savings for Medicare by cracking down on waste Fraud and Abuse with respect to Orthotics and Prosthetics thank you again chairman Smith and members of this committee for allowing me to express my priorities with this committee for the 119th
▶ 3:32:53Congress I appreciate your consideration and look forward to working together on these and other issues thank you chairman Thompson I now recognize representative Hillary Scolton um the gentlewoman from Michigan Miss Scolton serves on the transportation and infrastructure and small business committies and represents the great people of Michigan's thirdd congressional district thank you so much uh Mr chairman and Madam ranking member for holding this hearing uh and all the wonderful uh members of this committee I'm
▶ 3:33:23thrilled to be here today to talk about a bill I introduced just last week HR 536 the agricultural environmental stewardship Act of 20125 this bill is a common sense approach to unlocking our domestic energy production as it seeks to extend section 48 invest investment tax credit for qualified biogas properties the section 48 ITC has been around long before the inflation reduction act uh first enacted in 1962
▶ 3:33:54however the treasury Department was significantly delayed in rolling out its latest section 48 guidance announcing its final Ru making just 27 days before section 48 ITC expired on December 31st 2024 this has left biogas developers in the dark as they sought to make major Investments in America's Clean Energy Future my bipartisan bill co-led by Mr valo will provide biogas developers the time
▶ 3:34:24and certainty to catalyze America's clean energy alternative produ production from landfills wastewater treatment plants and agricultural operations this biog gas then can be converted to renewable natural gas or RNG and then used as vehicle fuel or to generate electricity we all know the pain our constit are feeling at the pump or while paying their utility bills right now bolstering our biogas production will help our communities cut costs and stretch their dollars
▶ 3:34:55this tax credit will also promote energy Investments and job growth in local communities Across America including in districts represented by my colleagues here on this Das I've seen the benefits firsthand in my community as West Michigan is home to many farms utilizing Anor robic digestors as well as water resource recovery facilities generating biog gas when it comes to energy I strongly support an all of the above approach leaving the environmental concerns
▶ 3:35:25with traditional energy aside these are limited resources when they run out they're gone as a mom of two young kids I can't help but think about the next generation's energy needs as we look to lower energy prices now we also need to create the fuels of tomorrow today so we're ready this bill will help us do just that it's a winwin win situation in addition to helping producers create alternative energy sources and creating jobs ramping up our biog gas
▶ 3:35:55production in addition to Alternative in addition to other energy forms will reduce the US's dependence on foreign fuels protecting our national security I look forward to working with my colleagues on the committee to get this extension across the Finish Line my bill will save consumers money expand domestic energy production create new greenhouse gas emissions and with that Mr chairman I'd like to request two letters of support for my bill from the America or uh request that these bills be introduced um from the American
▶ 3:36:25biogas Council and the Coalition for renewable natural gas request they be entered uh into the record now without objection thank you for your time today I yield back thank you very much um I I now recognize representative Jeff Van drew the great gentleman from the state of New Jersey Mr van Drew has served his Community as a dentist and now he serves them as a great member of Congress it's great to have
▶ 3:36:56you thank you Mr chairman I think it was easier being a dentist by the way you know uh chairman Smith ranking member Neil and members of the committee thank you for hosting this member day and allowing me to speak on this incredibly important subject let me be clear president Trump is is counting on us he's counting on us to deliver the certainty and economic relief that comes from extending his historic tax cuts this must be done it fueled
▶ 3:37:27one of the strongest comebacks in the American economy in history by locking in these tax policies now we can give Working Families small businesses and manufacturers the confidence to invest to grow and to sponsor this bill must also go beyond the basics and address the challenges everyday Americans face first tax relief for working families must remain front and sender it is so important it is critical let's
▶ 3:37:57expand the child tax credit and ensure families to that they can keep more of what they actually earn they're breaking their back making a living some of them working two jobs some families work in three and four jobs working parents should not have to choose between paying their bills and investing in their child's Futures and the child tax credit should continue to be a tool for helping Americans but let me even be more clear the child tax credit
▶ 3:38:27should not go towards the families of illegal aliens it should not that's why I introduce legislation to cut this provision from the child tax credit and I hope to see similar action taken in the very bill that we're discussing today I would like to be part of that we can no longer offer incentives that drive people to come to our borders illegally we can no longer afford to keep paying the billions of dollars it costs to take care of
▶ 3:38:57them in addition the child and dependent care tax credit also plays a crucial role in helping parents afford the high cost of child care so that they can work and fuel the economy this is not the only provision of the tax code specifically designed to assist working parents but it is the main one and it is important expanding the CD CTC could provide families with muched relief offset the cost
▶ 3:39:27of going to work and ensure that parents can continue to provide for their families next it's p time that we get our border under control we all know this I hope that we're all together this in this at the end of the day it's a big deal we need robust funding in this bill to secure our borders to hire more border agents and enforce our immigration laws it isn't just about safety it's about protecting American workers and it's about the Integrity of our immigration system we must
▶ 3:39:57also unleash American Energy we've been blessed with the resources to do this American energy is the answer it will increase revenues it will place us against once again in a dominant role on the world Scene It is critical we should export energy we should leave we should supply all of our own energy others should need to come to us not as in the past administration where we had to go begging to them maintaining the 45 U tax credit
▶ 3:40:27for existing nuclear plants is essential to preserving and strengthening this clean reliable energy source nuclear energy is one of the main answers to energy in our country it already supplies nearly 20% in my home state in New Jersey almost the mechanism this mechanism this mechanism ensures nuclear facilities can confidently plan significant Investments such as the1 billion planned in my district the
▶ 3:40:57Salem nuclear power PL it's important and they're looking for reliability they're looking for consistency they don't want to know that they want to start a project put a lot of money into it and then the rug is pulled out from underneath them additionally we need to strike a balance when addressing the salt deduction cap and this is what I mean by that we cannot have a deduction of a 100,000 or 200,000 I come from a blue state it could be run better
▶ 3:41:28I understand why other members have concerns about salt but we do help States in various ways whether it's subsidizing corn whether it's an agriculture in general and I support that I support the needs and desires of my colleagues I also know that this is important to my state and many other states and it isn't as if we don't if we don't do it we're not punishing the people who are responsible for bad policies we're punishing good taxpayers and good
▶ 3:41:58Americans so we have to find that balance we have to find the sweet spot where we help the majority of middle class taxpayers but we don't overburden our budget I get it I understand it I understand the concern with it so we can't I I you'll never hear me Advocate and I've said this directly to president Trump last weekend I spoke to him today same issue we cannot overburden the budget and our reconciliation bill at the same time we need to do
▶ 3:42:28something we need to have some sort of assault adjustment as Congress we routinely subsidize programs and I mentioned that before all across the country we need to do something here too we need to cut waste foreign programs that are Wast and I'll be done in a minute we need to cut funding for certain International organizations that continue to undermine the United States of America we're funding the UN and the UN half the time is cutting our throat we're funding
▶ 3:42:58the World Health Organization cutting our throat we need to cut subsidies for the green New Deal we need to cut the bureaucratic waste in our federal agencies we need to cut federal grants to partisan research projects there's a lot we can cut we have to use a scalpel not a hatchet and that's from a dentist we need to use that scalpel appropriately and make sure that we're not cutting things that help good hardworking average American people but that we're cutting the waste and
▶ 3:43:28quite frankly the stupidity I appreciate this committee chairman I appreciate you you all have an unbelievably hard task and hard work and by the way I'm done now I'll say this one last thing we need one big beautiful bill I yield back thank you Mr van Drew um I I now recognize representative Zack nun the gentleman from Iowa Mr nun is a sixth generation Iowan and an advocate for working families and Farmers he
▶ 3:43:58testified at our member day hearing last Congress but also participated in our field hearing at the Iowa State Fair it's great to have you back well Mr chairman I want to say thank you very much into the Ways and Means Committee who took the time to exactly come to Iowa and hear directly from folks who are impacted by the decisions you're about to make we have a critical opportunity this year to extend and improve the tax cuts the legislation that we pass will play a major role in making the economy work again for families I know
▶ 3:44:28this because in Iowa we led the largest tax cuts in State history and our economy grew and Mr chairman I know you're going to do the same for our country so I'd like to begin with number one the child tax credit by doubling the child tax credit in 2017 nearly 400,000 Iowa families saw major relief and now this is money that they're directly taking back to our communities I spoke recently with Sarah a farm mother and has three kiddos at home and I asked her
▶ 3:44:59what she did with her tax returns and despite the surprise to some liberals she didn't buy an italian-made Ferrari with her tax credit she put her kids through speech therapy and bought a water boiler so her family could be warm this winter that's a direct investment in a Comm Community these child tax credits help not only grow families and support but they grow at a local a HomeTown level issue number two adoption Mr chair as you know my wife and I recently got to adopt two incredible little girls
▶ 3:45:29Jana and Aaliyah they've been a great part of our family but the reality is there so many here who have adopted it's an expensive Endeavor and it can be challenging to bring kids into a safe and loving home that's why I'm fighting to help more low and middle-income families adopt children by taking advantage of the adoption tax credit making it permanent and fully refundable to help offset those initial costs so that more families have the opportunity to bring children into their forever home three the infant tax
▶ 3:45:59credit as we all know just years ago millions of parents with babies were struggling to find the formula they needed to just feed their kids we must prevent another baby formula shortage or be dependent on a place like China to provide it my bipartisan infant tax credit act would create tax credit so that small baby formula manufacturers including my home state of Iowa would be able to help diversify our supply chain and ensure that infant formula
▶ 3:46:29options for families across the country are available and ready in our time of need four our small businesses in my home state of Iowa small businesses are more than 270,000 in total and make up 99% of our state's economy they are the lifeblood of our hometowns if we allow the tax deduction to expire by inaction 92% of Iowa's Main Street businesses will be hit with a new 44%
▶ 3:47:00tax increase that means closed doors shuttered communities and the hollowing out of Middle America in simple terms Family Farms will die that is why it's so important that we move forward and recognize the role our small businesses play five biofuels not only is this important for America's energy Independence it unleashes the great parts of your districts in mine I'm thrilled that by extending 45z 45b
▶ 3:47:30and 4A as well as other biofuel tax credits that people have built an industry upon we have the opportunity to truly lead for not only our country but help families at the pump and their supply chain cost to drive it down for generations to come and six the death tax finally more than half of us farmlands in our country today are on the brink of a generational hand changeover the Family Farm for all of us is on the line
▶ 3:48:01and it's forced families to determine whether they can keep their Farm in the family or whether they have to sell to places like big EG or Worse to China here's a real life example a farmer friend of mine from Cass County recently inherited entire family farm while many might think that's a great thing at the same time the death without the death tax exemption he would have been forced to pay millions as a result to preserve our family farms to make sure that we can feed our country and to provide both food security and National Security
▶ 3:48:31I'm working with my Iowa colleague Mr fenra on the committee today to make sure that we permanently repeal the death tax Mr chairman to the men and women of the Ways and Means Committee you have a huge Duty before you we honor to stand with you but know this the American people are watching and they are depending on you to help lead the charge with our support to unleash America's greatness and make sure that Ians and the country keep a little bit more money in their pocket because I guarantee you this they will do more to grow
▶ 3:49:01our economy than anything we can do here in Washington with that Mr chairman let's get to work thank you very much I yielded my time thank you Mr nun um I'm now pleased to recognize representative Stephanie Bice the Goman from Oklahoma Miss Bice is a former member of the Oklahoma State Senate where she was the Senate chairman of the finance committee um but more importantly a fearless leader in the House of Representatives welcome to the ways and means thank you Mr chairman and thank you to the members of committee
▶ 3:49:31for allowing me the opportunity to um be here this afternoon and share with you some of the priorities that I hope you will consider as we look to uh move good policy this 119th Congress let me first start by saying that you know many of us here focus on families we want to make sure that we're doing right by families so the legislation that I want to um offer up today really focuses on that first of all first number one is the child act since the creation of dependent care fsas
▶ 3:50:02in 1986 the contribution limit has remained $5,000 with the ever increasing cost of child care and cumulative inflation measuring roughly 188% over the 39-year period since these accounts were created relief is needed for American families my legislation the child act co-led by representative Sanchez in a bipartisan way proposes doubling the contribution limit to $10,000 and indexing it
▶ 3:50:32for inflation annually in 2021 the average cost of child care was 10% of a couple's income these employer sponsored accounts can be used for after school programs Child Care Extended Care Day Camp sick child care and other expenses and I think it's incredibly important that we look at increasing this cap second Paid Family and Medical Leave tax credit extension and enhancement act 45s my friend
▶ 3:51:02and former Ways and Means member Randy fster has introduced legislation to extend and reform the 45x tax 45s tax credit the provision which was in tcja and expires at the end of this year has helped many employers expand their Paid Family Leave benefits for their workers rep fster Bill not only makes the credit more flexible but it also increases employer awareness and makes the tax credit permanent as a mother of two daughters I was thankful my employer offered me Paid Family Leave
▶ 3:51:33we need to incentivize employers to offer paid family leave not mandated I want to thank Mr fster for leading this initiative and I hope to see this tax credit permanently extended and lastly Paid Family Leave working group I would like to share with you all that for the last year and a half or so I've co-chaired a house bipartisan Paid Family Leave working group and at the end of this last year our working group released two discussion drafts the first is legislation
▶ 3:52:03I authored to create a modest Federal incentive for states to offer their own paid leave programs through the use of a public private partnership this would include States who partner with in insurance companies to offer coste effective benefits and would tie in well with the reforms proposed by Mr fenster's 45s legislation the second concept would establish an interstate paid leave Action Network or I plan which would enable a private nonprofit intermediary
▶ 3:52:33to assist with the coordination and harmonization of paid leave benefits across state lines while working on Paid Family Leave stakeholders continuously told my office that they had to deal with a patchwork of state regulations and requirements R holan's forthcoming legislation will help streamline this and help them navigate the benefit programs Mr chairman I would also like to ask unanimous consent to submit the following articles for the record uh
▶ 3:53:03one the end of the tax breaks could be very disruptive to business owners two intangible drilling cost three ncva continues to push for death tax relief and finally how the loss of immediate expensing reduces Innovation inputs without objection thank you these articles support the reauthorization of 199a intangible drilling cost the R&D tax credit and the repeal of the estate death tax and these Provisions are discussed in almost every meeting I have with constituents
▶ 3:53:34the repeal of the death tax and extension of the other credits will allow Main Street America to continue to grow and employ more Americans thank you for giving me the opportunity to discuss tax issues that are important to my constituents in Oklahoma's fifth congressional district and with that I yield thank you Miss Vice I now recognize representative Jim McGovern the gentleman from Massachusetts Mr GN currently serves as the ranking member of the rules committee great to have you thank you Mr uh chairman and it's great to see my colleague Gwen Moore here
▶ 3:54:04as well um uh thank you for the opportunity to testify today on a few of my priorities before the house committee on ways and means as this committee knows ending hunger and improving access to nutritious food has been the cause of my career and last Congress this committee favorably reported the bipartisan bamal medically tailored hom delivered meals demonstration act which I authored with our colleagues representative Malia Tois uh representative Evans of Pennsylvania and representative Fitzpatrick
▶ 3:54:35of Pennsylvania and representative pingry of Maine it was an important step toward prioritizing this Innovative solution to Patient Care that will save lives and save money our bipartisan bill would establish a Medicare pilot program to deliver medically tailored meals nutritious meals designed by registered dietitian nutritionists tailored to the specific medical needs of a person living with a diet affected disease like diabetes or congestive heart failure numerous Studies have demonstrated the tremendous
▶ 3:55:05cost savings associated with medically tailored meals they have proven interventions that reduce emergency room visits as well as inpatient hospital and skilled nursing fa facility admissions uh Recent research has demonstrated that if all eligible patients received access to medically tailed meals almost 1.5 million hospitalizations could be avoided and over 13 billion saved in just the U in just the first year of service um because of the hard work that has gone
▶ 3:55:35into this bill there is now more uh bipartisan support on the hill than ever ever uh incorporating medically tailored meals into our health programs similar bipartisan efforts is going on in the Senate with Senators Booker Marshall and Cassidy um and um you know it is very almost identical to our bill we have the opportunity to move this bill first in the house I'm grateful for the support of Health subcommittee chairman Vern Buchanan uh for his support uh for this effort
▶ 3:56:05and uh for his continued partnership on advancing the goals of food is medicine and I request that the committee mark up and send to the house floor for a vote the bipartisan bamal medically tailored H delivered meals demonstration act it's a concrete and Incredibly important step that this committee can take to promote healthy living um and lower health care costs additionally I plan to reintroduce the Medical Nutrition Equity act in the 119th Congress uh this bill uh expands coverage under Medicare Medicaid um
▶ 3:56:36and other specified Federal healthc care programs and Private health insurance to include food vitamins and individual amino acids that are medically necessary for the management of certain digest digestive and metabolic disorders and conditions in the 118th Congress I co I proudly co-led this uh this effort with congressman John Rutherford of Florida by camell Bill gued bipartisan support in the last Congress but medical medically necessary nutrition for management of Crohn's disease
▶ 3:57:06is routinely denied by insurance companies while more costly treatments that put people at risk of medical complications are approved doesn't make any sense all states have mandated testing for inherited metabolic disorders so as a result approximately 2,000 infants every year are diagnosed with one and yet treatment of these disorders is uncovered and unava unavailable for far too many so uh for many of the covered disorders this legislation simply establishes treatment parody uh in December of 2016 uh
▶ 3:57:36Congress passed improved coverage for medical uh Medical Nutrition for military families enrolled in Tricare as part of the National Defense authorization act our bill expands coverage to include parents covered under Medicaid uh the children's health insurance program Medicare the federal employee health benefit program and private insurance it is narrowly written uh to focus on individuals for whom medically necessary nutrition is the treatment for their disease I respectfully urge that you include the Medical Nutrition Equity act in a hearing uh
▶ 3:58:06so that Congress may pass this important legislation in 119th Congress again I thank you all for your patience and for all that you do I you back thank you Mr McGovern I now recognize representative buddy Carter the gentleman from Georgia Mr Carter is a pharmacist by trade and he's a proud member of the House Energy and Commerce Committee he pre previously testified before our committee at the last member day so welcome back thank you Mr chairman and thank you for allowing me to testify today to the second best Committee in Congress the Ways and Means
▶ 3:58:36Committee I bring your inspired I bring greetings from Mr chairman Mr chairman HR 262 the disaster reforestation act seriously hurricane Helen has devastated the state of Georgia and our timber land the number one forestry state in the country we have more commercial Timberland available and we Harvest more Timber than any other state this is a serious serious problem as you all know Timber
▶ 3:59:07takes time you it might take anywhere from 25 to 30 years and even if you're trying trying to grow different trees for for telephone poles may take 40 years it is a long-term investment and when you invest in this after seven years you don't have anything you are wide open to to to to just nature we have a natural catastrophe like we had with hurricane Helen these people lose everything they don't have any way
▶ 3:59:37this is a crop Timber is a crop unlike other crops that have insurance there is no insurance for Timber that's why this bill is so vitally important think about the massive fires that we've had in La think about the the the devastation that our Timberland has had with hurricane Alan our tax codes make it extremely difficult if not impossible for private Forest land owners to recover after such a devastating event and and also think thank goodness we've gotten
▶ 4:00:07disaster relief in the CR and I thank all of you for voting for that and for making sure that that was available that's going to be very important but if we don't get that Timber that has been knocked down by Hurricane Helen we if we don't get it cleaned up that's going to be just kindling ready to to start massive fires and we can't have that what does the disaster reforestation act do it will amend the tax code to allow Forest owners to deduct the full market value of their Timber
▶ 4:00:38prior to the loss caused by the federally declared natural disaster that that this is a win-win-win situation why is that because further this bill requires those land owners to reforest their land within five years ensuring that the forest land is not converted to other uses and preserving the environmental and economic benefits we all know about the economic benefits let's talk about the environmental benefits 8% of all the pollution in the state of Georgia is
▶ 4:01:08absorbed through these carbon sinks that is Timberland that is extremely important to our air we have a saying in south Georgia when you breathe fresh air get down on your knees and thank the farmer who planted the trees and it's true it cleans our air it cleans our water so that's why this is so very important I also want to talk about the tax CBS and jobs act I know that you're extending this and and I'm all with you I'm chair of the health subcommittee and most of the cuts are going to come from us we're doing everything we can
▶ 4:01:38but I want to ask you on the IRA just to please instead of taking a sledge hmer to it please take a scapel to it there are a variety of credits in that partisan IRA and it was partisan but they were modified by the law many of them either existed prior to the law or already had bipartisan support and were thrown into that partisan package so all I'm asking you to do is to look at it carefully if they have achieved what we hope to achieve and that is bring manufacturing
▶ 4:02:09back to America and and and solidify our our supply chains then perhaps we need to look at keeping those those tax credits there so I'm just simply appealing to you on that my last ask is about hr25 the fair tax and thank you for having a hearing on it last session you were very kind to do that again the fair tax is just what it says it's a fair tax it's a consumption tax a 23% consumption tax and now that sounds like it's a high number and
▶ 4:02:39it is a high number but at the same time you're already paying that you're already paying that when you buy a product anyway so this would just simply eliminate the IRS and we could do that Mr chairman I assure you the fair taxes time has come the president has said no tax on tips we want to do that we want to make sure that we eliminate as much as we can we've got unelected unelected bureaucrats who are armed who are imposing who have more control over
▶ 4:03:09your paycheck than you do the fair check tax changes that and again again thank you for having the hearing last session I hope that this session we can move forward with it I thank you for the work that this important committee does you do extremely important work and I thank you for that now you'll back thank you Mr Carter I um before we go to Mr Downing I'll say that votes have been called after Mr Downing we'll recess until after votes are done and finish the hearing um Mr Downing um pleaseed to recognize
▶ 4:03:39you welcome to the Ways and Means Committee thank you chairman Smith and members of the committee I come before you today on behalf of all Montanas to stress the importance of ensuring the Trump's ta Trump tax cuts do not expire many of these Provisions uh you know marginal tax rates higher standard deduction the 20% deduction for pass through businesses are a Lifeline for hardworking montanans now allowing the 2017 tax cuts and jobs act to expired would result in a massive
▶ 4:04:10tax hike for my constituents the average taxpayer in Montana's second congressional district would see a staggering 26% tax increase now one provision of the Trump tax cuts that is particularly consequential to Montana is the estate tax appropriately called the death tax now the tcja more than doubled the estate tax exemption increasing from 5 million to 11.5 million per person Estates that fall outside of the exemption can face up to a 40% tax
▶ 4:04:40on the market value of the estate when transferring to an air at the time of death now if the Trump tax cuts expire um nearly 15,000 Montana Family Farms would see their death tax exemption slashed in half starting next year now how's this Fair farmers and ranchers across the country already face constant uncertainty from weather and Market fluctuations Montana is a heavy a heavy producer of cattle and wheat which accounts for three quarters
▶ 4:05:11of our agricultural cash cash receipts Montana is also the largest producer of lentils in the United States Now American farmers and ranchers put the food on our tables and the clothes on our backs unfortunately many people that want to gut the death tax exemptions simply see high asset values on farms and think they need to be drowned in taxes but nothing could be further from the truth now most of these Farms especially Montana are what we call landr and cash poor meaning many of these families do not have the cash to pay
▶ 4:05:41these exorbitant taxes now what does this mean this means that when a family is suffering from the loss of a loved one they are then forced to sell equipment or the entire business just to be able to write a check to the U to the IRS the death tax is especially pernicious in Montana where development pressures thanks to conservative leadership and bringing jobs and growth have increased land values now let me be clear the death tax is a punitive tax on families who are already grieving loss
▶ 4:06:12by no means are these old Ultra rich people avoiding paying their fair share they're simply working to make sure we have food to eat often with little appreciation now tax burdens on Family Farms you know may Force the next generation of farmers and ranchers to sell Farmland to pay their taxes this takes production agricultural land out of production reducing our abil our ability to feed ourselves now this is a national security issue throughout the history of humanity you want to bring a country down the easiest way is to make it so it can't feed itself
▶ 4:06:42so I strongly believe the death tax should be eliminated in its enity it only seems to cause hardworking grieving families to suffer even more now at a bare minimum I implore the members of this committee to make sure that farms and ranches in Montana or the two million across the United States do not see a massive tax hike come 2026 thank you for listening thank you Mr Downing we'll now recess until after the the vote on the house floor
▶ 4:18:11e for
▶ 4:21:41e for
▶ 4:22:39the meeting the meeting will come back to order we'll start with uh Mr Scott thank you Mr chairman um several years ago I was taking a young man hunting and he was a uh combat disabled veteran he stepped on a pressure plate he had a uh purple heart and he was totally imp permanently wounded uh and lost both legs and as we were traveling to uh where we were going to
▶ 4:23:10hunt he told me that he worked at O'Reilly's Auto Parts but that he had to be very careful about how much he made because if he made more than and at the time it was about ,000 maybe $1,100 a month then he lost 100% of his social security benefits and so if he worked one hour too long his family ended up with less money at the end of the month than if he didn't work
▶ 4:23:40at all and so Mr chairman I wrote a piece of legislation I appreciate you sharing time with me uh to discuss it just name the Purple Heart freedom to work I firmly believe that the number one thing we can do for our veterans is to get them back in the workforce uh and basically what the bill does and and right now and the number is higher than it was when I originally wrote the Bill but combat disabled veterans who are earn an income in excess of $1,550
▶ 4:24:11per month lose 100% of their social security disability insurance for being actively engaged in the workforce um this is a very low limit it discourages them uh from going back to work and I think one of the best things we can do for their mental health is to get them back to work I've had bipartisan support on this legislation in the past the challenge with it as you know Mr chairman is because it is social security it is mandatory spending uh I want this committee to know I recognize that when we're dealing with
▶ 4:24:41mandatory spending we need to make sure that we limit the cost and so it is drafted very narrowly so that you have to have received a purple heart so it is combat injuries only and you have to be totally and permanently disabled so it only applies to that small segment of people if we can make it work for them then hopefully we could make it work for other people as well that is the primary reason that I'm here I appreciate uh you and Miss Moore and your work on these issues and would
▶ 4:25:11be happy to answer any question questions on that thank you Mr Austin no question can I mention one other thing Mr pleas prior to becoming a member of Congress I spent 20 years as an insurance broker as you know the federal estate tax exemption right now is just short of 14 million if something is not done at the end of the year it goes down to 7 million I just hope as the committee pushes forward uh that we can get some permanency in the number
▶ 4:25:41uh for families that are trying to plan uh it is it is difficult to create a financial plan for the family and the transfer of the businesses when the estate tax threshold shifts from 14 million to 7 million I know people some people want to get rid of it all together I wish we could do that I'm not naive to the numbers I don't think we get there but I would just ask that uh we get some permanency uh in that law thank you both for uh your time and uh
▶ 4:26:12I appreciate the opportunity to testify thank you for being here U Mr Scott I now recognize representative Pete stabber the gentleman from Minnesota Mr stabber is a former professional hockey player and a retired police officer he participated in our Ways and Means Committee filled Hearing in Kimble Minnesota it's great to have you back to the committee thank you Mr chair I I appreciate uh you and the members of the committee holding this member day hearing uh I know it is a priority of this Congress and especially this committee to build on uh the successes of the tax cut
▶ 4:26:42and jobs act I appreciate the opportunity to testify today regarding the importance of ensuring we extend these Provisions uh that have expired and are set to expire uh we know the positive impact of Provisions from this legislation like lowering the corporate uh rate had on our economy and investment and we know what will happen to our economy if Congress fails to act according to a recent study by the National Association of Manufacturers failed to extend the T CGA could cost them more than 1.1 million manufacturing jobs our constituents
▶ 4:27:12sentence to Congress and put president Trump back in the white house because they wanted us to enact Common Sense policies that are good for economy Mr chairman I appreciate the work and the Outreach you are doing and stand ready to work with you and this committee to get this bill to president Trump's desk uh there are two uh other areas that I would like to briefly highlight and that I would ask the committee to consider as they draft the legislation first I have authored legislation that would create parody for volunteer drivers Mr chairman as you know volunteers
▶ 4:27:43are key to ensuring our seniors get the healthcare and other critical Services they need especially in Rural America currently the IRS reimburses reimbursement rate for these drivers is 14 cents a mile even though the business rate of reimbursement is five times uh that uh in 2025 and I believe there should be parody between the two and I hope the committee can look into this issue you see those of us in rural Minnesota if we don't have the volunteer drivers these
▶ 4:28:13seniors can't get to their Dental their Health appointments can't get to church the volunteer drivers Mr chair are not doing it for money all we're asking is is get the IRS uh reimbursement tax rate uh via the mileage to be uh equal um we're losing volunteer drivers in Rural America and it's not fair to our seniors when this sometimes the seniors that's all they have is their independence at home and that volunteer driver that cons assistant volunteer
▶ 4:28:43driver who will drive them every day to wherever they want it's it's a volunteer driver they know and they trust and I think our seniors benefit from that we cannot lose any more uh uh volunteer drivers in Rural America because we don't have the transportation method uh to do it uh again Mr chair they're not uh there to make money they're there to do anything for their communities and I would uh really emplore you to look at that and make that U uh uh pair please U
▶ 4:29:13and also Mr chair this committee uh has focused on the families and especially children one issue that is near and dear to my heart is adoption this committee has looked at legislation to assist families with the adoption process I know firsthand the difficult and cumbersome process so I appreciate those efforts we must do what we can to help families trying to provide homes for kids who do not have them legislation has been introduced that would expand the adoption tax credit in certain instances and I believe this should
▶ 4:29:43be a priority as we to improve our tax code those of us who chose to adopt and bring these children into the families uh should have be able to have the tax credit you know Mr chair we are a pro-life Community we are a prolife uh conference this is the extension of that uh families that want to adopt should not be prohibited because of cost and I have talked to hundreds of families after my wife and I adopted on on their
▶ 4:30:13interest in adopting but they can't afford it uh and this the tax credit for adoptions would be would make uh um uh a would make great strides in allowing these children to be brought into these loving homes uh and so Mr chair I appreciate your work and especially reaching out and holding these meetings I think that uh from my perspective your leadership is second to nend and you're listening and I ask you to consider my my two points that I
▶ 4:30:44brought up and I yield back thank you thank you Mr stabber just a quick question um the adoption credit that you're referring to are are you wanting to make that refundable so that that would help more families yes okay make it refundable you see there's there's between 30 $335,000 to adopt they're great families that can't afford that and any help Mr chair would be uh beneficial to the prolife and the family cause yield thank you very much um I
▶ 4:31:14now recognize representative Tony weed the gentleman from Wisconsin Mr Weed is a businessman and is serving in his first term in Congress and has a full plate with appointments to the the small business committee agriculture Transportation um and infrastructure so welcome to the Ways and Means Committee well thank you thank you Mr chairman I appreciate this opportunity here at the Ways and Means Committee and that has extended to me to non-committee members to speak to the priorities of my constituents in Wisconsin's 8th District
▶ 4:31:44Northeast Northeast Wisconsin is home to over half a million taxpayers and a wide variety of small businesses who have faced economic uncertainty from an overreaching and overt taxing federal government from manufacturing and shipping to Agriculture and food food processing Wisconsin's eth congressional district boasts a very diverse set of Industries and small businesses in fact our district is the largest Dairy producing District east of the Mississippi so for nearly 30 years I owned an operated a small business called dinoop our convenience
▶ 4:32:14stores gas stations car washes and Little Caesars Pizza franchises employed hundreds of wisconsinites over the years I know from firsthand experience how difficult it is to operate and grow a a successful small business in a very competitive industry especially while dealing with burdensome government regulation and unpredictable tax policies dinoop regularly had high revenues due to fuel sales but low profit margins owing to stiff Market competition and High operating costs the section
▶ 4:32:44199a tax deduction created and signed into law as part of the 2017 Trump tax cuts greatly benefits our small businesses farmers and manufacturers nearly 3ars of people claiming the 199a deduction in 2022 had an adjusted gross income below $200,000 simply put this tax cut is for Main Street not Wall Street the deduction is also designed to ensure small businesses are investing in employee w wages and benefits a vital part of recruiting and
▶ 4:33:14retaining a talented Workforce I think we can all agree that putting more money in the pockets of Working Families is a top priority for this Congress and the Trump Administration section 199a ensures agriculture cooperatives are taxed on an equal playing field with larger corporations the Trump tax cuts of 17 reduced the corporate tax rate from 35% to 21% while also including section 199a to reduce the tax burden on so proprietorships Partnerships s corporations
▶ 4:33:45and llc's this tax cut allows Dairy Producers in Northeast Wisconsin to offset tax liabilities and invest their deductions in their facilities and operations finally as I travel across Northeast Wisconsin I also hear the need for tax certainty in the importance of extending the Trump tax cuts the average taxpayer in our district will see a 23% tax heke if they expire it's my hope that we can work together toward a permanent and consistent tax policy that benefits every hardworking taxpayer in my
▶ 4:34:15district Mr chairman I strongly support making the 199a tax deduction permanent to provide much needed relief to small businesses Working Families and farmers in my district and across this country should Congress fail to renew 199a 52,2 small businesses in Wisconsin's 8th District would be hit with an 43.4% tax rate any limitation or reduction in 199a would unfairly Target and hurt middle
▶ 4:34:45class taxpayers and the small businesses who are the lifeblood of the economy thank you again for this opportunity to testify today and I yield back Miss Moore good afternoon representative weed welcome and Means Committee wonder if you had any comment about the dyed fuel problem in your District where there's a taxation of
▶ 4:35:16uh the diet the fuels that are being uh transported to your District due to a broken pipeline correct so we had the pipeline that used to run from Milwaukee up to Green Bay and when it broke down right now we're hauling that via transport and that is an issue right now that folks in the industry are getting double taxed on on the dyed Fuel and that is something that I'm very passionate about and would like to to to to propose legislation I think you have uh and to help out with with that
▶ 4:35:46issue well the chairman of the Ways and Means Committee is very happy that you're passionate about this uh and so with that I will I will yield back thank you for your all right thank you thank you sir appreciate you being here all right thank you e
▶ 4:37:07the committee will stand in recess for just a few moments for
▶ 4:37:52the committee will come back to order um I now recognize representative Rick Crawford the gentleman from Arkansas Mr Crawford is an army veteran and serves as chairman of the house intelligence committee and today is his birthday so you made it happy birthday um and so welcome to the Ways and Means Committee thank you thank you chairman Smith ranking M Neil and and members of the Ways and Means Committee thank you for receiving my testimony today I have two proposals that I'll present back toback here
▶ 4:38:22in the interest of time first it's no secret that student loans are out of control in this country and I know for a fact this pervasive issue affects constituents in every one of our districts however I can't support large giveaway proposals that unload the full burden of student loan debt from current minority of us adults who attended College to do the majority who did not um that is simply not fair instead I strongly support a fiscally responsible Middle Ground where we provide Americans struggling under the weight of massive student loan debt better tools to pay back the loans they chose to take out that's where my proposal
▶ 4:38:52for a 401 edu plan comes in for many people especially recent graduates graduates their wisest Financial option is to attack their student loan debt and it's punishing interest before focusing on longer term financial decisions like retirement or 4 a 401 edu and forgive my ignorance but I'm just using edu as as a an example of what you might call this type of um account is modeled after a 401k allows them to do that for a time instead of investing in an employee retirement plan those funds would
▶ 4:39:22go straight toward paying down student uh student loan principle a 401 edu also retains its pre-tax deduction status but since the payments are dispersed immediately there is not a future tax burden on withdrawn funds as there would be as there would be for a 401k and since nearly all displaced retirement withdrawals would fall outside the 10-year budget window there would not be a large CBO score contribution limits for employeer retirement would also apply to 401 edu plans people leaving college with tens of thousands if not hundreds of thousands of dollars in debt often postpone their
▶ 4:39:52American dream and feel restricted from pursuing positive Life Choices such as marriage starting a family or buying a home I understand the responsibility on the borrower for the choices choices they made but a 401 edu does not seek to absolve them of that responsibility instead it offers people a choice to make a temporary Financial sacrifice using their own money and work benefits to pay off their debt burden providing this option will help millions of Americans shed the weight of their student loans without asking other Americans to bankroll that relief in full like a mortgage there are substantial benefits for people who can make accelerated
▶ 4:40:23payments and pay off their Loan in 15 years versus 30 they gain peace of mind the Financial Freedom of losing monthly payment and the extra savings from years of unrealized interest payments ultimately a 401 edu plan provide another path for employees to take control of their their financial future and businesses to attract Talent by taking care of the Workforce now for my second proposal as you know Mr chairman we live in adjacent districts and our our districts are very much alike farming is a big part of it it's a risky business and we don't need to look any further than just this past year
▶ 4:40:53wildfires in the west hurricanes in the East a massive downturn in the farm economy left many farmers without much hope for the future while some government help came eventually for many it will not be enough and for others it won't be in time however even when the farm economy broadly does well individual farmers can still suffer losses violent hail storm for example in stutgart Arkansas or a local disease outbreak in kennet Missouri would devastate operations in those local areas while not producing destruction on a large enough scale to attract supplemental federal dollars
▶ 4:41:23in these situations and many more producers would benefit from a tax advantage disaster account they could draw on in times of need I call these accounts frame accounts on my proposal is outlined in my bill the farm risk abatement and mitigation election or the frame act those frame accounts are basically hsas for Farmers allowing them to exercise has greater control over the protection of their own operations these tax deferred Farm disaster saving accounts would be available to all USDA recognized farmers and like Roth IRA or HSA frame accounts can be administered by any local
▶ 4:41:53bank giving the farmer the ability to manage contribution investment as he or she sees fit contributions capital gains and dividends will be tax deferred and the farmer would only be able to draw upon his or her account in the instance of a disaster or they would otherwise incur strict penalties to encourage initial investment farmers will be eligible to ride frame account contributions on their tax bill contributions will be tax deductible up to $50,000 per year with a $250,000 limit and farmers will retain 10% of their contributions in the form of tax credit during the first few
▶ 4:42:23years of op opening the account frame accounts give the farming Community the ability to have a self-supporting disaster plan and over time it will reduce Reliance on government support programs and fickle supplemental disaster payments the farmers and bankers I've talked to like the idea of frame accounts and believe it would greatly benefit the farm economy once again Mr chairman thank you for your latitude allowing me the opportunity to testify today I'm happy to discuss either of my proposals further and have discussion drafts from the past congresses to give out to anybody that's interested I can also email anybody the updated versions I'm preparing for this Congress once
▶ 4:42:54the legislative Council gets back with me on that and once again thank you for the opportunity thank you chairman Crawford I now recognize Tim Moore the representative from North Carolina before coming to Congress he was the longest serving Republican speaker of the North Carolina House in State history his um and previously he served in his local community as an attorney um something he and I uh both share as we graduated from the same law school caucus of two in Washington DC with us Mr Moore what
▶ 4:43:24the more thank you Mr chairman I appreciate you and ranking member Neil and the members of the committee for allowing me this opportunity to testify before you today I'm honored to represent North Carolina's 14th congressional district an area in Western North Carolina that exemplifies the best of what America has to offer we also have a long way to recover from the devastation of hurricane Helen I represent a lot of hardworking families small businesses and resilient communities these folks embody the American Spirit of grit and determination
▶ 4:43:54to be frank they're tough but they're stretched thin as we put our resources toward we rebuilding Western North Carolina I've promised to deliver Real Results for these people and the best way that this committee can help to do that is by addressing the key provisions of the 2017 tax cut and jobs Act that are set to expire adding regulatory uncertainty to an already difficult economic environment making these tax cuts permanent would give Working Families small businesses and communities in North Carolina and across the United States the opportunity
▶ 4:44:25to thrive these policies are proven to promote business expansion job creation and economic growth we cannot afford to allow them to expire just look at what the tcga tcja has done for a manufacturing sector made it permanent it's projected to generate $284 billion in new GDP growth in my district alone over 45,000 people are employed in the manufacturing sector letting these Provisions expire would do nothing but jeopardize this progress
▶ 4:44:56Western North Carolina's economy also relies on small businesses our state is home to over 964 th000 small businesses which employ nearly half of our Workforce I would submit you probably see similar statistics frankly around the country these business own ERS have told me that without the certainty of the tcja small business deductions their ability to invest in new equipment higher workers and expand operations would be greatly at risk making these Provisions permanent is not just good policy it is in fact
▶ 4:45:26essential to their Survivor because if these Provisions were to expire North Carolina would lose 5 to n million Jobs $540 billion in wages and $1.1 trillion in economic output let's also not forget about our family farmers in the rural parts of my district who have passed down their Farms from generation to generation just as representative Crawford talked about in his state in Arkansas the estate tax better known as the death tax stands to threaten these multigenerational
▶ 4:45:57legacies when a farmer passes away and their family faces that tax bill they're often forced to sell the farm just to make ends meat how is it fair that our government can lay claim to the land equipment and assets that families have spent decades building and maintaining just because a loved one has passed away these Farms are businesses but they're also a way of life and they're a vital part of feeding clothing and fueling our nation in fact they're a key part to our national security only only a nation that can feed itself can be a free Nation
▶ 4:46:27I'm proud to co-sponsor the death tax repeal act to to protect family-owned businesses and enable these multigenerational Farms to continue long after their L loved ones pass another issue deeply affects families as we face rising cost and work to turn our economy around is the child tax credit this credit's been a Lifeline for Working Families in Western North Carolina providing Financial leave for parents who are doing everything they can to give their kids a brighter future by increasing the credit and IND index and get to inflation
▶ 4:46:58we can help families keep up with the rising expenses and give them the resources they need to be to succeed it just make sense so we can Empower parents and give them a fair shot at the American dream as we address the economic challenges facing families we cannot ignore the importance of affordable and accessible Health Care like so many rural areas our community also has struggles and with families finding providers and affording what they do get to Hurricane Helen has only exacerbated this crisis with damaged facilities and strained
▶ 4:47:28resources leaving some communities without reliable Health Care operations we need policies that incentivize providers to serve rural areas reduce out of- pocket costs and ensure every American regardless of where they live can have access quality Care again I want to appreciate I want to thank the committee for giving me the opportunity to address these issues on behalf of the hardworking people of North Carolina's 14 dist 14th District I will tell you under the leadership of President Trump's first term we saw what bold progrowth policies can achieve lower taxes
▶ 4:47:58Rising wages and a booming economy by making the tax cuts and jobs act permanent expanding the child tax credit supporting our family farms and addressing Health Care challenges we can bring that momentum and restore the American dream thank you Mr chairman thank you Mr Moore I now recognize representative Andrew Garbarino the gentleman from New York Mr Garbarino serves on the financial services and the homeland security committee and is truly a dedicated advocate for the people of the second Congress congressional
▶ 4:48:29district in New York thank you you ethics serves on the Ethics Committee and we all love them that's that's I like that good afternoon jerman Smith and ranking member more thank you for having me the initial purpose of the salt deduction when it was first implemented more than a century and a half ago was to prevent imposing federal taxes on top of state and local taxes already paid as we all know here the salt deduction was capped at $10,000 in 2017 resulting in tax increases for many middle uh middle
▶ 4:48:59inome uh class families since the cap was implemented hardworking Americans from States like New York have been suffering from unfair double taxation all all while receiving a fraction of what they contribute to to federal funds in 2017 nearly half of my constituents regardless of income itemized their returns compared to only 16 and a half% in 2021 to break this down further nearly 61% of individuals making between $50,000 and $100,000 which isn't considered middle class on Long Island claimed a salt deduction compared to
▶ 4:49:2918.6% in 2021 these percentages jumped to nearly 91% of those making between 100,000 and 200,000 in 2017 compared with only 27% in 2021 as for the actual state and local taxes paid the average constituent average constituent of mine reported paying just under 33,000 in state and local taxes in 2021 the cap set to expire this year I'm committed to ensuring that middle- class families who have suffered under its implementation find the relief they sorely need and for those who are willing to work
▶ 4:49:59with me I welcome you to join me in finding an equitable solution to this problem moving on to another topic I would also like to emphasize the importance of preserving some of the energy tax credits included in the inflation reduction Act the IRA was a heavily flawed bill that included various Provisions our conference rightly opposed at the same time the energy tax credits that were included in this bill have proven to be incredibly valuable when it comes to incentivizing domestic investment creating jobs and securing a manage American Energy Independence should these credits
▶ 4:50:29be repealed the United States will have invested countless tax dollars into energy development all for the benefits to never be realized further these credits have been immensely helpful in providing industry search and which is Paramount when it comes to long-term planning Capital allocation and attracting domestic investment in the energy sector for example in the state of Missouri these credits stand to provide up to 10.7 billion in direct investment 18.9 billion in total economic activity and over 3,000 jobs in Louisiana these credits have the potential to provide up
▶ 4:50:59to $ 58.3 billion in direct investment 103.6 billion in total economic activity and over 28,000 jobs further Texas could enjoy up to 125 5.3 billion in direct investment 29.4 billion in total economic activity and seen increase over 51,000 jobs while Florida could see up to 33.6 billion in direct investment 66 billion in total economic activity and over 22,000 jobs we are at a critical time for
▶ 4:51:30our nation's Energy Future and is essential that we take a pragmatic approach to our energy tax framework as had as has been said by Speaker Johnson himself the best way examine our nation's energy tax Futures to use a scalpel not a sledgehammer I look forward to continuing to work with the committee to develop an American First Tax plan that Champions fiscal responsibility and supports a forward-looking energy approach that ensures we can keep Pace with domestic energy demand counters efforts by Foreign adversaries to gain an impressive foothold in the energy
▶ 4:52:00sector and supports economic growth and Innovation thank you very much for having me I yield back thank you sir um I now recognize representative Mike her Adis the gentleman from Florida um Mike is a former teacher and business consultant he spent 12 years in the Florida legislature welcome to the Ways and Means Committee thank you Mr chairman and ranking member Moore it's an honor to be here today and as a former history Professor I am confident that history can
▶ 4:52:30be our best guide exactly 62 years ago this Friday in a message from President John F Kennedy he said the largest single barrier of Full Employment of Manpower and resources and to a higher rate of economic growth is the unrealistically heavy drag of head federal income taxes on private purchasing power initiative and incentive he was right history teaches us that President's Kenny's plan spurred the economy with the 1963 tax cuts and Ronald
▶ 4:53:00Reagan's Cuts in 1981 and 1986 when even more recently in 2017 president Donald Trump and Congress reduced taxes and and created unprecedented economic growth that lifted the prosperity of all Americans yes history especially recent history teaches us that reducing taxes will be a key to cool in order to grow our economy that is why I'm here today to represent the taxpayers in my district and discuss the importance of extending the
▶ 4:53:302017 Trump tax cuts we all recognize that failure is not an option if we do not extend the Trump tax cuts the average taxpayer in my district will see a 27% increase in their taxes and that is intolerable families are already struggling in my district with the high interest rates that have spiked from 3 to 7% in the last four years and that means for the average home in my district they are paying $1,100 more per month
▶ 4:54:00in just higher interest mortgage payments a family of four in my district making $77,000 the median average in my district would pay more than $1,600 in taxes more versus last year that's the equivalent of about 9 weeks of groceries for a typical family in my district sadly that would not be the end of the pain if we failed to extend the tech Trump tax cuts if we allowed the tax cuts to expire nearly 880,000 families in my district
▶ 4:54:30would have their child tax credit cut in half 90% of the people I represent would have their standard deduction cut in half over 58,000 small businesses in my district would be hit with a 43% tax increase when the 1 199a small business deduction expires Mr chairman as you can imagine I won't sit by and watch as this happens to the workers families and small business owners in our community and I have the honor of representing we must act and I urge you to act quickly to renew
▶ 4:55:01the Trump tax cuts I pledge to you my support in this and will deliver whatever assistance you need me to provide in order to meet this critical objective and again I thank you for for this opportunity to speak today and I look forward to working with you and getting these things in for our community and I yield back thank you sir I now recognize Mike Lawler the gentleman from New York Mr lawers uh Mr Lawler is a tireless advocate for his constituents in the 17th congressional district and glad to have you here thank you Mr chairman and thank you for your hard
▶ 4:55:31work as we work through this tax bill uh and that of the committee uh at a time when middle class families are increasingly squeezed by significant cost of living providing real tax relief is imperative that's why I recently introduced the salt marriage penalty elimination act which is designed to correct an inequity that has burned married couples across New York and the United States since 2017 the current tax code unfairly cap state and local uh tax deductions at
▶ 4:56:01$10,000 uh for married couples filing jointly essentially penalizing them for their marital status and depriving them of the full deduction they write y deserve uh in addition uh as has often been argued over the last few years the $10,000 cap uh overall uh places an undue burden uh on taxpayers especially in States like New York in the 119th Congress the bill I've introduced would increase the
▶ 4:56:31cap on salt deductions to 10 $100,000 for single filers and up to $200,000 for married couples this is ultimately a question question of fairness is it fair for folks across the country to be double taxed because of where they live I do not believe so and the impacts of the salt cap aren't just isolated to Big Blue States either the impact of the cap is being felt by homeowners across the country according to data released just this week by realtor.com there are many states
▶ 4:57:01where the bare minimum home buyer purchasing a median priced home is right up against or past the cap on salt the minimum required annual income for a home buyer in Utah for instance is $173,700 the state and local tax burden in Utah according to the tax Foundation clocks in right at 12.1% that means many families in Utah break well through the salt cap how about Arizona the minimum required annual income
▶ 4:57:32for a home buyer there is $140,000 4 $470 the average state and local tax burden is 9 . 5% So a family in Arizona making that amount is already past the salt cap in Wisconsin the minimum income $17,730 to buy the medium priced home and their state and local tax burden is 10.9% another state where home-owning families are past
▶ 4:58:02the cap how about Montana the bare minimum income for a home buyer there is 178,000 and $17 and with an average state and local tax burden of 10.5% that family is also through the cap on salt in North Carolina their state and local tax burden clocks in at 99.9% and the minimum income for a median priced home is $17,575.13
▶ 4:58:40years uh cost has risen dramatically the average home value in my district for instance uh in Westchester County has risen from $700,000 to 1.1 million in just four years in Rocklin County where I live from $400,000 to $700,000 in just four years Rockland and Westchester Counties have the highest tax burden in America they pay the highest property taxes uh and
▶ 4:59:10so lifting the cap on salt is not just an issue of fairness it's an issue of providing real tax relief and yes I agree States like New York need to fix their Reckless spending and reduce the tax burden there's a reason we lead the nation in out migration but the people who stay should not be penalized because of that and so it is critically important that we increase uh the cap on salt
▶ 4:59:40um and really provide an opportunity uh for folks who own a home who are paying property taxes who are paying state income taxes to be able to afford to live in their State uh this ultimately is an issue of fairness uh and I appreciate the committee's willingness to work with us as we uh try to address this issue in particular within the broad tax Bill
▶ 5:00:10uh the tax cuts and jobs act from 2017 overwhelmingly uh provided real tax relief to American families and businesses uh across the country revenue is at an all-time high uh but I do believe as we move forward we do need to address the $10,000 cap on salt and so I appreciate the chairman and the committee working with us to do just that thank you Mr Lawler it's great to have you before the committee um you were the last last
▶ 5:00:40one we've had 55 different members of the house that has shared their their priorities within the Ways and Means Committee today um I want to thank all my colleagues who participated today um for members day hearing and with that the committee stands a journ