Markup of H.R. 1491, H.R. 517, and H.J.Res. 25

Benefits Fraud and Improper PaymentsHouse Ways and Means · 2025-02-26 · 119th Congress
The House Ways and Means Committee met to mark up two bipartisan bills easing tax filing deadlines and refund look-back periods for natural disaster victims (H.R. Begins at 0:18:10
Transcript
Highlights

Title

Committee advances three disaster tax relief bills and repeals IRS crypto broker rule

Purpose

The House Ways and Means Committee met to mark up two bipartisan bills easing tax filing deadlines and refund look-back periods for natural disaster victims (H.R. 1491 and H.R. 517), and a joint resolution (H.J.Res. 25) repealing the IRS's "DeFi broker" rule requiring cryptocurrency reporting. Debate on all three bills was dominated by Democratic objections to mass IRS layoffs, Elon Musk and DOGE's access to taxpayer data, and the broader Republican budget resolution's proposed cuts to Medicaid and SNAP. Begins at0:18:10

Who spoke

Chairman Jason Smith (R-MO)0:18:10: Opened the markup describing disaster relief bills for taxpayers affected by 300 disasters in 45 states0:18:10 and the joint resolution repealing the IRS's DeFi broker rule0:21:12.

Rep. Richard Neal (D-MA), Ranking Member0:22:42: Argued Republicans are using the markup as cover for a budget seeking massive tax cuts for the wealthy while cutting Medicaid and SNAP0:23:13; later questioned JCT's Tom Barthold on IRS staffing drops and the wisdom of firing 6,700 employees mid-filing-season0:39:210:41:22.

Rep. Greg Murphy (R-NC)0:28:45: Introduced H.R. 1491 with Rep. Panetta, describing Hurricane Helene's ~$80 billion in damage and over 100 deaths in western North Carolina0:30:16.

Tom Barthold, Chief of Staff, Joint Committee on Taxation0:36:49: Provided technical descriptions of all three bills' amendments0:37:202:14:572:51:30; testified he had no knowledge of Treasury/DOGE data-access practices0:43:23 and estimated H.J.Res. 25 would reduce federal receipts by $3.9 billion over 2025-20342:53:02.

Rep. Lloyd Doggett (D-TX)0:41:52: Pressed Barthold on IRS data safeguards for "teenagers" from DOGE0:42:52; later argued the crypto CRA would let tax cheats, fentanyl traffickers, and terrorist financiers exploit unreported decentralized exchanges, citing a JCT estimate of $28 billion in unpaid crypto taxes3:08:12 and noting Trump family ties to decentralized finance ventures3:16:48.

Rep. Mike Thompson (D-CA)0:47:55: Questioned Barthold on FEMA staffing cuts, noting a GAO report found FEMA already short 6,200 employees0:48:55; argued AI cannot replace human disaster responders0:49:27.

Rep. Linda Sánchez (D-CA)0:52:00: Supported the bill but criticized the Republican budget resolution's Medicaid/SNAP impacts on her district, citing 241,000 constituents at risk0:52:30.

Rep. Danny Davis (D-IL)0:55:01: Called the budget "survival of the riches," citing a $1.1 trillion tax break for the top 1%0:56:02.

Rep. Bill Pascrell/Rep. [unclear] Doe (D) — not present; skip.

Rep. Brad Schneider (D-IL)1:02:37: Said his Illinois constituents are "outraged" watching democracy "crumble," citing 30,000 federal worker layoffs1:03:37 and 6,000 IRS firings mid-filing-season1:04:08.

Rep. Jimmy Gomez (D-CA)1:05:08: Criticized Musk/DOGE access to IRS taxpayer data as "potentially illegal"1:06:09 and summarized the Republican budget as "defraud, defund and deceive"1:07:09.

Rep. Lloyd Smucker (R-PA)1:22:18: Defended DOGE's work, said the U.S. is "essentially bankrupt" running a $2 trillion deficit1:23:49, and argued letting TCJA provisions expire would raise average taxes 22% and halve the child tax credit1:25:21.

Rep. Stacey Plaskett (D-VI)1:27:52: Cited a New York Times report that DOGE quietly deleted its five biggest claimed spending cuts, including revising a $655 million USAID cut down to $18 million1:29:23.

Rep. Jimmy Gomez (D-CA), remainder1:30:24: Read from Warren Buffett's shareholder letter urging the government to "spend it wisely" and take care of the vulnerable1:30:54.

Rep. Gwen Moore (D-WI)1:33:25: Challenged Smucker's claim all taxpayers would see tax hikes, asked Barthold for a written distributional analysis showing 7.5–8% of filers would face a tax increase over $1002:24:34.

Rep. Danny Davis / Rep. Estes (R-KS)1:38:29: Yielded to Smucker for rebuttal.

Rep. Dwight Evans (D-PA)3:09:44: Argued the crypto CRA is deregulation benefiting billionaire donors at the expense of Medicare and SNAP.

Rep. Brendan Boyle (D-PA)3:04:38: Not directly quoted with distinct content beyond record.

Rep. Jason Smith (again)/Rep. Adrian Smith (R-NE)1:14:12: Noted IRS layoffs did not affect current filing-season staff1:14:12 and submitted an article on Warren Buffett's record $26.8 billion tax payment1:15:12.

Rep. John Larson (D-CT)1:16:44: Urged Elon Musk testify before the committee on Social Security threats1:17:14.

Rep. Beth Van Duyne (R-TX) — not confidently identified; omitted.

Rep. Vern Buchanan (R-FL)1:51:35: Noted the debt grew from $8.5 trillion to $37 trillion under both parties, called for a balanced budget amendment1:52:05; moved to report all three bills1:59:112:39:153:20:51.

Rep. Brian Fitzpatrick / Rep. Randy Feenstra (R-IA)1:53:06: Illustrated trillion-dollar scale with a "stacked dollar bills" example comparing to distance to Kenosha and around the world1:53:37; criticized DOGE's approach as "cutting at the trunks, not branches"1:55:08.

Rep. David Kustoff (R-TN)2:05:20: Introduced H.R. 517 with Rep. Chu, describing the bill's extension of the mandatory filing extension from 60 to 120 days2:08:23.

Rep. Judy Chu (D-CA)2:08:54: Described the Eaton fire's toll — 17 deaths, 20,000 homeless, 9,500 structures burned2:12:56 — and criticized IRS firings undermining disaster relief implementation2:10:55.

Rep. Jasmine Crockett / Rep. [unnamed] — not present.

Rep. Suzan DelBene (D-WA) — not confidently distinct speech found; omitted.

Rep. Don Beyer (D-VA)2:25:35: Asked Barthold about federal workers' unemployment classification issues after DOGE layoffs2:25:35, later returned to the crypto CRA arguing it empowers fentanyl trafficking and terrorism financing3:06:41.

Rep. Carol Miller (R-WV)2:33:09: Described a state of emergency across 10 counties in her district and personally delivering aid supplies2:33:39; later defended the DeFi rule repeal as protecting non-custodial wallet users3:04:38.

Rep. Mike Kelly (R-PA) — voted but no distinct floor remarks identified.

Rep. Carey (R-OH)2:46:28: Sponsor of H.J.Res. 25, argued the DeFi broker rule would generate over 8 billion new 1099-DA information returns, more than double all other 1099 forms combined2:47:58.

Rep. Don Beyer / Rep. Schneider — see above.

Rep. Suzan DelBene — omitted per name guard uncertainty.

Rep. Bill Pascrell — not in transcript; omitted.

Key moments

Barthold testified IRS staffing fell from about 95,000 employees in 2010 to roughly 79,800 at the end of 2021, before Inflation Reduction Act funding aimed to rebuild it toward 990,0000:39:510:40:21.

Doggett got Barthold to confirm the IRS has received "no information" from Treasury on DOGE's data access to sensitive taxpayer records0:42:52, and that removing names/addresses alone is legally insufficient to protect data given "big data" re-identification0:47:25.

Rep. Thompson highlighted a GAO finding that FEMA was already short about 6,200 employees before recent firings of roughly 200 more0:48:250:49:27.

Smucker and Rep. Moore clashed over tax distribution claims: Smucker said every taxpayer would face a 22% tax hike without TCJA extension1:41:00; Moore called this misleading and requested a written JCT breakdown, which Barthold said would show 7.5–8% of filers facing increases over $1002:24:34.

On H.R. 517, Rep. Chu noted her Los Angeles-area constituent Angela was fired from the IRS "without cause" despite positive performance reviews2:11:25.

Barthold estimated H.J.Res. 25 (crypto CRA) would cost $3.9 billion in lost federal receipts over 2025-20342:53:02, with Doggett noting the bill is unpaid for and adds to the deficit2:54:33.

Rep. Beyer and Rep. Schneider argued the crypto rule repeal would push traders toward unregulated decentralized exchanges, citing Hamas, North Korean cyber actors, and the sanctioned exchange Cryptex as having used crypto to launder funds3:14:163:14:47.

Doggett cited a joint letter from seven former IRS commissioners (spanning Reagan through Trump's first term) warning IRS cuts shift tax burden "from people who shirk their taxes to the honest people who pay them"3:16:18.

Final votes: H.R. 1491 passed 44-02:03:19; H.R. 517 passed 42-02:44:26; H.J.Res. 25 passed 26-16 along party lines3:25:12.

Smith and Barthold confirmed IRS employees affected by recent layoffs were, per Treasury directive, not those working on the current filing season1:14:12.

Metadata

CommitteeHouse Ways and Means
Chamber / CongressHouse · 119th Congress
Date2025-02-26
TypeMarkup
Witnesses
(none listed in event metadata)
Videoyoutube
Transcript375 caption blocks · 26,331 words · 3:25:48 runtime
EventCongress.gov 117969