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tv   OMB Director Burwell on Fiscal Year 2015 Budget  CSPAN  March 9, 2014 11:58am-12:52pm EDT

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step back and look at something that actually has broad bipartisan support with the world out there. something we have been used to and in fact, ronald reagan could sign a nickel a gallon gas tax increase back when that was real money. if you could help us understand where we're at. and i got to ask that people look at this before they dismiss it because the other proposals are going nowhere. thank you for your time. >> i am certain that the secretary, the secretary of the department of energy will be speaking to that.
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last year i is the number of questions your predecessor, and i is for them to be submitted in writeing. i would like to have those insert of a good. and first question is this -- then i will go to some other questions like this. with the president like his budget but on the floor in an up or down vote? >> if that is what the president sires -- congress desires. >> you talked about a vision today. , ithis vision that he had
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led to the following policies. the cost hundreds of millions of dollars for hard-working taxpaying american families. bureaucrats have put this will be placed on the backs of our kids and grandkids. here are the outcomes of the policies. one is the middle class has shrunk. we have middle-class incomes have strong. income inequality has increased. the rings of those living in policy have increased or medically.
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the participation rate is the since jimmy carter's presidency. notwithstanding those results to those policies, and the economic failures of those policies, the president has come up with the same budget again. hundreds of billions of new spending. it is called investment but is still spending. 1.8 trillion dollars in new taxes. more washington regulation and economic interference. these are the questions i would like you to answer. i think in the interest of time i would like you, since we're running late, answer these in writing for me. i asked them to provide the questions. if the president's policies failed the first time, this is
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what you started out about, jobs and paychecks. if the first round of the policies have felt to improve jobs and paychecks, why are we doing it again? samere we going to do the thing and get a better result? please, answer that for me. please reconcile omb's forecast which are more optimistic than are lessecast that optimistic. if you can talk about the deficit impact and the impact of unemployment, if we could ge. that is all. i ask that you write back. >> mrs. jeffries. >> thank you. let me think the witness for her appearance here today. in an earlier exchange, a
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statement that was made by you, i believe you interrupted, but you are beginning to make the point that there are many proposals contained within the president's budget that are designed to help spur economic growth. there have also been actions taken i believe irresponsibly by this congress over the last 14 months or so. they have limited the ability of the economy to continue to take off. a reference was just majoring the previous question to the notion that the president's economic policies have failed to create economic growth. am i correct that during the last 47 months, 8.5 private sector jobs have been created? is that an accurate statement? >> there is still significant effort in order to completely
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turn our economy around, particularly for working families and middle class folks. the wealthy sin to be doing pretty well. doing pretty well. in order to move forward, the thing we can agree should happen is congress needs to stop affirmatively doing things that hurt our economy. is i fair statement? >> that i believe is true, the idea of fiscal drag helps to slow the economy as opposed to slowing it. >> would allowing sequestration to take effect when a economists agree it would cost of 700,000 mark -- jobs? jobs. >> that is correct. the cbo projection was that it point 0.6 off our gdp. >> the government shut down that
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was un-necessary, that it cost us about $24 billion in lost economic productivity. i think we can all agree that it was harmful to our economy. yes, the estimates are 0.2, to 0.6 gdp. was the ceconomy hurt in anyway createded by what i would term serial flirtation with a default on our nation's debt? >> i believe we had fiscal drag that was being created by unseru uncertainty and the shut down last year. are we hurt by the failure? >> yes a drag on the economy.
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could you tell us why that would be a positive thing for the c econo economy? >> i think it is in two ways. in terms of what these projects are ready and able to move but what it does to roads and infrastructure which is providing that for our nation's economy. having come from a retail organization that uses the roads to transport goods. these are the important parts of the backbone whether it is roads or rail. >> can you speak about the earned income tax credit as it relates to low income individuals and or working individuals in this country? >> the erped ip come tax credit
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encourages people to work. by focusing on this category of people, by extending from 25 year olds down to 21 year olds you are getting a key group of people that we want to encourage to be in the workforce. is it fair to say that providing america with a raise that i believe is supported in the budget would also help turn the economy around and move it forward? >> we believe it is an important part of the picture. >> thank you, i yield back. >> thank you. mr. chairman. thank you, for being here.
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we talk a lot about problems with guaranteed benefits in our entitlement program. you referenced your experience as being on a board of directors. the independent kcaters tell us in terms of congress taking the efforts in terms of reallocation of the trust at the same time taking some of the steps that we
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believe that work to improve the lift of the trust. is that outlined in the budget plan? >> in terms of the changes, there are two specific changes that gets to the issue that i think is a concern to all of us. those who are receiving disablity are appropriately qualified. so that we have the right people in the pool. the second thing is working on models that prevent people from going onto disability. if you can catch people before they make that shift and you can keep them employed. to see if there are people that you can keep them in the workforce. we believe that is another way
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to extend the life. if we enact the two registrations when will it amend the bankruptcy date? >> 2023. we'll need to see how much money we get to do the program integrity. we are going to do a pilot before next year. >> in terms of social security, the president has laid out principles that he believes are important to the question making sure that we extend the life of the trust. we have seen at different times such as in the kate case of immigrati immigration, we in the process that chairman ryan and murray,
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we tried to put forward our principles so you new where we stand and engage in a significant way. >> last year the administration's budget said you were going to under take review of the top ten valley authority. what have been the results of that review? >> one of the things are the ways and approaches that the tva is taking to thinking about it's long-term needs. still want to know and understand the way in which those have been implemented. make sure that they consider the impact ip the state of tennessee. >> what about mississippi? >> as well. >> when will the comments of the stakeholders of that review be made public?
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>> i will be honest and say i don't know the answer to that question. >> we can get back to you on that. >> tba spends $100 million a year on non power related activity. and i'm not convips convipt con that any talk of paying for pva. any future budget remditions that you have on that subject. >> thank you mr. ryan and mr. chairman. i think we can see where the philosophical differences are in the proposed budget of the administration. and i think it is helpful to go back the last couple of
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connectcaconnec decades and i was here and we had several instances and the economy collapses and democrats come in and others exactly how we pieced things back together. so i want to say thank you for your hard work. i know you did this in seven weeks in a day and i'm sure you needed the extra day. this is the philosophy that we've had. there have to be investments that are made that are going to yield growth hire people. 20 million jobs.
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every sector of the economy and group went up because of the deals that were made and then we passed the bush tax cuts. if you look at the years in the 2000s it was stag nais the stag best. you are proposing that we go back to that. we have the first of the 45 instituted in youngstown. i will share what has happened with the small amount of money. since that has happened, we have had every major corporation who is interested in manufactures in the heart of the old steel belt
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downtown. we had siemens come in and they donated $440 million worth of software to the university. the people who manufacture printers are calling saying that they want to expapd nd in that region. in kent, ohio we got a tiger grant, $20 million bucks it stimulated $150 million worth of investments. there are investments all over the country. that is one of the key instances where investments help businesses and they help grow
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the economy. this has then that holistic approach. and i appreciate what you said on how the entitle many reforms. he tell me about p the business tax reform and how that will fund the projects. there is one time transition money. that happens in any system. you see it in terms of this one time revenue. we would like to see that as a part of investing in
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transportation. while you would encourage growth anden investment in the u.s. you will also encourage both india, infrastructure. in tefrps rms of tax reform. trying to put together two things that are about growth and the economy and things that we can come to agreement on. >> i think when you look at the provisions. raise the minimum wage. saying that people can reduce the hours of work. if you look at the credits in here for expending child and other family tax credits.
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this is the toughest it's been for main street. with all due respect as i listen to you today and see the budget, this budget is anything but fiscally responsible. we have heard the numbers over and over. we have heard $8.3 trillion in debt. and $25 trillion in debt by 2024. my constit wepts of my district are expected to balance their budgets. i'm going to tell you the budget is the issue with people. they understand the importance
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of balancing the budget. as a member of the transportation intrastructure committee we are working on how to maintain our highways and waterbays and intrastructure. and make it profit anl for fute twr future generations. it is recommended that congress pass a reauthorization bill that relies on extra revenue. it covers the protected shortfall. the future trust fund would receive a $150 billion. yet the program continues to ignore the real problem where we get future revenues.
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my question to you is as our economy continues to recover, because she's are the people lake myself will be able to hire more people why do you think that is taxing and regulations helps the economy instead of bur developing me. so i understand an appreciate there have been 18tieen differe cuts and whether that is encouraging contracting or it looks like this year for the first time we will meet the goals.
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>> do you frl think increasing taxes though in the short-term really solves the problem? >> how am i supposed to pay for the minimum wage increase. >> we believe it is a thing that will be hopeful to our economy overall. >> i think with regard to a number of states have done it and not seen negative economic impacts. and when actually when people employees have more money, general lly speaking. >> car dealerships. >> it does make a difference freps in terms of their ability to purchase and be a part of the economy. >> how is the small business opener supposed to pay for it. >> we believe as people have more money it will increase business's ability to grow. >> does the president address
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funding the highway fund in the near future. >> you addressed the difficult fiscal situation we are in. and we have discussed issues of defense spend iing and we have discussed revenue. we suggested that what we believe is the best approach to make progress on this sish. do you think raising the federal fuel tach x is the way to do th >> we are willing to work with the congress on a bipartisan basis. in the house with chairman schuster on finding theclusi s n
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solutions thank you very much and i cheeyield back. >> thank you and i hope you are having a good day. you are a breath of fresh air. let's go to the record. >> during the last years of the bush administration we had 1.4 million jobs into the economy. that is public and private. now in the private sector, in the private sector between 10 and 2008, we lost 462,000 private sector jobs. let's go to the record. so in the past 47 months that is almost how long -- that is the
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record. there are no increases on taxes. strength in our middle class. and it is not good policy. is really doing any justice to the public? forget about the politicians, our title certainly comes and
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goes. le less than 2% of gdp. their plan called for the deficit $819 billion in 2013. what was the deficit for 2013? >> $680 billion. >> well, that is much less than what simpson bowles projected sit not? >> it is. >> so last year, 2013, president obama exceeded the deficit reduction goal of simpson bowles
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of $139 billion. am i correct? >> yes, sir. >> yes, sir i would have to look at what numbers they have at what years. >> do you know what the number will be? >> it is 2016 and it will be 531. gee have to look at these numbers. give the president and this administration some credit. i have been pretty tough on them. give them some cd. they did something else. they did something that bass wa positionti positive. but you are never going to give any credit to anybody except the pat on the back at the christmas
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party. superintendant th isn't that wonderful? >> does this plan raise the age for social security? >> no, sir. >> does it change the measure of inflation for social security? >> so this administration has managed to reduce the deficit in 2013 below bowles simpson to social security. >> so now we are going to wait for the response from the other side and debate the issue gagai. thank you and good luck in your job. >> ten seconds to spare. a new record. >> mr. mcclintock. >>ter mr. chairman. welcome director berbell.
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did i under stand you correctly and this was the an ter that you were trying so hard to get out, that the deficit is not important to people, what is important is the economy. >> i think what people are interested in are their own perm economy. job creation and their wages. >> the cbo has been screaming this warning at united states at us. >> you run up $6.8 trillion in the last year and he held the prior record. it seems to me that mat sssive deficit spending was the key to job growth that the bush
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administration should have ended the policies. we know from our open experience that if you live beyond your means today that $6.8 trillion run up by this add maybe strition is going to be repaid by the young people today as $56,000 on average per household. >> i think there is a connection. >> where we are is you have run up more debt in five years than bush ran up in 8 and we have nothing to show for it. you wanted to show us that the budget will deliver stronger growth.
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with all due respect we have been hearing that for more than five years. household income has declaindec. 8.5 million private sector jobs were created. >> many of them can't get more than part-time. >> the vast majority was stated have all been consistent with private sector job growth.
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>> average household income is down not up. >> when i left the admi administration i left january 20th in 2001. >> yes, there was. >> the policies of the clinton administration i applaud. he made good on that promise and signed what amouned to the biggest capital gains tax cut in american history. he went after entitlement spending. those were great policies. the problem that i see in this budget and administration is it has done the opposite. it has raised taxes. $550 billion annually.
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it has increased entitlement spending with the obama care entitlements. it has run up record number of deficits. you are doing the opposite and having the opposite results. the revenue ratios are the same as the clinton administration's. >> he was reducing spending. swroo we are -- >> discretionary. >> yeah. >> we are talking about the entire budget which brings me to the final question. you propose no reforms. i'm curious how you plan on doing that? >> the trillion dollars that
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occurs has been implementation. >> we have to keep this thing runs. miss lee. >> thank you very much. i apologized. i had another meeting. things got dhchanged around. i tonight believe anyone has asked you yet about the oversass account. i believe this is a so called police station holder at this point. >> there are strategies as it relates to the draw down in afghanistan. i'm very concerned that the oco has become a slush fund of wasteful spending. the pentagon reserved money even though most troops are coming
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home. even though congress appropriated a total for war costs in oco, when are we going to be able to finally end this of the budget funding of cars and restore this account as a const constingenck account with the full oversight of congress. >> you are right to reflect that we have gutt a policy into effect. in terms of our budget we
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reflect the 450 cap. with regard to the question of how we do funding over time, i think the congress will work to determine the best of that. i hope we can come to the agreement that it is a contingency fund add not a slush fund. let me ask you about the department of labor as it relates to people of color. now, as a result of the 2009 om omnibus appropriate race act we put language in that said the secretary of labor shall provide
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a report to the senate of july 2009 detailing the actions that the department will take to ensure that the programs and policies will take to reduce disparities across racial and ethnic groups. is there anything that you can do to help us get this report back to us as described by the 2009 bill. swroo th >> i'm asking everything. every add menstration official to help us. i have not been able to make any head way. >> so, we would appreciate that and finally, let me ask you in terms of job training programs that are targeted toward
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communities, is this the pathway out of poverty for these communities? also with long term unemployment being what it is. the skills airport there. is this part of a strategy? >> it is. get people to have those skills and make sure there is job creation. >> what is the amount in the budget for that. >> there are a number of difference programs. to apprentice ships. there is a wide range. >> is it together to produce and appendix of document that organizes this programs and supports the security and
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economic independence? >> we'll provide that information to you if that would be helpful. >> take a look at the report that was put out ip tn the beginning of the week. >> thank you for coming before us. i want to start out picking up on something mr. flores said. when he said that his letter containing questions that he wrote last year or maybe he said them verbally from the microphone, i know you are new at the arg izatiorganization yo nice person we don't know each other. can i get a commitment that you are going to go back and look
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for his questions and get these answered? thank you very much. >> these putting up a paper with notes to question her staff.
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on insurance that on the fence. or on discretionary programs. do you think we are spending more money on interests or on defense as a responsible use? >> ea couple of things one, agree. interest payments i would say i probably would focus on numbpub debt. i would reflect on the points that have been made the hole we are in is large and has been dug
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over a long period of time. when you look at the budget you see the deficit reduction that occurs that the ratio is two to one in terms of spending. we do not believe that revenue is the answer. we believe that you need all pieces to par sticipatparticipa. you talk about americans don't care about debt or care more about jobs and the economy. do you stand by that. the people i talked to and i come from the people that elected the patieresident i thi they are concerned when we are paying more than interest
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payments. >> i think what the american people are caring about is yes, i think they care about debt. i think they care about how they're roads are. >> do you think the people of america care more about themselves or their children or chaer children of tomorrow? >> those chaern thildren that d exist. >> they say nope give me my food stamps, my unemployment check and my road and bhaefr awhatevet the debt on people that don't exist yet and they don't vote. because that is what i hear you saying.
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>> i apologize if that is what you take from my comments. i mean to say that we need to consider the issues that are in front of us. the debt is an important one. defending our nation is an important one. making sure that those children have pre-school is another. how you balance those considerations. beare all trying to have a conversation about. >> tfr mhank you mr. chairman. i'm going to follow up on what my colleague had said. i think there are delicate balance aps s here. and i think it is very important
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to remember and i care about my chi che children and lots of generation of noke folks who were in this together. they were going to have to build roads if they don't have to do it now. and so, i think that we can't to, i do at least in this contest waco contemco contemco context want to be careful for all of us. this budget focuses on more economic opportunities. i hard that i come from a state that is struggling. new mexico is not seeing the kind of recovery that anyber else in the country and it has been really difficult. in that context when i know many
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of my colleagues have touched on this. i think it bears some repeating for the record that we have gone through many i think are independent i independenting issues that have negatively impacted our economy and have caused real harm. the 2011 debt crisis impacted it by $9 billion. it reduce the real gdp he both by 2016. between 0.2 and 0.6 percentage points. after all these shelf inflicted ku wounds, it seems to me that we
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want to move forward in creating jobs. i think the things that work for all of us, i have a district that wants jobs. imhopeful that we turned a corner. i want to highlight a couple of things that you did. we don't want to harm seniors and children and you talked about shifts in disabilities policies. they will be employed and we have done lots of that work where we want the least restrictions here. i do think there are different dynamics that we don't take into consideration and we need to do a better job at that. this budget provides $100
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million to do family care for paid medical leave. i think that is economic security and i appreciate that we have increased investments in health services. as a result of kidney failure and related issues. so thank you very much for that. i want to talk about small businesses. what does the budget do to help create jobs? >> i have two important centers in my state. >> it would depend on what they are for. tax kcredits may be ways to tha can do that.
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i think new mexico could benefit by doing more manufacturing. can the m eeltep grants expand production lines? >> we have a company that can make cars and parts of those parts ip our state. >> with regard to the specifics of the nep i would hope that there are a number of things where it is the tax credits, nep, there are a range of things that are focused on promoting that. >> thank you. >> okay. you have five minutes early. this is your first day
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testifying. you had budget this morning. >> i have ddid. >> i appreciate your service. >> thank you for coming. please get back to the members in writing that which you have committed to and this hearing aajourped. >> thank you mr. chairman, thank you.
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