are engaged in what we are with the double life of unemployment in one year and a 200 billion-dollar deficit just last month alone so we will have revisionist history years from now when republicans come back again and you will see that economy come back and then i'm sure barack obama will get credit for every bit of that. >> dr. foxx? thank you, dr. foxx. i think what's important to know that this new tax doesn't apply just to see years it would apply to everybody who might the income thresholds and the problem is the tax on investment is if you sell your house you could have your income spike up in that particular year and then you're going to pay the tax or you sell your business or have a one time event so this is a

think there really negative part about taxing investment like this because it isn't just based on a salary or an annuity. it's based on potentially having a one time event that will push you over threshold limits and then the 3.8% tax would apply. ..

there is tremendous pain out there in america, with regard to people who can't access health care, that are denied coverage and benefits even if they have paid for it, and so i want to take some time to talk about that but before you get into all of it, i want to, there's this notion out there that the american people aren't for health care reform and i want t. we get this loud, hysterical group of folks that think that if they are just louder than everybody else, that their side will prevail. so, one of the things i did recently is i took all the calls that i got in my office-- we got thousands and thousands and thousands of calls and my staff are sore on both sides. and, we log them all, they take down folks' statements and we

count up all the letters, pro and con and then we eliminate the duplicates, and in my case i eliminated those that don't emanate out of my district. and i had 3900 people out of all those thousands of calls who said they were for this bill, and 2200 people said they were against it. so i just want to have, just lay out the specs. in my particular case in my district, where i think it is only 20 or 30% of my folks have private health care insurance and nearly 25% of my folks have nothing at all. therefore it. by a wide number. and you know, some of you know that my wife is a family dr.. she has been one for 20 years. she has seen thousands and thousands of patients and had to deal with hundreds of insurance policies.

and her experience is miserable. she comes home every day, telling me that some of her patients, good people, hard-working americans pay their taxes and pay their remains, who when they get sick and need coverage are denied that coverage. and i have heard her on the phone yelling at the executives at the insurance companies to give, but her practice medicine the way she was taught in medical school. my gosh, what a concept to not have someone on the other into the phone at an insurance company telling the doctor how to practice medicine in this country. i just can't believe it sometimes when i hear people say well, you know, we are going to have socialized medicine, we are going to take the doctor out of

it. we are not advocating taking the doctor out of it. we are making sure the doctors making that and not the insurance company. that is incredibly important. i want to tell you about a second real-life experience i had when i was a very young child. i was six years old. i needed kidney surgery. it was an emergency situation. my parents took me in. they didn't know what it was, and i had to lay on the table because we didn't have any insurance. until my dad went out to the local bank and mortgaged his business to pay for the surgery i needed. that is what is real-life for americans in do you know what? today with all the lending regulations and the banks that are in grocery stores and not the community banks were used to have a 1966 when this happened, i would have been laying bare a long time waiting for that surgery. i was in significant pain.

let me tell you about my brother this week. it was actually about 10 days ago. he called me a. my brother is probably a democrat only because he can vote for me in primaries that way. [laughter] very conservative man. he called me up. he has run our family rolling business for 50 years. we have all been-- he still owns the family business. it has been around for 50 years. and he said to me this week, dennis i just got the call from our insurance agent, tom murphy in livingston, california, and he said that our premiums are going up 75% this year, 75%. he goes, but add insult to injury, your sister-in-law joyce is in the hospital having knee replacement surgery and on the very day the insurance company jacked up my premium 75%, they

denied her extra day that the doctor wants to keep her in the hospital because she has got, they are afraid she has led clots. so they are insisting we sent her home instead of paying for the extra day. that is what is happening in america right now. that is what we have got to deal with. that is what the american people care about her goat they don't want to be discriminated against because they had and l. miss one time and it might come back. you get cancer, you can't get insurance. you are denied. it doesn't matter if you got over it. you have a child with leukemia in your family, you can't get your insurance policy. you are lucky if you can get anything at all for your families in those situations. my county, we have 22% unemployment right now.

we have dirty% foreclosures. we have devastation. we used to have five hospitals in my county and now we have got one and a little one satellite. they have all closed down because they couldn't compensate for uninsured folks. they couldn't make it. the one that is still going is subsidized heavily by local government. instead of paying for cops, instead of paying for firefighters we are having to cost shift those resources into health care. it is worse than that though, because my businesses that we have in our communities, they pay higher premiums in their insurance because the uninsured don't get, the cost get compensated in the same way so if you are uninsured you pay $2000 government program. that businesses, their insurance

, those that have insurance, those insurance companies pay $5000 a day. that is the tax on small business. that is his is the tax where the small businessman is subsidizing right now. we are trying to fix those situations. we are trying to fix that in this legislation. when i was 22 years old, 22 years old i was an intern here in this very capitol. ted kennedy was holding hearings on health care for all americans i was dispatched by my congressman who used to sit where mr. dryer does now, and i had to monitor those hearings. 22 years ago, when i was 22 actually it was 30 years ago. wish it was 22. i listen to these very same arguments no the very same people that are fighting health care reform than are the ones

that are fighting it now. they don't care about the patient's. they will continue to have this fight to the bottom line. i am not sure we are doing everything right in this bill. i was honest about the rule. i thought we needed to change it and i'm glad we did. but i will tell you i am also going to be honest that we have to do health care now. this is our time to do it and we can come back. there is going to be a lot of minutes here offered by republican colleagues in some of our democratic colleagues and i'm not going to entertain any any of those today because it would subvert us getting this done. but i will tell you they are going to come up with some ideas and when those ideas are put forward some of us who put those ideas on the table after this bill passes and i believe it will pass. i want to tell you all that i am going to vote for this bill today and i am very proud of the fact that i am, and i hope that

we make this change for the american people, for the small business owners like my brother, for the little girl who had leukemia in my hometown and the insurance company who told her she couldn't go to the hospital who had the best success rate. she had to go to the hospital who had that much lesser success rate because they got it cheaper there and she passed away. i am going to vote for this bill probably because we need reform. now, i will also tell you there are going to be some ways that we can reduce costs further. and we need to look at those. we would look at them in this bill, in conference committee if mr. mcconnell hadn't said that there will not be any conference committee action. we can't go to conference, because i would have liked to have gotten more cost containment in their. there are people like the west

wireless institute in san diego, where they are doing innovative work to reduce cost. we need to listen to those people and employ the methods that they are advocating. thank you for the time, thank you for listening and i appreciate it very much. >> mr. arcuri. >> thank you madam chair. i would just like to say thank you to all of the people on the panel for their comments and their thoughts and i would just offer to my friend and colleague mr. weiner some time. i know you were trying to talk a while ago. did you have any questions? >> i don't want to belabor the point. mr. cordozo would put it more fy than i could have, the idea that sometimes citizens don't realize the exponentially higher cost of paying health care reflected in ways they don't see every day. every employee of mr. cardozo's business not only pays the insurance for their employees

but pays the insurance for every city employee, every state employee, every federal employee, every retiree for those different levels of government and the ways that the high cost and inefficiency of health care manifests itself is not always appearance to citizens. they don't always wake up in the morning and see if that in my home city of new york we have an eight alien dollar amount that we pay to cover the uninsured to get health care at a far less efficient way than they could. $350 billion in deficits in the 50 states in the coming year and a half. of data about 30% is out of control health care costs, so the idea that citizens might say i am frightened by what i have heard about this bill and say in a poll that i am against it, if you asked them, do you think u.s. the employer of all these people, do you want to play-- a less they will say yes. the hospital that closed in your area, would you like it to be able to reopen or at least not lose another one?

they are going to say yes. if you ask them basic questions about the protections we are providing they are going to say yes. we have undoubtedly a problem that this bill has been described in ways that are often systematically and purposefully untrue, but i think the american people understand there are two decisions, two lenses through which we have to look at this. one of the lens of our immediate experience in mr. cardozo talked about experiences that far too many americans have, this whole idea we have to make sure we protect the health insurance industry because lord knows how americans love their lengthy 800 number and talking to their insurance company. they want to make sure the insurance companies are there for the things there may paying for but they also should understand is a strangling our economy. mr. cordozo's business a bowling alley is going to have to make a decision on the 75% rating. are they going to take that money into put it into health care for existing workers or might they take that money and

hire another ship to workers? may be open-- hire another group of employees. for the last eight years in this country, incomes have been flat, health insurance costs have gone up because employers and i disagree with some of the discussion, employers fundamentally want to do the right thing by their employees. it helps them have a more stable workforce but they have had to make the decision that every single employee going in baking, can you keep up with my health insurance cost? when you also have inefficiency we are not just competing against the business across the street. we are competing against businesses around the world and when general motors makes the decision to chevy impala we make on the canadian side of the border and we make the exact same vehicle with the exact same contract on the michigan side. can you blame them for moving their business to canada when it cost $7.25 more an hour to keep up with health care costs on the united states side?

these are the cost the american people understand intuitively but in the drum of this effort mr. cardozo's story put a perfect face on all three levels of this, that this is a personal thing that individual systems are-- citizens are being mistreated. this is a business problem and the localities of all of our states are having to make a decision. are we going to increase taxes dramatically to keep up with cost? /back services or workforce? all of those things are bad decisions that we hope cbo confirms they won't have to make after this bill becomes law. >> mr. arcuri. i yield back. >> thank you. mr. arcuri. >> thanks madam chairman and i appreciate the panels testimony today. all of you have so much information. you have all been so deep into this subject whether it is the budgetary issues, the educational issues or the health care issues, but as mr. cardozo

was saying, this is really a personal thing for each of us too. there is a sterile number component of all of this but how does it really affect the people in my district? how does it affect my friends, my neighbors? how does it affect me? all of us, as many, as everybody on this committee knows and any of you know i have a daughter with epilepsy. i dare say that every person in this room has either a family member or a close friend or a neighbor who has a preexisting condition. no if's, answer. we estimate the number of people with some kind of condition in this country at around 60 million people so i appreciate in my friend from texas' comments about this affects 27 million people but there is an additional benefit that i would suggest to my friend, 60 million people and their families and their friends, because under the terms

of this bill, my daughter, who could eat denied insurance because of a preexisting condition, will be allowed to have insurance. my friend, mr. diaz-balart and my friend mr. hastings talk about sections of the constitution that were implicated in the process are undergoing but the substance i believe is discussed right in our section 1 of the 14th amendment to the constitution which guarantees each and every one of us equal protection of the laws. people with prior illnesses are not getting that equal protection, so if this bill does nothing else, then to assist individuals who have prior conditions, it has advanced the ball for americans from coast to coast and i see my friend would like to say something and i will offer him, i will yield to him. i would say we have now gone

almost six hours on this thing and this is my first opportunity to say anything that i will yield to my friend. >> i thank the gentleman. i am trying to take time at the end of your time. >> i would like to say something else. i have another daughter who just turned 23 and under the federal plan, she can no longer be part of my plan. under my law firm, a lot of people say you guys in congress, you have better insurance than anybody else. where i practice law in denver, colorado my insurance policy would have covered this daughter until she was 25. she was bounced off of this at 22. okay, that is great except for young women have to pay higher rates, so we are paying higher rates for my daughter who is now 23. she has got three job offers and i hope she takes one sin. i hope they have group insurance. but, under this bill, we can

maintain our children on our policies until they are 26. that will touch millions of people across this country. finally, i would just like to say again, going along with the business peace that mr. weiner, mr. cardozo were talking about, my law firm, my former law firm has suffered some kind of health insurance to the staff and the lawyers for over 40 years. premiums have continued to increase and increase and increase to the point they are considering just dropping it. that is for 50 lawyers in and about 100 staff. i would say that that kind of calculation is going on all across america with small businesses all across america and i will finish with this. this bill is estimated to help in my district, in the seventh congressional district of colorado, the suburbs of denver

396,000 residents, up to 17,500 small businesses, 85,000 beneficiaries of medicare by reducing the doughnut hole. it will help at least 1700 families avoid bankruptcy in my district. it will allow 58 thousand young adults like my daughter abby to stay on their parents plan and it will save hospitals and health care providers at least $20 million annually. based on that, there is nothing but a yes vote coming from ed perlmutter from this bill and i would yield to my friend from texas for his comment and then see where we go from there. >> ed, thank you very much and in fairness i would like to engage anthony so it is not anything. >> if i could limit you to two minutes. >> that is great. here is my minute. mr., we complained about

insurance dropping people, providing rules, doing things, insurance is not working, but when the government doesn't want to pay money, because it is a matter of money, when the government doesn't want to do it they just pay about 30% of the 100% of the cost. why is it that insurance is so bad and mean and evil but it is okay for government to only pay 30%? why don't we just said a 30% rule and say nobody has to pay more than 30 of the actual cost. my point is-- [inaudible] my point is we are beating up insurance and i'm not trying to take anybody's side. i'm just asking a fair question. thank you. i would like to ask either one of you, why are they bad guys but why isn't the government to xp let me just say, and you must

be unaccustomed to standing up for the insurance industry, but look, here's the situation. if you are comparing medicare, here is the path that medicare makes with providers. we are going to provide you perhaps less and reimbursement rate than you might get from private insurance because we are acting on behalf of a large universe of people. it is also carefree. not completely carefree. we every year do a survey and ask the contractors, the doctors, clinics, the hospitals, we asked them how satisfied are you with your experience dealing with medicare? last year we got 4.5% on a scale of six. people who participated in the program gave it a 96% approval rating. they did this with a 1.05 overhead rating. insurance companies are not doing anything female when they take and 30% for profits and overhead and shareholder profits but what they are doing is

taking that money out of health care. they have a model that is different from medicare. they have a model that says we have to take as much money as we can from the insurance companies and pay out as little as we can in benefits. that is their legitimate business concern. hours as members of congress should not be that formula. are formula should be to provide health care as much as we can in a way that that is most efficient. that mean sometimes we are going to drive a tough bargain. we don't drive nearly a tough a bargain as walmart does. walmart has 4-dollar per prescription drugs. one is only for generics and two they go to the pharmaceutical companies and say we are going to go with a big pool of buyers, we are going to take that 7-dollar prescription and give you $3.50 and sell it to our customers for $4 the pharmaceutical companies say okay. no one is better-- bigger than walmart. wait a minute, we are much bigger than walmart yet we don't

do those things. the 10% over 10 years that mr. ryan has talked about is trying to do the smart things on behalf of taxpayers and i want to tell you there is someone at this panel who believes we should and medicare as we know it. that is a philosophical difference we have that ms. slaughter talked about earlier but i i believe if you ask people about their experiences are or even ask your own staffers to get more complaints about late conduct of private insurance companies than you do with medicare and if medicare makes a mistake or do something wrong you are a congressman, you can set them straight. if oxford does he get on the 800 number or call the state insurance commission and asked them to help out. that is the difference. we have competition for the last 44 years between an efficient low cost successful popular plan that is extended life expectancy of seniors by 10 years which is a wide reason it has a cost problem and dropping people making enormous amounts of profit has an approval rating only slightly above ours and

that is the issue we are trying to deal with so that is the choice we are making. that is why when we drive a hard organ we are doing it for citizens. when they drive a hard bargain it is to make more profits for themselves. >> reclaiming my time-- mr. sessions, mr. sessions. reclaiming my time. i would like to yield back to the chair. >> thank you mr. perlmutter. >> thank you madam chair. i wanted thank everybody on the panel today. i know you have put in a lot of hours equally to the number on the committee but i appreciate the number of hours you have put into get the piece of legislation. we talk a lot about the process and have we done enough, but i know much of the worst has happened in your committees and our long day is nothing compared to the long days and long nights you have put in getting this legislation to this point, so i appreciate you for putting in one more long day to get us through to what i hope tomorrow

will be the day we actually vote on this legislation. i am also grateful to the words of all of my colleagues here on the rules committee particularly those people who have been telling us their own personal stories. i just want to share a couple from my constituency talk a lot about the issues i think we are talking about in the very important reason we are here moving this bill to the floor in the way we can move it. some of you may remember last year, it was last year when they took up this bill. i shared one of my own stories. i lost my brother to melanoma. he died 18 months after he discovered that he was stricken with the disease and the fact is he was denied coverage by his insurance company a cousin of his preexisting condition. once he found out he was sick the only way to get any medical coverage was to spend what little resources he had, his savings account he had set aside for his 3-year-old son and sell any assets he had said he would

qualify for government assistance. that would be a shocking story as i mentioned to people before but that happened 20 years ago so the very idea that 20 years ago we were talking about my brother was being interviewed for television programs to talk about the importance of changing these rules about preexisting conditions makes it quite shocking that we are here today even thinking of contemplating not doing this. i have to say for all of the back-and-forth we have had, will it do it, won't it do it i personally can't imagine we would do anything but vote in favor of it. some of my colleagues and not just today but frankly if you want to talk about the process of that debate we have taken most of this week here in congress debating this bill before we even get it to the floor. every time i go to the floor to talk about anything from algal bloom's to honoring great authors i find we are actually discussing the health care debate and frankly i am thrilled we are. we are getting every hour we

possibly can so i went back and i want to read a few of the pieces of information i've gotten from my own constituents, which i think are great responses to the things we are hearing on the floor. some of my colleagues have said today all of america has woken. when i hear from america it is usually extremely sad letters that i get or e-mails or phonecalls as we have talking about. people talk to me about the process being fought. so many of my letters about the insurance process. here is someone who says i am 63 years old and in insulin-dependent ephedrine. i spent half of my social security income on a cobra plan that is about to run out and i am sure no company will pick me up with his preexisting condition. my wife and i make a little too much to qualify for any program in our situation is not unique. what i'm excited about is if we pass this legislation we can say to people we are working on changing insurance company so

they can't deny you for preexisting conditions. people keep talking about this government take over. frankly, it is not a government take over. it is not more government bureaucracy and maybe is this constituent tells me we would be better off with a little more government bureaucracy. this is from a guy named bill who was a fisherman in my district and i have many fishermen and many struggle because they are self-employed. he says i have a serious issue, in order to get cheap and i have to go to my general practitioner and get a referral from the specialist who generally argues about why i need this. then he sends a request to the insurance company referral specialist who also argues to get out of paying. we paid premiums and co-pays and get a bill from the insurance company who decides not to pay. if you have any health issues that sounds familiar and we have good insurance. my dad unfortunately has a terminal condition that he has been enduring for over a year. we are only a few days or at best a few weeks from the end

but luckily my dad has medicare. there is no general partition or for specialist. he is under medicare directly to the specialist. it has been a blessing and not having to deal with the hoops i have to go through personally during this difficult time. reminding me the real bureaucracy is in the insurance company. if we are going to talk about a government takeover, if it is anything like medicare we will be much better off. everybody keeps talking about a tax increase and we have read through pages and pages. this is a tax increase, to increase to dividend, whatever it is going to be but again nobody talks about the fact that the actual tax increase that most people in america can't avoid today is the increasing cost of insurance. it is much worse, anthem going up 75% in my state. at the mass for a 23% rate increase last year in our attorney general denied it. they are taking my state to court. this is not an unprofitable

company. this is what i hear from constituents about their anthem, their rate increases. those are tax increases they can't get away from and i'm thrilled we are going to have more mechanisms and not keep asking my lonely state and insurance company commissioner and attorney general to take over this. i don't want to keep reading these letters but they are endless, people who tell me how bad they will be when they start closing the doughnut hole and how that is truly going to change their dealings with not being able to afford the cost of their medications, lowering their costs and people telling me how much better it is going to be when they can get free preventative coverage under medicare and what a big difference that is going to make and all the wonderful letters i get from small businesses who tell me they don't think they can afford to keep covering their employees but we all know when they are tax credits are up to 35% on premiums there will be real relief for small businesses. one other thing i just want to read because i hear it all the time and i heard it relentlessly

on the floor the other day is that doctors don't believe in this. how many people came to the floor instead, i have never met a doctor who wants to reform health care. exactly. we know they haven't talked to mr. cordozo's wife and i want to read this one from a doctor in my state. everyday struggle of finding adequate and appropriate care for my patients. some have no insurance and we can find medicine for them. others have public insurance and others have simply given up wishing and are embarrassed to reveal their circumstances and don't even bother to mention to me that they can afford the care we are planning. i find out sometime later the medicine was not bought in the imaging study wasn't done, the referral appointment was in cat. i am embarrassed this is the state of health care in the united states the richest country in the world, aren't you? that is what this doctor asked me and i just want to relate some statistics from my state. maine medical association was into visit me and one of the people told me he had in here in

1993. he was on the board of the ama and he said i want you to know nearly 20 years ago i was here in washington lobbying against health care reform. you know this year they surveyed the doctors in my state. my relatively conservative state, two republican united states senators, plenty of republicans and independents mac when they surveyed the doctors in my state over 50% of them said we want you to go to single-payer health care. when i look at this compromise bill, they don't look at socialized medicine or a government takeover. i look at something that frankly to me doesn't go far enough. i wanted a rigorous published option, i wanted it via non-medicare. my doctors want single-payer health care but frankly if this is what are we going to move forward on i'm thrilled to say we are making real changes here and are going to include children up to 26 and give relief to small businesses. we are going to make sure we do

more with medicare and we are going to keep working on those other changes that will be helping us to get the health care system where we want to go in the future and i know for my state which has been struggling a lot like massachusetts with finding innovations and covering more people but is drowning in the cost, tired of going it alone we are going to go a long way. >> with a gentle made-- with a gentlelady yield? >> i want to tank of a gentlelady for yielding to me and i've heard a lot of stories like the one that she is told from all over the country, people all over the country have told stories but i think it is important and she made a point that this bill represents a compromise. some of us believe strongly in the public option. congressman allison-- allen grayson, we thought that was a way to help better control costs because the issue of cost containment is essential here. small businesses cannot hire more employees if their costs

are rising. individual families are struggling going bankrupt as their health care costs are rising so you know a lot of us still believe a public option is the way to go but having said that, this bill is a strong foundation that we can build on in years to come and i want to commend all my colleagues for their work and they tank of the gentlewoman yielding. >> will the gentlewoman yield? i just want to have something in the record. i just want to submit to the record a list of physicians groups that have taken a stand against this bill as well as a number of state medical societies, i think 10 or 15 medical societies around the country and a number of associations including the surgeons in the pediatric surgical associations and others if i could ask unanimous consent. >> reclaiming my time and i want to say before you submit that i feel very proud that i can quite accurately guess the main association is not on that list in opposition to the bill.

>> i don't think they are. >> with a gentlelady yield? >> i would be happy to ms. fox. >> i wonder if you are aware of the fact that the big payment that is going to close the doughnut hole this year is $250? >> reclaiming my time. i know they were seniors in my district, maybe not in yours but there is seniors in my district who are certainly struggling with the cost of prescription drugs and while we are not doing enough fast enough i am thrilled that they are going to find $250 coming to them this year. they are going to start getting new discounts on prescription drugs and then we are going to begin closing the doughnut hole. i wasn't in the congress when the part d plan under medicare was planned that i wouldn't have written it in the way we have and sometimes you go a mile into the woods and you have to, file back out. >> at the gentlelady would yield, the gentlelady is right it is $250 but you understand what that means. that is the government share of

the payment so it actually covers $333 worth of the doughnut hole in for a person with $30 a week worth of drug coverage that is an extra 10 weeks of coverage. we want to go the whole way to the end of the year and we invite you to join us in voting for that but it is important to note that is 10 weeks of coverage for somebody who is at $30 a week and i yield back. >> thank you and i will just reiterate i am furious we are in the situation we are on the cost of prescription drugs. i came from a state who worked hard in the year 2000 to pass a bill in the pricing of prescription drugs based on the idea that you should negotiate for better prices just like they do in canada just like they do around the world and i don't think you actually want to get me going on this topic because it is very frustrating to be part of a government that hasn't negotiate for a good price on prescription drugs. the fact is and i have come to deal with the realities of this bill is we have to work our way back out of a plan that was passed in the rules committee at midnight, pass through a three wow-- three-hour open vote.

i am looking forward to moving forward to be able to tell my seniors you get a little bit of relief and we will keep working in the right direction and we have a long ways to go. yielding back nighttime. >> thank you madam chair. i have just three areas that i want to discuss briefly. the first is about education and i will address this to mr. miller and then mr. klein as well. two items that i was somewhat disappointed not to see in this final version or included from a bipartisan vote passed our committee and passed the house where the early learning challenge funds which was a kind of race to the top approach for early childhood education coupling reform and resources. i know my home state hope to have the opportunity to highlight the system and exciting public-private partnerships around early child and they can a garden through 12 initiative which i know our chair and others on our committee have worked very hard

on, can pass with bipartisan support. would like to inquire as to the process for future legislative vehicles to successfully complete those two items. >> i thank the gentleman. first of all the reason they were part of the proposals submitted by the president obama's administration to our committee, we reported those out of the house and at that time we had much greater savings allotted to the direct loan that as we moved doing a baseline this year, the direct loan program has been so successful we have had over 2300 universities and colleges who have converted to the direct loan program. the savings are flowing to the treasury but the cbo once give us credit so we had to pare down this program. we have passed several school construction bills that have been overwhelmingly popular on a bipartisan basis in the house. one got taken out in the senate in the recovery act, and this one came out again because of

the loss of those revenues but many members of congress have already talked to you about how do we bring those back. there was also a provision in here for community colleges which unfortunately had to be taken out of this bill. >> i will ask the same question to mr. klein. given that both of those early learning and modernization repair initiatives along with the community college initiative did have a committee and house with strong majorities i would like to inquire as to whether you will work with the majority and try to see this through the legislative process into law? >> thank you for the question before answer that if i could take 30 seconds. the gentleman from california in his comments, and i trust he didn't mean it's actually but he said those of us who oppose this legislation don't care about patients. i hope that was just in a statement because i can guarantee you those of us sitting at this table, my wife who spent her whole life is a nurse and millions of americans

who oppose this bill to about americans. we care about their reimbursement for doctors and i just hope he didn't mean that. to your.i think the gentleman knows that for some time it has been my position that before we take a up new program school construction or others, the federal government ought to meet its commitment to special education and i will continue to hold that position. >> the section area of discussion is around taxes and taxation. earlier, dr. fox mentioned to my committee that everybody says terrible things about the senate bill and no one likes it or go i beg to differ. there are certainly some elements that i for one like debtor and probably other colleagues like better or worse. one of the parts i like that are from the senate version and i have been focusing on this is i agree with president obama about how to pay for health care. i thought attacks on premium plans would cause the least damage in the least economic damage of any of the taxes that

have been proposed. i also felt the initiative house version mainly a 5% increase in marginal rate effectively a surcharge that affects the capital gains for escorts, llc's and individuals 250,000 above a million was the most damaging of all the initiatives and i believe the final version we have is somewhere in between the two. with regard to this tax on unearned income, 3.8% that is a new tax, so again it has several advantages over the initial house version. namely it does not apply to corporations or llc's or two active income from those endeavors and two it is with or slower than 5% of its 3.8%. i would like to inquire with regard to that to mr. ryan to see if he agrees with me that this current initiative is in fact less damaging to economic productivity than the initial house taxation paid for? >> it sure is pretty damaging. >> is it less damaging than the original house bill?

>> that is pushback from 2013 to 2018. the 5.4% rate is 3.8% on a different tax base. past years will still play that -- pay that rate. pastors, llc an individual paying on the individual side of the code. individuals will pay the 3.8% tax on unearned income. on unearned income. >> if they are participating as an executive or running a small business which typically would be organized from a tax perspective and llc or as corporate. >> i'm not familiar with what your concerns were before. the 5.4% is a tax on income as we defined as earned income and that is a marginal tax rate. i would equally argue a tax on capitol on unearned income is just