applause] .. >> just as these brothers and blue have taught us we are all a part of something much bigger. among the mountains we had

called home we are charting and new half one built on collaboration and respect and one that places our state and people first. i am proud of the work we have done, the progress we have made, and i'm confident we can continue to move west virginia forward together. together. tonight we are more than just immigrants and republicans. we we are and will forever be west virginians. thank you. god bless you. god bless your families. god bless the state that we call home. thank you. [applause] >> tonight on t1, speeches from some of the nation's

governors starting at 8:00 p.m. eastern georgia governor with his state of the state address. address. then the inaugurations of two new governors. after that we will here from new mexico governor. >> providing live coverage of the u.s. senate floor proceedings and key public policy events and every weekend book tv now for 15 years the only television network devoted to nonfiction books and authors. authors. created by the cable tv industry and brought to you as a public service. watch us an hd, like us on facebook, follow us on twitter. >> on tomorrow's washington journal a conversation a conversation on the president's tax proposals. then "washington post"

political reporter with a preview of this weekend's iowa freedom summit where we will here from potential republican candidates for president. live president. live tomorrow morning and every morning starting at 7:00 o'clock eastern. and and just after tomorrow morning live coverage from the iowa freedom summit. former texas governor rick perry, wisconsin governor scott walker, new jersey governor chris christie, texas sen. ted cruz former arkansas governor mike former arkansas governor mike are to become a former pennsylvania senator rick santorum, sarah palin, ben ben carson, donald trump all tomorrow on our companion network starting at 10:00 a.m. eastern. >> author of the internet is not the answer on how the public is being used by

internet companies with their own profit. >> in the old days in the industrial age people went to work in factories, paid for their labor working nine to five and went home and did what they want with the money. today we are all working in these these factories like google, facebook twitter but we are unpaid labor. we are not rewarded, and it it is not even acknowledge that we are creating a value for them. worse than that can only other ones being packaged as the product. what these companies are doing is learning more and more about us from our behavior, what we publish or photographs, our photographs, our ideas, what we buy, what we say but we don't say learning about us, creating this that the like can opticon has been transforming us repackaging us as product. we are the

ones being sold. not only are we working for free, but free but that we are being sold, so it is the ultimate scam a perfect to talk movie. >> sunday night at 8:00 o'clock eastern and pacific on c-span q&a. >> idaho governor bush daughter said in his state of the state address this month that he wants to reduce income tax rates for the state's highest earners. this is courtesy idaho public television. [applause] [applause] [applause]

>> gov. on behalf of the joint session we welcome you to the house chambers and look forward to your state of the state address. >> thank you. >> mr. speaker, mr. pres. honorable, honorable justices, judges, my fellow constitutional officers, distinguished legislators, members of my cabinet honored guests and friends and, of course, my family and especially miss lori before i begin i would like to divert with your lead once again as i did during the inaugural address and then by the magic of television and by my mother she has been to this chamber every time except for this time. mom will turn 100 years old on february 9 and all line

of us kids plan on being there for the celebration. welcome. [applause] allow me also to 1st comment briefly on two men who were with us throughout my 1st two terms and tenure in this office, superintendent of public instruction and secretary of state. during my time in government i have been seldom privilege to work with two individuals that are more devoted to public service and the public interest and motivated by the better angels of public service than tom and ben. please join me now in showing appreciation for their work their legacy and their. there they are. [applause]

[applause] >> that is sufficient. i sufficient. i don't want you to get more applause that i got. god bless you. godspeed. i love you. you are two of the greatest. to our newly elected legislators and constitutional officers congratulations and welcome. i applaud your willingness to serve. i respect i respect and appreciate your civic virtue, and i encourage your attention and commitment to the processes and the purposes of our state government. like you i am beginning a knew term. it is an honor and a privilege to once again have received and garnered the support and the confidence of the citizens of idaho.

like you i take very seriously and that responsibility very seriously and i know that public confidence must be earned a knew each and every day. so let us begin our work together unfettered by the citizens or mistrust and with escher understanding of our limitations as well as our great potential. with you i look forward to advancing the interests of people that we serve. with you, i am committed to continuing our efforts to make idaho what america was meant to be. ladies and gentlemen, we are blessed to live in an interesting time. unrest and uncertainty all around us but that is nothing new to the human experience. there has never been a shortage of issues upon which well intended people who earnestly and actively disagree many free and dynamic society. we are also blessed to live in a nation and the state where there is order responsible citizen driven processes for sorting out and addressing those issues.

our process is not designed to satisfy everyone. nothing ever can, but it is designed to do more than stimulate public discussion and debate. ultimately it must inspire resolution in progress. however imperfect or incomplete. that is the lone star are which we find ourselves and find our way forward in these days ahead. unfortunately,. unfortunately, that has not been the hallmark of our national government in recent years. from immigration from immigration to energy and from environmental protection to budgeting there is neither rhyme nor reason to how the federal government does or does not do his job. partisan rancor and political infighting are unacceptable excuses for the inaction and dysfunction. here in idaho we have not only the opportunity but the responsibility to set a

higher standard and the live up to it. i ran for governor in 2006 because my six years and congress taught me that the states are where the republic must meet today's challenges and prepare for those that lay ahead. that ahead. that is just as true today and even more apparent. so i am more determined than ever for idaho to embrace that opportunity. it will mean setting example of both physical responsibility and public vision especially on those issues that are fundamental to our future prosperity and consistent with the proper role of government and aligned with our idaho values which we will require all of us to work together rather than across purposes. we must not allow ourselves january the federal government politics of division of procrastination, and misdirection for which we are all paying the price. in some cases and on some issues we are ready to put off making tough decisions for too long.

that cannot and must not continue. today i will outline issues on which i believe we must act, act, not in careless haste but with all appropriate dispatch. perhaps the most important message i want to leave with you today is simply this, idaho learns. we learned the value of the more frugal and accountable taxpayer resources during the great recession. we we learned the value of preparation and consensus building during our discussions concerning transportation funding. we learned the value of process and inclusion during our efforts to improve education , and we have learned that even the best intentions and plans must be carried out with equal attention to detail and public perception for our contract experience and especially with the idaho education network. idaho learns, and those lessons run deep. as a

result we move forward more competent in our abilities more certain of our goals and better prepared for the challenges before us. future generations will benefit from our efforts to apply these lessons today. i am not here to offer panaceas or insist that deliberations proceed in a particular a particular direction. we are separate but equal branches of government. instead i am here to offer my view on what state priority should be and where resources can be most effectively used in the public interest and that list begins with education. last education. last year in this chamber -- [applause] thank you. appmack last year in this chamber i laid i laid out a five-year plan for sustainability and responsibility investing in public schools, and i greatly appreciate your support for achieving those goals and encourage your continuing help in seeing

this process through as we welcome our new superintendent of public instruction. [applause] and i hope public schools are the most fundamentally proper role of government. essential to the health of our families communities, and economies. in addition to the choices that parents are afforded with homeschooling, charter schools, private schools, world-class public school can schools, world-class public school can set the bar higher for individual achievement. the key to our prosperity

and idaho's competitiveness in the global marketplace. as you know our school improvement plan is based on the recommendations of my broad-based bipartisan education task force which was led and facilitated by the state board of education. the goal of its recommendations is to build a public school system that is focused on student outcomes, responsiveness to the local needs, respectful of the role of the classroom teachers and more accountable to the parents and patrons and taxpayers. fiscal year 2016 executive budget recommendation i submit to you today provides for funding teacher training and professional development in a significant infusion of money for teacher compensation under the new tiered licensure and career latter proposal by the state board of education. to support continuous improvement my recommendation provides additional funding to help local school districts conduct planning on how best to improve the education for our children every year. an addition, i am calling for another $20 million in discretionary operating funds for local schools and fiscal year 2016. [applause]

my recommendation also includes funding to provide more career and college counseling for students. as we implement our k through career goals i want students and parents to have the best information available and making important decisions about courses, programs, and postsecondary opportunities that will give them a leg up my total general fund budget request for the coming year represents a 5.2% increase. my proposal for public schools calls for a 7.4% increase in funding. that's almost 60,000,000 more than we funding. that's almost 60 million more than we a lot of for schools during the great recession. i am also calling on the state board of education and our education partners to work together to develop a comprehensive plan for improving literacy reading proficiency, reading at grade level by the end of the 3rd grade is a major foundation for students education enabling their success in every other subject. we absolutely must prepare

our students by doing more to achieve this critical benchmark. anything less is simply unacceptable. [applause] i hope we will you consider this request that we work together to continue assessing the impact of our current year investment and seek to advance policies and processes that work best for idaho students. one of our initiatives to improve the quality and equity a public school experience is the idaho education network enabling students to get the same kind of advanced instructions as those in sandpoint meridian, meridian, enabling idaho to overcome geographic and socioeconomic barriers and realize the kind of opportunities for enlightenment, progress but not only years ago or unavailable only available

in our lord is connected communities, the kind of equality of courses in the levels of instruction provided by the ien truly is staggering. i believe in its value is beyond question. an asset that must be maintained challenging continuing to educate for the world-class so that we can overcome the other barriers. i am committed to fulfilling the vision and promise which we will start with rebidding the contracts involved as soon as possible but also include a strong recommendation for full funding of operations and fiscal year 2016. one of the benefits of idaho education network continues to be the ability to bring

college-level courses into the high school classrooms throughout idaho. that in turn helps ensure that more of our students are adequately prepared for the academic rigor of college life. colleges and universities have been spending too much time and money and energy on remedial programs to bring idaho graduates up to a post secondary level of confidence on such critical subjects as science math and reading comprehension. having trouble finding workers with the skills that they need in an increasingly complex economy to enable businesses to remain competitive. and. and i'm not just talking about computer science and engineering. businesses struggling to find enough well well-trained unqualified welders, technicians, and all other trade positions. at current levels of economic growth we are going to be tens of thousands of employees short of the industry demand for the skills and level of post secondary training and education that they need in the coming years. our

efforts to to better prepare students to be contributing members of society now extend beyond the old k-12 purpose to k through career emphasis. education education must not be allowed to end with high school. we have a responsibility to use our tax dollars more strategically and effectively and to build and strengthen partnerships with employers. having post secondary degree or a professional certification by 2020. folks that is just five years down the road, and we have a lot of work to do in order to achieve his goal. already the board of education and are higher education institutions are working more closely than they ever have with the department of labor the department of commerce special and technical education, health and welfare and local organizations to develop the comments and plans for

meeting our workforce development leads. more more pronounced targets and sustainable investments in such programs as computer science university of idaho and career path internships at idaho state university and the complete college idaho program throughout our higher education system. among the among the top priorities of each of our schools. the comprehensive system of education and workforce training opportunities so that idaho learns applies to all citizens. [applause] i am also pleased to report good news from the efforts of our in nuclear energy commission. the center for advanced energy studies.

as you we will recall that group did an outstanding job of highlighting the streets and capabilities of our national lab. one of there key recommendations focused on regional lysing the center for advanced energy studies by including other state partners. my good friend agreed to join as equal partners in the consortium of our state universities and their labs. this is the 1st step in a continuing effort to fulfill the promise. let me talk for just a moment now about something that you will find in my budget. i believe it has the potential to improve the lives and enhance the opportunities of many idaho citizens. i believe that because we have already seen it happen right here in this valley. in 2,007 my 1st year as

governor the valley valley was one of the last metropolitan areas in america without a community college. but the legislature enacted my requests to provide estate incentive or startup funding for any local jurisdictions where voters off to establish a community college district. basin stepped up to the challenge and voted to establish the college of western idaho. what a tremendous success it is then. it has forever forever changed the way that education is delivered here in idaho, and it is hard to even imagine this valley now without cwi playing a significant role in our future prospects. thanks to the incredible efforts visionary lead of

the board and the collaboration with boise state university and others the college of western idaho joins as a full partner now but the college of southern idaho: north idaho college and fulfilling the promise of the true community college. they are providing a portable, accessible, and responsive resources for both students and employers to meet their education and career training goals. goals. through them idaho learns is taking on a broader definition, providing that opportunity for citizens, giving citizens, giving it the economic downturn was critically important our recovery. now we are rebounding. we find ourselves faced with growing demand and an intensifying need for the services that community colleges are able to provide today i challenge again the underserved communities of idaho where no broad-based community college programs now exist to canvass their citizens and businesses on the value that can be added to the economic development, public enrichment efforts by

establishing a community college district of the size and focus that we will meet their local needs. most needs in my challenge for local leaders to address them we will be part of the discussion in each of the towns that i conduct capitol for a day. we did that and we can do it again. preparing idahoans for the workplace is the primary focus of the department of labor. it is not just about sending out unemployment checks. the experts at labor and our other state agencies now have eight or picture than ever of where our people we will be working in the years ahead. if they are educated and trained and to do the kind of careers that we will be created. we now expect to outpace the national employment growth rate by 15,000 job opportunities in your being created for workers through 2022 many in the healthcare and construction fields.

that is why dir. edmund and his team at labor have developed a plan for retaining and recruiting and returning employees to the state of idaho to help meet the demand for skilled workers. the idea behind choose idaho initiative is to bridge the coming labor shortage by keeping the best and the brightest in idaho, right here at home and encouraging former to come back home and welcoming people with skills to our communities, to help build on that effort my budget recommendations for fiscal year 2016 include a transfer of $5 million for industry sector grants to help build partnerships between industry and our education system to more effectively address a growing shortage of skilled and trained employees, i key element for our kaytoo career goals. at the same time same time i

am not pleased to announce that the department of labor was able to announce just last month that idaho's current economic recovery and job growth will allow unemployment insurance tax rates paid by idaho businesses to fall for the 3rd consecutive year. [applause] another 16.8 percent which means tens of millions of dollars in savings that we will be able to help capitalize additional idaho growth and jobs. i i appreciate your support over the years for reducing the tax burden on idaho citizens, increasing the tax credit, lowering credit, lowering income taxes and providing personal property tax relief. we are keeping almost $157 million in the $7 million in the hands of idaho taxpayers during fiscal year 2015 and that we will grow to more than a hundred and 69 million per year that begins july 1 is our economy keeps expanding.

the director and his team at the department of commerce are working hand in glove with education, education labor, transportation, agriculture, health, and welfare and other state agencies and to improve how employers see idaho. their goal is nothing less than to make idaho a global leader in growth and prosperity command we have some great resources to help accelerate idaho, including the tax reimbursement incentive for the tr i that you approve last year. this is attracting great interest from businesses ready to create thousands of jobs and invest billions of dollars in idaho future. thank you for recognizing that idaho learns extends to the lessons that we have learned from other states where governments are more -- mortgaging their future the future to ante up on attracting new businesses where we are not.

by contrast it requires employers to prove their commitment to idaho with jobs and capitol investment before a dime of there tax payments are reimbursed. [applause] and most importantly, importantly, the tr i is getting just as much attention right here from our own homegrown businesses than it is outside. in fact those employers are all looking for a knew tool in the toolbox and they have found it the tr i. one of the most crucial parts of making idaho a better place to do business is improving our infrastructure. budget infrastructure. budget recommendations included additional $3 million infusion for the idaho opportunity fund. that money is used for strategic grants to help idaho communities provide for water power wastewater

treatments, roads, roads and other infrastructure necessary for expanding their businesses. .. >> >> you know, as well as i

do every idaho community that has been passed over by a new or growing company understands the value of those grants but they only help a small faction other statewide infrastructure needs. the biggest ticket item in the infrastructure inventory is the billion dollar investment for roads and bridges. if idaho learns means anything at all it is time to address that element -- elephant in the room. our circumstances and the realities of the national government require us to seize the opportunity to become more self-reliant, the architect of our own destiny rather than afterthoughts of a federal funding system that could be skewed to our disadvantage. possibility congress will try to pass a transportation funding bill in the coming years maybe as early as this spring. the cold hard assessment of politics involved indicate

we might to run the risk of getting left behind so we wind up in our allotted for the needs. roads and bridges might need them over the next 10 years but the maintenance backlog makes it even more important to figure out how to the hundreds of millions of dollars needed to protect idahos commons. after education in investing in infrastructure is among the smartest most cost-effective and use of taxpayer dollars to promote the public general welfare and sustained the power. that is embraced by the voters.

roughly half of the respondents say funding should be the legislators top three issues and even though most are satisfied with roads and bridges right now, they get it. building and maintaining infrastructure is not an overnight proposition. weather highways are broadband connectivity llord troops mousselines our water treatment facilities, it takes planning and a commitment to sustainable long-term investment. we already have 785 state and local businesses that are 50 years old considered structurally deficient. that number will go to 900 bridges by 2019 even though we have the of money to pay for for 68. it is a real problem. we know how to fix it and we

have the resources in a major highway improvement projects since 2009 have been funded by stimulus than bonds. but those rates will reduce by 35% in the death rate by 25% under the chairman's leadership the transportation department is making significant strides in efficiency and more effectively using limited highway report resources. eliminating more than one of the positions since 2013 alone by reducing layers of management it is recognized as one of the best run transportation agencies and america. i fully understand the misgivings of the cost in making those higher but there is something to be said for the old badges about anywise and pound foolish. every dollar that we invest in roads and bridges now

will save the taxpayers and our children between six and $14 later on. chairman, legislative leaders tell you how to swallow the elephant that is contrary to all that we have learned about each other in recent years. but we all though it must be done and i welcome financially responsible legislation that addresses steady in ongoing sustainable infrastructure. however i will not intervene that if it means competing for general fund tax dollars for education and other required public programs or services. [applause] that raises the big question of taxation. solo me to reflect for just a moment with the basic

tenet of the equity uncertainty and complicity that it must we fair in its policy across the taxpayer a classification and must be predictable so they can plan and prepare for good and understandable so taxpayers have of fighting chance to make sense of the tax code and its impact on them. as it stands today idaho is a hodgepodge of taxing authorities that undermines public confidence that those that collect taxes are accountable to the citizens of the revenue is used. with that in the benchmarks in mind and asking for your help today to ensure over that overcoming for years we can make the tax system one of the best in the nation i

believe that should be enacted with the recommendations from the task force i assembled last year to consider improvements on how the idaho tax commission operates. that is the efficiency and accountability and transparency of the revenue operations. that includes refining though gold of the director over day-to-day agency business. i would like to see further reduction for corporate income tax and individual below 7% from the current 7.4%. [applause] and i would also like to see the complete elimination of personal property tax. to bed and -- to that end -- no. go ahead. [applause] [laughter]

to that end my recommendation sets aside the first of a five-year approach to raising the income tax bracket down at 6.9%. it will affect up to 51 percent of the taxpayers by 2018 that i believe is the right thing to do. [applause] i'll also believe the time has come for idaho to prepare for a potential change of federal law to address the issue of tax equity called the marketplace fairness act. as many of you know, that legislation now was before congress who would clarify the legal authority of states like idaho to impose and enforce the sales tax of goods online. not only is it a fundamental

issue of fairness in brick and mortar but also to secure our own long-term prosperity. simply put every dollar of sales tax from online purchases is the better part of valor that will not support the necessary and proper functions of state government especially meetings the education infrastructure needs of our growing economy. the legislation already enjoys the support from our delegation. [applause] on the topic of congress i believe chances have improved marginally to make incremental changes to obamacare that have real impact here in idaho progress study the recommendations of my medicaid redesigned

workgroup in agree with the findings up to a point. i especially appreciate the strong focus on personal responsibility to require co-payments but more importantly idaho learns of their experience. the work group did its homework and has the opportunity to share what they have learned to and i'm asking you to hold serious -- hearings and ask questions and ask yourselves all the work they have done a possibly take action and. we work together with great success after trials idaho is running its own exchange cheaper and more efficiently with better service that over promised with the original system and under delivered.

that's because your help idaho is locally run to insure agents and brokers with the free market right here in idaho. in fact, it is the key to how it is of being seen the gold to make health care more affordable -- affordable and accessible. many people of quietly gone about the business to put idaho at the forefront and changing how the health care landscape works. private partner partnerships help director armstrong in men and women working on the health care innovation plan to change the way we pay for and deliver health care services including medicaid those who worked diligently in the private and public sector to improve health care they all deserve our thanks. [applause]

my thanks also goes to the legislature those advocates you are enabling us to address a fleet -- aggressively address those. less than a month ago i was in idaho falls to cut on the first crisis center were people with the substance abuse issues could get short-term help without going to the emergency room or the edge jail cell. is an important part of the improvements needed for computed -- community-based services and the best practices across the country show the local facilities reduce law enforcement and hospital related cases while at the same time for her sustainable sport -- support

that is where requesting funds for the additional behavioral health crisis center in the coming year. [applause] >> another decision that i am proud we work together on with our legislature and courts in executive agencies an unprecedented collaboration is now implementing the initiative. this is an effort started two years ago from the house and judiciary committee committee, last year the overwhelming legislative support senate bill 1357 and the hard work done in the past year for the department of corrections has resulted in the outstanding set of administrative rules to be considered during this

session. they spell out in detail how they can improve public safety and reduce recidivism and lower the costs associated by prioritizing in refining the efforts with swift, certain and graduated sanctions. i appreciate your continued support for our efforts that they will move from careful planning and then to continue our work with the challenge that we face in the public defender system. the courts made it clear the courts for criminal defendants does not pass constitutional muster it is a priority that this be a priority. if they are embodied in the

fourth and fifth and sixth eight amendments to the constitution is undeniably our responsibility to measure on the phrase due process of law and seriously as the framers intended. [applause] which now brings me to another constitutional issue. the defense of traditional marriage. last year we found ourselves in the position of defending an amendment that was approved only a few short years ago in 2006 and i believe truly representing both the intentions in values of our citizens in idaho the defined marriage between a man and woman is the only domestic legal union college in idaho. for those of us that swore to uphold the constitution

and based on the content now not on changing societal ball -- and values or how we would rewrite today. therefore i will with my partnership with the attorney general continue i can only can to defend the constitution article three, section 28. [applause] i am hopeful the recent request for the u.s. supreme court to review the issue will be accepted and we can look forward to outcomes that have earned idahos constitution and it is unfortunate so many differences with the national government wind up in court but in the absence of any consensus on a

multitude of issues to lofton the courts become issues for public policy and resolving disputes by safeguarding our freedom. that may you where the the citing of electricity transmission corridors and that. i hope not and we are working hard with landowners and federal land managers and other stakeholders to find common ground through the administrative processes so those issues and others can be resolved. during the past year we completed the historic river basin process. the largest single stream adjudication in the united states to take over in the united states history took over 27 years covering water rights of 87% of idaho's land mass. as justice scalia said there is no question who owns the

water in idaho now. we'll advance our efforts to educate all of northern idaho water claims so they too can be protected and remake great progress on our efforts to recharge and more sustainably managed over water throughout the state. to end with gratitude for your help business support i am proud to announce now there are five rangeland management protections throughout idaho. [applause] there organizing and prepared to launch initial attacks from wild fire from the 3.5 million acres of rangeland in our state and i will also tell you those great idea is are involve either states-general least four other states with the department of interior with

this as well. ladies and gentlemen,, within this magnificent chamber so beautifully renovated just a few years ago, uc and idaho sky to the dome of glass. this chamber, a building, a body of all anybody could be to accommodate the biggest and loftiest in most meaningful of ideas in action. in fact, the entire church for the summer of 1787 to create this republic so as you begin your deliberations today, don't limit yourself. the bold and act decisively to reflect the idaho values you were sent here to represent and as you

consider the magnitude of the work ahead and how that will benefit the citizens that we serve come to keep looking up to higher aspirations. keep looking up to apply what idaho learns so the best intentions lead us to a better tomorrow for future generations can enjoy me to help lead idaho and our people first and foremost, in your mind. now with the deep-seated faith and our founding'' -- and our founding fathers' vision with our collective talents with singularity of purpose to enjoy in this legislature and judiciary, i enjoy confidence that with the boards continue blessing idaho will strengthen the republic as an example of what america was meant to be. god bless you and thank you for your time.

[applause]

rder in the senate? the presiding officer: the senate will be in order. mr. mcconnell: mr. president i send a cloture motion on the pending substitute to the desk. >> i have a cloture motion on the substitute. >> the clerk will report the cloture motion. >> we the undersigned senators in accordance with rule 22 of the standing rules of the senate bring to a close the debate on the murkowski amendment number to the keystone xl pipeline approve black signed by 17 senators as follows. >> i ask consent the reading be dispensed with. >> is there objection? >> no objection. >> with a cloture motion on the underlying bill to the task? >> the clerk will report. >> cloture motion we the undersigned senators in accordance with rule 22 the standing rules of the senate here by noon to bring to a

close to the debate of bill to approve the keystone xl pipeline speesix. >> i called for dispenser for the reading. >> without objection cast unanimous consent that at 9:30 a.m. friday morning the senate proceed to go in relation to the final amendments sullivan 67, 67, 75, murkowski 98, blake 103 common cruz 15, moran 75 and with that threshold for adoption and and that they be in order to the amendments as consent to minutes of its debates equal lead divided after the series.org and devotes. >> is there objection spirit reserving the right to object. now that we have courage to

the calendar five out of six democratic amendments the majority leader tells us it is time to vote? to does not strike me this is in the best interest of what we're trying to achieve to go back and forth with a bipartisan fashion. i'd like to ask the majority leader are you prepared to be in session tomorrow to consider democratic republican amendments to work through the list including the ones you just tabled? >> does the senator from illinois intend to object? period frankly i am trying to amend this sort has balance you mentioned one democratic amendment and five or six republican amendments to be considered tomorrow. >> we just had votes on democratic amendments that your numbers had offered and did not want to agree to have a vote on. >> in the record will reflect the spirited debate

which you would not even give the author's 60 seconds to describe what was in the amendment? >> i object. >> the objection is heard. >> i suggest the absence of a quorum

>> chairman hatch? take good care of this gavel as i know that you will. i want you to know how much i enjoy working with you and your long history of bipartisanship and as i hand you the gavel i want to wish you all the best. [applause] >> fate you so much that comes from a very good man i am not sure i know how to use the gavel anymore. [laughter] we're honored to be with everybody on this committee. this is a very important saying as it has been in the past and i want to pay tribute to to the distinguished senator from oregon and the way he ran this committee hopefully

follow his example thin i am grateful to you and will work with you and all friends on the democratic side and on the republican side as well. welcome to the first hearing of the senate finance committee with jobs and a healthy economy despite those differences in washington regardless of party affiliation we can all agree that job creation and a strong vibrant economy are good things. the senate finance committee has a long history of bipartisanship given the size it is only a program one of the main goals of this committee is to continue that tradition to

allow the committee to function and produce results as it has so many times in the past. that is why we chose the topic. today hoping to have the discussion into confined consensus on today's challenges rather than highlighting differences i will be sorely disappointed trying to score political points rather than seeking solutions it was equipped to address the challenges related to jobs and the economy. in the jurisdiction in places us on the front lines of the debate that we will have in this effort for example, jurisdiction over the nation's tax code with bipartisan agreement on the need to fix the tax system to allow businesses to grow and compete and create more jobs. the current tax code creates numerous and unnecessary roadblocks to stand between

us and sustained economic opportunity through prosperity. . . sxz/]9 us. and i believe senator widen feels the same. over the past few years i've been working to make the case for tax reform on the senate floor. i'm going to continue to do so. recently senator(!u widen andr(qjñávg i sha%pf1 o set forth the first steps for tax reform in the(! all assigned to study di areas of tax reform and to come up with proposals that we will use to work on bipartisan tax reform and+si bipartisan tax reform legislation. we have

i'd like to ask each of the witnesses on ouro i look forward to seeing the results of there work. we need to get this done. i would like to ask each of the witnesses to use at least some of there time during their opening statements to give a specific a specific ideas on how we can improve our nation's tax code. another area of the community's jurisdiction is international trade. the united states has a long tradition of breaking down barriers and providing access for american goods and services in foreign markets. this has been great for our economy and we must continue to do these things in the future. 95% of the world's population and 80% of its purchasing power resides outside of the united states for job creators to compete on the world stage we must ensure they have greater access to this ever-growing customer base. toward that end, congress needs to renew trade promotion authority in short order. this is something we need to get done. i have engaged to find a

path that we will provide the best opportunities to succeed. i hope we are able to complete our works in. with the ambassador heartrate ambassador and i met yesterday for a considerable amount of time on these issues. the obama administration has engaged in some of the most ambitious trade negotiations in our nations history. the only way for congress to effectively assert its role and the only way to get trade agreements the reflect the highest standards history tpa or trade promotion authority. i would like to ask each of the witnesses on our panel whether i think trade is important to the inspection of economic opportunities in the development of a healthy economy and to include their answer in their opening statement. the finance committee jurisdiction extends beyond -- expands beyond tax and trade into other areas that impact jobs in the economy and economic security.

we have growing healthcare costs that continue to put strains on employers and hard-working taxpayers command we have a growing entitlement crisis that threatens to swallow up our government and take our economy down with it. if we don't don't do something about that, that is exactly what will happen. all of these issues impact jobs in the economy and all of them are important. i important. i hope we can have a robust conversation on what the committee and congress can do to address these important issues as well as others and i hope we can avoid having a partisan back-and-forth that yields no productive answers for discussion. that does not mean critiques should not be considered, nor does it mean that we should not have a spirited debate but i do hope that whatever questions we ask or statements we make we will stay focused on gaining a better understanding and on the goal of treating jobs and creating a healthy economy for our economy. would like to take a a moment to recognize we have new members of the community

>> it sounds like a law firm's. >> i want to welcome them to the finance committee. i am also pleased that sen. warner is still on this committee. i expect him to be a very hard-working member of this committee and somebody who brings people together. i am counting on that. i am pleased that he is with us. no doubt each of their contributions will be valuable to our efforts. finally, i want to note that if at any.during the hearing we have acquired present i plan to move to the

executive session to firmly organize the community which we will include routine matters such as organizing subcommittees and formalizing the specific a specific change to the committee rules. with that i will turn to my counterpart for his opening statement. >> thank you very much chairman hatch. on behalf of the side of the day is, is i, too want to welcome our new colleagues sen. coates however, and scott. i have enjoyed working with each of them and will say as sen. hatch appropriately mentioned how important it is to fix the broken dysfunctional mess of the tax code that have had a chance to a chance to watch them in action doing good and bipartisan work. just a couple of additional points before i turn to the matter at hand. the 2nd senator from utah to chair this committee. the 1st was sen. reed smoot who chaired the community from 1923 until 1933 and two has perhaps unfairly remembered best for the

better to follow the build the bears his name. name. fortunately he has a very different view of economics. i would also like to note that sen. hatch is only the 3rd senator to serve simultaneously as president pro tem and chairman of this committee. he is going to be the busiest member of the senate. senate. and he is only the 2nd senator in the modern era to have been given the heavy responsibility of chairing three major committees. sen. hatch senator hatch previously chaired the judiciary committee and the health committee and now the finance committee. in my view he has saved the best for last. the last.i mentioned is that if you look at senator hatch's record from the historical standpoint he has so long focus of recognizing that the best

legislation, bipartisan legislation where you do not proceed unilaterally but try to find common ground and i think that is going to serve all of us very well, and i do look forward to working closely with you. >> thank you, senator. i i don't think we have 14 -- we need a couple of more. >> if i could just turn briefly to the matter hand this is a particularly important hearing because seven years after the economic collapse shook our economy to its core, how recovery still has a ways to go. too too many middle-class americans hounded by decades of flat wages are still struggling to make progress command i want everybody to understand my bottom one for this congress. when working families see bigger paychecks america's economic recovery is going

to go from a walk to a run. over the last few weeks i have spent a lot of time talking with workers and businesses in my state about the challenges that they face seven years after the start of the great recession. just this weekend i held townhall meetings, and it is clear that their are a lot of oregonians, a oregonians a lot of americans waiting for the economic recovery to kick in for them. for oregon's middle-class moving the recovery from all walks to a run for the much comes down to what we call the five tees technology jobs tax reform trade done right, transportation and timber. my guess is probably every senator on this committee on both sides of the aisle could come up with their own list _there is no question in my mind there would be a lot of overlap.

there are a lot of lessons to be learned about our history of policymakers work to strengthen the foundations of the american economy. seventy years ago after winning world war ii and making a long, slow climb out of the depression our country took boldly steps to build a thriving middle class. the congress came together and expanded access to education connected every corner of the nation from portland oregon to portland maine from los angeles to miami with the world's best infrastructure. over time and reform the tax system to better fit modern economic challenges and found opportunities in markets abroad for our companies to seize. these policies helped power and economic boom that grew the paychecks of working americans and small businesses for decades year after year people felt confident that their kids would do better than they did.

true economic recovery in my view we will restore that confidence. it will mean more jobs with a strong, clear letter to the middle class, jobs in which workers can support there families, build their savings and send their kids to college, jobs that don't leave families stretching every paycheck month after month. so in my view there is a question for each of us to ask with every bill we considered and every vote we take taken the congress. that question is, how well this grow the american workers paycheck. as we come together to tackle the overall tax code which chairman hatch has directly mentioned, let's ask, how will this girl the paycheck. when we take on the enormous job of rebuilding infrastructure again the question is how will this grow the paycheck. as we work to get more students and the door to college once more how will this grow the paycheck.

and and as we try to ensure that our companies can be competitive in a cutthroat global economy for the issue is still how will this grow the paycheck. we can all be proud of the fact that the finance committee has taken a starring role in so many of the important policy debates so their will be many opportunities to come together on a bipartisan basis to ensure that more americans share in their recovery and getting bigger paychecks. i believe i can speak for the democrats on the committee and saying that we all look forward to working to grow the middle class, bright and their economic burden and that we believe there is an opportunity to pursue this in a bipartisan fashion. again congratulations. >> thank you, sen. you, senator. i think my colleague for his kind remarks.

this committee has got to play a pivotal. our 1st witness today since 2011 he has served as president of the business roundtable will call it be archie an association of ceos that produce $7.4 trillion in annual revenues and employ more and 16 million people. he served for six years as the president and ceo of the national association of manufacturers and was a three term gov.'s state of michigan. he serves on the board of directors for universal force products, k-12 ink and the foundation and is a past chairman of the national governors association a graduated from michigan state university

with a bachelors a bachelor's in agriculture economics and later earned a law degree from thomas and kobe law school. we welcome you to the community. i hope this is the 1st of many appearances to help us to do our work. i want to thank you for being here. i will introduce the others as we turn to them for their statements. >> thank you very much mr. chairman. congratulations on your receipt of the gavel earlier. i am pleased to be here to testify. in 2015 business roundtable would like to see a stronger economy creating more jobs. the question properly before the committee is how we get their. this week we released achieving america's full potential. i asked that a copy be included. >> without objection there

we will be included. >> the committee has been provided copies. expanding trade, tax reform fiscal stability, fixing our broken immigration system infrastructure investment and a smarter approach to regulation. today i want to focus on two main topics, trade and tax reform. business leaders believe strongly in the benefits of trade and high standard trade agreements. trade is an opportunity for congress and the administration to demonstrate bipartisan cooperation early on in 2015 our agenda includes two key recommendations relating to trade. first congress and the administration and act updated trade promotion authority as soon as possible, 2nd aggressively pursue and secure high-quality and fair agreements competent your to a particular the transpacific partnership, the transatlantic trade. trade promotion authority legislation is the critical

tool for achieving high standards trade agreements that will create strong enforceable rules and will result in us growth and jobs a 21st-century tpa hopes ensure congressional input and oversight of us trade negotiations and assured our international trading partners that washington is committed to reaching and enacting strong trade agreements. business support crosses all sectors of the economy. in 2013 business roundtable created the trade it benefits america coalition and it is a broad-based group of more than 230 us agriculture and business associations and companies all committed to educating and the benefits of trade and strongly backing the tpa. coalition members are eager to work with this committee to get tpa passed

as soon as possible. i offer their help today. on the next topic i think everyone agrees the us tax code is broken and desperately needs to be fixed. the formation of the five working groups that you referenced earlier the bipartisan effort that can make a moderate more globally competitive tax system a reality. the administration's desire to work on business tax reform command we urge the administration and congress this year. designed to improve the competitiveness of all business that is noncorporate entities and corporations alike. the business roundtable key tax reform recommendations are two that the corporate rate have a competitive 25 percent. i did bring a chart. i use the oecd chart without amendment but for purpose of

the community i thought i would put a green light and asking for a 25 percent rate so that we move from the bottom red line and get a lot more competitive. that is within our reach. you would love to be where ireland is, but progress is important. that is where we can be. actually shows it at 297 but that is the local added in. the 2nd is the adoption of a modern international tax system that ends the double taxation of us corporations foreign earnings the celebrating a policy that has resulted in more than $2 trillion in earnings trapped offshore. regardless of the business structure reform we will require hard choices. repeal of so-called so-called tax expenditures would offset a revenue loss of rate

reduction. the result we will be broader flatter tax code. america's business leaders have consistently maintained that job performed will boost wages, growth, and investment. after ten years and a boost in after-tax wages for the american workers of 3.8% after ten years. we look forward to working with you to seek stronger growth outcomes. this additional growth can help address our fiscal challenges as returns of critical issues. cbo says that each one 10th percentage.sustained increase in the growth rate of gdp would reduce the deficit by 300 billion over a decade, a full percentage.then would reduce budget deficit by about

3 trillion over a decade, a nice, nice contribution. mr. chairman, ranking member, members of the committee, thank you for the opportunity to kick off the 2015 hearings and to address the many priorities of the nation and those that would give us a healthier economy with more jobs and help america achieve its full potential. thank you. >> thank you, governor we appreciate it and your excellent statement. our next witnesses doctor robert e hall, the hoover institution senior fellow and professor of economics. he served as president of the american economic association. in 2010 a distinguished fellow and as a member of the national academy of sciences a fellow of of the american academy of arts and sciences, the econometric society and the society of labor economists serving the national bureau of researcher committee and business cycle dating which

officially dates recession and has advised numerous government agencies and national economic policy including the treasury reserve and the congressional budget office. received his phd in economics from mit with a ba in economics and the university of california at berkeley. we want to welcome you. welcome you to the senate finance committee and thank you for a. before us today. please proceed with your opening statement. >> thank you for this opportunity to discuss the us labor market which is a specialty of mine. international trade and impermanent taxation. with respect to the labor market the labor market is now back to normal. the unemployment rate is

just below its long-run average. the key.is that employment has not grown by his normal amounts and the expansion. that is the reason that family incomes have not grown says factually. wages actually have grown, but the problem is employment has not grown in the combination of the two is left stagnation. to continue on this.with respect to the availability of jobs, we are abnormal now for example, short-term unemployment is at an all-time low. the low. the time that it takes employers to find a new employee is at a record high for which means that it is hard to find workers which means that for workers it is

easier to find jobs. on the other hand there are negatives in the labor market today. long-term unemployment and involuntary part-time employment are above normal levels, but it is gratifying to see that they are declining and will approach normal fairly soon. as i stress, employment growth is disappointing, and the reason is declining labor force participation. the faction of the population at work or looking for work has declined remarkably, a trend that began in 2000, worsened after the crisis and has continued to climb despite the restoration of normal job availability. the decline is not the result of demographic shift that reflects long-lasting changes, teenagers and young adults. remained constant at high levels for those aged 35 to 59 and has increased from previously low levels for

those 60 and above. the decline of participation has been larger among young people in households with above median income income, so it is not restrictive as some people believe. i don't see that there is place for a policy that attacks labor market directly and i think most people agree with that. that, all we need policies with economy wide favorable impacts that would bring improvements in the labor market along with improvements in the performance of the economy as a whole. these policies would improve educational outcomes resulting in higher wages across the board and close some of the gap between the wage growth of low-wage and high wage workers. turning to trade policy, i just want to leave one point

earnings should be measured in terms of purchasing power if we allow the american consumers to pursue bargains that are available in global markets, that raises real incomes and is one of the major objectives of this committee and of economic reform in general. therefore we should should welcome imports countries that are providing products at low prices. there is lots more to say but that is not my specialty. let me turn to tax reform. reverse the plan possible progressive personal tax in an airtight business tax. integration of the personal tax in the business tax should be the top priority. too much double taxation of income.

corporate income tax and personal income tax. that is a mistake. we need need to integrate the two. a fairly consistent approach i recommend it to everybody. the right incentives for saving and investment. can be tailored to modern standards upon recipient does not have to be a flat tax. it is the right way to go provide the kind of stimulus that we are always for. thank you again for this opportunity to testify. >> thank you very much. last but certainly not least professor of public policy the university of michigan and a professor of economics. his research interests include labor economics, michael

economics, political economy in economics of the family social policy, and behavioral economics. a research a research associate with the national bureau for economic research and an international research fellow at the cato institute. earned his phd in economics from harvard university and a bachelors degree in economics from the university of sydney. we welcome you to the committee and want to thank you for being here in attendance today. please proceed with your opening statement. >> thank you, chairman and ranking member and members of the committee particularly my home state. the good news is we are very much in an improving economy right now. last year 246000 jobs per

month on average, the fastest rate of job creation since 1999. the unemployment rate is down to 5.6% and importantly through this recovery unemployment is being falling at a full percentage.per year. so it is falling. that tells us that sometime this year depending on how optimistic or pessimistic you are the economy will finally be back to no. but i should urge as much as the natural progression we should not declare mission accomplished prematurely. historically be regarded as the unemployment rate as being a bad outcome and it is certainly the case that we can do better. we learned through the mid to late 1990s that the us economy can sustain four-point something percent

unemployment rate. a lot of talk that we might be your capacity but there is good reason to be optimistic that the recovery could run a lot further. that's all i want to say about the short run. i'm more concerned about the longer run issues that come out of the recent business cycle. we still have elevated rates of long-term unemployment. historically we would measure unemployment and the number of weeks at people were out. you lose your job and probably have another and six sometimes 12 weeks. today we measured. today we measured in months and in many cases years. that is a new development and appears to me that moving people back into the labor force and have been out of work for one, maybe two years, we don't yet have the systems in place to do that. perhaps there is a need for greater job search

assistance and people willing to think about the social insurance that may be necessary. during the during the recent recession congress saw fit to extend unemployment insurance, emergency unemployment compensation for those who were out of work. it seems to me that we want to be prepared for the next time that something like this happens again, which is to say that rather than acting on the spur of the moment it would be useful to have a programming that triggered on longer unemployment insurance when the next big recession hits to read i think is part of the 2nd brother thing. the federal reserve can't necessarily do all that it needs to do to offset. the fed has not been able to be as aggressive. that suggests a greater role for automatic stabilizers. if when downturns hit taxes could be lower and spending could be higher that would

lean against. spending money at a time when labor and materials are cheap. coders the community to urge for any opportunity under any circumstance to try and build and triggers only spend more and tax less and in return we tax less to husband lesson tax want. but to do it for pell grants and all sorts of things. the 3rd issue of want to talk about his rising inequality. we are not seeing that for a lot of families out there. a there. a sharp shift in the share of the national pipette goes to labor -- sorry because to capital rather than labor and seeing whereas historically economic growth went to the rich as much to

the poor of the past 30 years, most of the gains of economic growth have accrued to the top 10% and the bottom 90% of the distribution to that almost no rise in average incomes whatsoever. a fierce debate on capitol hill about the right scope for government and the right size of aggregate taxes, but i think there is a separate a separate and far more useful debate the right distribution of taxes. either groups who need greater incentives and greater work incentives and other groups who could use those marginal dollars a little better? the final.i would like to add meant someone outside the committee's jurisdiction is to talk about the importance of education, one of the driving forces for education in the united states to the last century has been rising levels of education. that has run its course. course. my generation was the 1st ever to not get more education than my parents

and at the moment it looks like the next generation is not getting more. the president idea of potentially expanding community colleges or early childhood education of potentially ways to reverse that long-run trend which could be engines for growth. let me stop there. >> thank you so much. we do have a quorum. we will not conduct a few items for committee business. the business before the committee is to organize for the 114th congress. with organize the community must do a few things today. number one adopt community rules, rules, authorize the community budget, assigned senators to subcommittees designate senators to serve on several panels and regarding the 1st part of the business, community rules, all senators should

have a copy of the proposed committee rules. the materials before you contain a change to the previous set of rules specifically they contain a change to rule 18 regarding the posting of transcripts were all community meetings. the change we will allow the community to continue posting transcripts of all executive sessions on the community website and ensure that we are not in violation of rule 18 and remain on the website after the end of the congress. i will not entertain a motion. >> i move that the community now adopt committee rules. >> is there any debate? seeing none, without objection the committee rules are adopted. the next

order of business is to report the community budget. all senators should have a copy of the proposed resolution concerning funding for the committee operations and will now entertain a motion concerning the budget. >> i would move that the community report the committee resolution concerning the budget at this time. >> is there any debate? if no further debate without objection the community budget is ordered reported. the next order of business is to assigned senators to subcommittees. senators have before them the list of senators on each subcommittee and should be aware of the assignments. i will i will now entertain a motion to make those assignments. >> mr. chairman, i moved to make those assignments quex@think the ranking member. the committee a size the senators from the subcommittees listed. the next order of business is to designate finance committee members in the joint community on taxation, the congressional oversight group's and the congressional congressional oversight group and the congressional trade advisers on trade policy and negotiations.

by statute and tradition the committee designates as most senior and eligible five senators to fill these rules. the designation proposed in the papers before every senator. i will not entertain a entertain a motion to make those designations. >> a move to make those at this time. >> if there is no further debate i want to thank all senators. now we can resume the hearing. hopefully everyone we will enjoy participating. >> start off the questions. bipartisan interest in this committee can then -- continue to carefully examine trade-offs and tax reform and to get things done. ranking member wyden and members of this committee. your thoughts on how tax

reform can help grow jobs and the economy and promote a healthy economy. >> mr. chairman mr. chairman, thank you. as i indicated, i was delighted to see the roundtable strongly support the creation of working groups and think that is a positive step for the senate as a whole. we have looked at an array of issues command we talk about the united states in terms of its maximizing its economic potential. it is the sense of the business roundtable ceo that the most important single thing that we can do for the us economy is to modernize and restore our tax code to a competitive state. that means addressing rate, the international situation. we believe we believe that tax reform should be comprehensive in scope and

that if this were to be done it has a dramatic a dramatic and direct impact. we think that there is an opportunity for the united states today to leave even more vigorously and global recovery and that bringing 2 trillion back home would be an important contribution. we also look at things like mergers and acquisitions. we have a deficit. we look we look back in time and would like to see us companies the inquirers not being the required. new line like to see the us as it seeks to meet one of the pres.'s goals, being able to be more competitive to do that. tremendous energy advantages, attractive to foreign direct investment all of which are enhanced by the tax code that is work that it is an all of that,

of the things that would bring in trade both of these have the opportunity to impact jobs and wages in this country in a positive way. >> thank you. appreciate that. we just went through a devastating financial crisis and financial deleveraging. i wonder what the effects were and whether it we will be lasting. i also wonder what the federal government should do the support job creation. some people seem to have somewhat of a pessimistic economic outlook go on what he calls secular stagnation. a future with persistence for business, near zero interest rates lack of an

ability and monitor policy to do much and what he seems to see will be a need a need for a far greater role for the federal government and the economy. i i would like to have your viewpoints on this things as well. >> thank you, sen. i was very summer's teacher at mit. he at mit. he and i have been debating these issues. there is a bright part in the wrong part to the concept of stagnation. i just recently -- there is a paper on my website if anyone wants to see more but more, but stagnation is a real thing in the us not so much of the areas that larry summers has talked about but rather the earnings the families take from the labor market have been stagnant in purchasing power terms since about 2,000. prior to that they have enjoyed substantial growth.

when you take that apart it falls into a number of interesting important categories. one is that that is also one productivity growth slowed down. the number one priority by far for restoring growth and prosperity is to get productivity growth. it growth. it is a proven fact that the benefits of productivity growth grow widely. it raises the earnings of many different groups. the other factor factor is what i already mentioned in my previous marks that we have seen this withdrawal from the labor market of certain types of people, especially teenagers. if you want to no what is most wrong here is the simple fact. in 2000 half of all teenagers

worked. today only one quarter of teenagers work. the withdrawal of teenagers from the. the withdrawal of teenagers from the labor market i think is a symptom of what is going on. i wish i could say it is because they're getting more education, but that is not what the data shows. instead there are teenagers spending more time enjoying themselves. i think that it is important to understand those are the two big factors. the 3rd factor is that there has been a shift of the distribution of national income away from laboring toward capitol. we're not really sure why that is happening. it has been the 3rd important source. but that doesn't mean that the outlook is uniformly bad i think their are reasons that 1st of all we could restore productivity growth especially with tax reform. certain changes that badly need reform. so i am not nearly as

pessimistic as larry summers is. he made a big splash for that. when you look and take apart the numbers quickly, a lot of the pessimism is not right. one overwhelming fact that we all need to be proud of is the performance of the us economy that has been so much better than earlier advanced economies, especially those from southern europe. we should be proud of how well the system works and i think it we will continue to work. >> thank you. my time is expired. >> thank you, mr. chairman. the gentlemen for years this committee has debated the merits of supply-side economics. you. you know often as the consumer sees it trickle-down economics. my own view is that that kind of approach is a particularly poor fit for an economy where two thirds of

the economic activity is driven by consumer spending. we all understand the effluent can only buy so much. what is needed for sustained economic growth is more people buying homes and cars and other goods and services that make life better for them and their families. so what you really need our policies as i was touching on that we will put more money in working family paychecks. i think what i would like to do is just go down the row and have each one of you give me your sense of a policy that would do the most to increase the paychecks of the typical american worker. we start with you, governor. >> thank you, sen. a 1% boost in us gdp would be the thing that would result in many more americans coming

back into the workforce. it would raise wages for workers in the workforce and that is a change in a set of policies that are not simply one thing but a focus on infrastructure getting a tax cut right, having the right trade agreements investing agreements investing in infrastructure, delivering on the promise of education investment and i think immigration reform is part of it. i it. i do not think -- we have a complex interrelated integrated economy, global economy and we have done well. well. i think it has been testified to today. we have made great strides in recovery, but there is so much more upside potential. >> the governor is right

that it is a complicated economy. i would like to get a sense if you can do one thing what would it be to help raise the paychecks of the typical worker? >> tax reform. a lot of improvement in our economic performance that we could achieve mainly by rationalizing the tax system and eliminating double taxation. particularly entrepreneurial and. and if text again as a capitol gain. i i think that is definitely holding things back. productivity growth in particular which as i said before would be a huge factor in improving paychecks.

>> i think certainly tax reform is part of it. we were pleased that former chairman picked up on this in a bipartisan tax reform bill. with triple the standard deduction middle-class people that think that is the kind of thing that can help raise paychecks. >> you very much emphasized the importance of increasing the size of paychecks. more important is increasing the number of paychecks, getting people back to work. if we raise wage growth that we will increase it by maybe 3%. anything that keeps the economy moving forward and gets more people back to work will be held. that was exactly the right assumption through till

about the 1970s. this used to be an economy where rising tide lift all boats. that appears to be broken today. we need to not just raise the size of the bible make sure some of the kids out there which is where i i think the important work of the tax system is most critical. what would put more money in people's paychecks? @think the earned income tax credit is a great way of ensuring that those who work get the rewards that they deserve. at the moment we must do reserve the for parents. why not nonparents? to be clear, lot of the beneficiaries would in fact, the noncustodial parents. broad swaths of the population where were this would have a huge effect and increasing take-home pay. >> i will see if i can get one other question. this is for you. you may not be aware, my mother was a research associate at the hoover institute. people institute. people were very nice to her, and what i remember

most they would always tease and say they liked misses white and so so much that they have chosen to ignore the fact that she's a democrat. here is my question. it is on infrastructure. >> i felt the same way about him. >> there you are. >> infrastructure investment, something you have been interested in. we are clearly falling behind. you cannot have the great economic growth of little the infrastructure. there was a form in chicago. you say, the united the united states is user charges for roads and bridges. when you said that i picked up on at the time. what to you mean by the kind of user charges that you would be interested in? >> well, senator in california and other parts of the country we have adopted rational pricing of infrastructure always so

their are lanes in san diego and one near where i live where it is guaranteed that you can go 60 miles an hour in that lane because there is an outbreak is turned on automatically that raises the price. those two things release congestion because congestion is to economic waste and generates government revenue. so i would love to see better pricing of our infrastructure of all types, and especially congestion pricing of highways which would give a signal about where additional infrastructure is needed which would be ones where the price is always high relative to how much of what cost to expand. it would it would be a huge step forward relative to where we are today where there is expansion of infrastructure and highways and particular.

i ways that are not heavily used and do not really relieve congestion. in the short run we can relieve the congestion by pricing it. along one we use the price signal to decide where to expand. it would be a whole new ballgame. real-time pricing there has been a huge increase in efficiency because all airplanes fly foldout which in itself is 10% a 10 percent productivity this. >> thank you, mr. chairman. >> thank you. >> thank you, mr. chairman, i am still thinking about glenn campbell. not a rhinestone cowboy. i thought i thought i was beginning to see if they develop your. we will get to more serious topics.

thanks to each of the witnesses for being here. thank you for having this hearing. i have two items briefly. one is since the recession in december of 2,007 1.2 million jobs that jobs of been created in my state, texas. state, texas. only 700,000 have been created in the other 49 states. and it is no coexistence, i would submit, that, that texas is the number one exporting state in the country since 2,002. we make a lot of stuff and grow a lot of stuff that gets sold to markets all around. so i am extremely interested in share the presidents commitment to see trade behind on our list of bipartisan things that we can work on because i think i think that it we will provide the kind of economic

growth that governor england alluded to in that you mentioned. mentioned. but i doubt that the president was celebrating the high court of economic gdp growth, growth, but i am wondering whether he is back in the football little early here is my concern, and i appreciate your your comments. we have accumulated 18 trillion in debt. the federal reserve has a huge a huge balance sheet because it has been purchasing our own bonds. it will have to at some.unwind. interest rates will go up. and i worry that for all of the things that the american taxpayer pays for with the federal tax dollars that we are going to spend more and more money servicing. important priorities for national security to safety net programs, but i would be interested in hearing from

each of you briefly what you see in the future. we all expect to produce the pace that they are buying. and unwind the program. >> it's not an easy question. i'm not sure if my crystal ball is any better than anybody else's maybe not as good as some on this committee. looking ahead, i guess it is one of the fundamental principles that we have tried to articulate at the roundtable. it goes back to this idea of growth.

i use the statistic that a 1/10% increase in gdp is probably $300 billion of the treasury. looking for the treasury. looking ahead at the 1 percent. $3 trillion. in order to generate that kind of revenue that the government needs does that have to be accompanied by per group decisions relative to spending and ultimately entitlement reform that has to be addressed. so much of the spending is nondiscretionary. i don't no that we are close to a rising interest rate environment of rapidly rising. on the other hand, the numbers are scary when you look and project if it did go. we are a liquid market. i certainly want to support the notion that is in this committee room and my fellow panelists infrastructure investment is also an optimal way to be thinking

about leveraging this low interest rate environment that we are in. we we have a lot of rebuilding that needs to be done. there are creative ways, very transportation systems. we see it. probably have quite a whole. those are are all priced and bill privately. so there are mechanisms, but their there are still big public decisions that need to be made. inland waterways of america, the air-traffic control system the electric grid. there is tremendous work that needs to be done. that also would be accompanied by a a tremendous demand to trained and skilled workers to do that. >> with all due respect a a lot of ideas on how we can spend money but don't here a lot of great ideas about how we can pay down our debt as opposed to pass it on to future generations.

my time is limited. >> senator, 1st of all i strongly share your concern about the balance between revenue and spending. i run a a spreadsheet that looks 100 years into the future. obviously not accurately but is still worth doing. one of the assumptions got factoring in the growth of interest rates which feeds back into further requirement for revenue to pay the. it. it is scary. the trend is adverse. the trend is for revenues as a fraction of gdp to rise substantially more slowly than spending. not so long time and has not changed. it is remarkably stable. according to the spreadsheet by the end of the century we would be immersed in debt. way more debt than that we

could possibly pay. something has to give. it has it has to given the sense of more revenue or less spending. you know i think our democratic systems need to be seriously concerned about that and i share your concern. >> if the chairman will permit my time has expired. >> let me make four points. the budget deficit is roughly back to normal. round about the 40 year average as of last year and set to improve. >> deficit or debt. >> deficit. second,. second, if you look at the projections in the sorts of spreadsheets bob was just

talking about, than that to gdp ratio which is the right way to think about this it is likely to be roughly stable. it is only beyond that but it starts to explode, and we don't actually know much about what will happen to the economy 20 30, 40 years out the range of uncertainty is such that we might find ourselves wondering why the debt is too low rather than too high. the 3rd is to say, should we be worried about the sustainability of this, very sophisticated pinstriped folks on wall street to trade in government that seem to think it is not. not only perceives to be a little risk but also that it looks like interest rates are going to stay low. finally, the role of infrastructure your concern which is an important one is that we don't settle future generations with debt and equally important we don't settle future generations with crumbling infrastructure. it is not just a question of how much spending but when to do it. the important issue is to try to do the

spending while it is cheap. it will be cheapest to do it when an economy has stark resources and are in interest rates are low which is the case for infrastructure spending today. most interestingly, the imf has done some calculations in which they suggest that government infrastructure spending, an environment like this with long interest rate is stark resources can actually end up lowering the debt. stimulate sufficient economic activity and can actually -- am not quite sure that i will go so far as to suggest it will lower the debt, debt the long run cost, the growth benefits of infrastructure, the long run cost to be fairly small. >> thank you very much, mr. chairman. congratulations. two out two out of three of your 1st witnesses are from michigan. it reaffirms my confidence

in your good judgment. >> good witnesses. .. witnesses like this every time, this is going to be in play. >> thank you.e)iñçxlw you know let me start by saying i've always been taught that if something works, we should do more of it, and if it doesn't work, we should do less of it. when we look at them9ñ economy, we# can see clinton years focused on education innovation,ími booming times,57%u lots of reasons, but booming timesom' 22 million jobs added. we go to the nextsqqq;qgsz administration, bush administration focused on tax cut íc7cpvpredominantly from the top, it will trickle down.z[y>g funding wars without paying for it, and'> creating massive debt lack of oversight, financial institutions. and we ended up with60 what we now call the great recession.