processing system, and if the due date fr those employer wage statements could be moved earlier in the year, irs could do matching before refunds go out and catch more refund fraud. but this is something that is years away. they are working on their processing systems but they are not ready right now. >> and as part of my conversation with commissioner in his april speech, referenced that for looking ahead and try to again be proactive in the long-term. i didn't get the chance to ask him that question because the fact that we are providing w-2s by the end of january, once tha employer makes that available to the employee it would seem why wait another month or more before having it also shared. so that alone would hopefully allow us to move it up just that one change, you know, the

earlier the better. >> we have worked on going for the ways and means committee. we are working, looking at this trying to see if there are some options to move that up. >> great. before i go to our other witnesses i'm going to yield to the gentleman, mr. tasker for the purpose of questions and then i'll come back with other questions. >> thank you, mr. chairman. and also let me to the witnesses, really apologize our regret that happen. we are happy are able to take e time to come in and share with us in terms of what occurred. i really appreciate that. ms. petraco, as i understand it you discovered that your identity was compromised after receiving an address change request? >> yes. >> okay. was the identity thief attempting to change your pennsylvania address to a

yonkers address? could you explain that? >> the letter i received had a change of address. the envelope and i went to yonkers and was rejected went back to the irs. the irs put it in another envelope and and wrote my name and address, i guess they got from their files, and then that envelope came t me at my legitimate address in your pennsylvania. so when i opened it up i saw this yonkers, new york, address and i knew something was wrong. >> right. had there been any other attempts tuse your information information? >> no. to the best of my knowledge this is the first. >> no credit cards or anything like that happen use? >> no. >> it appears that your id was simply used to just commit tax fund fraud, that's what it was

used for? >> correct speculating about the statusf the investigation being conducted by the treasury department? >> n since i painted irs office i have heard nothing. except through office -- mr. popps office. >> but otherwise you have not been -- they have not been touched with you? >> no. >> ms. hawa, is that it? thank you. has your id or any other to victims been used for purpose other than tax refund fraud? did they use anything else the? >> not to my knowledge. >> how long did it take y to get assigned an agent while you're waiting for 16 mons of? >> the first year i was dealing with various agents within the irs for about 12 months. and then after 12 months they assigned me to a national, a

taxpayer advocate service agent. who continued their quest -- the request to get my refund suspected you get your refund? >> it took 14 months but they sure know i was just contacting us going to get it within 10 days. >> okay. >> and this year i did not get a signed an agent all. >> do you have any indication that action is being taken by the irs to find and prosecute the person? >> it's very difficult to get information about the fraudulent claim, just getting information about how much t refund was for when it was issued, is not something that they freely share. and that isafter they identified that you are a legitimate taxpayer. so no, aside from just the basic information which i had to plead for come i have no idea what the

status is on the criminal investigation. >> that he has to also, have you, you any idea where your identity was stolen in terms of what happened and how they're able to ascertain it? i'll ask all three of you that. >> for me in 2009 it started when i went to a local tax-preparation office in my neighborhood. i've been going to this tax-preparation office for five years. and i realize that it was a tax-preparation office went 20 additional customers of this offers came forward and said the same thing happen to them. >> i have no idea. to the best of my knowledge, i thought everything was cured. >> ms. thompson? >> no, i have no idea. >> let me st go wh u2, mr. white. you talked about the appropriate procedures should be put in place come and you also talk about modernizing the system.

that cos money, doesn't it? >> irs spends a lot of money modernizing their syems today. they have made progress. we've been reporting this for a long time now. and afer congress passed the irs restructuring act in 1998, irs got much better in managing systems modernization. it is still not where it needs to be to do the sort of pre-refund matching we are talking about. there -- they are probably years away from that right now. >> i'm concerned about this money. everybody is concerned about, i'm just thinking that sometimes we sort of react to things when we should spend and we wuld save. we ended up not spending and it would end up costing us more. it happens that i think we do that a lot, especially in government. so, i'm just concerned about

th. i think the episode of make the appointment because i really do this is very, very serious, if a person is waiting for his or her money and is stolen, and they're sitting waiting, that's very frustrating. >> i agree. irs as you may know has a separate appropriations account for systems modernization, and under the law, gao looks at that account before they can spend money out of it. the balancing act is always been making sure the irs has management capacity and the controls in place to be able to spend that money smartly so that they didn't get more money than they could spend effectively, but enough so that they continue to make progress modernizing. >> let me just tell you what my real concern here is, and aside from the fact that a person has lost -- i'm thinking credit scores, employment or other

things, all the negative things that can happen, you could be impacted by this. i mean, and ay i ask you, how about your credit score? have you dealt with this? >> well, i'm cautious to begin with, even though prior to this incident happened the first year. i always kept up on my credit reporting agencies and i always had freezes on my accounts. so this just exacerbated my need to continue the freezes and always be on top of my accounts that this is going to be a lifelong issued to do with. even if my taxes are not so next year, i'm till going to be concerned that my identity is compromised and i'll have to worry about accounts being opened in my name and whatnot. so this is not just aone time thing that we have to do with. this is a lifetime issue.

>> ms.etraco? >> i agree. i don't see this ending for me anytime soon. currently, it's just the irs but i will be vigilant about the credit scores. because, you know, i work in law enforcement so that the impact for me is just, you know, the fact i am a law-abiding citizen. i'm supposed to be protecting others in my roll. so it does have an impact, you know, because i don't know wht way this person is going to use identity. and my name is unique, so you know, that limits the amount of people that have that name out there. so it is me. >> ms. thompson, there's been a proxy three months since you discovered that your identity was used to commit tax fraud.

you also reported a problem to the irs and the ftc, is that correct? >> yes. >> have you received any written key muations from either of those agenes? >> federal trade commission wrote me a letter. i have my confirmation number on it. irs connecticut any income except lead i just got the other day. >> what did that say to you? >> that individual use my social security number to file a return, but those three months ago. they're telling me what to do as far as the affidavit and contacting federal trade commission. but i already did all that so it is three months late. >> right. did you contact the your td? >> yes. >> what was their response be? they have a police report and so does the district attorney's office. >> do they appear to be investigating with you, we do no?

>> the new york city police department found an address and a name in new jersey, but the irs when they came to talk to the other month,e said he can't arrest or. they are going to arrest or. he said he can't touch or. >> when you say day, do you mean -- >> the irs. >> have you received either written or verbal counication from the irs which gives up, easier an update on the progress of tax fraud? >> no. >> just that letter and that's it. now, mr. chairman, i think that's a real issue in terms of the amount that is involved it because if the person discovers that if this 3000, $5000 nothing is going to happen, the irs is not going to pursue it and nobody, you know, why not do it

again next year? that might be the way he make a living from this point on. until something is done about. so i think we need to look at the possible legislation that would encourage local law enforcement to also get involved in terms of even if it is $1000, 500 it doesn't atter that it's not theirs. and i think that until he come up with something of that nature, i think that this is going to continue. and i must say that we need to do everything we can to make sense that this does not continue. and i think in my particular legislation, i yield back. >> i thank the gentleman, and share the gentleman from new york's interest in pursuing this further, specifically on the prosecution standpoint. as with a conversation with the commissioner, and with the gao, what, if any, current statutes prohibit the sharing of

information from the irs with local law enforcement you know, the state department -- they paner with justice but as a reference earlier, when the talk but a 3000-dollar case here, $4000, justice has limited resources as well, but our local law enforcement, you know, they're pretty efficient at dealing with these. so i think, if this is something i've conveyed to our citizens who are with us, that when this hearing ends, that will continue to work in a nonpartisan way with committee, with gf's -- gao, with a irs officials to see how to strengthen that ability. because i am one that believes exactly what you said that if we don't start sending a message, whether it's $1000 or $100,000, we're coming after you. if you steal money from the american taxpayers, and you victimize law abiding citizens,

we are not going to just ignore them. we are going to go after it and try to hold you accountable. to look forward to doing that. using myself time now. -- yielding myself time now. i think the two or three victims here, one, a sincere thanks for you to tell your stories are so by being here you help raise public awareness of this issue. you personalize it, he's human i see. this isn't just about improper payments being made by federal government to criminals. this is one piece of a huge, huge pot of improper payments. official number most recent of $125 billion a year in proper payments being made. and what's going on here is one part of that. you know, millions and those of dollars going out in fraudulent tax refund. so you are helping to your story is very important.

and in each of your statements you captured it in different ways from the need for us to work with the commissioner and his staff to strengthen the training of irs agents in how we assist victims of crime, which is what each of you are. and you stated it in different ways, but i think state it very well, and ms. petraco, i am here today yo -- i hear today today i'm a victim of identity theft. i am forever change. ms. thompson quote, i betrayed by irs system has many a victim, a second time. ms. hawa, your statement they continue to treat me as if i am the one to blame, adding even more stress to the situation. that's not acceptable, and the commissioner acknowledged that. i appreciate the commissioner's colleagues staying to hear your stories. if you have had the chance i deputy comssioner tucker who is here with us, she was part of

my meeting with commissioner shulman yesterday, understands the importance of us to do right by you and all victims of this type of criminal conduct. and i think it captures earlier by referenced each of you unfortunately dealt with irs agents who were not living up to the standard of assistance as you well reflected in your statements come in your testimony deputy commissioner tucker is a 27 year employee of the irs, dedicated to do right by you. her presence here today reflects that along with her colleagues. and i guess a couple of specific question, mr. towns testimony, once you have been told are what action you are aware of, on how the interaction with irs went, a couple of additional questions.

ms. hawa, i want to make ure i understand one par of your written testament to what you shared here today. when you were -- find my spot agai you were contacted in october of 2009. and i believe in writing that you owed an amount of $1895 back to the irs? >> correct. >> and that amount was the difference between what you are lawfully supposed to get and the amount that the criminal had gotten fraudulent, correct? >> that's correct. >> by this time though you are already giving with representatives of the irs, to kind of go after this identity theft, correct? >> yes, but i did have one person i was dealing with. i would just talk to the identity protection specialist agent. every time i called it was a

different agents i did not are consistent my profile showed that i was a victim. >> that kind of captures what the commission and i know what we talked about the training aspect, you know, that there's a breakdown in the training system that, not just in training but in the internal tracking system i guess is how i described, that you are already in the system working on identity theft, and i assume probably maybe seven or eight months into doing that, because this is the fault, yet the system kicked out hey, we overpaid you. well, they did overpay, but not you. overpaid the other person the full amount. and also, when you are dealing with not those in the identity protection, the specialized unit, but also i understand that

two of te general agent you dealt with were not aware of that here was a specific unit to deal with victims of identity theft? >> that's correct. issue when it happened i had lost the number for the identity theft unit, so i call the general 800 number just thinking that they would transfer me over, and when asked, they have no idea what you i was even referring to. and they were giving me different instructions on how to deal with filingy paper return. addresses to send to and what i really needed to file. >> not understanding the scope of the issue. you are trying to deal with which was, because you enforcing have been through it before, you knew what was going on, trying to get to the bottom of it. >> writes back and i think -- will, i am grateful for your statement that those agents that don't typically deal with, that that's part of the review of how they get training.

so when someone such as yourself calls them. one of the specific question to you, ms. hawa, am i correct in understanding after 2009, and you are supposed to be flagged, were you also given a p.i.n. number? are you supposed to be? >> i had requested a p.i.n. because i heard her moorings of people being issued out p.i.n. when this first happened to me. even a gentleman that had this happen, this happened to him earlier in -- he said he received a p.i.n. there are some sort of verification method so it didn't happen to him again. so i requested that imediately, and they told me that they're going to look into it and i never received it. and in 2010 i was not impacted at all. so i thought that the worst was over but it wasn't going to violate the irs for a pin number. this year but i found out what happened to me all of the game i call the irs to see why my profile wasn't flat, as they promise, they didn't know why.

they had no explanation stack so it was back in '09 where you were told it would be flagged, you asked for a p.i.n., that didn't happen but you thought you still flagged. then in 11 something, you know, that didn't work. >> that's correct. >> and that kind of comes to discussions with commissioner, wi mr. white, that hoefully at if we are able to expand that p.i.n. process, that they will be more exact and the three giving examples, next year you have to have a personal identifation number, you know, and it's not a question of keeping flag but they only you can file and be able. with one caveat. mr. white hit it, depending on how you receive that if those electronically, personal e-mail versus mail or even mail, that that p.i.n. isn't stolen, you

know, in some fashion. but certainly would be another hurdle to guard against it. i think i had one or two other ones. i appreciate everyone's patience here. and this kind of, ms. thompson, mr. towns i think pretty well covered this. when you are dealing with the york city dettive, new york city police department's detective, undestanding because this person identified as being the criminal here was a new jersey, they wen't going to be presenting it, irs would. were you tol over the phone by the irs that they would be pursuing it, or were you told by the detective that his understanding from the irs? >> when the to irs agents came a couple months ago to talk to us,

they had told the detective that he could not arrest her, that the irs would. >> okay. so and i was kind of what we engage from a casework standpoint, they came out to look into from the philadelphia office of? >> yes. >> but you're not received any feedback from that? >> nothing at all. >> the and let me look you a second. a final question, ms. petraco. when you in the york office and understandably, you are trying to figure out what's going on here, and then already being a little concerned and then being told that you are a victim of identity theft and the engagement that happen in a public setting, just i guess in general, did the agent that you are dealing with understand, get it when he didn't want to say

the information publicly with other people sitting there listening? was there just, you know, an understanding, sorry about that, or was it just more they did realize what they were doing? >> i think my tone of voice when i said no, you know, no. get information off before. she. she said okay, okay. so, you know, i just don't think she really thought about what she was saying, or you know, just didn't put it all together. >> marchers ne, social security number and not taking, you know, you know, thinking i've got -- because i ask that because again, it's an issue of training of the sensitivity of this information that we're always on guard.

i'm like each of you, you describe your own approaches. my wife thinks, yo know, i have a shredder at home to anything as any kind of identifying goes into the shredder. for years i have been trying to be very productive because of this very concerned. and it sounds like each of you have triedo do that. and, unfortunately, it wasn't enough, not because of a lack of effort on your part. i don't have any other questions. mr. towns, do you? >> no, i don't. as i indicated though, i just think that a lot of things could sort of fall through the crack and not be dealt with. for instance, if the person is in another state and it's not a lot of money, that ticket very easily almost even ignored, because if you have to, seven and $50, so, therefore, why would you spend 15,000 to collect the 750?

so sort of pass it along. and that's my concern. so i'm not sure that, we need to look at that because if they are saying that the person in your cannot make the arrest, and i'm not sure that the arrest is going to be made, then i tink the fact that there's no to medication, to me isvery troubling because the person, the victim suld be informed as to what's really going on, and i thinkthat's something that really needs to be looked at. also understand in terms of the irs, i mean, how much do you want to spend to collect 500,000 -- i mean $500, you know. so i thin we have to look at this and i think we have a role to play here. and it's not just the blame game. ..

>> longer term if there could be more refund cecking. that takes the profit out of the crime. you are absolutely right, irs doesn't have the resources nd never will and probably should not to chase $500, it costs much more than that to collect it. it has to be prevented up front. >> but the person who is a victim -- >> yeah -- >> feels differently. i think that's the way they should feel. >> absolutely.

that's why it is such an insidious crime. for the victims, it is a big deal. >> right. with that, i yield back, mr. chairman. >> thank you. i would wrap p the discussion where i started in kind of the three primary issues. if we do better up front on internal contro and even the filtering system. that's why in my questions and comments earlier. i think you went through in your testimony all of the things that we're -- have no changed in 28 years. the status, your address, you know, that filtering system itself, if it's a january turn, asking for a debit card refund, you know, and without any substantiating documents. that should be a big red flag. we get into those who maybe -- likely identity theft victims. the more we do up front reduces

the number of fraud cases. when they do occur, there are fewer to pursue to throw the back at to go after mr. townsend's point. we're coming after you. if someone knows everything year get an extra 3-$5,000. do it once a year, produce the number so there's fewer to go after to hold accountable. and third is, in doing that, we do better with victims' assistance. i'm not a law enforcement professional, but my understanding is where there is criminal product -- criminal conduct and, you know, victims of crime, an important part of the healing process is the victim being kept fully nformed all the way through that process of pursuing the criminal, the wrongdoing to know that ultimately it's not just a -- they were made whole as you are going to made whoe. you are going to get your

refunds. but that justice was served. and i think that's when we have, no matter what the dollar amount, that we are not pursuing them. justice isn't served that prevents that ultimate healing process for the viims. i think prevention, prosecution victims assistance, and, you know, i think by statements, the commissioner understands that and is committed to that not just today, but has been. you know, we need to partner with them and with the deputy commissioner and this committee and appropriations and make sure that we're -- we're well devoting the necessary timed effort and resources to this issue. so thanks again for our four witnesses here in this panel to our irs officials who are still here. commissioner shulman on the first panel, certainly helped raise greatawareness of this issue and allow us as a committee to be more effective going forward to try to make sure that you three certainly

are never again victimized in this way, as well as other americans are not victimized and we do right by you and the taxpayers in the dollars sent to the government. we will keep the hearing open for two weeks for additional information requested or that you want tosubmit to the committee to supplement the record. with that, this hearing stands adjourned. [inaudible conversat [captioning performed by national captioning institute]io [captions copyright national

cable satellite corp. 2011]

>> in new hampshire yesterday, former republican massachusetts governor mitt romney announced that he's officially running for president. we'll show you that next on c-span. and "washington journal" begins at the top of the hour. we'll get an update on the latest economic numbers. we'll also be joined by congressman randy forbes of virginia and congressman charlie rangel of new york. house republican leaders will bring up a resolution today.

the measure does not call for removal of u.s. forces, but if agreed to, would require president obama to outline the u.s. military's involvement in libya. under the 1973 war powers resolution, the president is required to get congressional authorization 60 days after the start of military operations. you can watch live house coverage here on c-span. and the president will travel to toledo, ohio, today to talk about the u.s. auto industry. we'll have live coverage at 1:00 eastern. that's on c-span3. >> former massachusetts governor mitt romney kicked off his bid for the republican presidential nomination in new hampshire. this is his second run for the republican nomination. he lost to senator john mccain in 2008.

>> i've known mitt a long time. we've known each other since we were kids. we started dating in high school. we've been married 42 years. a lot of you know this story. we have five sons, five daughters-in-law, and 16 grandchildren now. i've seen mitt in a lot of situations, and some of the toughest moments of my life, if you all are aware, was my diagnosis with multiple sclerosis. and i would not have made it and pulled through without him and without his encouragement to keep me pushing and fighting. the same happened when i was diagnosed with breast cancer. he was there with me and encouraged me and helped me and gave me the strength to fight that disease as well.

i have seen him in untold situations, in business and in the family, as a husband, in so many different situations, and there is no one i would rather turn to when there is a crisis moment to please fix what's going on that's wrong. right now, america is broken. america needs a turnaround. it needs someone that knows how to do it, that has the confidence and the experience to do that. that's why i have all the confidence in the world that this man standing next to me will be the next nominee for the republican party. and will be the next president of the united states. thank you very much. >> thank you. a what you a day, and what a woman. she is my champion in life, i

tell you that. what an extraordinary person. and this really is what new hampshire is all about, a day like this, a farm like this. this is what america is about as well, don't you think? oh, gosh. john, thank you so much for opening your farm. now, how do you open a farm? i'll be able to come out on your farm and enjoy this time with you. i see a lot of friends here, some of whom have retired. i saw some college students, and i'm sure you're glad that exams are over. couples are here with their kids, as you see from the front. i spoke to a single mom who is taking some time off from work today. don't worry, we won't tell anybody. you know, my guess is that everybody here has a dmpt story they could tell. we have different backgrounds. we wake up in the morning and go to different jobs or look for different jobs. we go to churches, different

churches, or maybe don't go to church that much. but some of you have families that have lived in new hampshire for 200 years or more. and, of course, there are others that have come here more recently, by sneaking over the border from massachusetts. you know, the taxes are better over here, you know that. but here in this beautiful june day, we come together to begin a process that we often, quite naturally, take for granted. it's really, however, one of the great achievements in the history of the world. for all of our country's wealth and influence in the world, those are not the source of america's greatness. the true source of our greatness is america's self-rule, a government that answers to a free and independent people. we live in the most powerful nation that's ever existed, and it all goes back to a few men and women who had the courage to stand and even to die for

their belief in liberty and the equality of all humankind. because of their vision, the united states of america is not ruled by a monarchy or even controlled by an aristocracy. i guess sometimes people in washington might act otherwise. we don't have a house of lords. we don't have a ruling class that inharntse their power. and by the way, as the red sox like to remind the new york yankees regularly, there are no dynasties in america. who is it that rules this great nation? you do. every four years, you decide who it is that's going to give the state of the union address, who will set the course for the country, who will be the commander in chief. and that's true right here in new hampshire on this farm as always been true in america,

though each of us comes from very different backgrounds, though each of us has chosen to walk a different path in life, we are united by one great, overwhelming passion. we love america. we believe in america. today we're united not only by our faith and belief in america. we're also united by our concern for america. this country we love is in peril, and that, my friends, is one reason why we're here today. a few years ago, americans did something that's really quite american, the sort of thing we like to do -- we gave someone new a chance to lead the country, someone we hadn't known for very long, someone who didn't have a long record, but someone else who promised to lead us to a better place. at the time, we didn't know what kind of president he'd

make. it was a moment of crisis for our economy. and when barack obama came to office, we wished him well and hoped for the best. now, in the third year of his four-year term, we have more than slogans and promises to judge him by. barack obama has failed america. when he took office, the economy was in recession, and he made it worse, and he made it last longer. three years later, over 16 million americans are out of work or just quit looking for jobs. millions more are unemployed. three years later, unemployment is still above 8%, and that was the figure he said his stimulus would keep from happening. three years later, foreclosures are still at record levels. three years later, the prices of homes continue to fall.

three years later, our national debt has grown nearly as large as our entire economy, and families are buried under higher prices for food and higher prices for gasoline. it breaks my heart to see what's happening to this great country. these failing hopes make up president obama's own misery index. it's never been higher. and what's his answer? thess -- i'm just getting started. -- he says this -- i'm just getting started. no, mr. president, you've had your chance. we the people on this farm and citizens across the country are the ones who are just getting started. [applause] i visited with a family. cast and i dave tyler who live in a suburb of las vegas, nevada.

you are probably know families just like them right here. they're in their either 40's. it's a couple who had worked hard, sacrificed to buy a home in a good neighborhood, the sort of place that they wanted their daughter, ali, to grow up in. but now that neighborhood is being crushed by this obama economy. first their neighbors started losing their jobs. then they lost their homes. and all around the tylers there are abandoned homes and abandoned dreams. but the tylers wake up in the morning, and they get ready ali to go to school and then go to work and do everything they can to make it to the end of the month. it doesn't matter to them if they're republican or democrat, independent or libertarian. they're just americans. an american family. and across the richest and greatest country on earth, there are millions of american families just like the tylers, folks who grew up believing that if they played by the rules, worked hard, they'd have the chance to build a good life

with steady work and always the possibility that, with a little harder work, they might be able to get ahead. and in that america, you don't wonder if your children will have a better life. you know they will. you know it the same way that we know the sun is going to rise in the east on this great farm. the confidence in a better tomorrow defines us as americans. when generations of immigrants looked up and saw the statue of liberty for the first time, they surely had a lot of questions about the life that was before them. but one thing they knew beyond any doubt, and that is they were coming to a place where anything was possible, that, in america, their children would have a better life. i believe in that america. i believe you believe in that america. it's an america of freedom and opportunity, a nation where innovation and hard work propel the most powerful economy in the world, a land that is secured by the greatest

military the world has ever seen, and by friends and allies across the world who link arms with us. president obama sees a different america, and he's taken us in a different direction. a few minutes into office, he traveled around the globe to apologize for americans. at a time of historic change and great opportunity in the arab world, he's hesitant and uncertain. he hesitated to speak out for the dissidents in iran, but his administration boasts that he is leading from behind in libya. he speaks with firmness and clarity, however, when it comes to israel. he seems firmly and clearly determined to undermine our long-time friend and ally. he's treating israel the same way so many european countries have, with suspicion and distrust and an assumption that israel is somehow at fault. to his credit, the president ordered the raid that killed osama bin laden.

and in afghanistan, the surge was right. but announcing a withdrawal date, that was wrong. the taliban may not have watches, but they do have calendars. now, here at home, the president seems to take his inspiration not from the small towns and villages of new hampshire, but from the capitals of europe. with the economy in crisis, his answer was to borrow more money and to throw it at washington bureaucrats and politicians, just like europe. instead of encouraging entrepreneurs and innovators and employers, he raises their taxes, piles on mounds of record-breaking regulation and bureaucracy and gives more power to union bosses. instead of recognizing the states' rightful authority to solve their own problems, he seizes power from them and rams through a disastrous national healthcare plan. this president's first answer to every problem is to take power from you and from your local government and from the

states so that stalled experts in washington can make decisions for you. and with each of those decisions, we lose more of our freedom. you and i understand that. we look at our country, and we know in our hearts that things aren't right and that they're not getting better. president obama's european answers are not the solution to america's challenges, and in the campaign to come, the american ideals of economic freedom and opportunity need a clear and unapologetic defense, and i intend to make it, because i have lived it. 27 years ago i left my job and went to join with some friends of small business. like many of you, it had been a dream of mine to try to build a business from the business up. we started in a little office a couple of hours from here, and

over the years, we were able to grow from our first 10 employees to hundreds. my work led me to become very deeply involved in helping other businesses from startups to large companies that were going through tough times. sometimes i was successful, and we were able to help create jobs. other times i wasn't. i learned how how america competes with other economies and other countries and what works in the real world and what doesn't. i left that business in 1999 to help put the salt lake city olympics back on track. and when those games were over, i came back to massachusetts to serve as governor. now, i'd never held public office before, but i went at it like i ran businesses and like i ran the olympics, asked tough questions and take on the toughest problems first, because they'll get worse in the future if you don't. when i took office, we had a nearly $3 billion budget gap. my legislature was over 85%

democrat. the expectation was that we'd have to raise taxes, but i refused. i ordered instead a complete review of all state spending, made tough choices, and balanced the budget without raising taxes. that sent a message that business as usual was over. and then over the next four years, we consolidated agencies, we cut programs, we sold state property, and we cut taxes 19 times. i also found the state was giving over a billion dollars away in free healthcare, much to people who could have paid something for just gaming the system. you won't be surprised that a lot of democrats thought we should give them even more. i took on this problem and hammered out a solution that took a bad situation and made it better, not perfect, but it was a state solution to our state's problem.

[applause] at the he happened of the year, -- at the end of the year, at the end of four years, it took over 800 vetoes, but we balanced every budget, restored a $2 billion rainy day fund, and kept our schools first among all 50 states, and i am proud of that record. now, all those experiences, starting and running businesses for 25 years, turning around the olympics, governing a state, have helped shape who i am and how it is i lead. of course, if i ran through a list of all my mistakes this afternoon, ann would find it hilarious and you'd be here all night. but i can tell you, i've learned from the successes and from the failures. turning something around,

turning around a crisis takes experience and bold action. and for millions of americans, the economy is in crisis today. unless we change course, it will be in crisis for all of us tomorrow. [applause] did you know that government, federal, state, and local, under president obama has grown to consume almost 40% of our economy? we're only inches away from ceasing to be a free economy. i will cap federal spending at 20% or less of the economy, and finally, finally balance the budget. my generation, your generation will pass the torch to the next

generation, not a bill, and i'm going to insist that washington learns how to respect the constitution, including the 10th amendment. now, we're going to return the response and the authority to the states for dozens of government programs, and that will begin with a complete repeal of obamacare. from my first day in office, my number one job will be to see that america once again is number one in job creation. you know, if you want to create jobs, it helps to have actually had a job, and i have.

i'm going to make our business taxes competitive with other nations, modernize regulations and bureaucracy, and finally promote america's trade interests. it's time for a president who cares more about america's workers than he does about america's union bosses. over the last 30 years or, so i can't tell you how many times i've heard that a situation is hopeless. but i've never been very good at listening to those people. i've always enjoyed proving them wrong. it's one of the lessons i learned from my dad. my father never graduated from college. he apprenticed as a plaster carpenter, and he was darn good at it. he learned thousand take a handful of nails, but them in his mouth, and then spit them

out with the pointy end forward. now, on his honeymoon with my mom, they drove across the country. he sold aluminum paint along the way to pay for gas and hotels. there are a lot of reasons that my father could have given up or set his sights lower, but dad always believed in america, and in that america, a plaster man could grow up and work his way to run a little car company called american motors, and he could end up as governor of the very state where he once sold aluminum paint. from my dad, america was the land of opportunity, where the circumstances of birth are no barrier to achieving one's dreams. small business and entrepreneurs were encouraged and respected, and a good worker could always find a good job. the spirit of enterprise, innovation, pioneering, and can do propelled our standard of living and economy past that of any nation on earth. i refuse to believe that america is just another place on the map with a flag.

we stand for freedom and opportunity and hope. these last two years haven't been the best of times, but while we've lost a couple of years, we have not lost our way . the principles that made this nation a great and powerful leader of the world have not lost their meaning. they never will. we know we can bring this country back. i'm mitt romney. i believe in america, and i'm running for president of the united states. [applause] >> go, mitt, go! go, mitt, go! go, mitt, go!

>> this is two of our grandsons. that's joseph and thomas. there's josh in the back. hi, josh. he's too far to get up here. families all watching and cheering, you guys are the best. thank you so much. we love you. thank you! >> mitt romney will campaign in new hampshire today and then travel to washington and attend the faith and freedom coalition conference tonight. we'll be joined by other republican presidential hopefuls, including congressman ron paul and former minnesota governor tim pawlenty. our live coverage gets underway at 7:00 p.m. eastern here on c-span. and we'll also have live coverage of the conference during the day on c-span2.

the president will be in toledo, ohio, today to talk about the auto industry. the president will tour the chrysler group's toledo supplier park and meet with plant workers. we'll have live coverage at 1:00 eastern on c-span3. >> today marks the first time when our legislative branch in its entirety will appear on that medium of communication through which most americans get their information about what our government and our country does. >> several times today this has been referred to as an historic occasion. whether or not it will be an historic occasion is, i think, a subject for the judgment of history. a thaw week marks 25 years of televised coverage of the u.s. senate. on that first day in 1986,

c-span2 was carrying a little more than 6.5 million homes. today it's available in over 89 million homes. watch that first day or any of the 21,000 hours of senate coverage online at the c-span video library. it's all searchable, shareable, and free. the peabody award-winning c-span video library. it's washington your way. >> "washington journal" is next. we'll look at today's news and take your calls. and in two hours, the house gavels in and will continue work on veterans affairs and military construction spending. the chamber will also consider a resolution on u.s. operations in libya. the measure requires president obama to outline the u.s. military's involvement in libya. live house coverage at 9:00 eastern here on c-span.