>> live at the national press club. jill stein was in 2012 presidential candidate for the green party. she is expected to announce her intentions again for 2016. coming up shortly. the room fairly full with reporters. we will have it live here on c-span. first, a number of events we covering. at 1:00 this afternoon, we will hear from the national security advisor laying out the president's national security strategy. again, that is at 1:00. she will be at the brookings institution. president obama this afternoon is in indianapolis in a town hall meeting at a school. that is at 2:00 eastern.

>> good morning, everyone.

thank you for coming. thank you for local media. people from the activist community and the green party community. and people watching live now on c-span. i am serving as the press representative today. we have two speakers who will speak before dr. jill stein. i will get in to introducing the first. the program will consist of two speakers, comments from jill stein, and a question and answer. . members will be available for answers when we -- questions and answers when we finish. first up is an artist, with more than 20 years of experience in the entertainment industry, known worldwide as the mayor of washington, d.c. hip-hop.

he will respected in the social justice community -- is regularly invited to perform and is the ambassador of the arts. he walked -- rights for the washington d.c. paper and the huffington post. please welcome head rock. [applause] >> thank you very much. they give everyone for gathering today. i would like to start off with a cultural libation, if you will. it goes -- who is going to save our people from a world filled with evil. the brown are you are, the deeper your scar. denied access from all

resources. and told by the government forces. the politicians belt out the rich. eight that a trip? who is going to save our people? descendents from enslaved africans. they want to act like it is ancient history. our challenge is a mystery. it can never be said enough black folks in america, we had it rough. caught up in the vision, the devil in the minion. who is going to save our people? save our people. we have come a long way. we are so far to go. a black man in the white house. that is a great matter. it does not mean he is looking out. we have to stay vigilant. no matter who is in. do not be complacent and ignorant. save our people.

save our people. you see, we have all been around for a long time. through a lot, on the grind. we wish we had more supporters from other cultures to handle these vultures. implementing their mobile agenda. every time we surrender, families we injure. save our people. the natives are restless. survivor under directed. lisa community process. we used to get on her knees and prayed to jot, now we pray on each other and hunt for a job. we went from the spiritual to the material. from indigenous to imperial. clearly, we need to save our people. you can say it. save our people you can say, i need to save our people i need to save our people. thank you very much. save our people.

[applause] with that, i would like to announce that i'm here to support an exploratory committee to elect dr. jill stein. [applause] to the office of the president of united states of america on the green party ticket. [applause] in the 2016 election. i'm extremely proud and honored that dr. stein has chosen to make this announcement in my birthplace, washington dc. our nations capital. and known famously around the world as chocolate city, usa. thank you very much. [applause] >> i need will follow that act.

anita was the green party candidate for ohio. born and raised in toledo. [applause] born and raised in toledo, she grew up one of eight children. her parents were mexican american migrant farmworkers. like a number of americans, she has worked in a number of low wage jobs. a longtime green party activist and proponent of one person, one vote democracy for all people, she was active in the ohio recount. she served as the lead plaintiff in the rios versus blackwell lawsuit. it was filed in 2004 to try and stop the electoral college from certifying ohio voters. she serves on the central committee for the ohio green parties. she was most recently employed

as the president of the ohio chapter of the national association for women. anita rios. [applause] >> thank you. thank you very much. some of you might have read that this past summer in my hometown of toledo, ohio, after many years of warnings from numerous sources, we woke up one day. we woke up one morning and were told that our water was too polluted to drink. it was too polluted to touch. we could not even allow her pets to drink that water. that was a tragedy. it left 300,000 people without drinking water. this was a tragedy. it was completely man-made. a did not happen overnight. we had numerous warnings that are practices, or farm is -- farming practices, we was

polluting the runoff. this is the same thing that is happening in american politics today. it is time for us to send a pink slip to all of our so-called leaders. they are not leaders, they are practiced politicians. it is time for all of us who have lost jobs, for the millions of americans who have lost their homes, for the millions of americans with student loan debt, who stand on welfare lines and unemployment lines, who are victims to the criminal justice system, who are women who seek safe and legal abortions and have lost access to that, for the millions of americans who suffer daily through the man-made crisis. it is time for us to exercise our right and instill leaders who will represent and serve us, rather than protect the fortunes

of millionaires and billionaires. i stand here probably today with jill stein and thank her for offering a rallying point for progresses. humane practical politics in america. for us to turn the page on politics of the millionaires and once again remember what it means to be we the people, and stand up and make this change that is necessary for ourselves and for communities. they give. [applause] >> thank you very much. before i give you some brown on dr. jill stein, i want to egg knowledge a few activist to her in the room and who will be available for questioning with the media afterwards. first, the vice presidential

candidate along with jill. he is here with the colleagues of the poor people's economic campaign. jerry and their colleagues will be available for question and answer. also, margaret flowers organizers with popular resistance. if you like the internet, you can think among other people, kevin and margaret for saving it. [laughter] they have made a living of this trusting senate confirmation hearings on the -- just because we are on c-span live today, hopefully they can suppress any impulses they might have to interrupt this conference. they will be available for questions afterwards. [laughter] dr. jill stein.

she is an organizer, a physician, and a pioneering health advocate. she was the green party 2012 candidate for president of the united states. [applause] she has been on the frontlines of social, economic, and environmental justice. fighting for health care and education as human rights. to stop dangerous fossil fuel and nuclear power. at the 20 million healthy green base jobs instead. during the 2012 presidential campaign she was arrested. three times. for defending homeowners from addiction from predatory banks from entering the grounds of a presidential debate that was excluding her, and to bring food to protesters blocking the tar sands pipeline in texas. board in chicago and raised in highland park, she graduated from harvard.

she is the co-op -- co-author of two scientific reports. one has been translated into four languages. jill's efforts to protect public health were recognized in several rewards, including the clean water action not in anyone's back what -- backyard of award. the talks is action citizens award. after decades of the act of internal medicine, she now that is his political medicine. she focuses on what she calls the mother of all illnesses, are sick political system. ladies and gentlemen, dr. jill stein. [applause] >> thank you, dennis. thank you to the speakers for

saying so well what it is that we are here today for. and what it is that we are really dedicated to. and working for. this is such a wonderful time to be doing that. thank you for all of you for being here today. this is an amazing historic moment. there is a movement for democracy and justice that is sweeping the planet. people are rising up. and calling for an america, and the world that works for all of us. we are told that we are in a recovery, but in fact we are in a an emergency. the political parties that got us into this mess are completely incapable of getting us out. the american people are leading the way forward. the demand for deep change has grown to a fever pitch.

young people are leading the courageous black lives matter movement to stop police militarization and racist violence, and call for an end to extradition -- extrajudicial murders us only african-american children and parents. like chelan martin, michael brown, eric garner, and more. families and teachers are mobilizing to keep schools from closing in our communities, and to see -- simply keep public education in existence. momentum is growing against abuses of high-stakes testing that forces poor kids down the deadline -- deadly school to prison pipeline. the fight is growing against predatory mass incarceration that holds one in three african american men hostage to our vast prison state. workers are fighting for a living wage and for the right to

union. students are demanding an end to college debt that has crippled a generation. hard-working immigrants are standing up for a humane path to citizenship, not simply a three year to furl of deportation. frontline and indigenous communities are leading the reading -- resistance to toxic fossil fuel that threatens to disrupt civilization as we know it in our lifetime. the list goes on. this movement is alive and well in our communities. it marks the coming of age of a new generation. it is time for generational shifts in our national vision. we have had enough. we have had enough of rule by the economic elite with their

cutthroat competition and religion agreed. we have had enough of corporate capitalism that puts profits ahead of people, planet, and peace. these the range values have dominated media politics, and the economy for one decade. it is now clear for all to see where they lead. two extreme inequality, economic despair, racism, and the sport and climate catastrophe. it is time for a new way forward. with the new society, new economy, new energy and food system, and a new era of racial justice. the old politics is collapsing. the political vacuum is begging to be filled. that vacuum was plainly seen in the 2014 midterm elections. those elections were not a victory for republicans, as they

have widely been misrepresented. they were actually a rejection of democrats. 2014's record though voter turnout reflected profound dissolution with both parties. 2016 provides an incredible opportunity to fill that political vacuum and surge forward. the voices of resistance and transformation deserve to be heard loud and clear. that is why i am announcing today the formation of an exploratory committee for the 2016 presidential election. [applause] we will use this exploratory committee to reach out to young people, workers, employed underemployed, and discouraged. the frontline communities, to

immigrants, to communities of color, we will reach out to women and seniors, indigenous nations, the lg bt community and all who had been neglected, abandon, or betrayed by democratic and republican parties. [applause] we will offer a campaign in service of the justice that they deserve. the green party can do this. we are the only national party that is not poison by corporate money. [applause] the only one. in 2012, we emerged as a nation leading -- the nation's leading progressive party challenging the status quo. we will build on that. we will lift up the bold

solutions that the american people are calling for. 20 million living wage jobs. an emergency green deal. to enrich our communities, not corporations. to rain and climate change and make war for oil obsolete. [applause] we call for health care as a human right. not a subsidize, profit center for predatory insurance companies, like obamacare. a medical care for all systems to provide quality care for everyone. while saving to millions of dollars, simply by streamlining the masses help insurance bureaucracy. we call for quality free public education, as a human right. and an end to run away school privatizations, closings, high state testings, and student loan

debt. [applause] recall for an emergency transition to a green economy. powered by a 100% wind, water and son. by 2030. [applause] we call for a welcoming path to citizenship for immigrant residents, and an end to predatory trade deals and political intervention that created the surge of mass migration to start with. [applause] we call for an end to the racist war on drugs. the school to prison pipeline. militarized police. the surveillance and prison state. and the radical reduction of america's prison population. [applause]

finally, we call for a foreign policy based on human rights international law, and diplomacy, rather than global, military, and economic domination. [applause] as we test the waters, we can plan a campaign of a lifetime to match this moment of historic possibility. in closing, i invite you to visit jill2016.com. connect with us, volunteer make a donation. in spanish. [speaking in spanish]

this is the time to come together. solutions are in our hands justice is in our hands just -- democracy is in our hands. together we can create a world that works for all of us and ensures that people, planet, and peace will prevail. [applause] >> a few quick notes before we begin the question and answer. . period. i want to reiterate the website.

they just launched this morning. jill2016.com. an exclusive story done by abc news just posted this morning. it is also on the website. feel free to grab it and share. for the question and answer. , we will use a handheld microphone. i know this room is small, but we'll live on c-span. the folks in their living room will not hear unless you do use the microphone. with that, i like to open up to questions and answers for jill or any other panels here today. >> hi. i am a journalist based in washington dc. i would like to ask jill -- dr. stein, what you learned from your campaign in 2012. obviously, a very active campaign. i am wondering some things that may be learned about politics,

stuff that goes on here in washington, things and maybe even surprise you. also, how that may impact or 2016 campaign. what you might do differently. likes thank you. -- >> thank you. my run came after a series of runs at the state and local level. what i would say that was surprising is that there's really nothing surprising about politics and the game in the mainstream world of politics. what was surprising to me was how ready people are in our communities to rise up and to really fight for something different. that amazed me. in 2012, we are only getting to build a national infrastructure to be able to run a campaign. communications social media, website, donors list, the whole thing. i think that is what is really

different this time around. people have not forgotten the incredible need for a different voice. for a different choice. as we enter this exploit toy. of the campaign, that is what we are doing. reaching out to those communities to see -- is this the right time for us to step up and work together? i am hoping it is. [applause] >> thank you, jill. jennifer from washington dc. of course, you are laying out the issues excellent. i have a question about the united nations. i'm the oldest person here, and i remember when the u.n. was formed and what a celebration was for the planet earth. we really thought we had a recourse, a place where something called justice was.

after the past several administrations, the u.n. has mentioned -- in the present one, we are tensed palestine joining the u.n.. the u.n. is not a recourse. it is a start. we do not need it. i really want you to put it on your list of issues -- why the u.n. is a way to restore some sort of justice and legal determination, rather than undermining -- i don't care what it is. go to the u.n. >> thank you, jennifer. thank you for your wonderful foundational work. jennifer allinson, the founder of the green party and d.c.. i completely agree, rather than

this shoot first foreign policy, diplomacy and international law and human rights need to be at the forefront. the u.n. has become a mixed bag. we have seen that in the climate proceedings in the u.n.. it has become a front for lobbyists, for corporate lobbyists, and the climate conferences have become really -- climate summits have become spaces for lobbyists. we need to get the big powerful corporate countries out of the business of suppressing democracy in the u.n.. thank you. >> other questions? >> harry campbell. green tv. dr. stein, green parties around the world have been very

successful. in germany, they are the majority of state legislators. australia. across the world. and key success has been the positively green new deal. eco-jobs for the economy. the important economic effects, you can speak to, that is my question. please talk more if you would and tell us the positive solutions for a green party, green new deal. with the obesity epidemic killing america's and diabetes across the nation. >> thank you for making that point. what is good for the planet is also good for the economy, and good for our health. that is why the green deal is win-win. -- studies have shown this is a study out of stamford by mark

jacobson, two years ago. it looked at new york as a case study and found that going to 100% wind, water, and son by 2030 would pay for itself simply and health savings alone. we take air pollution for granted. water pollution, things like that. we take it for granted and assume that they are god-given conditions. that we all live with heart disease and respiratory disease, and other consequences like asthma they are natural aspects. in fact, they are not. they are not god-given conditions that strike that from birth on. not just diseases of aging. your point is a very good one. there are so many benefits to greening our economy, to halting climate change, to making it wars for oil obsolete.

about all, providing those jobs right now that are essential. we can make unemployment thing of the past. we can put everyone to work. the good news is that conservation and efficiency, simply saving energy by weatherizing homes and businesses, all of that pays for itself in about three years, in terms of just the energy savings. there are some a savings that can again that this is a win on all counts. when people ask how will you pay for, essentially a pay for itself. we are paying to the teeth by not moving forward right now in ways they can also solve the climate crisis by a timely intervention. [applause] >> high, jill. nice to see you again. i am at 2016 baltimore maryland candidate. my question is regarding the war

on drugs. what do you think of decriminalizing like what was done in portugal. how do you propose to do it? >> in general, let me answer that broadly. that is a wonderful and deeply involved russian. in general, we need to move from criminalizing these substances to treating it as a public health issue. there is no doubt that that needs to be our overarching approach. criminalizing people who have an addiction problem only makes it worse. then, they go out and are confronting joblessness and homelessness based on being former prisoners. our current system basically compounds the war on drugs. it makes it worse. we can fix this now. it is an absolute crime that people are in jail for using

drugs that are less harmful than nicotine and alcohol. the whole drug war is completely baseless soundless and moral and with it needs to be transformed into a public health agenda. people who are currently serving time on a count of using recreational substances, who have not been involved in violent crime, should have their sentences removed. [applause] >> high, jill. i am a public school teacher in philadelphia. i was pleased to hear you mention education during your talk. did you talk more about what your vision of education would look like? i look schoolteachers affect on a regular basis by the current

administration. i would really like to hear more about your vision. >> thank you. take you for any out for public schools. i think we need an education system that teaches the whole student, the whole person, for lifetime learning. i think the meeting of education in high-stakes standardized testing is a betrayal of the mission of education. it should be about developing a whole person, lifetime learning and developing our capacity for democracy. democracy fundamentally depends on education. and on our ability to make informed choices and to inform ourselves. we need strong public schools. we should not be privatizing our schools. [applause] we need community-based schools. they should not have to be privatized in order to be community-based.

parents and teachers, and students, all need of role. by creating charters and cherry picking the students who have more supportive families, who can work harder, who can pass test, they get cherry picked out and public schools get left with the challenge kids. i guess my other visionary thought about the big vision in education is that kids need to come to school prepared to learn. if they are coming malnourished, steak, walking through communities beset by violence, if they are homeless or jobless that is an education problem too. we cannot separate education think that we can fix it without facing poverty. [applause] >> i think we've time for one or two questions.

>> good morning, jill. i would like to know what is the prison reform about. what will you do? >> very important question. thank you. there is a lot that needs to be done for prison reform. first of all, we need to stop. we need to stop shoving people into prison in higher populations in certain communities. one out of three african-american men. there is a racist imprisonment system state. it is shoving, forcing people who are economically disadvantaged in that direction. people who do not have jobs. sometimes they turn to dealing drugs in order to survive. that is a fact. that should not be the case. where there is hope in our

communities, where there are jobs, they are not forced into dangerous and risky professions in order to stay alive. i think we need to do away with the management -- mandatory minimum that are throwing people into gels are very long terms. prison time should be about rehabilitation. it should not be about vengeance. we need to prepare people to move that into society. the term is used -- restorative justice. i think it says a lot about what should be the vision of our prison system. it should not be about retribution and revenge. it should be about rehabilitation and reconnecting people to their communities, and in fact preventing people from the start from being torn from their families and communities.

going down pathways of violence and crime, and so on. we need to provide people with hopeful and sustainable, and just, pathways forward. [applause] >> good morning, jill. dr. margaret flowers. it has been more than 100 year struggle for a health care system based on health and not profit. the affordable care act only further empowers the medical industrial complex. do you have the courage to take on that privatized powerful medical industrial complex? how do you think that people will respond when you begin this be cut out a medical system for all. greg's you know very well what this is about. none of us can do this alone. in my mind, the imperative for this campaign is to bring that struggle, which you and so many

other physicians, and everyday people, are pushing forward. to create a health care system is accountable to us. that is about our right to health care and not generate more profit for pharmaceutical and health care appellees. [applause] furthermore, we have a sick care system, not a house -- health care system. the vast majority of illnesses, chronic illnesses in particular, are actually preventable and art implemented on us through various nutritional and tax illogical, and social conditions. we can do the right thing. we have a wonderful crew to fight this battle. kudos to you. two popular resistance. to the poor people pass people's economic

campaign. poll show that this is what americans want. it is really due to the lack of voice in the process. and for the fear campaign that tells us we do not dare stand up for what is actually within arms reach. what we can achieve and what will make our lives better, make us better, and give us a more secure economy. that is all within our reach. standing up for help, in my view, is standing up for economic and social health, and the health of our democracy. as we come together, and a national and political campaign, a national presidential campaign is a great way to build these coalitions. as you are doing in popular resistance. this gives that social movement another voice in the political arena. that is where we began to get traction. if you look, for example, with

what is happening in greece. things only began to really change for the better when that social movement also became a political movement. that political movement had a rise from about 3% to being the majority party, and having the prime minister agrees now in that party. we are seeing the same thing happen in spain. in the u.k., the green party is also experiencing a really fast upsurge. in the u.s., for better or worse, it is not likely that things will change. the predators are at the wheel. at the steering will. they have no intention of giving it up. they will keep driving public support into our direction. i think we have a very exciting future. i courage to go to the website. jill2016.com. weigh-in, let's make this the

campaign of a lifetime. [applause] >> dr. stein we did have two other people on the stack who i promise questions. we will make it quick. we will wrap up the public form. the candidate -- i'm sorry, dr. stein, will be available for individual interviews. please stay around. the next two questions will be brief. >> i am the u.s. senator candidate for the d.c. state cause. as you know, the green party support statehood for d.c. what will you do to promote our goals, nationally and internationally? crites i missed a couple of words. was that toward statehood?

yeah. washington dc is a very important place. as i speak of is doing earlier on -- as our speaker was saying earlier on. again, i am in an exploratory campaign right now. if things go well, my intent would be to be here fighting that fight with you. and clarify this is everybody's fight. it is a national disgrace that our national capital is a quality of the two-party corporate state. [applause] >> final question. >> i'm with the poor people's economic human rights campaign. i want to know what you will do to bring young people disillusioned with the two party system is vote. as to make them feel more welcomed an understanding of democracy.

>> thank you. that is the question of the hour. i think is something we can only do together. that is part of what we are doing in this exploratory phase. calling on people out there who want to see this happen. who want to see a choice and a future for young people. who do not have jobs, who are swamped with debt, and do not have a climate of future to look forward to. this is a time for us to mobilize. to not mobilize is to ensure that we are going over the cliff. especially for young people. on whom shoulders all of these burdens are the hardest. we need to have young people at the helms, and leading this charge. my hope is that during the sixth oratory campaign cap -- exploratory campaign, we will have a campaign like we have never seen. [applause] it is in our hands. >> thank you very much

everyone. this concludes. [applause] the formal question and answer session is now concluded. for those members of the media who want to have an individual interview with dr. stein or any activists assembled here in support of the exports are committee, please approach me and i will help you get those interviews. for everyone else, thank you for coming.

>> the green party's member jill stein and nancy -- announcing her intention to create an expiratory phase for the 2016 campaign. join us today for remarks from national security adviser, susan rice. that is at 1:00 eastern here on c-span. she is expected to unveil president obama's national security policy. the new national security policy

is being unveiled, as a compass in a volatile world. she writes that the strategy document will not include a drafts and authorization of use of force in the islamic eight. members of congress are waiting on language from the white house. that is from defense one. on the issue, the washington institute will hold a conference today on combating isis. that is on c-span two. back on c-span, president obama to indiana today. he will appear at ivy tech college. he spoke yesterday. by the way, we will have coverage of that at 215. -- 2:15 p.m. eastern. next up, all of his speech. it is 25 minutes. [applause]

>> thank you. good morning. it is wonderful to be back with you here. i want to thank our cochairs. bob and roger. these two do not always agree in the senate. in coming together and unite is all in prayer, they embody the spirit of our gathering today. i also want to thank everybody who helped organize the specters. -- this breakfast. it is wonderful to see so many dignitaries. michelle and i are honored to be joining you here today. i want to offer a special welcome to a good friend. his holiness. the dalai lama.

who is a powerful example of what it means to practice compassion and inspires us to speak up on the freedom and dignity of all human beings. i have been pleased to welcome him to the white house on many occasions. [applause] we are grateful that he is here today. they are not that many occasions that bring his holiness under the same roof as nascar. [laughter] this may be the first. god works in mysterious ways. i want to thank their all for that wonderful presentation. there'll -- derrel knows when you are going to under miles per hour, a little prayer --

i can expect that more than lives. esus, take the wheel. wheel. wheel. -- well, you are a fighter. [applause]

if you really want a list, talk to me. because that ate nothing. that is the best they can do it nascar? nascar? nascar? -- slowing down and pausing for fellowship and prayer, that is why this washington moves a lot slower than nascar. certainly more than my agenda. it is easy to get caught up in the rush of our lives and the political back-and-forth that can take over the city. we get side tracked with distractions, large and small. we cannot go 10 minutes without checking our smart phone. for my staff, that is every 10 seconds. 463 years, this prayer

tradition has brought us together. giving us opportunity to come together. come together in humility. before the almighty. and remind us of what we share as children of god. certainly for me, this is a chance to reflect on my own faith journey. many times as president, i have been reminded of a line of prayer. eleanor roosevelt was fond of it. she said, it keep us at task too hard for us that we may may be driven to leave for strength. keep us at task too hard for us so that we may be driven to need more strength. i wonder at times of god were answering that a little too literally. but no matter the challenge, he has been there. for all of us. he has certainly strengthen me

with the power through his spirit as i have thought his guidance, not just in my life but in the life of the nation. now, over the last few months, we have seen a number of challenges. certainly over the last past six years. what i want to touch on today is the degree to which we've seen faith used those as an instrument of great good, but also twisted. and misuse. d in the name of evil. as least the around the world we see faith inspiring people to lift up one another. feed the hungry. care for the poor.

care for the afflicted and make peace. we heard the good work of the sister has done in philadelphia. the incredible work that dr. brown and his colleagues have done. we see faith driving us to do right. we also see faith distorted and misuse you used as a wedge, or worse, as a weapon. from -- to the streets of paris, we have seen violence perpetrated. professor to stand up for islam but in fact arbitrating it. we see isis. the brutal, vicious death cold that in the name of religion carries out unspeakable acts of barbarism. terrorize them -- terrorizing

religious minorities. cysts -- subjecting women to rape as a weapon of war, and claiming the mantle of religious authority we see sectarian war in syria the murder of muslims and christians in nigeria, religious war and the central african republic arising signs of hate crimes in europe. so often perpetrated in the name of religion. and so how do we as people of faith reconcile these realities? the strength, the tenacity, the compassion and love, that can flow from all of our faiths,

operating alongside of those who seek to hijack religion for their own murderous ends. humanity has been grappling with these questions throughout human history, and unless we get on our high horse and think that this is unique to some other place, remember that during the crusades and the inquisition people committed terrible deeds in the name of christ. in our home country, slavery and jim crow, all too often was justified in the name of christ. michelle and i returned from india, and incredible, beautiful country full of this magnificent diversity, but a place where religious faiths of all type on

occasion have been targeted by other peoples of faith, simply due to their heritage and their beliefs, acts of intolerance that would have shocked gandhi the person who helped liberate the nation. it's not unique to one group or one religion. there's a tendency in us, a sinful tendency that can pervert and distort our faith. in today's world when hate groups have their own twitter accounts and bigotry can fester in hidden places in cyberspace it can be even harder to counteract such intolerance. god compels us to try. and in this nation i believe there are a few principles that can guide us -- mission -- particularly those who profess

to believe. and first we should start with some recent humility. i believe that the starting point of faith is some doubt. not being so full of yourself and so confident that you are right and that god speaks only to us and doesn't speak to others, that god only cares about us and doesn't care about others, that somehow we alone are in possession of the truth. our job is not to ask that god respond to our notion. our job is to be true to him and his word and his commandments, and we should assume humbly that we are confused and don't always

know what we are doing. we are staggering and stumbling towards him, and have some humility in that process. and that means we are to speak up against those who would misuse his name to justify oppression or violent or hatred with that fierce certainty. no god knows they are, no justifies the taking of innocent lives, or the operation of those the oppression of those who are weaker or fewer in number. and so as people of faith we are summoned to push back against those who try to distort our religion. here at home and around the world we will constantly reaffirm that, that fundamental freedom, freedom of religion the right to practice our faith,

how we choose to change our faith if we choose, to practice no faith at all if we choose. and to do so free of persecution in fear and discrimination. there is wisdom in our founders, writing in those documents that helped found this nation, the notion of freedom of religion. because they understood the need for humility. they also understood the need to uphold the freedom of speech that there was a connection between freedom of speech and freedom of religion, to infringe on one right under one is the betrayal of both. but part of humility is also recognizing in modern, complicated, diverse societies

the functioning of these rights, the concern for the protection of these rights calls for each of us to exercise stability and restraint and judgment. and if, in fact, we defend the legal right of a person to insult another's religion, we are equally obligated to use our free speech to condemn such insults. and stand shoulder and shoulder with the religious communities -- [applause] particularly religious minorities who are targets of such attacks. just because you have the right to say something doesn't mean the rest of us shouldn't, shouldn't question those who would insult others in the name of free speech. you because we know that our nations are stronger when people of all faiths feel that they are welcome, that they, too, are full and equal members of our countries. so humility, i come is needed --

i think, is needed. and the second thing we need is to uphold the distinction between our faith and our governments, between church and between states. the united states is one of the most religious countries in the world, far more religious than most western developed countries. and one of the reasons is that our founders wisely embraced the separation of church and state. our government does not sponsor a religion, nor does it pressure anyone to practice a particular faith or anything at all. and the result is a culture where people of all backgrounds and beliefs can freely and proudly worship without fear or coercion so that when you listen to darrell talk about his faith journey, you know it's real. you know he is not saying it because it helps him advance or because somebody told him to.

it's from the heart. that's not the case in theocracies that restrict people's class -- people's choice of faith. it's not the case in authoritarian governments that elevate an individual leader or a political party above the people, or in some cases above the concepts of god himself. so the freedom of religion is a value we will continue to protect here at home and stand up for around the world, and is one that we guard visually -- vigilantly here in the country. last year, we joined together to pray for the release of christian missionary kenneth bae, held in north korea for two years. and today we give thanks that kenneth is finally back where he belongs, home with his family. [applause]

last year, we prayed together for pastor saeed abedini, detained in iran since 2012. and i was recently in boise, idaho, and have the opportunity -- had the opportunity to meet with pastor abedini's beautiful wife and wonderful children, and to convey to them that our country has not forgotten him and we're doing everything we can to bring him home. [applause] and then i received an extraordinary letter from pastor abedini. and in it he describes his captivity and expressed his gratitude for my visit with his family. and thanked us all for standing and solitary -- solidarity with him. he wrote nothing is more valuable to the body of christ than to see how the lord is in

control and moves ahead of countries and leadership through united prayer. and he closed his letter by describing himself as a prisoner for christ, who is proud to be a part of this great nation, the united states of america, that cares for religious freedom around the world. [applause] we are going to keep up this work. for all those around the world that are unjustly held or persecuted because of their faith and we are grateful to the new ambassador for international religious freedom who has hit the ground running and is heading to iraq in a few days to help communities address challenges. where is david? i know he is here somewhere. [applause]

thank you for the great work you're doing. humility, suspicion of government getting between us and our faith. we are trying to dictate our faith, or elevate one over another. and finally let's remember if there is one law we can be most certain of that seems to bind people of all faiths and people who are still finding their way towards faith that have a sense of ethics and morality, and that the golden rule that we should treat each other as we wish to be treated. love thy neighbor as myself. in islam -- none of you truly

believe in the love her first brother what -- he loves his brother what he wants for himself. the bible tells us to put on love that binds everything together in perfect harmony. whatever our beliefs, traditions , we must seek to be at peace and bring light where there is darkness and love where there is hatred. this is the loving message. like so many people around the world, i have been touched by his relief to show justice, mercy and passion to the vulnerable, to walk with the lord and ask who am i to judge . who challenges us to press on and what he calls the march of living hope. like millions of americans, i'm

very much looking for two upcoming pope francis to the united states this year. [applause] his holiness expresses this basic law, treat the neighbor as -- thy neighbor as yourself. the dalai lama, anybody that has had an opportunity to be with him, senses that that same spirit. kent bradley expresses that same spirit very good kent was -- . with god's help, kent survived. [applause] and then by donating his plasma he helped others survived as well, yet he continues to advocate for global response in

west africa reminding the us that our efforts need to be on loving the people there. i couldn't have been prouder to welcome kent and his wife amber to the oval office. we are blessed to have him here today because he reminds us of what it means to love via -- means to really love thy neighbor as thyself. each of us has a role in fulfilling a greater common purpose. not merely to seek high positions but to plumb greater depth, so we may find the strength to live more fully into this is our greatest challenge to see the reflection in each other, to be our brothers keepers, our sisters keepers and to keep faith with one another. as children of god, let's make

that work together. as children of god, let's work to end the unjust this come, the -- the unjust this, the unjust this of poverty and hunger. no one should ever suffer from such want when they are such plenty. as children of god at work to end homelessness because as sister mary said none of us are home until all of us are home. as children of god lets stand up to the dignity and value of every man and woman and a child because we are all equal in his eyes and work to end the scourge and the same of modern-day slavery and human trafficking and set the oppressed free. [applause] if we are properly humble, if we drop to our knees on occasion, we will acknowledge that we never fully know god's purpose.

we can never fully fathom his amazing grace. we see through a glass grappling with the expanse of his awesome love. but even with our limits, we can heed that which is required to do justice and love kindly and walk humbly with our god. i pray that we will end as we journey together on this march of living hope, i pray that in his name we will run and not worry, walk and not be faint and we will heed those words and put on love. may the lord bless you and keep you and me -- may he bless this country that we live.

thank you very much. [applause] [applause] >> president obama at the national prayer breakfast yesterday. all of that event at c-span.org. also online, looking for your comments on facebook. john saying that he gave an excellent, nuanced thought-provoking speech regarding religion. larry, on the other hand, says comparing christian crusaders jim crow laws and slavery in the u.s. is a low point for the u.s. president. obama is a disgrace. there is more on facebook. coming up this afternoon, the washington institute will look

at the issue of isis and combating that terrorist organization we will have live coverage of that coming up at 1:00 p.m. eastern today. so far this money, the u.n. human rights representative, the first visit to the united states, says that he is filled with anger and disgust over what he considers a betrayal of islamic tradition. some of what he had to say this morning. >> permit me, if you will, to begin my remarks by speaking plainly. as a jordanian and the u.n. human rights chief. i am filled, filled with anger and disgust at what the -- they did in syria to my compatriots. to the two japanese captives. to the british and american captives.

to the men, women, and children, and many others, in the form of earnings beheadings, and ratings -- rapings, sometimes of children. the perpetrators who have committed these monsters climbs -- crimes, killing the defenseless -- in defense of what, exactly? who would want to live in their so-called state? a state that crucified burnt and barry's children alive. let us be clear killing and torturing defenseless captives is a betrayal of the islamic tradition. it is forbidden and customary law. it is for bid and in international humanitarian law

and previous literature to vet, or prior to that, the hague regulations. and human experience, it is for bid and -- for bid and, period. what courage is there in beheading someone defenseless raping a young girl? does a person who call themselves a fighter believe that this is the definition of courage? these people have annihilated conscious and are so far outside the human experience. the young adherence seeking to join them must know what they purport to join is not some adventure, it is a road to a destroyed criminal existence. if you are looking for some meaning in your life do good

deeds. that will be our salvation. >> here are some of our featured programs for this weekend. on c-span2's ""booktv"" toby hard to -- toby harden on the british efforts in 2009 in afghanistan. and sunday at 10:00, on the u.s. senate's torture report, and why his company decided to publish it. and on ""american history tv"" all this month, interviews with korean war pows. charles roth come in army sergeant -- roth, and are doing -- an army sergeant who is captured by the korea.

you can find a complete television schedule at c-span.org. and let us know anything about the programs your wife. call us, e-mail us, or send us a treat. during the c-span conversation. like us on facebook, follow us on twitter. >> treasury secretary, jack lew testified yesterday. he discussants many topics including taxco simple vacation pending trade agreements, currency manipulation, and current tax repatriation. this is just over two hours.

>> the committee will come to order. >> i want to thank secretary lew for appearing before us today. i will cut case. the president's budget proposes to hike taxes by $2.1 trillion seemingly not content with the current tax and hasn't been -- and has been imposed over the past six years. the present once again wants to raise taxes on small business somehow thinking that it will help the economy. sadly, this insatiable desire to

raise taxes is not intended to bring a budget into balance. rather, the president's tax hike is accompanied by proposals to further expand the government to an even greater share of our economy. the proposed budget never balances. deficits continue, which means that the debt is a share of the economy and will remain at levels not seen in our nations history, outside of a few years surrounding world war ii. that outcome would mean continuing risk of what the nonpartisan congressional budget office has labeled a fiscal crisis. in fact, they have warned us repeatedly about potential fiscal crises under president obama's tenure. they have also made clear that unsustainable entitlement spending is at the heart of the potential for a fiscal crisis. yet, the president budget for postal puts precious little in the way of spending on high kill -- on health care entitlement. despite having to pledge in 2009

that he would not kick the can down the road on social security, that is exactly what the president is now proposing to do. even while the disability trust fund is going to be exhausted next year. simply put, there are too many shortcomings in the president's budget to adequately dress -- adequately addressed. economic growth, savings and investment, new wealth taxes level thinking about distributional issues, a lack of significant reforms to our unsustainable entitlements, ongoing deficits, and outsized risky federal debt, and a bank tax that looks towards the ineffectiveness of dodd frank law. the budget even put forth a tax on section 529 education savings, which suggests that the budgets -- budget's authors are

out of touch with the american people. it has been withdrawn, and labeled a distraction. but it is still supported on policy grounds by the administration although i am happy to say it is withdrawn. this is unhelpful. that is the kindest possible word i can think of to describe that proposal and others like it. that were apparently founded on the notion that america can's's people's savings is not their own. like i said, there is a lot to complain about when it comes to president obama's budget. but let's be honest, rehashing these complaints is not going to be the best use of the committees time. so, let's try look at some errors in the budget where the administration seems willing to go in a positive direction, even if, in my opinion, it falls short on the substance. in those areas, let's try and work together towards what i believe is a shared goal of everyone here. to help americans, and get out of the way where we should.

for example, i believe that we share a desire to reform our tax code, which everyone agrees is severely broken. it does not help american families, and it harms american businesses. by businesses, i mean businesses of all types. not just one type of particular organization. let me share a desire with -- to new trade. as you identify in your testimony, i believe we share a perm -- share a desire to promote -- the president and his administration oh it to the american people to suspend what often seems like an unending political campaign for an attempt to at least explore bipartisan cooperation. i will close with the question for you, secretary lew. it is a question that you did not answer earlier this week. the irs commissioner innovated a serial -- a similar question.

the american people deserve an answer to this question, i hope you will be able to give us want today. the question is do you have contingency plans in place in the event that the supreme court invalidates the current structure of the foot will care act? -- i would like you to address this question in your opening remarks, if you will. once again, i want to thank secretary lew for being here today. with that, i will turn it over to the ranking member, for his opening statement. >> think you're a much, mr. chairman. and they give a much, secretary lew for being here on what is basically day three of budget for lisa -- the underlying issue remains the health of the budget of middle-class workers and families trying to get ahead.

the fact is, too many middle-class families are hurting. our job is to put america's middle class on solid economic ground. lift wages, and make sure that everybody benefits when the economy grows. the president's budget proposals go after that challenge in a number of ways. and many of them are designed to improve america's badly broken taxco. for example, the budget proposes to make incentives for education, and retirement more generous. it would take several steps to address the unfair ways they treat middle-class workers compared to others. and i was pleased to see that the proposal would move towards ending the system of tax deferral. that traps the profits of america upon businesses overseas, instead of bringing them over here -- keeping them over here. when it comes to the tax code,

why keep bailing water out of the boat instead of fixing the leaks? the most effective improvement countries can make, the middle-class tax incentives are going to come to cover hands of tax reform. that is the best route to a modern tax system that is simpler and fairer for all. and it is the best way to and the uncertainty caused by our tax code. to comprehensive reform, the congress can ensure that incentives provide the biggest help to the people most in need. too often, that is not how the code works today. comprehensive reform can do more than piecemeal changes to level the playing field and make filing easier to manage. and there is one indisputable fact. a comprehensive approach to tax reform is the best option for middle-class families.

not one that is focused exclusively on business taxes. a lot of americans it and certainly there are -- and certainly there are a number who have -- i would not want to after splinter a single parent and or gone why the congress over how the tax code for corporations, but not for that middle-class person. the corporate side of our tax code undeniably needs reform. tax reform can, and should, make american businesses more competitive. but it would be a grave mistake to leave millions of middle-class families and small businesses out. of course, the finance committee is going to be working with the treasury department closely over the upcoming year on a variety of issues in addition to tax reform. the treasury department is working hard to look at new approaches to make sure that american workers and american priorities are maintained in

tough global markets. so i look forward to hearing about the administration's efforts to address current is, particularly with respect to the ongoing discussions on the transpacific partnership. it is important to not forget that the treasury plays an integral role on sanctions against countries like russia, iran, and cuba. we welcome updates on how those sanctions are working, and how the administration envisions them changing in the future. so there is a lot on your plate, secretary lew. we thank you for being here. and colleagues, i just want to note, as i tried to do yesterday when it seemed that come at some point, the finance committee was looking like it was coming -- become -- becoming some sort of mock trial. i think there was something ironic that the fact that a method of our colleagues on the other side of the aisle have

filed a supreme court reef challenging -- brief challenging the law, and they keep demanding an explanation of how he or she plan to avert the disaster that would occur if there brief is successful. so i hope we could have a discussion on the important issues relating to the budget. taxes, and our competitiveness. i think we talked about this at great lengths yesterday. at some port, i admitted that the chairman is a lawyer. i am a lawyer in name only. having run the legal aid program for the great cap there's. it yesterday, if the liquor going back to the socratic method. and i hope we contact all these major tackle all these major issues today. cracks bank -- collects thank you.

i have a lot of respect for you. previously, the secretary served as president obama's white house chief of staff. before returning on base, the secretary first and joint first joined present obamas staffer -- staff for resources. he served as executive vice president of new york university. the secretary has a long history with the federal government, including the federal budget and the budget process. it goes all the way back to the tax bill in 1986 and the three

years before that. i'm afraid, secretary, that if i detail your long history of public service, we will run out of time for this hearing. so i am ashamed that had to work so long in the federal government. really very proud of you for all the work that you have done all those years. suffice it to say, secretary that we genuinely appreciate your long history of service to our country. and i want to thank you for being here today. i want to proceed with your statement. and i have to -- i have to open up the senate, and then have to be in judiciary because one of my bills is coming up. so i have asked the senator to take over until i can get back, or at least until 11:00. if i don't get back by then then i will have others take over. so, with that, let's turn the time over to you. >> thank you, mr. chairman, for that very gracious introduction.

welcome. thank you, members of the committee, for having me here today. a year ago, president obama said that 2014 could be a breakthrough year for our economy. and the evidence is now clear that over the past 12 months, america has made great strides. we are seeing economic growth, family wealth, energy independence manufacturing exports, retirement, health care costs, graduation rates. the fact is, our businesses created nearly 3 million jobs last year. the most jobs out of any year since the late 1990's. this caps off roughly five years of top growth, the longest stretch in our nations history. and the creation of 11 million new jobs. in addition, the unemployment rate cap to its lowest rate in six and a half years. with healthy growth in the second, third, and fourth quarters of 2013. and projecting above average growth for 2015.

from a global perspective, we continue to outperform our trading partners. at the same time, with the affordable care act in place about 10 million americans now know the financial security of health insurance and health care prices rose at the lowest rate in a decade. the automobile industry continued its rebound in 2014 even as we marked the official end of the auto industry recovery. finally, thanks to the administration we moved closer to energy independence than we have been in decades. i guess prices fell, providing a shot in the arms for families and small businesses. today, our nation has to the corner on a number of fronts. as we know, this insurgency is not reached every american. for too many hard-working men and women in this country, it is still too hard to get ahead and still too hard to enough to raise a family pay for college buy a home, and secure retirement. the president budget meets these

challenges by offering real solutions to strengthen the middle class. this budget is built around the basic idea that hard work should pay off. it is practical, not partisan, and it lays out clear steps to rein in spending so we can reduce taxes for working families, as well as many businesses and manufacturers. what's more, this budget replaces the across-the-board cuts from sequestration. as we know, not long ago, some were predicting that the president's policies would explode our deficit. a little history, though makes clear that the opposite is true. in the 1990's, i oversaw three budget surpluses in the -- in a row. when this administration took office, there was a very different reality. after years of runaway spending, including cap -- tax cuts for the very wealthy, and then the financial crisis are deficit

reached a post-world war ii high. with his balance, economic approach, the agreements spurts forth from congress and the deficit has fallen by almost record is. the downturn since the. of demobilization since world war ii. the deficit is forecasted to decline even further in the next year. we will lower the deficit is to about 2.5% of the ten-year budget window. our nation's improved financial footing has occurred even as congress was forced to do -- still, nothing has been done to address these dangers cuts in 2016. without congressional action, funding for our national defense and keep out is like education and research will be severely cut back. the president's budget provides a path to an sequestration.

in other words, a chart a specific way forward to not only keep our fiscal house in order but to create room for progrowth, economic policies. one progrowth strategy is tax reform to restore basic fairness and reform to our system. by scrapping loopholes and tax breaks for the most fortunate americans, we can provide critical actually for middle-class families and those struggling to join the middle class. our economy should work for everyone, and everyone should shoulder their fair share. this budget also places a serious focus on achieving bipartisan business tax reform so that america is the best place in the world for businesses to locate, grow, and create the kind of good, high-paying jobs that support this plan shows how members of both parties can reach ground, and realize the shared objectives a simplifying -- of

simplifying the system, and lowering tax rates so that we no longer have a system in which some businesses pay nothing while others pay the highest rates in the developed world. it is time to stop rewarding corporations and industries that have the best lobbyist and the most traded accountants. it is also time to make inversions. a loophole that allows committees to lower their taxes after they buy for businesses is a thing of the past. it will have great good, middle-class jobs and grow our economy. we know that with business tax reform, there will be one-time transition revenues. the private visit -- the president wants to use these to make long-overdue repairs to our roads, bridges, and airports. the need to rebuild our infrastructure is irrefutable. this grayson extended. of sustained funding for a six-year service transportation bill, and starts and innovating new bot program that will ignite

new partnerships across the country. of course, keeping our country on track building on the momentum we have made, and making it possible for every american to get ahead is going to require strategies that are both bold and effective. this budget proposes a series of targets and investments that have proven to make a difference. by expanding student loans and making committee college free for those who earn it. it invests in america's workers by enhancing job-training programs and boosting the earned income tax credit. it invests in working families by increasing the tax credit for children when both parents are holding down jobs, and allows more working families to earn paid leave. it invests in retirement to get it by making it easy for employees to automatically save for the future, and businesses to provide 401(k)s for the employees. and it invests in education by grading more medical research initiatives and bringing broadband access to more communities.

with these progrowth strategies as measures on the president's desk that will help are coming out and farther into the future. this includes raising the minimum wage and fixing our broken infrastructure. i look forward to working with all of you to pass trade promotion authority to expand the reach of america upon -- america's export. the strategies i have described are part of the president's plan to help improve the lives of millions of hard-working americans, while meeting our responsibilities to future generations. the task before us now is to put political brinksmanship aside, and find areas of cover rising ground. i'm certain we can get this done. i will work with each and every member of this committee so we can deliver for the american people. i think you, and i look forward to answering your questions. >> thank you, mr. secretary. i'm going to start with a couple

questions here, and that hopefully the chairman will return soon. i will use five-minute rounds, and see where goes from there. i come in particular, m concerned about the administrations proposal to raise the capital gains tax and applies the tax when it is transferred by death, not when it is sold, as that is proposed today. that proposal would have a devastating impact on family farms and small businesses in my home state of south dakota. according to the south dakota state university agricultural land survey published last year land values in south dakota more than doubled since 2010. and have gone up seven times since 2000. so, if you take a typical family farm in south dakota that bought a section of land between 600 and 40 acres back in 2000 for 640,000 dollars, roughly the price at that time, and i would note that in south dakota, that would be considered a small farm

. today, that same farmland is probably worth between $2.5 million and $4.5 million depending on where it is located here so according to the current law, that family farm is not taxed when it passes from one generation to the next. now come under the administration's proposal, that family farm would be hit with significant -- tax. your proposal, as i understand it exams $100,000 in capital gains, or $200,000 per couple. and it raises the gains to 28%. so in that example, the south dakota family would suddenly find themselves facing a tax bill of $1 million or more. so, most farms of the size would not have liquid assets to deal with that large of a tax bill. the only way they would be able to pay uncle sam would be to break up the family farm and

sell off portions of it. so, i know -- you know -- the president-elect talk about loopholes and trust funds, but this capital gains proposal that you all put forward -- we really need to talk clearly about what it would do. it is a punitive death tax on family farms and businesses especially in places like south dakota where we have seen significant price appreciation for that. so the question, mr. secretary very simply is what is the administration's intent with regards to this tax? if it is to break up family farms, obviously it will have that effect. or is it simply an hundred headed -- in unintended consequence of imposing yet another layer of taxation at death, which i think, again, would be very unfortunate? >> senator, let me step back and go back to the reason. and they get to the specific question about farms.

stepped-up basis is really meant to make our system work in a way that is more fair. right now, if any of us take savings and 401(k)s or iras for our retirement, we need to realize the income and pay income tax on that. for families that are able to accrue an enormous fortunes that never need to realize the income, they are able to pass on -- in stocks and bonds and other assets -- without taxes. this we treat those families the same as it treat all of us in middle-class families. we were very concerned that it did not have an impact that was unintended on small businesses and family farms. so we do have exemptions that apply for the first $100,000 for individuals, $200,000 for a couple. we also have an exemption that applies if there is a modest income. and we also have provided 15 years for the payment of any of

the capital gains, so that it would require a for sale. and we would look for to working with you and the committee on track to refined -- on trying to refine this photo, which we think is fundamentally fair. >> well, i guess the way that i look at this -- i mean, these are not liquid assets. we are talking about, you know, farmers tend to be land rich and cash poor. and you are talking about shifting the point of the time -- the gain is realize. you are talking about raising the rate. and you're talking about a huge tax liability. if you want to maintain family farming and operations, most of those require generational transfers. that is how we keep that economy

sustainable it strikes me at least that this is a very punitive tax on family farms and small businesses. >> senator, i would say on the capital gains rate, what we propose is returning to the rate that was under effect during president reagan come at a time when there's economic growth. so i don't think that the capital gains rate is something that is in untested one. in terms of the impact on liquid assets, we designed it so that it when require a for sale. and we look for to working with you on dealing with issues that arise in the design of a provision -- >> even if the rate goes back to the 20th percent rate, which it was before, you're still talking about shifting the time at which the gain israel iced. and hitting people -- essentially, it is a death tax.

normally for a gain to be realized, someone has to sell the asset. in this case, that doesn't happen. this just seems like a really strange proposal, particularly when you represent constituency like i do. >> the problem with the stepped-up basis under current law is that gains go untaxed forever in many cases. i don't think that that is something we would design the tax law to do. if you're talking about stocks and bonds, it would be very hard to defend having tens of millions of dollars of gains that effectively go untaxed from generation to generation. i understand the issue in terms of liquid assets. we did put in the 15 year term to make it something that for a working farm or working business would make it something that could be managed in the normal conduct of the business. and i would just point out that, in the case of the estate tax, the estate tax, you know, they

did a study that concluded only 65 farms in a given year would have been subject to the estate tax. so i think a lot of the concerns about the imposition and burdens have been out of line with the actual impact. and if there are issues here that we need to fine-tune, we were the door to working together. >> well, again, you have a triple shot. you have an increase in the right. you have a change in the time of realization, and you do away with stepped-up basis all at the same time. these are -- these are pretty dramatic changes. and i understand what you're getting at under normal circumstances to try and ensure that like taxes are taxed in a like manner. but we have always treated farm land and assets that are transferred at definite very different way. >> thinker much, mr. chairman. let's talk about the middle class for a few merit -- a few minutes.

you all put in a number of proposals -- tripling the childcare credit, expanding american opportunity credit all of them are going to be well received. as you know, there has been pretty solid debate here that has already emerged from people like the tax policy center on whether this is going to put more money, broadly, broadly into the pockets of middle class wage earners. or will it be select groups like those with young children or college age children? i'm of the view that we grow the economy from the middle out. you have to give the relief to a broad spectrum of middle-class americans. did you all consider proposals such as significantly expanding the standard deduction? not only does this put a significant amount of money into the middle class pocket, it is it -- it has bipartisan support. i want to know what you think is in the budget that would, for

example, grow the paycheck for a 50-year-old autoworker whose children are already out of the nest? >> senator, we designed a budget that was obviously very much intended to provide meaningful relief and support for middle-class families. i think that from the education provisions that we have in the budget to the retirement provisions and the, you know minimum wage proposal we have shown that we want people who are in the middle class and who are aspiring to be in the middle-class to have more opportunity. the -- the proposal to increase the standard deduction obviously, would be a help to filers who don't have a lot of itemized deductions. and in the context of individual tax reform, it is something that we would think that something to be looked at.

so, we were taking the view that we needed to target the specific things that are the steps on the latter to opportunity. our budget was designed around that. >> let's continue this discussion because, make notes -- makes a mistake about it, those are actually key to repairing this pretty tattered ladder of opportunity. i just wanted to give it my that someone like a 50-year-old autoworker whose kids are out of the next -- nest, a lot of those families are hurting to hear it -- are hurting. we are talking about the middle class. they said that the issue americans will spend $168 billion, and spend 6.1 billion hours trying to comply with the american tax code. you have over 160 proposals in the treasury green book, but to

me, a lot of them look like at our credits, deductions, preferences, and it seems to me that again, while i support for a much this idea of getting relief to middle class, people, it looks like it is going to take taxpayers more time and more hassle. so, tell me if you would what in your view is in the budget that would simplify taxes for middle-class people. and then i would like your thoughts on an approach i'm looking at. i would like to see middle-class people get their check back in march. i would like your thoughts and whether or not we should be looking at a tax reform system where many americans could sell a tax return out by something that the tana -- fill a tax reform out by something that fits on a postcard. what you think of this idea

about working together again on a bipartisan basis -- let's get the tax system for most people down to a postcard. >> senator, we have tried in areas like education to simplify some of the provisions. there were multiple provisions combining them to be easier for taxpayers to understand and take it vantage of. i think the whole effort on individual tax reform is one where simple vacation is something that we very much aspire to. we obviously also think it is important to provide strong incentives for things like education and retirement savings and the like. so there is a bit of attention between the total simplification and having incentives for things that are very important for working, middle-class families. we would very much look for to working together to try and make the tax code as simple as possible. >> is postcard size ok?

>> i wish i could say that i thought we could get it on a postcard. >>.org for that. >> not a bad go, but it would be tough. >> well, you have the w-2s. you have a lot to work with right there. i also want to note that we are going to be working on the individual portion of the tax code. there has to be a way to help the middle class that are hurting, like that autoworker, and get people out from under the bureaucratic water torture which is what is filling out all these forms about. thank you, mr. chairman. >> mr. chairman, thank you. i look forward to the continuation of this particular hearing. mr. secretary, think of it taking a time. i just want to follow-up briefly on what my colleague from south dakota question was.

in my state, there is over 230,000 small businesses. it is my understanding, and correct me if i'm wrong, that generally no tax would be do on small family owned businesses until sold. can you clarify to me -- can you clarify to me what that business threshold would be? >> senator, there is a provision in our proposal that would exempt very small businesses -- >> what is that threshold -- >> about a million dollars in the proposal. and it was designed to ease the burden on family businesses and mom-and-pop stores. i think that for larger businesses that are still medium-sized the 15 year provision that i described for a working business is a way to

take the incidence of the stepped up racists and spread it over a very long. of time. which we think is a way of addressing the needs of a larger business. >> is to secretary, thank you. i don't believe that people are always right or always wrong for that matter. when the president is right, i support him. when he is not, i don't. you made some comment in your opening statement that i appreciate, and that is the efforts for infrastructure. and a priority for this administration. obviously, i care quite a bit about infrastructure with my colleagues. i look for to moving forward on tax reform. i believe our tax code is too complex and too burdensome, but i would really like to tackle this issue on infrastructure. in nevada, we bring more people

in two portions of our state. and i think it is a core function of this government. i am sure that you are aware of chairman camp's -- one of the proposals that he had was a repatriation proposal that was imposed of two greats. one for cash and one for assets. is there any reason why the administration didn't look at this? >> well, senator, there are a lot of differences between -- similarities between the approaches we had. we think that the rate -- the rates we have put in an hour international proposals make good sense. one would be a permanent rate of 90%, and the other would be what we call a toll charge for earnings that have built up over years. and that would be 14%.

in each case, there would be a credit for taxes paid overseas, calculated in inappropriate way. and we think it would create a tax burden that would be very reasonable, and would make it attractive for businesses to bring their taxes home. >> how're those rates decided? >> well, the 14% rate is half -- we propose a 28% rate, and we set the toll charge at half of it, 14%. i do want to overstate the scientific nature of it. congressman camp when he put his rate and had a rate of 8.5%. there is rationales for the number of different levels. the 19% number, you know, was in the zone of what we think it should be. at it was at a level that was revenue neutral. so, i think that if you look at

the kind of structure of our proposal and the structure of the cap proposal, it shows that there is a lot of room to work together. and the important thing about the toll charge come with you and fits -- charge, with your interest in infrastructure, we think that would be an oversight important. if that toll charge were used for anything other than a one-time expenditure, for example if it were used to lower rates permanently, it would not be revenue neutral overtime. so we think it is a perfect accommodation of things that we think are important. >> one quick question because my time is running out. with the administration report voluntary repatriation to refund -- to fund infrastructure? >> well, that in 2004 was not very good. it turns out to be a bad incentive because