mr. butler: it could. it very well could. if you adopt industry standards of authentication, it may work in the opposite direction. in one thing we don't have our system is we don't verify taxpayers before they file. anyone can come and go. offering the opportunity for identity thefts to take someone's identity and go with it. if we could authenticate taxpayers before they file we would know who they are. chairman: you make your living with people being able to file electronically your group does. mr. butler: original goal was to get the irs from the 15% e-filing rate to 80%. and we have gone past that. the chairman: you have private stakeholders that are making a profit taste on that and the potential danger is that because that we aremodel getting additional taxpayer identity theft, the hard orstion is what liability what protection does the private sector have versus the federal government. questionhe fundamental we have to have. is this all the irs is preparerility or the /authenticator as you have mentioned. mr. butler:

mr. butler. mr. flannery, welcome to the panel. you are recognized for five minutes. i didn't date on the outset, but make sure you always put your button on. tanks. >> thank you good good morning, chairman gary, ranking member maloney members of the subcommittee. that's ushered to be here to talk about responsibilities and recent activities of the division of risk analysis which we call era. admission to data-driven high-quality economic analysis. for the past several years we've grown from approximately 96 employees in 2013th through project at work for some 175 by the end of the fiscal year. by that time we anticipate employing 88 phd is mostly in economics or finance, but also some accountants and we have to phd physicist. phd is boldly supported by 22 associates by the end of the year. staff also includes the bursting of other technical experts and professional staff. the division's rapid growth and expertise has allowed us to expand support across an ever-increasing range of activities. our

mr. butler, in response to mr. lynch's questions, you indicated that terms of full compliance with new regulations being issued by the sec that you see this more as i think he set a journey than a destination. i would hope the destination is full compliance with regulations including stamping out conflicts of interest. maybe explain what you mean by journey rather than destination. i hope the journey is pretty quick. what did she mean by that that is more of a journey than the destination? >> what i meant by that is compliance isn't an end state that companies adhere to achieving compliance is over. i view compliance is something that is needed every single day. the firms have large compliance staff could compliance staff. they've been adding significantly to the numbers of staff and cannot reorganizations internally to enhance compliance what i meant by saying it's a journey not a destination as this is a continually evolving necessity. the types of products change and compliance necessary in itself to change. cer

mr. butler: as was said, roughly 2/3 of the spend right now is monday tear -- mandatory programs which has different rules to how they're developed than the rest of the budget. and the social security and medicare programs, major entitlements for the elderly are now roughly half the the entire federal budget itself. that's really important in its implications. that means that these programs are on auto pilot, whereas major and important programs like defense, like money for the homeless, for students, and so on, are argued over every year in the traditional budget process itself. meanwhile, these other entitlement programs, sort of like the mighty mississippi, keep rolling on. without any -- unless there are major changes made in those programs. they mentioned the national budgeting round table that the three of russ on, which is an organization that kicks around ideas on the budget process and we argue over them and then some of them are put together in proposals, some of which you have in your documents. and one of the things that is not yet -- has not yet reached the stage of being publ

mr. butler, we've just -- we're still suffering from this 2008 downturn. i think it was mostly caused by the credit rating agencies. we still have a system where the umpire pays -- is paid by one of the teams and selected by that team. and the sec has decided to, instead of being an agency that favors transparency for invest stores, has decided to conceal this by such relatively meaningless so-called protections. it says well the sales force can't talk to those who do the ratings. the people who do the ratings are compensated by the company, their promotions depend upon the company. they want the company to be successful. is there any rule that those engaged in rating debt obligations cannot receive stock options, bonuses, or any benefit from the success of a company they work for, mr. butler. >> each of the companies has different compensations range -- >> i asked, is there any sec prohibition, with regard to to specifically rating analyst and compensation. >> yeah. >> i would have to take that. >> okay. so if you give -- if you give grade inflation, the

mr. butler, you are ruk ugunderets for five plints. >>> thank you for inviting me to testify regarding theffice of credit records. it protect investors, maintain fair and orderly markets and facilitate capital formation. it does this by over seeing credit agencies that have been nationally recognized. in 2006, the credit agency gave congress authority to implement a perier myriad of rules. and then the office of credit ratings dedicated to the oversight of rose. and first, examinations, next nrso monitoring and third, policy and rule making. those questions arose for commission rules accounts for the majority of the office activities. the scope of the annual examinations cover s 8 required review areas. and they're risk' bested approach this improved the eficialancy and they're priortiesed and focussed on higher risk. the office conducts sweeps to address credit market ixus and concerns. the nrso has been -- many have implemented fundmental changes. adding staff to tum plients and over spite stooit sungs pm and inhnsing disclosure, transz parents and governorance.rehens of requirements. al

mr. baker. wasn't to reiterate what professor butler said. it's very easy to turn down an invitation. and we invited a lot of the nation's top intelligence officials to come. and many of them said no. you said yes. and that's important. and we really appreciate that. [ applause ] ladies and gentlemen, thank you very much for coming to the morning. we have so much for you in the afternoon, including a discussion of precisely the overlap between the african-american population and the muslim population from prove the professor. you have 45 minutes for lunch. we will reconvene at 1:05. we have a cafeteria. we have food trucks. we have restaurants in the neighborhood. there's a list upstairs. one more round of applause, and see you at 1:05. [ applause ] >>> you are watching c-span3. next, a discussion of medicare and medicaid. then two panels from an indiana university forum on america's role in the world. the first on foreign policy and the second on nuclear non-proliferation and arms control. later, a talk about the role of courts and public policy. >>> c-span's washington journal live

mr. baker i want to reiterate what professor butler said. it's easy to turn down an invitation.we invited a lot of the nation's top intelligence officials to come, and many of them said no. you said yes, and that's important and we really appreciate that. [applause] >> ladies and gentlemen, thank you very much for coming this way. we have so much for you in the afternoon including a discussion precisive the overlap between the african-american population and the muslim population. you have 45 minutes for lunch. we will reconvene on time at once or 5 p.m. that panel as not to be missed. so we have a cafeteria. with the trucks, lots of businesses, restaurants. there's a list upstairs but one round of applause and see you at 1:05. [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] a [inaudible conversations] >> bring you live coverage from outside union station in washington, d.c. at columbus circle to the u.s. capit

[applause] >> professor butler and mr.s a great honor and pleasure to be here with you and i hope that bernie sanders will arrive with less difficulty in washington than i had this morning. [laughter] >> i'm very sorry for the various mix-ups between pen station and laguardia. so this is narrative stuff. data for case call. i hope you will indulge. in the time allotted me this morning i will confine myself to three topics of the use and abuse of furr surveillance of african-american influentials and their organizations and movement starting from the first world war and leap frogging to the second war as immediate aftermath, so duboise and the crisis marcus and brief end note about paul council on african affairs. when woodrow wilson took the united states into the great war on april 6th, 1917 in violation of his reelection campaign promise and the wishes of most most german americans, irish americans, african americans and nearly all pacifist and half of the socialists he planted the first seed of the national security sta