the gentleman from michigan, mr. levin, is recognized. mr. levin: i now yield a minute and a half to mr. neal, another very distinguished member of our committee. the speaker pro tempore: the gentleman from massachusetts is recognized for 1 1/2 minutes. mr. neal: i ask unanimous consent to revise and extend my remarks. thank you, madam speaker. the speaker pro tempore: without objection. mr. neal: madam speaker, i stand in opposition to the republican proposal today to pay china first. now, i any there is another way we can describe this legislation from our republican friends and it would go like this. let's balance the budget when bill clinton's president and let's balance the budget when barack obama's president but in the intervening eight years let's go on a reckless spending spree and cut taxes by $2.3 trillion. engage two wars internationally, embrace a prescription drug bill, spend the country into oblivion and cut taxes for the wealthiest people. recall, balance the budget when bill clinton is president and balance the budget when bar

mr. levin: i now yield one minute to the gentleman from massachusetts, a distinguished member of our committee, mr. neal. the speaker pro tempore: without objection, the gentleman is recognized for one minute. mr. neal: thank you, mr. speaker. today i rise in opposition to the patients' rights act. 71 million americans have already taken advantage of this opportunity for preventive health care services. 100 million americans no longer will have a lifetime limit on their health insurance program. young adults can stay on their parents' health insurance until they're 26. 98% of the people of massachusetts are insured. the number regularly pulls in e high 70's for customer satisfaction. let me say this, the best hospitals in the world are in massachusetts, arguably the best doctors in the world are in massachusetts, certainly the best teaching hospitals are in massachusetts. they've made it work. people are happy with the plan. if you're going to get sick, i say this to my republican friends as we

there were no facts, mr. levin, that mr. miller provided to this country as to why and how this criteria was applied. >> mr. reichert, i want mr. levin to take a minute. what do you want done here? i personally want to see the bad apples thrown out of the barrel and i'm not going to be satisfied watching as typical person, if you've got a big problem, there's got to be a big solution. two people isn't enough. the american people aren't going to believe if they've got the same people there, the same problem there. charlie rangel said there's a cancer here, you've got to remove it. do you agree with mr. rangel? >> i think there has to be action. i was the first democrat to say that mr. miller should be relieved of his responsibilities, and so mitch learner -- i said that a few days ago. i believe we need to get to the bottom of it. just don't throw apples at the top if you have no evidence to support it. and in the hearing today, there was no such evidence. we should have a nonpartisan hearing, not look for political points. >

the gentleman from michigan, mr. levin, is recognized. mr. i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. levin: i want to state the facts here so everybody understands them. we have called this, the speaker has in essence, paying china first and so many others except for social security , come iaries come last next if at all. and here's the reason. of the prioritized debt covered this bill, 47% is foreign owned. and china bondholders are the largest portion of that foreign ownership. so essentially what this bill says is, ok, let's pay china and the other foreign bondholders first, not american troops, not disabled veterans, not physicians, providers who treat medicare patients, not small businesses holding contract obligations from the united states, school lunch programs secondary, medical research, pell grants, taxpayers due refunds and interestingly other federal trust fund holding treasury bonds, medicare, deposit insurance, etc., etc. that's the fact. that's the fact. so why do this

reichart. >> if i'm allowed to answer it, mr. levin, thank you very much. i think mr. may have information that i don't have. and so that would be a question you could put to mr. camp. all the members of the committee different levels of information that they have access to. >> yeah. >> but, but over the course of this investigation, we will learn the answers to those questions. and the fact that this witness today represents the united states government, our white house, our secretary of treas y treasury, the fact he can't remember a thing, highly suggests to me -- >> that's a good point. okay. i agree. if mr. levin is correct and the i.g. is correct, because he did stipulate this as well, he found this, that there was no evidence of white house influence or obama campaign influence, if that's correct, is this still appropriate of your chairman to keep saying culture of corruption throughout the government and this is an example of it if it had nothing to doith the presidential influence at all? >> i don't think that's proven yet. plv >> sure you do. okay. here's the

mr. levin: mr. president? the presiding officer: the senator from michigan. mr. levin: i want to start by thanking senator whitehouse who has shown such strong leadership on the issues that we're going to be discussing this afternoon, which is how do we get out of the sequestration box that we are now in. i also want to thank him for joining with me in sponsoring the cut unjustified tax loopholes act, which could do so much to address the problems which we're going to be discussiodiscussing here today,g the need to move forward on the solutions to our budget deficit and end ting sequestration. and i would -- and to ending sequestration. and i would ask unanimous consent, mr. president, following my remarks, that the senator from rhode island, be recognized for his remarks on the subject. the presiding officer: without objection. mr. levin: mr. president, at the beginning of march, when congrescongress's failure to rea compromise to reach a compromise -- sequestration will take place, and i'm excited

mr. levine, i got a roasted turkey panini with sundried tomatoes and arugua? >> mr. levine, an egg salad with mandarin oranges and green beans. >> damn it. >> amigos, i got a tequila and a two gun. >> i got it. >> we going to get [ bleep ] up. >> let's talk about the tattoo first. >> jimmy: that's good thinking. he doesn't need any tattoos and you don't need any more tequila. "the voice" is all alone now. last night was the season finale of "american idol" a bittersweet finale for me. it's always hard to see the runner-up fall just short after coming so close and working so hard. but on the other hand, i didn't watch it. but i'm told that candice glover beat out kree harrison to win. she's the first woman to win since jordan sparks back in 2007. the first time ever this season, all top five finalists were women. that makes sense to me, women usually last longer than men. so anyway, congratulations to -- is it bad that i've forgotten her name already? congratulations to her. what i do know is that last night was randy jackson's last show. he's known as the last remaini

the gentleman from michigan, mr. levin, is recognized. >> thank you. if you want to yield us some time, we will take it. i will not give another minute and a half to mr. lewis of georgia. >> the gentleman of georgia is recognized for one in the half minutes. >> madam speaker, i want to thank my friend, mr. levin, for yielding. madam speaker, i rise in strong opposition to the pay china first act. we are the united states of america. .e pay our bills madam speaker, i cannot believe that this body would even entertain or consider a bill that put the social security checks of 56 million seniors and people after china. how can we justify putting 2 million american military , many whom are in harms way, after china? that is not right. it is not fair. as a congress, we can do better, much better. -- me be crystal clear default is not an option. the united states of america pays all of its bills as they come due. this is the american way. let's stop playing games. let's do what is right. do what is just. do what is fair. let's do it every american citizen has

and i thank him for his leadership and that of mr. levin and mr. waxman, as the chairs of the three committees, when this legislation so, transformative in the lives of the american people, was passed by the house of representatives. and now as we're coming to the floor today to -- i don't know what the word is, to even counter some of the ridiculousness that is being said on the other side of the aisle in relt relationship to the affordable care act -- in relationship to the affordable care act. the fact is that what's happening today is the patients' rights repeal act. that's what they want to do. repeal patients' rights. why are they doing this? do you think this would be a good idea, to do this on women's health month? to repeal legislation that gives a wide range of free preventtive services to women -- preventative services to women, the protection being dropped for women when they are pregnant or when they are sick, what no longer will they, under the bill no longer will they be charged higher premiums than men, of course the republicans wan

mr. levin mr. president, it is agreeable to me. my statement will probably be about seven or eight minutes. i think -- i don't know how long senator menendez -- was he the fourth senator who i think is glgoing to participate -- how lg his statement will be, i think 40 minutes will be enough. mr. mccain: i thank my colleagues and i want to thank my dear friend from south carolina whose efforts on another issue -- that of benghazi -- has brought the attention of the american people to a tragic situation that happened there and we need to place responsibility for it. and if it were not for his tenacity on this issue, i do not believe it would have been brought to the attention of the american people yesterday. so i'd like to thank him for his usual and unusual continuation of efforts on behalf of the families of those who were killed. but today, mr. president, i and my colleagues are here concerning syria. the strategic and humanitarian costs of this conflict continuing to devastating, not just fo

mr. levin is recognized. >> thank you very much. i want to go on to other things, but the incidents that mr. camp has been talking about, disclosure, what years were those? mr. miller? >> again, sir, i apologize for not having the date at hand. they have been a couple years now i believe. >> a couple years. who was the commissioner at that time? i believe it was mr. schulmann. >> who appointed mr. schulmann? >> mr. bush. >> let me start with two key issues. there's no question about the inappropriate criteria. i want to focus on that. let me first ask right up front if i might, mr. russell, during the course of your audit, were you allowed access to everyone you were requested to interview? mr. george? >> to my knowledge we were not denied access to anyone. >> did you interview employees in both cincinnati and in d.c.? >> correct. yes we did, sir. >> on page seven of the ig report it states and i quote all of these individuals stated that the criteria were not influenced by any have you had or organization outside the irs. is that co

mr. levin. the speaker pro tempore: the gentleman from michigan is recognized for three minutes. mr. levin: i ask unanimous consent to revise and extend my remarks. the speaker pro tempore: without objection. mr. levin: you know, when you boil this all down essentially what this bill says is pay some ills first and not others. i came here because if the rule passes we'll have a full discussion tomorrow, but i wanted to share with everybody the story that i saw this morning. it's accurate. the headline is, john boehner on debt ceiling, let's pay china irst then u.s. troops. that headline in the huffington post is based on an interview with the speaker with bloomberg tv, peter cook. and i quote, mr. cook, doesn't it mean as democrats have suggested that you basically -- you're basically choosing to pay china before you pay u.s. troops? the speaker, in quotes, listen, those who have loaned us money like in any other proceeding, if you will, court proceeding, the bondholders usually get paid first.

mr. levin: i thank, first of all, the senator from arizona for the leadership that he has taken on theuestion of syria and answer the question to the best of my ability at least it wouldn't be the first time that russia has taken an inconsistent position, and i am hoping that the additional military pressure on assad, which we are all calling for this morning, would help put pressure on russia to understand if that military pressure is forthcoming that they should participate in the military -- in the political solution. i dot know that we can stop them as much as we would all wish to taking the inconsistent position that they have, but believe and i think the senator from arizona would probably agree but he could speak for himself, obviously, that -- that if president obama does as we are urging him to do, which is find a way to put additnal military pressure on assad, that that would be an important sign to russia that, okay, join in the solution. you have participated enough in the problem a

mr. levin i thank, first of all, the senator from arizona for the leadership that he has taken on the question of syria and answer the question to the best of my ability at least it wouldn't be the first time that russia has taken an inconsistent position, and i am hoping that the additional military pressure on assad, which we are all calling for this morning, would help put pressure on russia to understand if that military pressure is forthcoming that they should participate in the military -- in the political solution. i don't know that we can stop them as much as we would all wish to taking the inconsistent position that they have, but i believe and i think the senator from arizona would probably agree but he could speak for himself, obviously, that -- that if president obama does as we are urging him to do, which is find a way to put additional military pressure on assad, that that would be an important sign to russia that, okay, join in the solution. you have participated enough in the pr

mr. adam levine! [ cheers and applause ] shakira! [ cheers and applause ] usher! cheers and applause ] and blake shelton! [ cheers and applause ] tonight, the live shows officially begin. each of our 12 artists will give everything they've got to sing for your votes. for the first time this season, your vote, and your vote alone, is the only thing that matters now. no more coach saves. the bottom two artists, regardless of what team they are on, will be going home tomorrow. quick note -- voting opens at the end of the show, so vote to make sure that your favorites stay in this competition. let's talk to our coaches. and i should mention we're live. here in los angeles, there is a tremendous heat wave going on. we have lost our air-conditioning in this building. so, really, an applause to our audience, who has been here melting for the past half-hour or so.

>> yes, we are, sir. >> thank you, mr. levin is recognized. >> thank you very much. nt to go on to other things, but the incidents that mr. camp has been talking about, disclosure, what years were those? mr. miller? >> again, sir, i apologize for not having the date at hand. they have been a couple of years now, i believe. >> a couple of years. who was the commissioner at that time? >> i believe it was mr. shulman. >> who appointed mr. shulman? >> mr. bush. >> all right, let me start with two key issues. there's he no question about the inappropriate criteria, i want to focus on that, but let me first ask right upfront, if i might, mr. russell, during the course of your audit, were you allowed access to everyone you requested to interview? >> to my knowledge we were not denied access to anyone. >> did you interview employees in both cincinnati and in d.c.? >> correct, yes, we did, sir. >> on page 7, mr. george, of the ig report, it states and i quote, all of these individuals stated that the criteria were not influenced by any individual organization outside the irs,

mr. levin is recognized. >> thank you very much. i wanted to go on to other things but the, the incidents that mr. camp has been talking about, disclosure, what years were those? mr. miller? >> again, sir, i apologize for not having the date at hand. they have been a couple of years now i believe. >> a couple years. who was the commissioner at that time? >> i believe it was mr. shulman. >> who appointed mr. shulman? >> mr. bush. >> let me start with two key issues. there's no question about the inappropriate criteria. i want to focus on that. let me first ask right up front, if i might. mr. russell, during the course of your audit were you allowed access to everyone you requested to interview? >> to my knowledge we were not denied access to anyone. >> did you interview employees in both cincinnati and in d.c.? >> correct. yes, we did, sir. >> on page 7, mr. george, of the ig report it states and i quote >> was developed by what office? >> it would be developed by, a, an office that actually is not on here but on page 2 of this, is un

is your office continuing to investigate the allegation >> yes, we are. >> mr. levin is recognized. >> thank you very much. i want to go on to other things. the incident that mr. kemp has been talking about, the disclosure, what years were those? mr. miller? >> i apologize for not having the date at hand, but it has been a couple of years now, i believe. >> the was the commissioner at that time? >> to appointed him? >> mr. bush. >> ok, let me start with two key issues. there's no question about the inappropriate criteria. i wanted to focus on that. let me first ask the right up front, if i may, mr. russell, during the course of your audit, were you allowed access to anyone requested to interview? >> to my knowledge we were not denied access to anyone. interview can employees in cincinnati and both d.c.? >> yes, we did. >> they stated they were not influenced by any individual organization outside the irs. is that correct? >> that the information we received. >> did you find any motivation and the tax-exempt notification? >> we did not. >> during your review of this ma

jim has produced a very interesting body of work here for mr. levin, and i do think that it should be commended for the level of detail it gets into showing the nuances of just mentioned in terms of the rating picture. doug holtz-eakin, we have known, respected for gosh at least 15 years. someone that has been very engaged in the political debates while keeping his intellectual integrity intact, which is kind of no small trick. so doug, congratulations on that and it's good to be with you this morning. i have an interesting perspective on all of this, with my background as insurance commissioner, member of congress. voted for the bill. good reason why i and private sector today -- i thought of this a lot, and i'm fighting the debate on rate increases right now to be about as partisan and disappointed as much of the debate about the whole darn bill. got on the republican side rates and filing. if there's an uptick in the rate proposal they think, rates shock, the bill is a failure. democrats conversely looking where the rates are not impacted to severe

joining me now, michigan congressman mr. levin, the ranking member of that committee.e. >> glad to be with you, carol. >> i think there has somebody critique that democrats haven't rushed forward to condemn the mistakes made by the irs. why haven't democrats been more forthcoming? >> we have been. the president said what was happening was outrageous and i made it clear that the singling out in 2010 tea party patriots was outrageous as the president said. should never have happened so we have been very clear about that. >> congressman, there were irs officials who testified before congressional committees and said they didn't know of any targeting of conservative groups. we now find out that that wasn't true. doubt that they were lying? i mean, what do you think happened there? >> i don't know if commissioner shulman was telling the truth or not. i don't know when he was informed but i'll tell you this is clear. if he was informed after that hearing, he should have come back to congress and said what he knew. there was a total failure by the commissioner and others to l

mr. levin is recognized. >> thank you very much. i wanted to going to other things, but the incidence that mr. camp has been talking about, disclosure, what years were those? mr. milner? >> again, sir, i apologize for not having the date in hand. they have been a couple years now i believe. >> couple years. who was the commissioner at that time? >> i believe it was mr. shulman. >> who appointed mr. shulman? >> mr. bush. >> let me start with two key issues. there's no question about the inappropriate criteria. i want to focus on that, but let me first ask right up front if i might, mr. russell, during the course of your audit were you allowed access to everyone you requested to interview? >> to my knowledge we were not denied access to anyone. >> did you interview employees in both cincinnati and in d.c.? ye we did, sir. >> on page seven, mr. george, of the ig report it states and i quote, all of these individuals stated that the criteria were not influenced by any individual or organization outside the irs, is that correct? >> that i

should be in the budget and could be contributed to purposes that on a bipartisan basis probably, mr. levin and senator mccain would agree on. >> out of it quickly i would concur with you michelle about professor shay says. if we got a territorial system, we need to have a clear base erosion principle to prevent that. chairman camp from the ways and means committee understands that in the proposals that are base erosion's proposals. >> the senate finance committee is going through a series of briefings. basically member only briefings particularly a corporate tax reform and bradley at the exemption that it is and trying to decide where it might make sense to make changes. sometimes folks in our jobs talk about creating jobs. presidents talk about creating jobs. we don't nurture for job creation that includes world-class workforce, access to capital and a reasonably good infrastructure. some certainty in the tax code. the tax code that among other things investment in workforce in r&d lead to products and services to commercialize and sell around the world panama need to provide certain to i

i want to move over to mr. levin. >> i want to go on to other things, but the incidents that mr. talking about the disclosure, what years were those, mr. miller? >> again, sir, i apologize for not having the date at hand. they have been a couple of years now i believe. >> a couple of years. who is the commissioner at that time? >> i believe it was mr. shulman. >> who appointed mr. shulman? >> mr. bush. >> let me start with two key issues. there's no question about the inappropriate criteria, and i wanted to focus on that, but let me first act right up front if i might, mr. russell, during the course of your audit, were you allowed access to everyone that you requested to interview? >> to my knowledge we were not denied access to anyone. >> did you interview employees in both cincinnati and in d.c.? >> correct, yes, we did, sir. >> on page 7, mr. george of the i.g. report it states and i quote, all of these individuals stated that the criteria were not influenced by any individual organization outside of the irs. is that correct? >> that is the information that we received. correc

mr. levin: madam president, through no one's fault but my own, i got here a couple minutes late for the last amendment, vote on the feinstein amendment. i would have voted "aye" had i gotten here on time. and i ask unanimous consent that what i just said be placed in the record immediately following the feinstein amendment. the presiding officer: is there objection? without objection. mr. cochran: madam president? the presiding officer: senator. mr. cochran: i support the amendment offered by the senator from north carolina, mrs. hagan. this amendment would provide additional support for data mining activities to detect fraud. it would develop proactive underwriting and loss adjustment applications to minimize the scope for such activities to occur. it would help reduce important -- improper payments through better controls and reviews of policies. all of these will result in saving taxpayer money and ensure program integrity in the long run. i urge approval of the amendment. the presiding offi

. >> mr. levin is recognized. >> thank you very much. i want to go on to other things. the incident that mr. kemp has been talking about, the disclosure, what years were those? mr. miller? >> i apologize for not having the date at hand, but it has been a couple of years now, i believe. >> the was the commissioner at >> i believe it was mr. shulman. >> who appointed him? >> mr. bush. >> ok, let me start with two key issues. there's no question about the inappropriate criteria. i wanted to focus on that. let me first ask the right up front, if i may, mr. russell, during the course of your audit, were you allowed access to anyone requested to interview? >> to my knowledge we were not denied access to anyone. employees in cincinnati and both d.c.? >> yes, we did. >> they stated they were not influenced by any individual organization outside the irs. is that correct? >> that the information we received. >> did you find any motivation and the tax-exempt notification? >> we did not. >> during your review of this matter coming you indicated when you had started, did you find any

mr. chairman. >> sir, we try to make them better all the time. >> thank you. >> senator levin subcommittee has lked into the tax strategies of hewlett-packard and microsoft and says all three used similar tax avoidance measures, senator mccain says those reflect a flawed system. >> and he didn't like app function, either. >> still to come a first in the nation opportunity for business owners in oakland. how you can qualify for thousands in interest-free loans. an extraction team goes to fwhork a san quentin prison cell. >> only on abc 7 news a silicon valley company envisions future of shopping >>> business owners in oakland get ahead may move forward. the you city council considering a partnership with a micro lending outfit. nick nij smith is live with the story. nick? >> that is right. one example of how it can help small businesses get off the ground and thrive. if they sign of it will be the first city to become a trustee, endorse tleeg local businesses to receive zero percent loans of up to $10,000 each. >> in oakland is been important to me to be part of the community in some say. >> lor yet

. >> senator carl levin: you point out, and accurately so, mr. cook, that 95% of the creativity that goes into those products is in california. but two-thirds of the profits are in ireland. and you've made a decision, which you have a right to do, not to bring that money home. >> tim cook: senator, we're proud that all of our r&d, or the vast majority of it is in the united states. >> senator carl levin: i know. but the profits that result from it are sitting in ireland in corporations that you control that don't pay taxes. >> tim cook: all of -- >> senator carl levin: you ought to be proud -- >> tim cook: all of the profits from all of the products we sell in the united states -- >> senator carl levin: i know that. >> tim cook: -- pay taxes in the united states. >> senator carl levin: oh i know that. >> bill moyers: so what is wrong with all of that money sitting in ireland? >> gretchen morgenson: if we're not receiving the tax revenues that this company, you know, hypothetically should be paying, then that's an opportunity loss for the governme

mr. chairman. >> trying to make them better all the time. >> thank you. >>reporter: senator levin slub committee on investigation also look in the tax strategy of moobing soft and hewlett-packard. he says all 3 have used similar tax avoid answersu sator mccain says those measures reflect a flawed system. in the newsroom, abc 7 news. >>> more to come tonight on 7 news at 9:00. silicon valley technology that will change the way you shop. coming up. why you won't have to lug your wallet around much longer. that story next. >> only on abc 7 news by the way. >> plus. >> go. go. go. stay down. extraction team goes to work in san quentin prison cell. video obtained exclusively by the 7 news i team. see that and spencer is here with the weather. >> accu-weather forecast center cool breezy our words using for awhile to describe our weather. i have the accu-weather forecast ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ living on cloud nine with that u-verse wireless receiver. you see in my day, when my mom was repainting the hou

levin said the two senior officials need to be let go. >> based on the report of the inspector general, i think there's reason to believe that mr. miller should be released of his responsibilities. >> i'd like to bring in to the conversation, richard blumenthal of connecticut. sir, it's good to have you with me this morning. as you listen to sander levin there, do you think that's enough for you about those two people being let go? does that go far enough? >> we need more facts and the department of justice appropriately has launched a criminal investigation. there needs to be criminal accountability by any irs officials. at the very minimum, certainly, dismissal is warranted. if the facts are as they've been alleged that there have been very serious enfridngement of these guidelines. >> you know, as we've been talking about the attorney general's going to be in the hot seat this afternoon, but he's already come out to say there will be ab inquiry into the irs scandal. given what's going on in consideration to the ap subpoena scandal, do you think the justice department can fairly investigate on this issue and that they can go wi

mr. miller and ms. learner did not come forth and give us and the congress in our committee current information. >> moments ago congressman levin issued a statement saying that the change at the sirs a vital first step, shep. >> shepard: mike emanuel on the hill, thanks. mike bussey the assistant editor of the "wall street journal" which is owned by the parent company of this network. it just keeps coming. >> it does. look, there is a reason by president obama decides to come out and speak to the nation to the press, to the nation on this particular issue. there is a lot else going on in washington. it's the irs. it touches all of us. this was abusive by the irs that singled out conservative groups at a time when they were becoming more and more influential in a run-up to a midterm election. this is really kind of problematic from a lot of different perspectives. and i think that the president wanted to make really clear that he understood that. that this is kind of bipartisan condemnation of the irs. heed intoed to get out in front of this. whether or not he has remains to be seen. there is going to be congressional investigat

senator levin, thank you. >> thank you, mr. chair.ow important is it that we reverse sequestration? >> i, this issue from an economic way to view. when i look at the data and the independent analyses that have been done, i think there are two problems. arst is the sequester is blunt tool and it is forcing indiscriminate cut that are not sensible. second, the magnitude of the cuts, it is hard to do that without having a really material negative impact. i think the congressional budget office, others who have looked at the issue have concluded you are going to have a material negative economic impact. and so, i think it is very important from an economic respective that we look for a way to replace what is a blunt instrument that is going to do damage to our economy now with an approach that actually achieves greater deficit reduction, has more long-term reforms that actually will get at some of the issues we were , hasng about, but that is a more sensible approach economically in the short-term as well. is it important that the deficit

levin the democrat of michigan called for the agencies top brass to step down. >> my own judgment is just based on the report of the inspector general. i think there's reason to believe that mrller should be released of his responsibilities as well. there was total mismanagement. >> michael: irs commissioner has responded today. he said he identified what he called two rogue employees in the agency's cincinnati office who were quote, overly aggressive. but the irsing scandal is just one of many today. the investigation as to whether the just disdepartment tapped the associated press phone lines are getting tongues wagging. and both sides have called for action. holder responded, he said he was not personally involved in the case because he had recused himself because he regularly deals with members of the media, including the associated press. >> the head of the rnc called for my resignation in spite of the fact that i was not the person involved in that decision, but be that as it may, i was recused in that matter as i described in a press conference that i held yesterday, the decision to issue the subpoena was involved in the people handling the case. i am not familiar wit

i recognize ranking member levin for the pump of his opening statement and his commitment to pursue this issue. >> thank you, mr. chairman. i'm going to read my opening statement. i will expand on it a bit now that i heard the opening statement of the chairman. this committee on a bipartisan basis takes seriously its oversight role. and we are fully committed to ensuring an irs that serves the american people fairly and efficiently. what is now completely clear, the management and joef sight of the agency's handling of tax exempt applications have completely failed the american people. i emphasize that. as we know from the inspector general's audit, the agency used totally inappropriate criteria in the review of tax exempt applications, singling out organizations for review, based on their name or political views, rather than their actual activities. these criteria changed four times over two years, with little management review or oversight. applications sat for years. work stopped for 13 months while one department waited to hear back from another. questions were asked that were not necessary. again, no overs

mr. goldfinger ♪ >> it's irresistible that we use that, but the price of gold is way down today. if you look across all market action, that stands out. gold way down. let' bring in larry levin and why is gold down so much today, larry? >> well, the trade is not a happening trade. there's a demand in india and china for jewelry, but people like george soros and the hedge funds are out of there, not out of it, but lightning up and-- >> on stocks i've got to get cued up to you. you're one of those guys who kept telling us every day that stocks want to go up. the pressure is for up. and i think it's still there. am i right, larry? >> yeah, actually you and i talked about the reason, the fed not getting out of the way. and the situation where the fed is not going to get out of the way, it's going to keep pushing the markets up, you and i talk about it all the time. >> but i still think that scandal equals gridlock and helps stocks, ten seconds, go. [bell ringing] >> i don't agree, i think that the markets are going higher and the feds will deal with it. stuart: you'll never be on the show. thank you, larry. the dow jones industrial average is off and running after another record

senator levin, thank you. >> thank you, mr. chair.s it that we reverse sequestration? >> i come at this issue from an independent analyses that have been done, i think there are two problems. first is the sequester is a blunt tool and it is forcing indiscriminate cut that are not sensible. second, the magnitude of the cuts, it is hard to do that without having a really material negative impact. i think the congressional budget office, others who have looked at the issue have concluded you are going to have a material negative economic impact. and so, i think it is very important from an economic perspective that we look for a way to replace what is a blunt instrument that is going to do damage to our economy now with an approach that actually achieves greater deficit reduction, has more long-term reforms that actually will get at some of the issues we were talking about, but that is, has a more sensible approach economically in the short-term as well. >> is it important that the deficit reduction be balanced? in other words, that it h