mr. mnuchin: mr. chairman, i have no process demands. from my standpoint, i am hopeful that we can work with both republicans and democrats. i know we've had the opportunity to work with your staff. i know that my staff is going to be sitting down with senator wyden's staff and your staff later in the week. and we are hopeful that we can find common ground, particularly on the issue of making our business taxes competitive. we have a system that is highly uncompetitive. we need to put our workers back to work. mr. hatch: mr. secretary, the president's budget envisioned increased economic growth that eventually reaches 3%. as i understand it, that vision relies on the implementation of a number of policies, including pro-growth tax reform, cutting unnecessary regulations, building infrastructure, reforming health care, boosting energy production, and reducing deficits that would significantly improve the supply side of the economy. of course it is not unheard of that an administration places belief in

mr. mnuchin: no. not at all. there actually wasn't a reversal. senator warren: wasn't a reversal? mr. mnuchin: let me explain. the republican platform did have glass-steagall. we during the campaign and i had an opportunity to work with the president on this specifically came out and said we do support a 21st century glass-steagall. senator warren: yes. mr. mnuchin: that means there are aspects of it, ok, that we think may make sense. but we never said before that we supported a full separation of banks and -- senator warren: sorry. let me stop you right there, mr. secretary. mr. mnuchin: you are not letting me finish. senator warren: i am not because i really have to understand what you just said. there are aspects of glass-steagall that you support but not breaking up the banks and separating commercial banking from investment banking? what do you think glass-steagall was if that's not right at the heart of it? mr. mnuchin: again, i am well aware what glass-steagall was. as you know the original con

mr. mnuchin: yes. senator scott: i want to thank chairman and ranking member brown who've both committed to solving this issue as well. so i think if we work as a committee, we can solve this, i think, discrepancy that is unusual and certainly not practical. thank you. >> thank you. senator tester. senator tester: thank you, mr. chairman and ranking member brown. and thank you for being here, secretary mnuchin. appreciate your presence at this hearing. senator moran and i have a community bank reg relief bill called the clear act. have you had a chance to take a look at that at all? mr. mnuchin: i have only looked at it briefly. senator tester: the reason i bring it up there are a number of democrats willing to work with you, and republicans, willing to work with you to try to get some common sense reg relief for community banks. if you could take a peek at that and get back to us, i would like that a lot. mr. mnuchin: i would be more than happy to do that. i can assure you one of the things that will

mr. mnuchin: ok. first of all, let me say i'd be happy to get together with you and go over your ideas for your outsourcing. i can assure you that the president -- senator donnelly: the good part is i laid them out to the president and he assured me he was 100% behind them. mr. mnuchin: i will get together with you and we will go through them. the president is very concerned about jobs leaving this country. i think you know one of the main reasons why he wants to renegotiate nafta in the case of carrier and others, he personally picked up the phone and made calls. in all of my trips overseas, i have told my counterparts, we expect free and fair trade and better trade deals and for too long, american workers have been hurt by jobs leaving the country, whether it is because we have an uncompetitive tax system or bad trade deals. the president has talked about the concept of reciprocal deals and reciprocal taxes. >> i am about out of time, but i want to ask you about currency manipulation. for a long tim

mr. mnuchin: yes. senator scott: i want to tnk chairman and ranng member browwho've both committed to solving th issue as well. so i think if weork as a committee, we can solve isi ink, discrepancy that is unusl and certainly not actical. thanyo thank you. senar tester. thank you, mr. chairmannd ranking member brown. and thank you for being here, secretary mnuchin. apeciateour presence at this hearing. senator ran and i have a community ba r relief bill caedhe clear act. ve you had chance to take a look at that at all? mrmnhin: i have only looked at it briefly. senatotester: the reason i bring uthere e a number of democrats wilng to work with you, and publicans, willing to work wi y ttry to get some common sen r reliefor community banks. if youould te a peek at that and get ba to us, i would like that a lot. mr. mnuchin: iould be more than happy to do that. i can assure you one of the in that will be in the repo to the president is relieforommunity banks. senator test:ha you. there's a bill o tre calle

mr. mnuchin: absolutely.know when you are running a business, you have an income statement and balance sheet, and if you are making an investment with a 20 year or 30 year payback, you don't expense it all in day one or look at it as a complete expense. the government budget treats everything is cached, so it makes it more difficult. john: if you had to bring them to finance infrastructure, what is the main -- you would make, pricing, long-term? mr. mnuchin: we have seen lots of interest from our counterparts investing in the united states, infrastructure or other opportunities, so i think this is something we will be able to get done. john: the long-term plan to boost growth, does that come back to what ronald reagan did? you cut taxes, get rid of regulations, and that will push growth by itself? mr. mnuchin: that is a big part of it. we need regulatory relief and trade reform, but simplifying taxes and making businesses competitive are a big part of that. we have trillions of dollars left off sure that we e

mr. mnuchin in bari, italy this morning.e said that he's quite excited about the trump administration's trade policy, and he says he is happy with the u.s./chinese trade measures. >>> chinese president xi jinping is expected to detail plans for his belt and road initiative this weekend. 8 28 heads of states will attend the summit and over 50 project agreements will be signed in a bid to further the progress. the ambitious initiative to build a new silk road between china and europe was introduced in 2013 but specifics have remained scant. a $40 billion fund has been earmarked for the scheme but concerns arose over the economic and security risks of the proje project. while some remain sus person shus suspicious of china's aims. it's an ambitious plan encompassing 4.4 billion people and up to 40% of global gdp. is it too ambitious? >> at the moment, yeah, it's too ambitious. it's been built up to be a big global initiative. for the moment, it's largely part of a more broad effort by xi jinping to increase china's influence. s

mr. mnuchin, i want to associate myself with the comments mr. crapo made about your willingness to come and testify and it's been a breath of fresh air. she a sherrod brown is the best one question, yes or no asker and one of his questions was about social security and i want to follow it up, not by challenging mr. brown but by making a point. we have a $20 trillion debt today, is that correct? >> yes. >> under most math, which is conservative, ten years from now it's going to be $134 trillion. principally because of the growth and the obligation of social security and other measures that are benefit programs, is that not correct? >> i don't have the exact numbers but directionally, i understand what you're saying. >> my only point is this. none of us in here want to raise the cost of social security to anyone. however, if you look at 1983, when reagan and tip o'neil, a democrat, raised the eligibility age for social security from 65 to 66, they raised -- i lost a year of social security because i was 39 years old in 1983 and didn't turn 66 unti

mr. mnuchin: absolutely.ning a business, you have an income statement and a balance sheet. if you're making an investment that has a 20 year or 30 year payback, you don't expense it in day one or as a complete expense. government budget treats everything as cash, so it makes it more difficult. >> if you had to bring them into finance that infrastructure, what is the main ploy you would make? mr. mnuchin: we've seen a lot of interest from our counterparts in investing in the united states, whether it's in infrastructure or other opportunities. i think this is something we will be a will to get done. ♪ mr. ross: nafta is an old agreement. it does not reflect the current status of either the mexican economy or the american or the canadian. at a minimum, it needs updating. second, it has the problem with the rules of origin. mainly how much of raw material can be brought into from outside nafta and get the tariff benefits of nafta. in automotive for example, they did it part by part. some of those parts are not e

mr. mnuchin but the ministers themselves who is are taking time to say, well, you know, the united statesnd new policies, they need to remember that they're in a global economy and that actually comes from the eu commissioner who deals with trade and tax issues, we spoke with him this morning and here is what mr. makovici had to say. >> americans are free to choose their own policy but i hope that this policy will be international framework which means also militarism and attachment to trade, and we can discuss but different appreciations but we are in the same world, in the same boat, in a global world and today here we are going to tackle very important issues. adam: liz, they will have more sessions tomorrow again cybersecurity is a big issue that they're talking about here and then we will get the statement after ward, but they'll be a press conference tomorrow afternoon. it'll be very interesting to hear secretary mnuchin as well as the italian finance administrator, the italian hosting this event and then talking publicly because although trade is not on the agenda here, trade and t

mr. secretary, will the president veto a bill, a tax reform bill, that cuts taxes on average for high-income taxpayers that violates the mnuchin rule. >> the president will look at the overall -- >> mr. chairman, hope hope that people that voted for this personning listening to the answer. the last question -- i know i'm out of time. i just want ask one question about medicare -- medicaid. the healthcare bill you endorsed and the president endorsed -- not a health care bill but the bill passed the house cuts medicare by roughly $850 billion. this budget seems to propose -- is it another $600 billion in medicaid cuts? are we up to 1.4 trillion in medicaid cuts? >> i don't have the numbers -- >> okay. those are the numbers. as i understand them. that's a cut to medicaid over over 25 thursday. in my state 50 people are children. people are told they need to go to work. are the children supposed to go to work? people in nursing homes going to work? people already working at wage that won't allow them to have private insurance supposed to go to work? where is the quarter of medicaid -- who is going to cover these people? >> as much

mr. mnuchin says the president has no intention. >> he's never asked me about it. i said number one, i'm under audit. right now i'm under audit. after the audit is complete, it's a routine audit. but i have a very big tax return. u' my tax return is probably higher than that from the floor. when you look at other people's tax return, even other wealthy people, it's this high. my tax return is this high. i'm under ryu tooutine audit. i have been under audit almost like since i became famous, okay? not just political. i have friends who are wealthy people. they've never been audited. he thi i think it's very unfair. >> you said were you under audit and that was about 14 months ago. when do you think this may happen? >> i think it's pretty routine, to be honest with you. then i'll make a decision. >> a member of congress suggest thad a condition for getting tax reform would be releasing your tax returns, what do you think about that? >> i don't know who did that. i don't care who did that. these are the people, the great obstructionists. look where the democrats have

mr. nuch enou mnuchin. pmi numbers coming out of the uk, and there you go. uk manufacturing growth spiking to a three month high in the month of april. we're seeing sterling rise against the dollar on the back of the better than expected manufacturing pmi. pmi 57.3 versus a march number of 54.2. we were expecting a dip for april. so this is a very surprising, very good report given that over the last couple months manufacturing pmis have been softening contrary to what we see and hear on the continent so what we're seeing in april, that's the highest print in three years. we're seeing new orders, the highest since january 2014 with very strong export order growth as well. that confounds expectations, that's why you see the nice pop in pound sterling. we are seeing this level at 1.2901. now, the greek finance minister said the country has reached an agreement with eu and imf leaders on its -- lenders, rather, on bailout reforms. speaking after a marathon round of talks, he said there is white smoke. nexus on at negotiations on all have been completed. the esm

mr. mnuchin is taking part in and leading actually, one of those discussions has to do with cybersecurity not on the table trade is a big topic here because the new policies for the trump administration of america first have certainly brought into question among our eu and g-7 trading partners what that means for them, so we got a chance to briefly speak with secretary mnuchin, here is what he said. >> i think we are excited about u.s. trade policies and i think you probably saw last night we made announcement with economic plan with the chinese, i think we are happy with that. adam: now that was secretary mnuchin but when you speak to different finance ministers, there's a different take on the u.s.' america first policies and we had the chance to speak with the eu commissioner pierre and he said, well, globalization is what this is all about and that has yet to be seen. listen to him in his own words. >> americans are free to choose their own policy but i hope that the policy will be -- [inaudible] >> attachments to trade. we can discuss and different appreciations but we are in the sam

mr. mnuchin also testifying on wednesday about this budget. liz. liz: adam, thank you so much.re watching the budget. there's a lot of flashing but a lot of spending too. it's a strong start for the week. for the u.s. stock market, thanks to the lift from the u.s. arms deal with saudi arabia. that's pretty much lit a fire under defense names but the overall market is moving higher. why inspect because even if you don't own a single defense stock, a bunch of other widely-held companies are alsotr deal the saudis have struck. ashley webster with big names here. >> once you open the checkbook, it's a good thing. and you start adding the zeros, 300 billion defense stocks, also the oil stocks. but look at the markets themselves. up about 1%, the nascar getting a nice boost today. boeing leading the way on the dow along with cisco and 3m. but i wanted to talk about oil closing at 50.73 was the official close today. this is after hours. that is a one-month high and opec has its meeting this wednesday and the theory is that they will extend the production cut. due next month. it looks

mr. mnuchin goes on about the 3% level that the u.s.could be hitting if all these campaign promises are fulfilled. now you say that's never going to happen because productivity is so low. why would you say that? >> i think it's very difficult. you have -- because of demographic changes and weak productivity, turning the economy around in a short period of time so we're consistently growing at 3% or better is very, very difficult. i think you can do that. but it's going to require a portfolio of policy changes. not just tax reform, but other things including education, immigration, which the trump administration has a problem with. so turning around based purely on deregulating energy, and lowering the corporate tax rate, that's putting a heavy burden and i expect to have much faster growth based on those things. it needs to be broader than that and it will take time. >> james, can i ask what you think will happen? will this end in obstruction of justice or will we go for the big "i" word, impeachment? >> listen, don't ask me to predict

mr. mnuchin last week. >> larry is a smart person. i respect him. don't know why he's off making these statements. i've worked with the president. i've known him for over 15 years. i've worked with him for the past year. we're putting out this policy because it's something that we spent a lot of time on. we wanted to do it and we believe in. the only reason we didn't put out all of the details is because we're determined to work with the house and the senate to turn this into a bill. and that's the reason why we didn't put out the details. so i wish larry well. he seems to like writing these editorials. >> yes, he does. he likes to continue to have his voice. finally on the time line itself which you reference and working reference working with the house, bill bradley, senator from new jersey, he was instrumental. it's complicated edcomplicated. you had reagan, bill bradley, so many different constituencies working for years. what gives you the confidence you can get this done in month sns. >> well, it is complicated and that's why we haven't had ta

mr. mnuchin and the president. julia: i am asking you. sen. not know, i have worked closely over the last few years with two conservative republicans who are quite close to mitch mcconnell and we produced tax reform proposals, real legislation, with bill numbers and details that would show that you can provide meaningful tax relief for the middle class and create red, white, and blue jobs for americans and give everybody the opportunity to get ahead. we made it clear that we think the american people are demanding the congress, on a bipartisan basis, work on key issues like taxes and health care. i have a record that shows that. julia: thank you, sir, senator fromyden joining us capitol hill, republicans would argue the deficit says something about their spending plan. scarlet: let's get into the markets which are closed in new york and with the opec meeting we begin with oil falling below $50 a barrel after the iranian minister said opec members and their allies including rishaad reached a deal to extend production cuts for nine months and th

mr. mnuchin is saying will be the case from rough by 2%. not one administration took over for another since 1981 that was able to get that much of an increase in gdp growth. why such a limited proposal, if you will, as opposed to more details being presented from the administration. i asked the secretary when we're going to get those details and how he sees the time line playing out. >> as fast as we can. we are meeting weekly at the leadership level, daily at the staff level at times. we're all committed. we share similar views of what we're trying to accomplish and are committed to work iing as ft as we can. >> of course, brian, it's not clear what that means in terms of timing but there's a lot to come here and not a lot of meat on the bone, as you know. >> i know their tax plan is not going to be one and a half plans when it's done but the current plan is over 70,000 pages long. do you think they have the understanding of the true complex at thity of getting it h congress? >> they have it staffed up, they have the office of tax policy.

mr. secretary for attending today. this is secretary mnuchin's first hearing since being sworn in as treasury secretary in february and we look forward to our discussion. many of this committee's priorities fall within the jurisdiction of the treasury department, including housing finance reform and development of policies to encourage a healthier economy. we look forward to working with you and your staff on these priorities and improving the lives of americans. hou housing reform means the most significant piece of business following the crisis. it's important to build bipartisan support for a path forward. last week we received testimony from the federal housing finance director mel watt. he emphasized it's congress that needs to act to determine the future of housing reform. the hearing reinforced why it's unsustainable. namely gse's have zero capital, taxpayers on the hook for loss and the government taking all risks. a number of groups have released proposals for reform in recent months, including the mba, several co-authors writing jointly

mr. mnuchin regarding a change in the date. >> okay. i thank the gentleman for coming again. let me add my appreciation for what you're doing. i thank the president for prioritizing as he's done in this budget and i appreciate the respect he's given us to do our article 1 duty. i think -- mick, the president is lucky to have you and the administration and the country is lucky to have you in this position. >> thanks, don. i really appreciate it. >> with that, this meeting is ajournaled. adjourned. >>> if you missed any of this house budget committee hearing today, you can watch the whole thing again shortly online. it will be available at c-span.org. just type mick mulvaney into the search bar. also, available on our website, all 62 pages of the president's proposed budget for fiscal year 2018. coming up this afternoon, department of homeland security secretary john kelly will be briefing members of a house appropriations subcommittee. we will have that for you live at 3:00 p.m. eastern time here on c-span3. well, white house budget director mick mulvaney broefed reporters on

mr. chairman and secretary mnuchin you have a history of less than enthusiastic support for unemployment insurance. i chest want to live in july and 65 to have medicare. not to see her grandchildren or though world that is what the system has done to her your secretary of hhs top raising that eligibility the but the day you came out with a of very short and descriptive tax reform bill, the next day and to find out why they would not pay for themselves but gradually increasing that you will broaden these deficits as the godfather of thought. we should pay for it with social security cuts. our last you a series of questions if he will pay for this tax cut no economic theory will grow our economy so i want to clear this up it is clear you'll do it for medicaid can you give us your word the administration will live up to the president's promise will not touch or alter or privatized social security or medicare medicare?. >> i believe that is his intent. >> although your already cutting $72 billion which is social security. >> i will assure you the president wants to be absolutely clear anybod

mr. president, yesterday secretary mnuchin in an appearance at the milken institute conference admitted that the administration plans to go it alone on taxes. he says they're trying to design their proposal to fit within the rules of reconciliation, so they need only republican votes to pass their tax cut. the message was clear as day. the president is not interested in working with democrats to craft a proposal that both parties can support. he's just going to pass his plan with republican votes or not pass it at all. what that means is that the trump tax plan likely won't have to change much from the 200-word outline that they put out last week, and that means that the trump tax plan will benefit the incredibly wealthy and the special interests while leaving the middle class, working americans with crumbs, at best. we democrats support tax relief, so long as it's aimed at the middle class and those struggling to get there. those are the folks who really need the help. college is getting evermore expensive. take-home pay is being squeezed in so many different directions. the middle class an

mr. chairman. thank you for being here, secretary mnuchin. i appreciate your presence. i have moran and something called the clear act. have you had a chance to look at that? secretary mnuchin: i only looked at it briefly but i would be happy to get together with you and go through it. >> it is a bipartisan bill. there are a number of democrats that are willing to work with you and republicans to work with you to try to get some relief for community banks. if you could look at that and get back to us, i would like that. secretary mnuchin: i would be more than happy to. i can assure you want of the things that will be in the report to the president is really for community banks. >> there is a bill out there fairnesse marketplace act. it deals with requiring small businesses to reflect sales tax on behalf of local governments when selling goods over the internet, are you familiar with the bill? secretary mnuchin: i am. >> do you want the president have a position on that bill? secretary mnuchin: i have not discussed it with the president so i do not know his view. i think

mr. markets treasury second mnuchin set to repetitive before the senate banking committee this morning, hec and international policy and here to weigh in on that equity research analyst. what are you expecting to hear dick from mnuchin? >> i think there are a lot of issues that he is going to have to deal with, one is dodd-frank i don't think the republicans or the democrats want to get rid of dodd-frank. but they want to do, at least the republicans want to do, is change the structure of how dodd-frank is administered, this is going to be a lot of conversation in actually conflict next few months concerning who is going to be put on federal reserve who is going to -- sec, cftc, who is in something called ffoc, the second thing that is going to happen, there i be a desire to change the structure, by changing the regulatory powerings federal reserve over banking industry, getting the consumer financial protection bureau out of federal reserve changing sfrushg oversight counsel then going to be conversation about what should happen with fannie mae and freddie mac because that is, you know pa

mr. president -- >> white house has released a video of highlights of the president as trip. came out this morning and it includes his time in jerusalem and bethlehem. here's a look. ♪ ♪ >> treasury secretary steve mnuchinck on capitol hill this morning to testify about president trump's proposed budget and plans to change the tax code. live coverage from the senate finance committee beginning at 10:00 a.m. eastern on c-span3. you can also watch this hearing live on c-span.org or listen using the c-span radio app. >> this holiday weekend on booktv, on c-span2, saturday, 8:30 p.m. eastern, former u.s. secretary of state condoleeza rice looks at democracy around the world, in her book, democracy, stories from the long road to freedom. >> americans in particular were blessed with founding fathers who understood an institutional design that would protect our liberties, our right to say what we think, to worship as we please, to be free from the knock of secret police at night. to have dignity that comes with having those who are going to govern you have to ask for your consent f we were blessed with that, and we believe we were endowed by our creator with those rights, it can't be true for us and not for th

receipts aren't quite what they thought they were and that's why secretary mnuchin is moving the time table up. >> last question. >> mrr, beithank you. specifically on the cbo, the language that they used when it comes to premiums, if says despite the additional funding, the sicker americans would face extremely high premiums. how do you ensure you the sicker americans with pre-existing conditions that they won't be priced out and it won't become unaffordable? >> here's what it doesn't quite fully get or state. states foot their own part of this as we would. this is what the analysis forgets which is we are for the first time ever proposing to put billions of dollars from the federal government for risk systems in states. whether it's a risk pool, reinsurance mechanism or risk sharing. what is important to note, states do their own part of this as well. so in wisconsin for instance, we had an assessment on all the health insurance plans. we had an agreement among providers that we would -- they would have certain fee schedules that they agreed to. and i think maine had an assessment on all their health insurance plans

mnuchin's father very well. i only met steve once. i never met mr.i don't know the internal politics of the administration. but it is america and we're all here working for the same thing. >> you spoke of building a team. i remember when you were the mayor, some of the initial policies were controversial, stronger gun control, the ban on sugary drinks, and yet many municipalities have now adopt a lot of these ideas. do you feel vindicated some of these ideas people felt were crazy, the smoking ban, people thought you were crazy. >> one finger waves when we put in the smoking ban, but today it is the policy that the whole western world and even some of the other parts of the world are following, saved an enormous number of lives, full sugar drinks, consumption is down, people are switching to other things and the manufacturers are switching to other things. they'll still have a business. their employees will have jobs. but if we eat healthier and we avoid some of the things that are detrimental to our health, we should have fire detectors, smoke detec

mr. chair. secretary mineta and i represent represent -- secretary mnuchin i've been sitting here listening to your comments and let me start off by saying as attorney general working for the betterment of the people in our community making sure everyone is coming together to work together and i'm concerned about what i see in some of the responses and the dancing around that you have done here to some of the questions. the only other time i've had that opportunity to hear that was from some bankers and the wall street executives during the worst foreclosure crisis we have ever seen and the one thing they said to me was where all doing it and if you come after me you will have to come after all of us and you know what i did? i when after all of them. this is my concern. i'm seeing the same kind of dance looking for the betterment of people and businesses and corporations instead of looking out for homeowners and consumers and seniors and servicemembers. let me start off with this question because this is why i'm concerned. you recently spoke at the conference were the cheapest ticket to attend cost

this is treasury secretary mnuchin with senator elizabeth warren on a testy exchange on capitol hill. >> the professor took him to school. >> let me stop you right there, mr. secretary. >> you're not letting me finish. >> yeah, i'm not. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com. >>> welcome back. riddle me this. president trump campaigned on a platform of bringing manufacturing jobs back to america's industrial belt, but it is debatable as to whether those jobs can come back because americans have grown accustomed to buying cheap goods that are made in low wage countries. >> the american consumer has told us they want it cheap, they want it fast, hence the rise of amazon. even if some of those manufacturing jobs come back, they're not going to look anything like yesterday's assembly line job. i got to visit an innovative company right here in new york city to get a look at what the factory of the future looks like. c

mr. chair and ranking member brown, and thank you for being here secretary mnuchin, appreciate your presencemunity bank reg relief bill called did clear act. have you had a chance to take a look at that at all? >> i have only looked at it brief lieu but i would be happy to get together with you and go through night the reason i bring it up. it is a bipartisan bill, there are a number of democrats that are willing to work with you and republicans that are willing to work with you to get common sense reg relief for community bank. if you could take a peek at that with us i would like that allot. >> i can assure you and one of the things that will be in the report to the president is relief for community banks. >> thank you. there is a bill out there called the marketplace fairness act. it deals with requiring small businesses to collect sales tax on behalf of other states and local governments when selling goods over the internet. are you familiar with that bill? >> i am familiar with the bill. >> do you or the president have a position on that bill? >> i haven't discussed it with the presiden

people thought they were, and that's why secretary mnuchin is moving the timetable up, so we're looking at that new timetable. >> last question. >> mr to follow up quickly, nice to see you. >> hi, nice to see you. >> i don't hang out in here very often. on the cbo specifically, the language they use with premiums, it says "despite the additional funding", those sicker americans would face extremely high premiums. how do you assure them they won't be priced out and it won't become unaffordable? >> here's what the cbo report i don't think fully gets or states, is that states put their own part of this as well. this is what this analysis i think forgets, which is, we are for the first time ever proposing to put billions of dollars from the federal government for risk systems in states, whether it's a risk pool, a reinsurance mechanism or risk-sharing. now, what's important to note is states do their own part of this as well. so, in wisconsin, for instance, we had an assessment on all the health insurance plans. we had an agreement among providers that we would -- they would have a certain fee schedule that they agreed to. i think maine

mr. mulvaney: the double counting. secretary minutia and -- secretary steve mnuchin was right. it is and was too early to make any assumptions about the final tax bill. we gave a set of principals to the house and the house and the senate are both looking at them right now. >> so then clearly you representing that this budget is balanced is inaccurate. mr. mulvaney: no, it is not. >> you can't say it is premature and say that budget balances. mr. mulvaney: i will answer the question if you give me the chance. but i'm not suggesting that the budget balance is inaccurate. so if i may continue. we assumed -- we had to make assumptions regarding what the tax bill would look like. there are three assumptions you can make. it adds to the deficit, subtracts or is deficit neutral and we assume for sake of doing the budget it would be deficit neutral. that the exclusion -- removing the exclusions, the deductions, the loopholes would lead us to a tax -- excuse me a deficit neutral tax plan. the dynamic benefit is only counted one time and that is toward the 3% economic growth. and i'm ha

next, secretary of treasury, steve mnuchin, surprise surprise, he and senator elizabeth warren, in a testy exchange on the hill. >> let me just stop you right there, mr're not letting me finish. >> i'm not. >> yes, i'm not. what was that all about? we're going to discuss that when we come back. alvelshi and i can't wait to dig into this one. >>> it's time for the "your business" entrepreneur of the week. michael is a frustrated musician turned urban winemaker. he started city winery to put together all of his loves -- it's a restaurant, a winery and a music venue, and he's taken the leap expanding now to five cities. for more watch "your business" weekends at 7:30 on msnbc. >> brought to you by american express open. visit openforum.com for ideas to help you grow your business. american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com. find out how american express cards and services hey richard, check out this fresh roasted flavor. looks delicious, huh? -yeah. -and how about that ar

mr. mulvaney: there were a lot of numbers during the campaign, 3%, 4%, and 4.5%. we did not start with any of those numbers. there was a group of myself, secretary mnuchinrector cohen, who is filling the role of the council of economic advisers, and we looked at the cbo baseline numbers. we said, what will our tax policy increased gdp by? ? one other ranges for that? what does obamacare do for increasing gdp? the congressional budget office assumes if you repeal obamacare, it will increase gdp because obamacare creates a disincentive to work. up into 3%. ramp we don't see that in year one. our center this year is 2.3%, then 2.5%, then 3%. we think that is a reasonable and defensible macroeconomic assumption. regardingur numbers the related interest rates and unemployment rates are defensible. we get a lot of questions about productivity. , i heard thiss one in one of the leading newspapers about the business in utah that cannot find enough people to work. people say, how are you going to grow the economy at 3% if we are already facing a tight employment market? i am going to pull the numbers up so i don't butcher these. essen as i say that, i cannot fin

mr. chairman, i'd like to enter into the record bloomberg news article in which treasury secretary mnuchin states it doesn't create a level playing field. it has very impacts on different companies. it has the potential to pass on significant cost to the consumer. and it has the potential of moving those currencies. >> without objection. >> thank you. today's hearing has definitely providing an interesting mix on perspectives on what most consider to be the center piece of the republican tax reform plan, and i think it's high time that we began to dig into this brand new proposal that's blind-sided everybody last year. i happen to believe that this -- a proposal of this size deserves some thoughtful consideration and i'm pleased that we're finally starting that process today. but i can't help but note that i wish we were here discussing a bipartisan idea that came together through substantive committee process rather than a few pages of talking points. i want to share some of the concerns that my colleagues have highlighted. number one is an ill-advised gamble on the value of the u.s. doll

mr. tom keene will be sitting down for a conversation with former fed chairman ben bernanke. from new york city, you're watching bloomberg. ♪ david: yesterday we heard it from steve mnuchin himselfiously thinking about ultralong bonds. he said it could absolutely makes sense. >> we are studying ultra long bonds. that is something we are considering at treasury. we have a working group looking at it. we think that it's something that could absolutely makes sense. joining us now is michael mckee. still with us is jpmorgan's anastasia amoroso. if i am not a primary dealer, why do i care whether they issue 50 or 100 year bonds are not? >> in essence you don't. it could cost the government a lot of money. successive treasuries have proposed this and no one has ever done it. you can see the reaction in the bond market. was a quick pop up in the yield curve. it's steepened briefly and traded absolutely flat and spend. isody thinks this necessarily going to happen. the argument is for low rates. now ifld lock that in you think the deficit is going up. leave aside any trump fiscal programs. entitled and -- entitlement spending is going to rise. every time treasury asks if it's a good ide