mr. paulson, what is the name of the hotel? it just is kicked my memory. >> ccr.irperson kim: the civic center hotel. there is a great photo of mr. paulson and residence. >> a whole selection of them. they did some good art work there. a good project. chairperson kim: it is beautiful. i encourage citizens to go check out the photos. it is on mcalester between jones -- thank you. >> ♪ come see about our work thank you ♪ chairperson kim: public comment is now closed. we can do that without objection. we will move item four through 9 to the full board as a committee report. madam clerk, can you please call item 10? >> itunes four through 9 are not scheduled -- items four 29 are not scheduled to be heard this week. chairperson kim: we will move them forward without objection. >> item 10, ordinance amending the elections code to establish a process that permits voters to receive the voter information pamphlet and associated materials by electronic means instead of paper mill. -- mail. chairperson kim: i believe we have a representative from supervisor mirkarimi's offic

mr. paulson?♪ you make it here and there you work real hard and then you will see that the impact fees are coming back to your me now ♪ supervisor mar: and sweet.

mr. paulson. >> good morning. i just would like to let you know that they work hard for the money. ♪ hard for the money so you better pay them right they work so hard very very hard they wroork hard for the compensated funds so give them all you can today ♪ >> thank you, mr. paulsen. is there anyone else? public comment is closed. we have a motion by supervisor farrell. we go forward with the positive recommendation. thank you to the staff for the good work and the work that went into the bargaining units. can you call item 27? >> ordinance amending the code for the health care ordinance. >> an item i introduced. iwant to thank avalos, mirkarimi, chu, chiu, and kim for the co-sponsorship. i would like to continue this t to the call of the chair. let me open it to public comment. is there any member of the public who would like to speak on the health and security ordnance. up. i hope you had a good day. >> i put most of it back. and i just wan ttt to say.

mr. paulson is recognized for three minutes. >> i want to compliment you for holding a hearing with the senator and laying the foundation, this big and important foundation for tax reform. i want to go back to the design of what the tax system should look like and what tax reform should look like if we're going to promote economic growth and jobs. that should be our number one goal here. spending and debt are a big issue but we have to increase economic growth. we only have 18,000 jobs coming out of the last jobs report which is embarrassing when you think we have more college graduates in minnesota and jobs coming out nationally. we want a tax code that will promote work, savings, and investment. what should be the focus on that in the context of debt and equity? >> i think there is a lot of economic literature that supports the notion of moving in the direction of a consumption tax. there are ways to get there. a comprehensive tax law would be one way to move in that direction. >> i think the basic principles of what we are aiming for many of us agree that we need to read doris -- reduce the

mr. paulson and others on wall street, are helping us create jobs in washington. >> i would like to think that is true too. but i would also like to think i could fly. congressman, you're not tell meg that's not nonsense for a man to make the equivalent of 184,000 people annually. aren't you the same congressman, kingston that said, and i appreciate your spunk, you are the one that said, that we plu stop and put uncle sam on the valiant. but you want to give the hedge fund guys a chocolate sundae with bananas, whip cream and cherries on top. >> al, i think this is where you and i can get together. there a lot of quirks in the tax code. what would be appropriate is to clear is out some of that underbrush. we need tax simplification. i'm a fair tax guy. and i believe if we don't have the fair tax, we should have a flat tax. get rid of some of these loop holes. i think that's consistent with republican philosophy of no tax -- >> so you are willing to vote against some of the loop holes? >> well i think what we want is tax clarity and fax fairness -- >> no, no, no. loophole, loophole, loophol

mr. paulson. the speaker pro tempore: the gentleman is recognized. mr. paulson: it is true if we could as some of my colleagues on the other side of the aisle suggest continue to practice business as usual with no plan to control spending. but what will that lead to? higher taxes, more spending, more debt, and fewer jobs. and with our country right now at a financial crossroads and unemployment at 9.2%, this is simply a future that we cannot afford. by cutting spending now, by capping the growth of government, and by requiring a balanced budget we can finally get our fiscal house in order and get people back to work. american families have tightened their belts in these tough economic times. washington should do exactly the same thing. we need to pass the cut, cap, balance act so we can address our spending driven debt crisis, start paying down the national debt, and get our economy back on track. this is about protecting the future of our children and grandchildren. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time.

mr. paulson is recommended -- recognized for three minutes. >> i also want to commend you for holding this, and in particular about this being an important foundation for tax reform, for economic growth, and i think we have heard from some of our panelists about the negative implications about the treatment between debt and equity. i just want to go back to the design of what the tax system should look like, what the tax code should look like, what tax reform should look like, if we are going to promote economic growth and jobs. that should be the number-one goal here. obviously, this is a big issue, but we have to deal with growth. the last jobs report, that is pretty embarrassing. it is embarrassing when you think we have more graduates in minnesota that we have jobs coming out nationally, so knowing that that is the case, we want a tax burden that is going to promote work, savings, and investment. what should be the focus on that in the context of debt and equity? ms. olson? >> a consumption tax, and there are many ways to get there, like a comprehensive tax that congress may look at to

mr. paulson said role? sir? collor left us, go ahead. -- caller left us, go ahead. guest: there was a lot of anger over the bailouts. should the government take taxpayers' money to keep these businesses alive? supporters of the law say that is what we have enabled this new system. that we will not have to provide taxpayer money. there's obviously still a lot of anger out there about the tarp program in 2008. host: in houston, texas, our republican line. caller: does anyone really expect the dodd-frank bill to make a positive difference whatsoever? the fcc recently approved the merger between comcast and abc universal. the mss was responsible for regulating oil rigs in mexico. they signed off on the deep ocean rigs during the dp spill -- the bp spill. tsa -- the tsa failed to follow federal law regarding procedures of implementing a full body stance. -- body scans. do you think these agencies will make any real positive difference? guest: cottas on some of the big fan of the government agencies. that is part of the big debate now. you hear a lot of people, particular

mr. paulson, for five minutes. mr. paulsen: mr. speaker, i come to the floor of the house to honor and remember an american hero, lance corporal robert greeninger, who died last week after an i.e.d. attack in afghanistan. as we grieve the lots of one of our finest citizens and share the grief with his family, we marvel that such heros have lived among us. he gave up everything to protect his neighbors and extend the blessings of freedom to those who have never known it. he was proud to serve his country. in honor of him, we need to thank our service men and women and pray every day for their safe return. we monitor the service and memory of the lance corporal and follow his example of patriotic duty, honor and sacrifice in our daily walk as americans. semper fi, lance corporal. the speaker pro tempore: the chair recognizes the gentleman from california, mr. mcclintock, for five minutes. mr. mcclintock: thank you, mr. speaker. on june 26, the roadside bomb in iraq claimed the life of a young man from orville, california, army staff

mr. paulson. mr. paulsen: all in the gallery, please join in the pledge. i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. the speaker pro tempore: the chair will entertain up to 15 requests for one-minute speeches on each side. for what purpose does the gentleman from minnesota rise? mr. paulsen: i ask unanimous consent to address the house for one minute and to revise and extend. the speaker pro tempore: the gentleman from minnesota is recognized for one minute. mr. paulsen: thank you, mr. speaker. last weekend in eden prairie, minnesota, i had the privilege of attending a 5-k run in remembrance of u.s. major voise who lost his life when his offspring helicopter tragically went down in afghanistan. and now his family and friends have found a way to honor his life and sacrifice through an annual event that is now used to raise funds for a college scholarship awarded to students at eden prairie high school where randy graduated in 198

mr. geithner was more important in the bush administration than the president's appointee. he served under ben bernanke, he worked with secretary paulson. if there is criticism, it goes to all of them. i think it is important that it be independent, that it not be a second thought from the bank regulators, whether one banking regulator or individuals, and i believe that will make a great deal of sense to give the consumer -- the gentleman said let's give them equal status tree you give them an equal entity, subject to others. the bill itself had a common theme. one criticism was that the bill was to create. we probably exceeded the attention span of some members of the congress, but i guess they can wait for the movie. we are dealing with an interconnected system, and we dealt peace mail, and there was a central theme and it was that by sources of liquidity outside the banking system and by increased information technology, people in the industry have figured out a way to engage in lending while appearing to escape the burden of risk. they appeared to be able to afford risk themselves. is that not all white. it exploded on all of us. d

mr. harkin: i ask that kevin paulson be granted floor privileges during today's proceedings. the presiding officer: without objection. mr. harkin: i meant to be here when i know senator rockefeller was on the floor speaking about the situation with the federal aviation administration. however, i was unavoidably detained because i was chairing a meeting on the help committee that adjourned just a few minutes ago. i wanted to be here to discuss with senator rockefeller the sad situation we're facing right now with the shutdown of the federal aviation administration. we're now in the sixth day, sixth day of the defunding of the federal aviation administration. and what that means is that i think right now we have some 4,000 f.a.a. workers are furloughed, tens of thousands of people are out of work in airport construction -- got it -- construction jobs, infrastructure and these are people that are not working for the government. they're working for private contractors who have a contract with the f.a.a. for runway construction, putting in lights, safety measures, things like that.

mr. frank: i disagree with his statement on secretary paulson. but i was struck by the fact that the the gentlewoman from west virginia stood up opposing. she said her basis -- the gentleman from oregon said her opposition was incorrect. i think that's unfortunate and it's part of my problem, i didn't have a chance to talk about this rule, this is a terribly unfair rule. i asked the chairman of the rules committee yesterday if we could have more time to debate, not all the amendments, we have an important amendment by the gentlewoman from texas to talk about 2/3 majority, this is an important amendment about conflict of interest. we had an important amendment coming up about the powers. it is outrageous that the rules committee said you only get five minutes on each side on each amendment and the chairman of the rules committee he is a mag namous fellow and he said get a unanimous consent to suspend it. i approached the other side and i was told not by the chairman who has been very gracious but the republican leadership. so we have fundamental i

mr. quigley: this was assured by former treasury secretary paulson who said that inaction is simply not an option. i agree. and believe that raising the debt ceiling must be accompanied by deficit reduction. also by cutting spending, but also by elimb hit thatting some unnecessary -- eliminating some unnecessary tax breaks. there are those who say there are no unnecessary tax breaks. let me just give you one. if your neighbor guys -- buys a car and pays interest on the loan to buy that car, that interest is not tax deductible. if your other neighbor buys aat and pays interest -- buys a yacht and pay interests to buy that, that interest is tax deductible. when we're borrowing 40 cents for every dollar, we have to ask ourselves if those tax breaks are really worth it. if we're starting from scratch, would we really give yacht owners an extra tax break? thank you and i yield back. the speaker pro tempore: the gentleman's time has expired. for what purpose does the gentleman from michigan rise? >> request permission to address the house for one minute. the speaker pro tempore: the gentleman is

mr. geithner was more important in the bush administration than the president's appointee. he served under ben bernanke, he worked with secretary paulson. if there is criticism, it goes to all of them. i think it is important that it be independent, that it not be a second thought from the bank regulators, whether one banking regulator or individuals, and i believe that will make a great deal of sense to give the consumer -- the gentleman said let's give them equal status tree you give them an equal entity, subject to others. the bill itself had a common theme. one criticism was that the bill was to create. we probably exceeded the attention span of some members of the congress, but i guess they can wait for the movie. we are dealing with an interconnected system, and we dealt peace mail, and there was a central theme and it was that by sources of liquidity outside the banking system and by increased information technology, people in the industry have figured out a way to engage in lending while appearing to escape the burden of risk. they appeared to be able to afford risk themselves. is that not all white. it exploded on all of us. d

mr. geithner was more important in the bush administration than the president's appointee. he served under ben bernanke, he worked with secretary paulson. if there is criticism, it goes to all of them. i think it is important that it be independent, that it not be a second thought from the bank regulators, whether one banking regulator or individuals, and i believe that will make a great deal of sense to give the consumer -- the gentleman said let's give them equal status tree you give them an equal entity, subject to others. the bill itself had a common theme. one criticism was that the bill was to create. we probably exceeded the attention span of some members of the congress, but i guess they can wait for the movie. we are dealing with an interconnected system, and we dealt peace mail, and there was a central theme and it was that by sources of liquidity outside the banking system and by increased information technology, people in the industry have figured out a way to engage in lending while appearing to escape the burden of risk. they appeared to be able to afford risk themselves. is that not all white. it exploded on all of us. d

bill at the request of the secretary paulson, which president bush signed, which gave the secretary the authority to put them in a conservatorship. i agree with mr. shelby had too much of the market, but at least it is not that cost on us that it was before. they are behaving in a much more responsible fashion today. mr. chairman, i appreciate this opportunity. >> thank you for coming over here today. the need to get back to the house. senator shelby has a couple -- >> i feel at home here today. i count nine of my former colleagues here. >> a few observations. congressman frank and i have sparred over issues over a number of years. i agree with him that there is a difference between managed risk and speculation. i think we agree on that. speculation will cause people to get into trouble. managed risk will help people. as far as fannie mae and freddie mac, the congressman knows when we were in control here and i was the chairman, which pushed hard for a reform of fannie and freddie. we got it out of committee. we pushed hard, we will continue to do that. i do not know what is going on in the house. i can tell you, we -- sooner or later, we hope t

mr. geithner was more important in the bush administration than the president's appointee. he served under ben bernanke, he worked with secretary paulson. if there is criticism, it goes to all of them. i think it is important that it be independent, that it not be a second thought from the bank regulators, whether one banking regulator or individuals, and i believe that will make a great deal of sense to give the consumer -- the gentleman said let's give them equal status tree you give them an equal entity, subject to others. the bill itself had a common theme. one criticism was that the bill was to create. we probably exceeded the attention span of some members of the congress, but i guess they can wait for the movie. we are dealing with an interconnected system, and we dealt peace mail, and there was a central theme and it was that by sources of liquidity outside the banking system and by increased information technology, people in the industry have figured out a way to engage in lending while appearing to escape the burden of risk. they appeared to be able to afford risk themselves. is that not all white. it exploded on all of us. d

mr. speaker, we have straightened out that misunderstanding that the folks could serve. let me go back to what many of my republicans agreed with me. i voted against the tarp bailout. hank paulson, a goldman sachs executive standing in as secretary of the treasury and metting out customers. i think there would be agreement on that side for future conflicts of access that people be on that one vote and i yield the balance of my time to mr. the balance of my time to mr. frank.