Van Hollen Opening Statement: The President's Fiscal Year 2014 Revenue and Economic Policy Proposals

Statement

Today Maryland Congressman Chris Van Hollen, Ranking Member of the House Budget Committee, made opening remarks at the House Budget Committee hearing on the President's fiscal year 2014 revenue and economic policy proposals with the Honorable Jacob J. Lew, Secretary of the Department of the Treasury. Below is a transcript of his remarks:

"Thank you Mr. Chairman, I want to start by joining the Chairman in keeping in our thoughts and prayers the people of Boston, especially the victims and their families. And I'd also like to join you, Mr. Chairman, in welcoming Mr. Lew to this Committee -- the first time as Secretary of the Treasury. Congratulations to you, Mr. Lew, and thank you for your service, and thank you for being here to talk about the President's budget.

"And I believe the President's budget accomplishes two important objectives. One, and foremost, it focuses on job growth now. We all know that we've seen job growth in our economy in the last 30-plus months, but we also know that it's still not where we want it to be. Second, the President's budget reduces the deficit in a steady, credible, and balanced way, such that it's under 2 percent of GDP at the end of the two year window.

"Now, I saw, Mr. Secretary, that one of your first visits overseas was to talk to some of our European partners, and that trip generated headlines like these: "Treasury Secretary Jack Lew Pushes Europeans to Focus on Growth over Austerity.' And I think that's good advice in Europe, it's also good advice right here at home.

"And while the President's budget does focus on growth over austerity, unfortunately the House Republican budget does not, because the House Republican budget would keep in place the very immediate and deep sequester cuts, which the non-partisan, independent Congressional Budget Office says will result in 750,000 fewer jobs by the end of this year alone. And the Congressional Budget Office projects that three quarters of the fiscal year 2014 deficit is due to slow employment levels, underemployment in the economy. So we need to be focused on that right now rather than pursuing European-style austerity in the budget, as our Republican colleagues' budget does.

"You also had a visit to China. I think your first visit, Mr. Secretary, was to China. And I mentioned in the last budget hearing we had that I have a major biotech company in our district that last year laid off more than 1,000 people because of "the uncertain budget environment here at home with respect to investments in science and research.' And this year, because of the sequester, they have a hiring freeze in place.

"The one place they point out they are hiring is in China. It says, "we have instituted a hiring freeze across the company with China being the only exception.' And they point out it's not because of lower wages paid in China, it's because the Chinese are copying what has historically been a very successful U.S. model of investing in science and research. And it would be very shortsighted if we pursue the austerity approach to cut those investments at a time when many of our major international competitors are following that successful model.

"So I appreciate the fact that the President's budget focuses on those investments and shows that we can continue to make important investments at the same time that we reduce our deficit in a steady way. For some our members who are new to this committee, the last time we had a balanced budget in this country was when Jack Lew was the head of OMB during the Clinton administration. And, of course, when he left that post we had projected surpluses.

"That was before two wars on the credit card; that was before we put a new prescription drug plan on the credit card; and, of course, it was before two back-to-back tax cuts that disproportionately benefited the very wealthy.

"So, Mr. Lew, it's good to continue to have you on the President's economic team. And I would just point out that the approach you have taken here to reducing the deficit is a balanced one -- meaning you continue to build on the cuts that have been made, $2.5 trillion of deficit reduction already, but you do it in a targeted way. And you do it, in part, by closing some of those tax loopholes that the Chairman mentioned. The difference is that the Republican budget does not close one single tax loophole for the purpose of reducing the deficit, whereas the President's budget does close those tax breaks for folks at the very high end for the purpose of reducing the deficit in a balanced way.

"Let me just close, Mr. Chairman, by urging us to try and come together as soon as possible to bridge the differences between these budgets. The Chairman said we need to get together and move forward. I agree, and that's why we call upon the Speaker to immediately appoint conferees to a budget conference.

"There's been a lot of discussion in this Committee about how the President's budget was somewhat late. In the law, in the budget law, the conference committees are supposed to have completed action by April 15th -- so as right now the Congress is out of compliance with the Budget Act. The fastest way to try and come into compliance, as fast as possible, is to appoint conferees and follow the regular order -- something our Republican colleagues have been calling for. So let's get on with this. Mr. Speaker, you should appoint conferees to a budget conference right now so we can begin to bridge those differences and move forward.

"Thank you, Mr. Chairman, and thank you, Mr. Secretary."

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