Washington, D.C.–U.S.
Senator Mike Crapo (R-Idaho), Ranking Member of the U.S. Senate Finance
Committee, delivered the following remarks at a hearing on the President’s
Fiscal Year 2022 Budget with U.S. Department of Treasury Secretary Janet
Yellen.
The text of Ranking Member
Crapo’s remarks, as prepared, is below.
“Thank you Mr.
Chairman, and thank you, Secretary Yellen, for joining us today.
“Today, we
will discuss the President’s Fiscal Year 2022 budget and proposals for Treasury
and its agencies.
“The
Administration’s proposals to increase spending, hit Americans with higher
taxes and strangle the economy with regulations and red tape is not a path to
prosperity.
“The
President’s budget envisions deficits of $14.5 trillion over the next decade,
with debt exploding to more than $39 trillion, or 117 percent of GDP, by the
end of fiscal year 2031.
“Such high
debt is risky, especially in the current high inflation environment.
“Consumer
price inflation from April to May was 7.7 percent at an annualized rate, and
inflation for durable goods was 36 percent at an annualized rate.
“If inflation
expectations become unanchored, which no one can credibly claim cannot happen,
the resulting increased interest rates can turn federal debt-service costs into
budget busters.
“Treasury’s
top-line budget request of $22 billion is an 11.3 percent increase over fiscal
year 2021, and Treasury asks for outsized increases across the board in its
various agencies and programs.
“I look
forward to hearing more about Treasury’s budget proposals and general
explanations of tax proposals in the so-called Green Book.
“Those
proposals are heavy on tax hikes, introduce new tax ideas of questionable
merit, and seek to inject more social policy goals into the income tax
system.
“They also
call for a mandatory financial-information reporting regime.
“Under this
regime, financial institutions would become agents of the IRS, tasked with
monitoring and reporting flows into and out of personal and business accounts
above a mere $600 threshold.
“The proposal,
which is sold under the guise of trying to close the tax gap, is very
concerning and pulls almost all taxpayers into a surveillance dragnet.
“The era of
big data should not be viewed as an opportunity for big brother.
“I do not
agree with some high-tax advocates that private tax information should be a
public good, with governments and the public knowing every private aspect of
individual and business income and assets.
“An
overwhelming majority of taxpayers in this country are law abiding, and pay the
taxes they owe.
“My concerns
are amplified by the egregious apparent leak of private taxpayer information
out of the IRS, with data ending up at ProPublica, which reported
sensationalized and misleading claims about taxes paid by named individuals.
“While
ProPublica focused on wealthy people, an IRS leak may involve personal
information on American taxpayers across the income spectrum.
“Secretary
Yellen, it would be helpful for you to share what is known at Treasury and the
IRS about the apparent massive data breach.
“I also look
forward to hearing about political agreements struck by the Administration and
the G-7. “A recent G-7
communique reflects a shift in the U.S. position in OECD negotiations that
appears driven by the Administration’s plans to significantly increase taxes on
U.S. businesses.
“The United
States already has a robust global minimum tax, GILTI, and no other country has
moved to enact one since.
“If Treasury
envisions hiking taxes on U.S. businesses domestically, including onerous
changes to GILTI, before other countries adhere to a global minimum tax, the
U.S. could suffering from a first-mover disadvantage.
“Higher U.S.
tax rates instituted before other countries move poses the risk of others not
following through and a new wave of inversions and foreign acquisitions arising
because U.S. business are unable to compete.
“Congress
needs to understand the analysis behind your proposals, and whether any
agreement would allow foreign targeting of U.S. companies or special carve-outs
for particular jurisdictions, including China.
“The G-7
understandings also advocate for new mandatory financial disclosures and
funding for multilateral financial institutions, including a new $650 billion
general allocation at the IMF of Special Drawing Rights.
“I am
interested to hear about the outreach you have done with Congressional
Republicans on those funding increases.
“Additionally
– I again ask that Treasury work to improve its responsiveness to this
Committee.
“Secretary
Yellen, I look forward to learning more from our discussions today.
“Thank you Mr.
Chairman.”