“Welcome, Secretary Lew. And thank you for appearing today to discuss the Administration’s 2017 Budget.
“Reaching common ground on a budget requires a balanced approach - a combination of budget cuts and additional revenue. The Administration’s budget reflects an effort to find and act on common ground, however unsteady that ground may be.
“Unfortunately, the decision this year by Republicans in the House and Senate to not hear testimony from the Administration’s budget director demonstrates that they are not equally committed to finding common ground.
“The ongoing challenge that we confront - a challenge that has persisted for the last three decades - is how to ensure that hardworking, middle class families are not left out of broader economic growth.
“The President’s budget takes important steps to tackle this challenge head on, proposing initiatives that create good paying jobs and expanding opportunities for working families. The proposals would help more Americans save for retirement, increase access and affordability of child care, and expand programs that keep hardworking Americans out of poverty.
“And they build on the successes of the Affordable Care Act by continuing to improve quality while controlling health care cost growth.
“Republicans have said that they’d like to do tax reform. Mr. Chairman, we’re ready and willing to join you in that effort. And this Administration has said the same. But closing some of the most egregious loopholes cannot wait for tax reform. Corporations leaving the U.S. through inversions are costing us tens of billions of dollars, and place an increasing burden on the rest of the taxpayers. CBO estimated that legislation Democrats introduced in the House would save roughly $40 billion over 10 years, although I’m sure that number is higher now.
“Last month, Johnson Controls - a company that benefited significantly from the auto industry bailout - announced that it’s joining with Tyco, an Ireland-based company that moved its headquarters from New Jersey in the 90’s to lower its taxes. And in November, Pfizer announced it was joining with Ireland-based Allergan - another formerly U.S. company - in the largest inversion ever. Both Johnson Controls and Pfizer are well-established American companies that will undoubtedly maintain their operations in the U.S., while moving only on paper to reduce their taxes.
“The Treasury Department has taken steps to make inversions less attractive, but as the Secretary has said, only Congress can stop them once and for all.
“We urgently need get off the sidelines and act. Let’s work together to stop these inversions.
“Thank you, Secretary Lew, for being here to discuss these important issues."
