Steny Hoyer Claims: ‘$1 Spent By The IRS Results In $12 Savings’

4 months ago

Last week, Rep. Steny Hoyer (D-MD) questioned FTC Chair Lina Khan on business tax inquiries during a House Appropriations Committee hearing.

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Transcript

00:00 Your mic, oh, yeah.

00:02 Thank you very much.

00:06 You point out that one in five Americans are subject to a non-compete rule.

00:12 That's right.

00:13 So that's 20 percent of the American workforce.

00:16 That's right.

00:17 And your point is, which I take, is that having such a broad spread non-compete rule stifles competition.

00:27 That's right.

00:28 Raises prices and prevents people from using their own ingenuity in perhaps another way,

00:35 notwithstanding the fact they're at a very, or relatively low level of employee.

00:41 Is that accurate?

00:42 All of that?

00:43 All of that's accurate, Congressman.

00:45 It seems to me in that respect, we all understand that there are certain non-compete agreements that are legitimate.

00:54 If you work in a big plant and you learn technology and you get experience, et cetera, et cetera,

01:03 and you find out competitive skills and processes that are used in that company,

01:12 that they don't want you taking it someplace else to compete against them.

01:17 That seems to me to be a legitimate use.

01:20 But to be used, you made a very low level analogy in your opening statement,

01:26 to prevent a worker from either going into business themselves

01:31 or improving their salaries and working conditions seems to me clearly an objective that is within your responsibility

01:39 and very good for the American people.

01:42 That's another question that's an observation.

01:45 I have raised, Mr. Womack also raised with the IRS commissioner,

01:50 the companies that are saying that they can save your tax money if you owe taxes or didn't pay taxes,

01:57 they can come in and they can make a very good deal and you don't pay them anything unless they save you money,

02:04 which means obviously other taxpayers are going to pay a little more because some taxpayers pay much less.

02:13 Have you looked into that at the FTC?

02:17 It's on our radar because of engagement with your office

02:21 and any time that a company is making certain representations that don't accurately reflect the services they offer,

02:28 that can be deceptive and is relevant to the FTC.

02:32 Can you briefly tell me what you won't be able to do if we do not approve the budget level that you requested

02:40 that will then in turn harm the American people?

02:43 And maybe in the process discuss a little more, I made the point IRS at the higher end,

02:51 millionaires and above of income oversight results $1 spent by the IRS in enforcement results in $12 of savings.

03:03 You used a higher figure.

03:05 Can you explain that to us?

03:07 For every $1 that the FTC receives, we return $14 in consumer benefits, which is pretty stunning.

03:16 And the FTC's budget, basically 70% of that covers our people.

03:22 So the overhead cost beyond that is pretty low as an overall portion.

03:27 And so when we have 5% pay increases that are not funded, that hits us hard.

03:34 And so if we are not able to get funding to fully support our mission, that's going to mean fewer investigations,

03:41 fewer lawsuits stopping law breaking by data brokers, fewer lawsuits stopping unlawful surveillance of kids,

03:50 fewer lawsuits stopping illegal practices by health care monopolies, fewer actions to support elder --

03:56 to cut back on elder fraud or made in USA fraud or fraud targeting veterans.

04:02 And so all of this is a core part of the FTC's work.

04:05 And if we're not adequately funded, it's going to come at the expense of that.

04:09 Thank you very much.

04:10 And I'm going to pursue that further with you in your office.

04:14 Also, two things, junk fees.

04:16 The President's made a real point of that.

04:18 The administration has.

04:19 There are a lot of junk fees and people don't know about them and perhaps don't need them, more pointedly.

04:28 I'd like to look into that further.

04:31 And also, I would like to discuss with you more in more in-depth the car rule,

04:41 because I have some very reputable car dealers who have talked to me about this

04:46 and indicated this is more make work and doesn't get to a more honest result, which you have opined.

04:54 So I'm going to look at that further.

04:55 I don't have time to question you about it in depth, but I do want to look at that further.

04:59 further. Thank you.

Steny Hoyer Claims: ‘$1 Spent By The IRS Results In $12 Savings’

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