FOR IMMEDIATE RELEASE, Contact: (202) 225-7601
September 14, 2000
No. OV-23
Congressman Amo Houghton (R-NY), Chairman, Subcommittee on Oversight of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on whether Federal tax laws are keeping pace with the "new economy." The hearing will take place on Tuesday, September 26, 2000, beginning at 1:00 p.m., in the main Committee hearing room, 1100 Longworth House Office Building, and be continued on Thursday, September 28, 2000, beginning at 11:00 a.m., in the main Committee hearing room.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include a representative of the U.S. Department of the Treasury, tax policy experts, and representatives of various sectors of the economy. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
BACKGROUND:
With the emergence of information-based sectors in the economy, many observers believe current tax laws improperly measure business income. The "new economy" is based on high-tech equipment, intensive research and development, and a skilled workforce. Many current tax rules were written for a predominantly manufacturing economy and may need to be revised.
The hearing will review the cost recovery rules for physical capital, which are based on analyses from the 1970s and earlier, and will receive testimony on the recent Treasury Department Report to the Congress on Depreciation Recovery Periods and Methods. The hearing will also review the tax treatment of research and development expenses. Finally, the hearing will explore how tax law treats the cost of maintaining a skilled workforce.
In announcing the hearing, Chairman Houghton stated: "The strength of the economy may be masking underlying inadequacies in our tax laws. Rather than waiting for an economic downturn to look at the current rules, we want to take advantage of the opportunity to ask whether our tax laws make sense. In an increasingly global economy, it is important to look at whether our tax rules put us at any competitive disadvantage."
FOCUS OF THE HEARING:
The hearing will focus on the tax treatment of physical capital, such as equipment; intangible capital, such as research and development, and human capital.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Thursday, October 12, 2000, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Oversight office, room 1136 Longworth House Office Building, by close of business the day before the hearing.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.
The
Committee seeks to make its facilities accessible to persons with
disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event
(four business days notice is requested). Questions with regard to
special accommodation needs in general (including availability of
Committee materials in alternative formats) may be directed to the
Committee as noted above.