ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

Thomas Announces a Hearing on
Corporate Inversions

Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that the Committee will hold a hearing on corporate inversions.  The hearing will take place on Thursday, June 6, 2002, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses.  Also, 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:

During recent months, several corporations have either changed their principal place of incorporation to a foreign country or announced their intention to do so.  On May 17, 2002, the U.S. Department of the Treasury released its Preliminary Report on Inversion Transactions that sets out the mechanics of and reasons for U.S. companies to undertake these transactions.  The study also highlights the disadvantages that the U.S. Tax Code imposes on U.S. companies as compared to their foreign competitors.

In announcing the hearing, Chairman Thomas stated, “The fact that companies are leaving the United States for tax reasons is a serious problem.  Inversions are one symptom of the larger problems with our Tax Code, particularly in the area of international competitiveness.  As we address the inversion issue, we must be careful not to take action that will facilitate the foreign acquisition of U.S. companies or encourage investment capital to flee the United States.” 

FOCUS OF THE HEARING:

The focus of this hearing is to examine the mechanics of inversion transactions and examine policy options that will deter inversions and enhance U.S. international competition. The Committee will also hear testimony from the U.S. Department of the Treasury concerning its May 17, 2002, Inversion Study. 

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note:  Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, by the close of business, Thursday, June 20, 2002.  Those filing written statements that wish to have their statements distributed to the press and interested public at the hearing should deliver their 300 copies to the full Committee in room 1102 Longworth House Office Building, in an open and searchable package 48 hours before the hearing.  The U.S. Capitol Police will refuse sealed-packaged deliveries to all House Office Buildings.

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.   Due to the change in House mail policy, all statements and any accompanying exhibits for printing must be submitted electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, in Word Perfect or MS Word format and MUST 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.  Any statements must include a list of all clients, persons, or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers of each witness.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

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.