ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

Thomas Announces Plans to Hold Subcommittee Hearings on Tax Simplification

Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that he is asking the Chairmen of the Subcommittees on Oversight and Select Revenue Measures to hold hearings on the issue of tax simplification. Specific hearing dates are yet to be established, however, any individual or organization may submit a written statement for consideration by the Subcommittees and for inclusion in the printed record of the hearings.

BACKGROUND:

The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA) [P.L. 105-206] required the Joint Committee on Taxation (JCT) and the Internal Revenue Service (IRS) to annually report sources of complexity in administration of the Federal tax laws. On April 25, 2001, the JCT submitted a three-volume report which outlined particularly complex provisions of the tax code and made recommendations for its simplification.

In both the 105^th and 106^th Congresses, the Oversight Subcommittee held hearings on the complexity of the tax code. Past hearings focused on examination of provisions of the current Internal Revenue Code that are overly complex, subject to frequent errors by taxpayers and revenue agents, or which place unnecessary burdens on individual taxpayers and small businesses. In addition, the Oversight Subcommittee reviewed the 2000 IRS report to Congress on the complexity in the administration of Federal tax laws and possible remedies.

"Reducing the complexity of the tax code is a key goal of the Committee on Ways and Means in this Congress," said Chairman Thomas. "Tax simplification will reduce a taxpayer's time and expense of record-keeping and filling out tax forms, as well as make the job of the IRS simpler and less costly. I am very pleased that Treasury Secretary O'Neill has a strong interest in simplifying the tax code, and I look forward to working with him on this important issue."

"I'm eager to continue my efforts to simplify our tax laws," said Representative Amo Houghton, Chairman of the Oversight Subcommittee. "I've introduced simplification legislation in the past and look forward to working with Chairman McCrery to develop a comprehensive approach."

Representative Jim McCrery, Chairman of the Subcommittee on Select Revenue Measures added, "Individuals and small businesses spend too many hours and too much money trying to navigate the tax code's complexities. Untangling its red tape will be a massive undertaking, and I am pleased Chairman Thomas has asked Chairman Houghton and me to spearhead this important effort."

FOCUS OF THE HEARINGS:

The focus of the hearings will be to discuss the complexity of the Internal Revenue Code and the various options for tax simplification.