ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

Subcommittee on Oversight
Subcommittee on Select Revenue Measures

Houghton and McCrery Announce First in a Series of Hearings
 on Tax Code Simplification

Congressman Amo Houghton (R-NY), Chairman of the Subcommittee on Oversight, and Congressman Jim McCrery (R-LA), Chairman of the Subcommittee of Select Revenue Measures, Committee on Ways and Means, today announced that the Subcommittees will hold the first in a series of hearings on the need for simplification of the Internal Revenue Code (IRC). The hearing will take place on Tuesday, July 17, 2001, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 2:00 p.m.

Oral testimony at this hearing will be from invited witnesses only. 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. Future hearings will review specific reform proposals.

BACKGROUND:

Under Section 4022(a) of the Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (P.L. 105-206), the Joint Committee on Taxation (JCT) is required at least once every Congress to provide a comprehensive study on the state of the Federal Tax system. In April of this year, the JCT released a document entitled "Study of the Overall State of the Federal Tax System and Recommendations for Simplification" (JCS-3-01), outlining the complex nature of the IRC, and providing recommendations for its simplification.

Compiled and instituted into American society shortly before World War I, the IRC has gone through enormous revisions and additions, enough to make it the most complex income tax code in history. A number of economists and academics have documented the ways in which complexity increases the costs of our current tax system.

"The Oversight Subcommittee continues to hear from individuals, businesses, and tax professionals about complexity in our income tax system," said Chairman Houghton. "Our first hearing will explore the costs of tax complexity and review the very comprehensive report of the Joint Committee on Taxation."

"For most Americans, the term 'tax simplification' is an oxymoron like 'deafening silence' or 'jumbo shrimp'," remarked Chairman McCrery. "I am hopeful this hearing and our joint efforts will help rid the tax code of some of its complexity, reducing the frustration so closely associated with paying taxes."

FOCUS OF THE HEARING:

The hearing will focus on the nature and cost of complexity in the tax code and the options for tax simplification.

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, Tuesday, July 31, 2001, to Allison Giles, 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.

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.