Congressman Dave Camp (R-MI), Chairman of the House Committee on Ways and Means, and Senator Max Baucus (D-MT), Chairman of the Senate Committee on Finance, today announced that the Committees will hold a joint hearing to review the tax treatment of debt and equity and to consider distinctions in the treatment of each in the context of comprehensive tax reform. In connection with the hearing, the staff of the Joint Committee on Taxation (JCT) will release two reports that analyze the taxation of household debt and business debt. The joint hearing will take place on Wednesday, July 13, 2011, in Room HVC-210 of the Capitol Visitor Center, beginning at 9:00 A.M.
In view of the limited time available to hear witnesses, 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 Committees and for inclusion in the printed record of the hearing. A list of invited witnesses will follow.
At the March 15, 2011 organizational meeting of the Joint Committee on Taxation, Chairman Camp and Chairman Baucus – in their capacities as JCT Chair and Vice Chair, respectively – directed JCT staff to analyze how debt financing is taxed relative to equity financing and to report on the effects of such differences on household and business debt levels. Chairman Camp and Chairman Baucus believe that the policy and economic information provided by JCT staff will be important for the tax-writing committees to consider in the formulation of comprehensive tax reform legislation. The two JCT reports will be formally presented to the Ways and Means Committee and Senate Finance Committee at the joint hearing.
With regard to the joint hearing, Chairman Camp made the following statement:
“The relative taxation of debt and equity has serious consequences for the economy and job creation, and it needs to be given careful consideration in the context of comprehensive tax reform. With both the Ways and Means Committee and the Senate Finance Committee actively pursuing tax reform, it will be critical for Congress’s two tax-writing panels to be working together closely. I look forward to having our two committees convene this historic joint hearing – the first on a tax issue since 1940 – to receive these staff reports on this important issue.”
Chairman Baucus said, “As part of tax reform, we must examine how we can improve our economy and create jobs, and to do so, we need to ask how to encourage businesses to invest in growth. This hearing will look at the effects of different tax treatment of debt and equity on our economy. We’ll need to work together to simplify and improve our tax code to help businesses create jobs, which is why these joint hearings between our two committees are so important.”
FOCUS OF THE HEARING:
The hearing will focus on the taxation of debt and equity and the broader economic implications of this treatment. At the hearing, JCT staff will formally present two reports on the taxation of debt financing relative to equity financing. These JCT staff reports were requested by Ways and Means Committee Chairman Camp and Senate Finance Committee Chairman Baucus at the organizational meeting of the Joint Committee on Taxation on March 15, 2011.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, https://waysandmeans.house.gov, select “Hearings.” Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close of business on Wednesday, July 27, 2011. Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-3625 or (202) 225-2610.
The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission or supplementary item 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 submissions and supplementary materials must be provided in Word format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies 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. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears. A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness.
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.
Note: All Committee advisories and news releases are available on the World Wide Web at https://waysandmeans.house.gov/.