State, or local taxation." The point of order was conceded and sustained. [100-1, p. H 5539-40] September 30, 1988 H.R. 4637, Conference Agreement to accompany the Foreign Operations, Export Financing and Related Programs Appropriations Act of 1989 A point of order was raised against the motion to concur in the Senate amendment No. 176 which provided that S. 2848 (Sanctions Against Iraqi Chemical Weapons Use Act), be added to the bill. The point of order was conceded and sustained. [100-2, p. H 9236] October 4, 1989 H.R. 3299, Omnibus Budget Reconciliation Act of 1989 A point of order was raised against section 7002 which imposed a fee of $20 per passenger on vessels engaged in U.S. cruise trade or which offer off-shore gambling. The proceeds of this fee were to be deposited in both the Harbor Maintenance Trust Fund and the Treasury's general fund. The point of order was conceded and sustained. [101-1, p. H 6620] October 4, 1989 H.R. 3299, Omnibus Budget Reconciliation Act of 1989 A point of order was raised against section 7002 which imposed an annual fee of $1 per acre on the holder of Outer Continental Shelf leases. This fee has been designated to offset the costs of ocean related environmental research, assessment, and protection programs. The point of order was sustained with the Chair stating that "a provision raising revenue to finance general government functions improperly characterized as a tax within the jurisdiction of Clause 5(b) of Rule XXI. [101-1, p. H 6610] October 4, 1989 H.R. 3299, Omnibus Budget Reconciliation Act of 1989 A point of order was raised against section 3131(b) which exempted multi-employer pension plans from the full funding limits of the Internal Revenue Code, section 412(c)(7). This provision directly amended the Internal Revenue Code to allow the deductibility of contributions to a multi-employer pension plan in excess of the full funding limit. The point of order was conceded and sustained. [1011, p. H 6622] October 4, 1989 H.R. 3299, Omnibus Budget Reconciliation Act of 1989 A point of order was raised against section 3156 which imposed a "Termination Fee." Under the provision of the bill, an employer who terminated a pension plan in a standard termination was required to pay a $200-per-participant fee to the Pension Benefit Guaranty Corporation (PBGC), the Federal insurance agency established to insure defined benefit pension plans against insolvency. The point of order was conceded and sustained. [101-1, p. H 6621] October 5, 1989 H.R. 3299, Omnibus Budget Reconciliation Act of 1989 A point of order was raised against section 3201 which imposed fees on the filing of certain forms required to be filed annually in connection with maintaining pension and benefit plans. The point of order was sustained with the Chair ruling that the revenue raised funded "general government activity." [101-1, p. H 6662] July 13, 1990 H.R. 5241, Treasury, Postal Service and General Government A point of order was raised against section 524 which prohibited the Internal Revenue Service from enforcing rules governing the antidiscrimination rules of the exclusion for employer provided health-care plans (section 89 of the Internal Revenue Code). The point of order was conceded and sustained. [101-2, p. H 4692] July 13, 1990 H.R. 5241, Treasury, Postal Service and General Government A point of order was raised against section 528 which prohibited that "no funds appropriated" would be used to impose or assess any tax under section 4181 of the Internal Revenue Code relating to the excise tax on the manufacture of firearms. The point of order was conceded and sustained. [101-2, p. H 4692] October 23, 1990 H.R. 5021, Department of Commerce, Justice and State, the Judiciary and related Agencies Appropriations Act, 1991 A point of order was raised against amendment 139 which increased the rate of fees paid to the Securities and Exchange Commission at the time of filing a registration statement. The Chair ruled that since the amendment provided that the increased level of fees would be deposited in the Treasury, the fee involved was in reality a tax and the revenues were to be used to defray general governmental costs. The point of order was conceded and sustained. [101-2, p. H 11412] D. THE SUBCOMMITTEE ON SELECT REVENUE MEASURES The Subcommittee on Select Revenue Measures was established in 1978 (originally called the Subcommittee on Miscellaneous Revenue Measures). While most revenue measures are not referred to any specific subcommittee for review, the jurisdiction of this subcommittee under Rule 8(4) of the Rules of the Committee on Ways and Means comprises "those revenue measures which, from time to time, shall be referred to it specifically by the Chairman of the full Committee." Legislative proposals which were referred to the Subcommittee on Select Revenue Measures during the 101st Congress include the taxation of life insurance companies, corporate taxation reform, and numerous miscellaneous legislative proposals. In previ ous Congresses, the subcommittee developed major initiatives in such diverse areas as the tax treatment of life insurance (98th Congress); passthrough entities (99th Congress); and tax credits for lowincome housing and rehabilitation (101st Congress). E. THE SUBCOMMITTEE ON OVERSIGHT The Subcommittee on Oversight is the nonlegislative, investigative arm of the Committee on Ways and Means. The Subcommittee on Oversight was one of the original six permanent subcommittees established by the Committee on Ways and Means at the end of the 93d Congress. The subcommittee was established in response to an amendment to the Legislative Reorganization Act of 1946 which required oversight activities by the standing committees of Congress. Rule 8(3) of the Rules of the Committee on Ways and Means states that the jurisdiction of the Subcommittee on Oversight * shall be limited to existing law. Said oversight jurisdiction shall not be exclusive but shall be concurrent with that of the other subcommittees. With respect to matters involving the Internal Revenue Code and other revenue issues, said concurrent jurisdiction shall be shared with the full Committee. Before undertaking any investigation or hearing, the chairman of the Subcommittee on Oversight shall confer with the Chairman of the full Committee and the chairman of any other subcommittee having jurisdiction. The original language of this rule has remained basically unchanged, with a clarification that the jurisdiction of the subcommittee includes all matters within the scope of the committee. The Subcommittee on Oversight is responsible for reviewing and overseeing the effectiveness, adequacy and application of current laws and programs within the full committee's jurisdiction. The subcommittee also has primary responsibility for determining whether these laws are being interpreted properly and administered in a fair and efficient manner by the Federal agencies. The subcommittee also handles matters within the full committee's jurisdiction that require intensive staff investigation. Hearings and oversight activities are conducted on a wide range of subjects as part of the subcommittee's responsibility to evaluate the impact of present-law rules and programs within the committee's jurisdiction. Subcommittee hearing reports and activities result in enactment of legislative changes by the full committee, administrative changes by the appropriate Federal agency, or provide an official record of testimony and information for use by the full committee and the Congress generally. F. JOINT COMMITTEE ON TAXATION The Joint Committee on Taxation was created under the Revenue Act of 1926 (sec. 8001 of the Internal Revenue Code). The committee consists of 10 members, the 5 ranking members of the House Committee on Ways and Means and the 5 ranking members of the Senate Committee on Finance. In each case, three members represent the majority party and two members represent the minority party. The chairmanship of the Joint Committee alternates between the House and the Senate with the chairman of the Ways and Means Committee serving in this capacity during the first year of a Congress, and the chairman of the Committee on Finance serving the next year. The Joint Committee on Taxation is empowered (through Code sec. 8021) to: (1) obtain and inspect income tax returns; (2) hold hearings, subpoena witnesses, require the production of books, papers, and documents, administer oaths, and take testimony; (3) procure such printing and binding as is deemed advisable; and (4) make necessary expenditures. The Internal Revenue Code (sec. 8022) specifically provides that the functions of the Joint Committee are to: (1) investigate the operations and effects of the Federal system of internal revenue taxes; (2) investigate the administration of such taxes by the Internal Revenue Service or any executive department, establishment, or agency charged with their administration; (3) make such other investigations of such taxes as the Committee may deem necessary; (4) investigate measures and methods for simplification of internal revenue taxes, particularly the income tax; and (5) report, from time to time, to the Committee on Finance and the Committee on Ways and Means and, in its discretion, to the Senate or the House of Representatives, or both, the results of its investigations, together with such recommendations as it may deem advisable. The Joint Committee also has the statutory function of reviewing all proposed tax refunds of $1,000,000 and over (Code sec. 6405). In addition, the Joint Committee has statutory authority to conduct post-audit reviews of large deficiency cases. In practice, the chief legislative function of the staff of the Joint Committee has been to serve as a technical staff for the Committee on Ways and Means and for the Committee on Finance, working in this capacity with the professional staffs of those committees. The staff aids the two tax committees in explaining provisions, in writing committee reports, and in the drafting of bills. The Joint Committee on Taxation staff also prepares revenue estimates for the use of the tax committees and the Congress (sec. 273 of the Balanced Budget and Emergency Deficit Control Act of 1985). This responsibility includes the annual preparation of overall revenue estimates as well as revenue estimates on specific measures in which Members of Congress are interested. The Joint Committee on Taxation, since its organization in 1926, has had eight chiefs of staff: Mr. Lovell H. Parker (1926–1938), Mr. Colin F. Stam (1938-1964), Dr. Laurence N. Woodworth (1964-1977), Mr. Bernard M. Shapiro (1977-1981), Mr. Mark L. McConaghy (1981-1983), Mr. David H. Brockway (1983-1987), Mr. Ronald A. Pearlman (1988-1990), and Mr. Harry (Hank) L. Gutman (1991present). Section 3. Role of the Executive Branch A. The Department of the Treasury GENERAL The Department of the Treasury is charged with the responsibility of overseeing the financial interests of the United States. In this role, the Department advises the President on economic, tax, debt management, and fiscal policies; serves as financial agent for the Government; participates in law enforcement; and the production of coins and currency. TAX POLICY The development of tax policy for the executive branch is the responsibility of the Assistant Secretary for Tax Policy. The role of the Secretary is described in the United States Government manual as including: assisting in the development and review of executive tax proposals; analyzing other proposed tax legislation; projecting economic trends; studying the effects of alternative tax measures; preparation of official estimates of Government receipts for the President's budget messages; and participating in tax treaty negotiations. The Assistant Secretary for Tax Policy and members of his staff play a key role throughout all phases of the development of tax policy. The Assistant Secretary, or members of his staff, typically testifies before the tax-writing committees during any hearing on major proposed tax legislation; his staff participates in technical drafting of tax legislation, and provides technical assistance on revenue matters to Members of Congress and their staffs. The following is a table of Assistant Secretaries for Tax Policy since 1961. ASSISTANT SECRETARIES OF THE TREASURY FOR TAX POLICY, 1961 TO PRESENT |