TAX RECOMMENDATIONS OF THE PRESIDENT WEDNESDAY, SEPTEMBER 9, 1970 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 10 a.m., pursuant to notice, in the committee room, Longworth House Office Building, Hon. Wilbur D. Mills (chairman of the committee) presiding. The CHAIRMAN. The committee will please be in order. This morning the committee begins public hearings on three administration revenue-raising proposals, as follows: (1) postponement of scheduled reductions in the automotive and communications services excise taxes for an additional year; (2) an acceleration in the time for payment of gift and estate taxes; and (3) a tax on lead additives used in the refining of gasoline. Without objection, we will include at this point in the record a copy of the press release of August 12, 1970, announcing the hearing, along with a copy of a committee print containing the detailed statements of the Treasury Department relative to the three proposals. (The documents referred to follow:) [Press release of Aug. 12, 1970] CHAIRMAN WILBUR D. MILLS (DEMOCRAT OF ARKANSAS), COMMITTEE ON WAYS AND MEANS, ANNOUNCES PUBLIC HEARINGS ON ADMINISTRATION PROPOSALS FOR (1) EXTENSION OF EXCISE TAXES ON AUTOMOBILES AND COMMUNICATION SERVICES; (2) ACCELERATED PAYMENT OF GIFT AND ESTATE TAXES; AND (3) IMPOSITION OF A TAX ON LEAD ADDITIVES USED IN GASOLINE Chairman Wilbur D. Mills (Democrat of Arkansas), Committee on Ways and Means, U.S. House of Representatives, today announced that, beginning Wednesday, September 9, 1970, hearings would be conducted by the Committee on Ways and Means on the administration proposals for (1) a postponement of scheduled reductions in the automobile and communications services excise taxes for an additional year until January 1, 1972; (2) an acceleration in the required time of payment of gift and estate taxes; and (3) a tax on lead additives used in the refining of gasoline. It will be recalled that on April 3, 1970, the President issued a statement urging Federal salary increases and postal reform, and proposing accelerated collection of estate and gift taxes to provide additional revenue. Subsequently, on April 15, 1970, an executive communication was transmitted to the Congress from the Secretary of the Treasury, the Honorable David M. Kennedy, explaining the administration proposal for accelerated payment of estate and gift taxes. Under the proposal, the filing of a gift tax return and payment of the gift tax would be required on a quarterly basis, effective with respect to transfers made after December 31, 1970. The amount of the gift tax would not be changed. Under the proposed estate tax changes, payment of estate taxes would be accelerated by a requirement that an estimated estate tax be paid 7 months after death, in cases where the value of the estate exceeds $150,000. On May 19, 1970, the administration requested that Congress enact an environmental control tax in the form of an excise tax at the rate of $4.25 per pound of lead, imposed on the sale by the manufacturer or importer of lead additives which are used in motor fuels, effective after June 30, 1970, to provide an incentive for the rapid development of gasoline using low and eventually lead-free content. On July 30, 1970, in an executive communication, the Secretary of the Treasury transmitted to the Congress draft bills on each of the subjects of the hearing. This executive communication, along with the draft bills and certain technical explanations, has been printed and is available in the main committee office of the Committee on Ways and Means. The first witness will be the Secretary of the Treasury, the Honorable David M. Kennedy, to be followed by testimony from other administration officials, including the Honorable Russell E. Train, Chairman of the Council on Environmental Quality. DETAILS FOR THE SUBMISSION OF REQUESTS, ETC. Cutoff Date for Requests To Be Heard.-The cutoff date for requests to be heard is not later than the close of business Wednesday, September 2, 1970. The requests should be submitted to John M. Martin, Jr., chief counsel, Committee on Ways and Means, 1102 Longworth House Office Building, Washington, D.C. 20515. Witnesses will be advised as promptly as possible as to when they have been scheduled to appear. Once the witness has been advised of his date of appearance, it is not possible for this date to be changed. If the witness finds that he cannot appear on that day, he may wish to either substitute another spokesman in his stead or file a written statement for the record of the hearing in lieu of a personal appearance. Coordination of Testimony.-In view of the limited time available to the committee to conduct this hearing, it is requested that all persons and organizations with the same general interest designate one spokesman to represent them so as to conserve the time of the committee and the other witnesses, prevent repetition, and assure that all aspects of the proposals can be given appropriate attention. The committee will be pleased to receive from any interested organization or person a written statement for consideration for inclusion in the printed record of the hearing in lieu of a personal appearance. These statements will be given the same full consideration as though the statements had been presented in person. In such cases, a minimum of three copies of the statement should be submitted by the close of business on Friday, September 18, 1970. Necessity to Allocate Time.-Because of the committee's very heavy legislative schedule which will limit the time available to the committee in which to conduct this hearing, it will be necessary to allocate time to witnesses for the presentation of their direct oral testimony. If the witness wishes to present a long and detailed statement to the committee, it will be necessary for him to confine his oral presentation to a summary of his views while submitting a detailed written statement for the committee members' consideration and for inclusion in the record of the hearing. Contents of Requests To Be Heard.-In order to eliminate repetitious testimony and to properly schedule witnesses, it will be necessary for the request to be heard to specify: (1) The name, address, and capacity in which the witness will appear; (2) The list of persons or organizations the witness represents and in the case of associations or organizations, their total membership and, where possible, a membership list; (3) An indication of whether or not the witness at this time is supporting or opposing the proposal or proposals on which he desires to testify; (4) The amount of time the witness desires in which to present his direct oral testimony or summary thereof (not including answers to questions of committe members); and (5) A topical outline or summary of the comments and recommendations which the witness proposes to make. If a prospective witness has already submitted a request to be heard on any of the subjects covered by this hearing, the request should be resubmitted furnishing the above information and otherwise conforming to the rules set forth for conducting this hearing. Written Statements:-In the case of those persons who are scheduled to appear and testify, it is requested that 75 copies of their written statement be submitted 24 hours in advance of their scheduled appearance, if possible. If it is desired, an additional 75 copies may be submitted for distribution to the press and the interested public on the witness' date of appearance. Persons submitting a minimum of three copies of written statements in lieu of a personal appearance may also, if they desire, submit an additional 75 copies of their statement for distribution to the committee members and the interested departmental and legislative staffs, pending the printing of the hearings, which will contain such written statements along with the oral testimony of those persons who appear in person. An additional 75 copies may be submitted for the press and the interested public, if it is so desired. Format of All Written Statements. To more usefully serve their purpose, all written statements (those for the purpose of a personal appearance and those submitted in lieu of a personal appearance) should contain (1) a summary of comments and recommendations; and (2) subject headings in the appropriate places of the statement itself. 91st Congress} COMMITTEE PRINT COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES TAX RECOMMENDATIONS OF THE Letter from the Secretary of the Treasury, Draft Bills, and Other Material Relating to the President's Recommendations for (1) Extension of Excise Taxes on Automobiles and Communication Services; (2) Accelerated Payment of Gift and Estate Taxes; and (3) Imposition of a Tax on Lead Additives Used in Gasoline SUBMITTED TO THE CONGRESS OF THE UNITED STATES ON JULY 30, 1970 NOTE: This document has been printed for information purposes only, so as to make it generally available. It has not been considered or approved by the Committee on Ways and Means. 48-466 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1970 |