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AN ACT MAKING APPROPRIATIONS FOR THE TREASURY DEPARTMENT,
THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE OFFICE OF
THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES FOR THE
FISCAL YEAR ENDING SEPTEMBER 30, 2001, AND FOR OTHER PUR-
POSES

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For sale by the U.S. Government Printing Office

Superintendent of Documents, Congressional Sales Office, Washington, DC 20402

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TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS FOR FISCAL YEAR 2001

THURSDAY, MARCH 23, 2000

U.S. SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, DC.

The subcommittee met at 10 a.m., in room SD-124, Dirksen Senate Office Building, Hon. Ben Nighthorse Campbell (chairman) presiding.

Present: Senators Campbell, Stevens, and Dorgan.

DEPARTMENT OF THE TREASURY

INTERNAL REVENUE SERVICE

STATEMENT OF CHARLES ROSSOTTI, COMMISSIONER

OPENING REMARKS

Senator CAMPBELL. Good morning, the committee will be in order. This morning we will be talking with the Commissioner of the Internal Revenue Service, Mr. Charles Rossotti. Welcome, Commissioner. Glad to see you again.

The IRS is requesting a 9 percent increase for fiscal year 2001, almost $729 million more than this year. Over half of that is for inflationary increases to allow the agency to at least maintain current levels. The Commissioner has requested $119 million as the next installment for the information technology investments account. Congress has already provided $506 million for this computer modernization project with stringent requirements for the release of funds. We have approved the release of only $68 million so far and we are reviewing a third request to release $176.3 million. I am sure we will be talking about this in greater detail this morning.

The Commissioner is also asking for $42 million more to reorganize the agency. Commissioner, the agency has come a long way, and we are very proud of it. I also have no doubt that the ongoing reorganization needs to be done, but I would like to know how they are going to spend the $140 million provided so far.

Last, but certainly not least, the Commissioner is asking for a total of $217 million in supplemental and regular appropriations for staffing tax administration for balance and equity, also known as STABLE. As I understand it, this initiative would provide almost 2,000 additional staff throughout the IRS. Each of these re

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