June 4, 1985 H.R. 1460, Anti-Apartheid Act of 1985 A point of order was raised against an amendment to prohibit the entry of South African Krugerrands or gold coins into the customs territory of the United States unless uniform 5 percent fee were paid. The point of order was sustained on the grounds that the fee was equivalent to a tariff uniform charge imposed at ports of entry with proceeds deposited in the Treasury. [99-1, p. H 3762] September 12, 1984 H.R. 5798, Conference Report to accompany the Appropriations, Treasury, Postal Service, Executive Office of the President and certain independent agencies Appropriation, 1985 A point of order was raised against a Senate amendment, No. 92 which amended the existing customs law under the Tariff Act of 1930 with respect to seizures and forfeitures of property by the Customs Service. The point of order was conceded and sustained. [98-2, p. H 9407] September 12, 1984 H.R. 5798, Conference Report to accompany the Appropriations, Treasury, Postal Service, Executive Office of the President and certain independent agencies Appropriation, 1985 A point of order was raised against a Senate amendment, No. 26 which amended the tariff schedule of the United States (TSUS) to provide duty-free importation of a telescope for the University of Arizona. The point of order was conceded and sustained. [98-2, p. H 9396] September 12, 1984 H.R. 5798, Conference Report to accompany the Appropriations, Treasury, Postal Service, Executive Office of the President and certain independent agencies Appropriation, 1985 A point of order was raised against a Senate amendment, No. 24 which provided that "none of the funds appropriated by this act or any other act" shall be used to impose of assess the manufacturer's excise tax on sporting goods. The point of order specifically stated that the term "tax" and "tariff" under House Rule XXI, Clause 5(b), included provisions such as these contained in the amendment which would result less revenue spent than under the operation of existing law. The point of order was conceded and sustained. [98– 2, p. H 9395-9396] October 27, 1983 H.R. 4139, Conference Report to accompany the Appropriations, Treasury, Postal Service, Executive Office of the President and certain independent agencies Appropriation, 1984 The Chair sustained a point of order against section 511 which would have prohibited the Customs Service from enforcing a provision of law permitting agricultural products to enter the United States duty-free under the Caribbean Basin Initiative. The Chair ruled that the effect of the provision was to cause duties on certain imports to be imposed where none is required and to require collections of revenue contrary to existing tariff laws and that, as a result, section 511 was a tariff provision rather than a limitation of appropriated funds. [98-1, p. H 8717] September 21, 1983 H.R. 1036, Community Renewal Employment Act The Chair sustained a point of order against a motion to recommit a bill to a committee without jurisdiction over revenue measures (the Committee on Education and Labor), and to report the bill back to the House with tax provisions relating to "enterprise zones." The motion was ruled to violate House Rule XVI, Clause 7, and House Rule XXI Clause 5(b). [98–1, p. H 7244] 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, so far, have been referred to the Subcommittee on Select Revenue Measures for consideration during the 103rd Congress include the effect of certain tax credits on work incentives in distressed areas; integration of the individual and corporate income taxes; select issues related to a value-added tax; and the taxation of limited liability companies; as well as miscellaneous legislative proposals. In previous 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 low-income 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 Reorga nization 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 in excess of $1,000,000 (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 (19641977), Mr. Bernard (Bob) 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 (1991-present). 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 produces 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 Assistant Secretary, as described in the United States Government manual, is to advise and assist the Secretary and Deputy Secretary in the formulation and execution of domestic and international tax policies and programs. These functions include: analysis of proposed tax legislation and tax programs; projections of economic trends affecting tax bases; studies of the effects of alternative tax measures; preparation of official estimates of Government receipts for the President's annual budget messages; legal advice and analysis on domestic and international tax matters; assistance in the development and review of tax legislation and domestic and international tax regulations and rulings; and participation in international tax treaty negotiations and in maintenance of relations with international organizations on tax matters. 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 a member 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. |