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MICROCOMP Output File REDUCING THE TAX BURDEN HEARINGS BEFORE THE COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTH CONGRESS SECOND SESSION JANUARY 28, FEBRUARY 4 AND 12, 1998 Serial 105±97 Printed for the use of the Committee on Ways and Means ( VerDate 11-SEP-98 10:40 Mar 29, 2000 Jkt 060897 PO 00000 Frm 00001 Fmt 6011 Sfmt 5011 D:\KDOCS\60897 WAYS3 PsN: WAYS3 REDUCING THE TAX BURDEN -:- 2000 VerDate 11-SEP-98 10:40 Mar 29, 2000 Jkt 060897 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 D:\KDOCS\60897 WAYS3 PsN: WAYS3 REDUCING THE TAX BURDEN HEARINGS BEFORE THE COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTH CONGRESS SECOND SESSION JANUARY 28, FEBRUARY 4 AND 12, 1998 Serial 105±97 Printed for the use of the Committee on Ways and Means ( U.S. GOVERNMENT PRINTING OFFICE 60±897 CC WASHINGTON : 2000 VerDate 11-SEP-98 10:40 Mar 29, 2000 Jkt 060897 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 D:\KDOCS\60897 WAYS3 PsN: WAYS3 COMMITTEE ON WAYS AND MEANS BILL ARCHER, Texas, Chairman PHILIP M. CRANE, Illinois CHARLES B. RANGEL, New York BILL THOMAS, California FORTNEY PETE STARK, California E. CLAY SHAW, JR., Florida ROBERT T. MATSUI, California NANCY L. JOHNSON, Connecticut BARBARA B. KENNELLY, Connecticut JIM BUNNING, Kentucky WILLIAM J. COYNE, Pennsylvania AMO HOUGHTON, New York SANDER M. LEVIN, Michigan WALLY HERGER, California BENJAMIN L. CARDIN, Maryland JIM MCCRERY, Louisiana JIM MCDERMOTT, Washington DAVE CAMP, Michigan GERALD D. KLECZKA, Wisconsin JIM RAMSTAD, Minnesota JOHN LEWIS, Georgia JIM NUSSLE, Iowa RICHARD E. NEAL, Massachusetts SAM JOHNSON, Texas MICHAEL R. MCNULTY, New York JENNIFER DUNN, Washington WILLIAM J. JEFFERSON, Louisiana MAC COLLINS, Georgia JOHN S. TANNER, Tennessee ROB PORTMAN, Ohio XAVIER BECERRA, California PHILIP S. ENGLISH, Pennsylvania KAREN L. THURMAN, Florida JOHN ENSIGN, Nevada JON CHRISTENSEN, Nebraska WES WATKINS, Oklahoma J.D. HAYWORTH, Arizona JERRY WELLER, Illinois KENNY HULSHOF, Missouri A.L. SINGLETON, Chief of Staff JANICE MAYS, Minority Chief Counsel Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public hearing records of the Committee on Ways and Means are also published in electronic form. The printed hearing record remains the official version. Because electronic submissions are used to prepare both printed and electronic versions of the hearing record, the process of converting between various electronic formats may introduce unintentional errors or omissions. Such occur- rences are inherent in the current publication process and should diminish as the process is further refined. ii VerDate 11-SEP-98 10:40 Mar 29, 2000 Jkt 060897 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 D:\KDOCS\60897 WAYS3 PsN: WAYS3 C O N T E N T S Page Advisories announcing the hearing ........................................................................ 2 WITNESSES Congressional Budget Office, June E. O'Neill, Director ....................................... 202 American Council for Capital Formation, Mark Bloomfield ................................ 264 American Family Business Institute, Harold I. Apolinsky .................................. 112 American Farm Bureau Federation: Carl B. Loop, Jr ................................................................................................ 109 Dean Kleckner .................................................................................................. 305 American Forest & Paper Association, Douglas P. Stinson ................................. 125 American Institute of Certified Public Accountants: David Lifson ...................................................................................................... 69 Michael Mares .................................................................................................. 170 American Tree Farm System, Douglas P. Stinson ................................................ 125 Apolinsky, Harold I., American Family Business Institute, and Small Busi- ness Council of America ...................................................................................... 112 Associated General Contractors of America, Richard Forrestel, Jr ..................... 104 Bartlett, Bruce R., National Center for Policy Analysis ....................................... 75 Beach, William W., Heritage Foundation .............................................................. 137 Blair, Robert A., S Corporation Association .......................................................... 237 Bloomfield, Mark, American Council for Capital Formation ............................... 264 CATO Institute, Stephen Moore ............................................................................. 230 Clements, Christopher and Kimberly, National Beer Wholesalers Association, and Golden Eagle Distributors, Inc .................................................................... 98 Cold Spring Construction Company, Richard Forrestel, Jr ................................. 104 Communicating for Agriculture, Wayne Nelson ................................................... 243 Cowlitz Ridge Tree Farm, Douglas P. Stinson ...................................................... 125 Cox, Hon. Christopher, a Representative in Congress from the State of Cali- fornia ..................................................................................................................... 93 Entin, Stephen J., Institute for Research on the Economics of Taxation ........... 276 Feenberg, Daniel, National Bureau of Economic Research .................................. 65 Florida Farm Bureau Federation, Carl B. Loop, Jr .............................................. 109 Forest Industries Council on Taxation, Douglas P. Stinson ................................ 125 Forrestel, Richard, Jr., Associated General Contractors of America, and Cold Spring Construction Company ............................................................................ 104 Foster, J.D., Tax Foundation .................................................................................. 157 Golden Eagle Distributors, Inc., Christopher and Kimberly Clements ............... 98 Graetz, Michael J., Yale Law School ...................................................................... 48 Hannay, Roger, National Association of Manufacturers, and Hannay Reels, Inc .......................................................................................................................... 134 Hartman, David A., Institute for Budget & Tax Limitation, and Hartland Banks, N.A ............................................................................................................ 309 Herger, Hon. Wally, a Representative in Congress from the State of Califor- nia .......................................................................................................................... 15 Hulshof, Hon. Kenny C., a Representative in Congress from the State of Missouri ................................................................................................................ 253 Institute for Budget & Tax Limitation, David A. Hartman ................................. 309 Institute for Research on the Economics of Taxation, Stephen J. Entin ............ 276 Kelly, W. Thomas, Savers & Investors League ..................................................... 326 Kies, Kenneth J., Price Waterhouse LLP .............................................................. 187 Kleckner, Dean, American Farm Bureau Federation ........................................... 305 Kucinich, Hon. Dennis J., a Representative in Congress from the State of Ohio ....................................................................................................................... 256 Lifson, David, American Institute of Certified Public Accountants .................... 69 iii VerDate 11-SEP-98 10:40 Mar 29, 2000 Jkt 060897 PO 00000 Frm 00005 Fmt 0486 Sfmt 0486 D:\KDOCS\60897 WAYS3 PsN: WAYS3 Page Loop, Carl B., Jr., American Farm Bureau Federation, Florida Farm Bureau Federation, and Loop's Nursery and Greenhouses, Inc .................................... 109 Mallory, Sharon, and Darryl Pierce, Straughn, IN ............................................... 19 Mares, Michael, American Institute of Certified Public Accountants ................. 170 McCrery, Hon. Jim, a Representative in Congress from the State of Louisi- ana ......................................................................................................................... 91 McIntosh, Hon. David M., a Representative in Congress from the State of Indiana .................................................................................................................. 18 Mizell, Jeannine, U.S. Chamber of Commerce, and Mizell Lumber and Hard- ware Company, Inc .............................................................................................. 128 Moore, Stephen, CATO Institute ............................................................................ 230 National Association of Manufacturers, Roger Hannay ....................................... 134 National Beer Wholesalers Association, Christopher and Kimberly Clements .. 98 National Bureau of Economic Research, Daniel Feenberg ................................... 65 National Center for Policy Analysis, Bruce R. Bartlett ........................................ 75 National Society of Accountants, and National Tax Consultants, Inc., William Stevenson .............................................................................................................. 281 Nelson, Wayne, Communicating
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