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President's Economic Growth Proposals Hearing PRESIDENT’S ECONOMIC GROWTH PROPOSALS HEARING BEFORE THE COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTH CONGRESS FIRST SESSION MARCH 4, 5, 6, AND 11, 2003 Serial No. 108–19 Printed for the use of the Committee on Ways and Means ( U.S. GOVERNMENT PRINTING OFFICE 91–630 WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate mar 24 2004 23:52 Apr 07, 2004 Jkt 091630 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 E:\HR\OC\91630.XXX 91630 COMMITTEE ON WAYS AND MEANS BILL THOMAS, California, Chairman PHILIP M. CRANE, Illinois CHARLES B. RANGEL, New York E. CLAY SHAW, JR., Florida FORTNEY PETE STARK, California NANCY L. JOHNSON, Connecticut ROBERT T. MATSUI, California 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 PHIL ENGLISH, Pennsylvania LLOYD DOGGETT, Texas J.D. HAYWORTH, Arizona EARL POMEROY, North Dakota JERRY WELLER, Illinois MAX SANDLIN, Texas KENNY C. HULSHOF, Missouri STEPHANIE TUBBS JONES, Ohio SCOTT MCINNIS, Colorado RON LEWIS, Kentucky MARK FOLEY, Florida KEVIN BRADY, Texas PAUL RYAN, Wisconsin ERIC CANTOR, Virginia Allison H. Giles, 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 mar 24 2004 23:52 Apr 07, 2004 Jkt 091630 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 E:\HR\OC\91630.XXX 91630 C O N T E N T S Page Advisory of February 25, 2003, announcing the hearing ..................................... 2 WITNESSES U.S. Department of the Treasury, Hon. John W. Snow, Secretary; accom- panied by Hon. Pamela F. Olson, Assistant Secretary for Tax Policy, and Hon. Richard H. Clarida, Assistant Secretary for Economic Policy ................. 5 American Council of Life Insurers, Hon. Frank Keating ..................................... 129 American Enterprise Institute, James K. Glassman ............................................ 54 American Enterprise Institute, John H. Makin .................................................... 197 Blackburn, Hon. Marsha, a Representative in Congress from the State of Tennessee .............................................................................................................. 224 Bond Market Association, Ronald Stack ................................................................ 152 Brookings Institution, William G. Gale ................................................................. 65 Business Roundtable, John J. Castellani .............................................................. 61 Dreier, Hon. David, a Representative in Congress from the State of Cali- fornia ..................................................................................................................... 215 Employee Benefit Research Institute, Dallas L. Salisbury .................................. 174 Gale, William G., Brookings Institution ................................................................ 65 Glassman, James K., American Enterprise Institute, and TechCentralStation.com ...................................................................................... 54 Godfrey, Jr., Richard H., National Council of State Housing Agencies, and Rhode Island Housing and Mortgage Finance Corporation ............................. 185 Hevesi, Hon. Alan G., New York State Comptroller ............................................. 155 Keating, Hon. Frank, American Council of Life Insurers .................................... 129 Lehman Brothers, Ronald Stack ............................................................................ 152 Makin, John H., American Enterprise Institute ................................................... 197 Morgan Stanley & Company, John H. Schaefer ................................................... 133 National Council of State Housing Agencies, Richard H. Godfrey, Jr. ............... 185 Ney, Hon. Robert W., a Representative in Congress from the State of Ohio ..... 221 Rhode Island Housing and Mortgage Finance Corporation, Richard H. God- frey, Jr. .................................................................................................................. 185 Salisbury, Dallas L., Employee Benefit Research Institute ................................. 174 Securities Industry Association, John H. Schaefer ............................................... 133 Shackelford, Douglas A., University of North Carolina ....................................... 179 Schaefer, John H., Securities Industry Association, and Morgan Stanley & Company ............................................................................................................... 133 Stack, Ronald, Bond Market Association, and Lehman Brothers ....................... 152 TechCentralStation.com, James K. Glassman ...................................................... 54 Upton, Hon. Fred, a Representative in Congress from the State of Michigan ... 225 SUBMISSIONS FOR THE RECORD Advisory Council for Taco Bell Franchisees, joint statement (See listing for International Pizza Hut Franchise Holders Association) ................................. 273 Affordable Housing Tax Credit Coalition, statement ........................................... 235 Alliance for Small Business Investment in Technology, Arlington, VA, state- ment ...................................................................................................................... 238 American Forest & Paper Association, statement and attachments ................... 239 American Gas Association, statement .................................................................... 246 American Insurance Association, statement ......................................................... 250 Association of Kentucky Fried Chicken Franchisees, Inc., joint statement (See listing for International Pizza Hut Franchise Holders Association) ....... 273 Association of Long John Silvers Franchisees, Inc., joint statement (See list- ing for International Pizza Hut Franchise Holders Association) ..................... 273 ASPA, Arlington, VA, statement ............................................................................ 252 iii VerDate mar 24 2004 23:52 Apr 07, 2004 Jkt 091630 PO 00000 Frm 00003 Fmt 0486 Sfmt 0486 E:\HR\OC\91630.XXX 91630 Page Baroody, Michael E., National Association of Manufacturers, statement .......... 308 Canavan, Robert, Rebuild America’s Schools, letter ............................................. 323 Edison Electric Institute, statement ...................................................................... 255 Enterprise Foundation, Columbia, MD, F. Barton Harvey III, statement ......... 258 ESOP Association, J. Michael Keeling, letter ....................................................... 261 Fashion Institute of Design and Merchandising, Norine Fuller, letter .............. 265 Governmental Affairs and Services, Richard P. Trotter, and Tatum CFO Partners, LLP, Atlanta, GA, Douglass M. Tatum, joint statement and at- tachments ............................................................................................................. 328 Hardin, Charles G., RetireSafe.org, Arlington, VA, statement ............................ 325 Harvey III, F. Barton, Enterprise Foundation, Columbia, MD, statement ........ 258 Hoekstra, Hon. Peter, a Representative in Congress from the State of Michi- gan, statement ...................................................................................................... 267 Investment Company Institute, statement and attachment ................................ 269 International Pizza Hut Franchise Holders Association, Advisory Council for Taco Bell Franchisees, Association of Kentucky Fried Chicken Franchisees, Inc., National A&W Franchisees Association, and Association of Long John Silvers Franchisees, Inc., joint statement .......................................................... 273 Keeling, J. Michael, ESOP Association, letter ...................................................... 261 Kerrigan, Karen, Small Business Survival Committee, letter ............................. 327 Kukura III, John F., Columbus, OH, letter ........................................................... 275 Lawlor, Sr. Brigid, National Advocacy Center of the Sisters of Good Shepherd, Silver Spring, MD, letter ..................................................................................... 297 Mortgage Bankers Association of America, statement and attachments ............ 276 National A&W Franchisees Association, joint
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