DOCSLIB.ORG

Historical Development and Present Law of the Federal Tax Exemption for Charities and Other Tax-Exempt Organizations

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Historical Development and Present Law of the Federal Tax Exemption for Charities and Other Tax-Exempt Organizations HISTORICAL DEVELOPMENT AND PRESENT LAW OF THE FEDERAL TAX EXEMPTION FOR CHARITIES AND OTHER TAX-EXEMPT ORGANIZATIONS Scheduled for a Public Hearing Before the HOUSE COMMITTEE ON WAYS AND MEANS on April 20, 2005 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION April 19, 2005 JCX-29-05 CONTENTS Page INTRODUCTION .......................................................................................................................... 1 EXECUTIVE SUMMARY ............................................................................................................ 2 I. OVERVIEW OF ORGANIZATIONS EXEMPT FROM FEDERAL INCOME TAX ... 18 A. Size and Growth of the Exempt and Charitable Sector ............................................ 18 B. Reasons for Tax Exemption...................................................................................... 27 C. Common Tax Law Features of Exempt Organizations............................................. 37 II. HISTORY AND EVOLUTION OF THE EXEMPT STATUS OF SECTION 501(C)(3) ORGANIZATIONS......................................................................................... 45 A. In General.................................................................................................................. 45 B. Summary of Threshold Requirements of Charitable Status ..................................... 48 C. Exempt Purposes of Section 501(c)(3) Organizations.............................................. 61 D. Public Charity or Private Foundation ....................................................................... 82 E. General History of the Unrelated Business Income Tax ........................................ 100 F. Related Organization Structures Involving Exempt Organizations........................ 110 III. SPECIFIC TYPES OF CHARITABLE ORGANIZATIONS AND EVOLVING STANDARDS OF CHARITY ....................................................................................... 122 A. Overview................................................................................................................. 122 B. Charitable Hospitals................................................................................................ 123 C. Elder Care Facilities................................................................................................ 132 D. Credit Counseling Organizations............................................................................ 135 E. Low-income Housing..............................................................................................139 F. Environmental Organizations................................................................................. 142 G. College Sports......................................................................................................... 145 IV. DATA ON EXEMPT SECTOR AND CHARITABLE ORGANIZATIONS................ 148 V. ADVANTAGES OF TAX-EXEMPT STATUS FOR SECTION 501(C)(3) ORGANIZATIONS AND SUMMARY OF CRS REPORT ......................................... 155 VI. DESCRIPTION OF EXEMPT ORGANIZATIONS...................................................... 159 VII. APPENDIX..................................................................................................................... 194 ii INTRODUCTION The House Committee on Ways and Means has scheduled a public hearing on April 20, 2005, on “An Overview of the Tax-Exempt Sector.” This document,1 prepared by the staff of the Joint Committee on Taxation, provides a description of the historical development and present law of the Federal tax exemption for charities and other tax-exempt organizations.2 This document begins with an executive summary. Following the executive summary, Part I of this document provides an overview of organizations exempt from Federal income tax, including statistical information about the sector, reasons for tax exemption, and common tax law features of exempt organizations. Part II describes the history and evolution of the exempt status of organizations described in section 501(c)(3), including a discussion of the meaning of exempt purposes described in section 501(c)(3), the distinction between private foundations and public charities, a general history of the unrelated business income tax, and an overview of related organization structures used by exempt organizations. Part III contains a description of several types of organizations that are described in section 501(c)(3), including a discussion of the change in legal standards over time. Organizations described here are hospitals, elder care facilities, credit counseling organizations, low-income housing organizations, environmental organizations, and college sports organizations. Part IV provides statistical information showing the size and growth of the charitable and exempt sectors. Part V is an overview of tax and nontax benefits of exemption for section 501(c)(3) organizations and a summary of a Congressional Research Service document (included as an Appendix to this pamphlet) that lists the benefits of charitable exemption under Federal and certain State laws. Part VI is a description, including the legislative history, of the many various organizations that may qualify for tax-exempt status. 1 This document may be cited as follows: Joint Committee on Taxation, Historical Development and Present Law of the Federal Tax Exemption for Charities and Other Tax- Exempt Organizations (JCX-29-05), April 19, 2005. 2 Unless otherwise indicated, all section references are to the Internal Revenue Code of 1986, as amended. 1 EXECUTIVE SUMMARY A. Overview of Organizations Exempt from Federal Income Tax Size and growth of the exempt sector generally Since the inception of the Federal income tax, the Congress has exempted certain types of entities from income taxation. Many exempt entities, such as charitable organizations, are familiar. Yet charitable organizations are but one type of exempt entity. The benefit of tax exemption is extended to groups as diverse as social welfare organizations, title holding companies, fraternal organizations, small insurance companies, credit unions, cooperative organizations, and cemetery companies. The statistics reported in this document do not include churches, which are not required to file returns with the Internal Revenue Service (“IRS”), and are not recorded in the IRS Master File of Exempt Organizations. There are now 28 different types of organizations listed in the main exemption section of the Code (section 501), and numerous other exemptions provided elsewhere. The number and financial holdings of these organizations are large and have grown significantly since record- keeping began in 1975. The revenue reported to the IRS by such organizations has increased from approximately $0.3 trillion (in 2001 dollars) in 1975 to about $1.2 trillion in 2001. The 2001 revenue represented approximately 12.2 percent of gross domestic product in that year. The assets reported by the organizations have similarly increased, from approximately $0.5 trillion (in 2001 dollars) in 1975 to almost $2.9 trillion in 2001. While a large majority of exempt entities fall into familiar categories, such as charitable organizations, there are also a fair number of organizations that fall into more obscure categories. Eight categories have fewer than 150 qualifying entities each, with four categories having fewer than five entities each. Size and growth of the charitable sector Charitable organizations described in section 501(c)(3) represent by far the largest category of exempt organizations, comprising about two-thirds of all exempt organizations. The 2004 IRS Master File of Exempt Organizations shows 1,010,365 charitable organizations. In terms of asset size and revenues, the share of charitable organizations in the exempt sector is similar. In 2001, the total revenue of charitable organizations (including private foundations but not including churches and other organizations not required to file) was about 9.3 percent of gross domestic product. Among charitable organizations not including churches, the largest categories of organizations are hospitals and post-secondary educational organizations. In 2001, hospitals held 29 percent of total assets and collected 42 percent of total revenues in the charitable sector. Colleges and universities held 21 percent of the total assets and collected 11 percent of total revenue. There has been significant recent growth in the number and size of charitable organizations. The number of such organizations has increased from 259,523 in 1976 to 1,010,365 in 2004, an increase of 289 percent. The total asset value and revenues (in 2001 2 dollars) reported to the IRS by charitable organizations similarly increased from about $360 billion and $155 billion, respectively, in 1975, to over $2 trillion and about $942 billion, respectively, in 2001. The growth in the number and size of charitable organizations has been accompanied by growth in the amount of charitable deductions. In 1975, the total amount claimed as charitable deductions was about $43.7 billion whereas in 2002, the total was about $145 billion (both numbers in constant 2000 dollars). B. Reasons for Tax Exemption There is no unifying theme or singular principle that explains tax exemption for the many diverse organizations in the exempt sector, although there are some factors that may help to explain the exemption for certain of them. Over the years, Congress has granted tax exemption only to certain types of organizations. As an initial matter, not all “nonprofit” organizations
Load more

Recommended publications
  • A Brief Description of Federal Taxes
    A BRIEF DESCRIFTION OF FEDERAL TAXES ON CORPORATIONS SINCE i86i WMUAu A. SU. ND* The cost to the federal government of financing the Civil War created a need for increased revenue, and Congress in seeking new sources tapped theretofore un- touched corporate and individual profits. The Act of July x, x862, amending the Act of August 5, x86i, is the first law under which any federal income tax was collected and is considered to be largely the basis of our present system of income taxation. The tax acts of the Civil War period contained provisions imposing graduated taxes upon the gain, profits, or income of every person2 and providing that corporate profits, whether divided or not, should be taxed to the stockholders. Certain specified corporations, such as banks, insurance companies and transportation companies, were taxed at the rate of 5%, and their stockholders were not required to include in income their pro rata share of the profits. There were several tax acts during and following the War, but a description of the Act of 1864 will serve to show the general extent of the coiporate taxes of that period. The tax or "duty" was imposed upon all persons at the rate of 5% of the amount of gains, profits and income in excess of $6oo and not in excess of $5,000, 7Y2/ of the amount in excess of $5,ooo and not in excess of -$o,ooo, and io% of the amount in excess of $Sxooo.O This tax was continued through the year x87i, but in the last two years of its existence was reduced to 2/l% upon all income.
    [Show full text]
  • The Disclosure of State Corporate Income Tax Data: Turning the Clock Back to the Future Richard Pomp University of Connecticut School of Law
    University of Connecticut OpenCommons@UConn Faculty Articles and Papers School of Law Spring 1993 The Disclosure of State Corporate Income Tax Data: Turning the Clock Back to the Future Richard Pomp University of Connecticut School of Law Follow this and additional works at: https://opencommons.uconn.edu/law_papers Part of the Taxation-Federal Commons, and the Taxation-State and Local Commons Recommended Citation Pomp, Richard, "The Disclosure of State Corporate Income Tax Data: Turning the Clock Back to the Future" (1993). Faculty Articles and Papers. 121. https://opencommons.uconn.edu/law_papers/121 +(,121/,1( Citation: 22 Cap. U. L. Rev. 373 1993 Content downloaded/printed from HeinOnline (http://heinonline.org) Mon Aug 15 17:19:23 2016 -- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and Conditions of the license agreement available at http://heinonline.org/HOL/License -- The search text of this PDF is generated from uncorrected OCR text. -- To obtain permission to use this article beyond the scope of your HeinOnline license, please use: https://www.copyright.com/ccc/basicSearch.do? &operation=go&searchType=0 &lastSearch=simple&all=on&titleOrStdNo=0198-9693 THE DISCLOSURE OF STATE CORPORATE INCOME TAX DATA: TURNING THE CLOCK BACK TO THE FUTURE RICHARD D. POMP* INTRODUCTION .............................................. 374 I. THE DISCLOSURE OF INCOME TAX INFORMATION AT THE FEDERAL LEVEL: AN HISTORICAL PERSPECTIVE .......... 378 A. The Civil War Income Taxes: 1861-1872 ............... 379 B. The 1894 Income Tax ................................ 384 C. The Tariff Act of 1909 ............................... 386 D . 1913-1923 .......................................... 389 E. The 1924 and 1926 Acts ............................... 391 F. The Pink Slip Provisions: 1934-1935 ................
    [Show full text]
  • The Death of the Income Tax (Or, the Rise of America's Universal Wage
    Indiana Law Journal Volume 95 Issue 4 Article 5 Fall 2000 The Death of the Income Tax (or, The Rise of America’s Universal Wage Tax) Edward J. McCaffery University of Southern California;California Institute of Tecnology, [email protected] Follow this and additional works at: https://www.repository.law.indiana.edu/ilj Part of the Estates and Trusts Commons, Law and Economics Commons, Taxation-Federal Commons, Taxation-Federal Estate and Gift Commons, Taxation-State and Local Commons, and the Tax Law Commons Recommended Citation McCaffery, Edward J. (2000) "The Death of the Income Tax (or, The Rise of America’s Universal Wage Tax)," Indiana Law Journal: Vol. 95 : Iss. 4 , Article 5. Available at: https://www.repository.law.indiana.edu/ilj/vol95/iss4/5 This Article is brought to you for free and open access by the Law School Journals at Digital Repository @ Maurer Law. It has been accepted for inclusion in Indiana Law Journal by an authorized editor of Digital Repository @ Maurer Law. For more information, please contact [email protected]. The Death of the Income Tax (or, The Rise of America’s Universal Wage Tax) EDWARD J. MCCAFFERY* I. LOOMINGS When Representative Alexandria Ocasio-Cortez, just weeks into her tenure as America’s youngest member of Congress, floated the idea of a sixty or seventy percent top marginal tax rate on incomes over ten million dollars, she was met with a predictable mixture of shock, scorn, and support.1 Yet there was nothing new in the idea. AOC, as Representative Ocasio-Cortez is popularly known, was making a suggestion with sound historical precedent: the top marginal income tax rate in America had exceeded ninety percent during World War II, and stayed at least as high as seventy percent until Ronald Reagan took office in 1981.2 And there is an even deeper sense in which AOC’s proposal was not as radical as it may have seemed at first.
    [Show full text]
  • A Requiem for the Rollover Rule: Capital Gains, Farmland Loss, and the Law of Unintended Consequences
    University of Arkansas ∙ System Division of Agriculture [email protected] ∙ (479) 575-7646 An Agricultural Law Research Article A Requiem for the Rollover Rule: Capital Gains, Farmland Loss, and the Law of Unintended Consequences by Christine A. Klein Originally published in WASHINGTON & LEE LAW REVIEW 55 WASH. & LEE L. REV. 403 (1998) www.NationalAgLawCenter.org A Requiem for the Rollover Rule: Capital Gains, Farmland Loss, and the Law of Unintended Consequences Christine A. Klein' Table ofContents I. Introduction........................................ 404 II. The "American Dream" Narrative: Tax Preferences for Home Owners .................................... .. 407 A. The Home Sale Preference of Former § 1034 . .. 410 B. The Ambivalent Taxation of Capital Gains 412 III. The Restrictive Subtext: The Rollover Rule 414 A. The Rollover Mechanism , 416 B. Converting the Involuntary Conversion Provision 420 C. A Case of Mistaken Identity: Is a Home Like a Ship? . .. 422 IV. The Revenue Act of 1951 424 A. War and Taxes ................................ .. 425 B. From Hot War to Cold War. ..................... .. 427 C. A Bipartisan Oasis: The Home Sale Preference . .. 432 V. The Unintended Consequences ofthe Rollover Rule: Three Hypotheses 433 A. Over-Investment in Housing 434 B. Inflation of Housing Prices 437 C. Conversion ofFarmland into Suburban Housing 438 VI. A Tale of Two Counties: A Case Study 439 A. Santa Clara County, California: 1990-96 441 B. Boulder County, Colorado: 1990-96................. 443 I. Over-Investment in Housing 446 * Associate Professor of Law, Detroit College of Law at Michigan State University. LL.M., Columbia University; J.D., University of Colorado; B.A., Middlebury College. I am grateful to Michael C.
    [Show full text]
  • Ways and Means Committee's Request for the Former President's
    (Slip Opinion) Ways and Means Committee’s Request for the Former President’s Tax Returns and Related Tax Information Pursuant to 26 U.S.C. § 6103(f )(1) Section 6103(f )(1) of title 26, U.S. Code, vests the congressional tax committees with a broad right to receive tax information from the Department of the Treasury. It embod- ies a long-standing judgment of the political branches that the tax committees are uniquely suited to receive such information. The committees, however, cannot compel the Executive Branch to disclose such information without satisfying the constitutional requirement that the information could serve a legitimate legislative purpose. In assessing whether requested information could serve a legitimate legislative purpose, the Executive Branch must give due weight to Congress’s status as a co-equal branch of government. Like courts, therefore, Executive Branch officials must apply a pre- sumption that Legislative Branch officials act in good faith and in furtherance of legit- imate objectives. When one of the congressional tax committees requests tax information pursuant to section 6103(f )(1), and has invoked facially valid reasons for its request, the Executive Branch should conclude that the request lacks a legitimate legislative purpose only in exceptional circumstances. The Chairman of the House Ways and Means Committee has invoked sufficient reasons for requesting the former President’s tax information. Under section 6103(f )(1), Treasury must furnish the information to the Committee. July 30, 2021 MEMORANDUM OPINION FOR THE ACTING GENERAL COUNSEL DEPARTMENT OF THE TREASURY The Internal Revenue Code requires the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) to keep tax returns and related information confidential, 26 U.S.C.
    [Show full text]
  • Mayo Clinic, a Minnesota Corporation
    United States Court of Appeals For the Eighth Circuit ___________________________ No. 19-3189 ___________________________ Mayo Clinic, a Minnesota Corporation lllllllllllllllllllllPlaintiff - Appellee v. United States of America lllllllllllllllllllllDefendant - Appellant ____________ Appeal from United States District Court for the District of Minnesota ____________ Submitted: October 20, 2020 Filed: May 13, 2021 ____________ Before SMITH, Chief Judge, LOKEN and GRUENDER, Circuit Judges. ____________ LOKEN, Circuit Judge. Mayo Clinic (“Mayo”), a Minnesota nonprofit corporation, oversees healthcare system subsidiaries and operates the Mayo Clinic College of Medicine and Science (“Mayo College”). Mayo is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (IRC), 26 U.S.C. § 501(c)(3).1 After an audit in 2009, the Internal Revenue Service concluded that Mayo owed unrelated business income tax (“UBIT”) on certain investment income it received from the investment pool it manages for its subsidiaries. The IRS issued a Notice of Proposed Adjustment and reaffirmed its position in a 2013 Technical Advice Memorandum. At issue is $11,501,621 in UBIT for tax years 2003, 2005-2007, and 2010-2012. Mayo2 paid the tax and brought this refund action. The issue, briefly stated, is whether Mayo is a “qualified organization” exempted from paying UBIT on “unrelated debt-financed income” under IRC § 514(c)(9)(C)(i). Qualified organizations include “an organization described in section 170(b)(1)(A)(ii) . .” Section 170(b)(1)(A)(ii) describes “an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.” The IRS denied Mayo the exemption because it is not an “educational organization” as defined in 26 C.F.R.
    [Show full text]
  • Sixteenth Amendment
    The Sixteenth Amendment 100 Years of the Federal Income Tax “The hardest thing in the world to understand is the income tax.” ~ Albert Einstein Americans have now been grappling with the income tax for 100 years. Since the 16th Amendment was ratified by Congress in 1913, U.S. citizens have been attempting to accurately complete Form 1040. While the annual income tax exercise is fresh in our minds, we thought it would be informative and somewhat gratifying to look back at the process that brought us here, and the tax rates that confronted tax payers on this anniversary in prior years. History of the Sixteenth Amendment Prior to 1913, the main source of revenue for the federal government was tariffs. Tariffs, it was argued, disproportionately affected the poor and were unpredictable. It was felt by many that the solution was a federal income tax. The resolution proposing the Sixteenth Amendment was passed by Congress on July 12, 1909 and ratified in 1913. The Amendment stated “Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.” What followed was The Revenue Act of 1913, also called the Tariff Act, since its purpose was to lower basic tariff rates and compensate for lost revenues by imposing a federal income tax. The first tax filing in 1914 The federal income tax started at 1% on personal income of more than $3,000 (over $71,000 in today’s dollars1) for single filers or $4,000 for couples, with a surtax of 6% on incomes over $500,000.
    [Show full text]
  • RESTORING the LOST ANTI-INJUNCTION ACT Kristin E
    COPYRIGHT © 2017 VIRGINIA LAW REVIEW ASSOCIATION RESTORING THE LOST ANTI-INJUNCTION ACT Kristin E. Hickman* & Gerald Kerska† Should Treasury regulations and IRS guidance documents be eligible for pre-enforcement judicial review? The D.C. Circuit’s 2015 decision in Florida Bankers Ass’n v. U.S. Department of the Treasury puts its interpretation of the Anti-Injunction Act at odds with both general administrative law norms in favor of pre-enforcement review of final agency action and also the Supreme Court’s interpretation of the nearly identical Tax Injunction Act. A 2017 federal district court decision in Chamber of Commerce v. IRS, appealable to the Fifth Circuit, interprets the Anti-Injunction Act differently and could lead to a circuit split regarding pre-enforcement judicial review of Treasury regulations and IRS guidance documents. Other cases interpreting the Anti-Injunction Act more generally are fragmented and inconsistent. In an effort to gain greater understanding of the Anti-Injunction Act and its role in tax administration, this Article looks back to the Anti- Injunction Act’s origin in 1867 as part of Civil War–era revenue legislation and the evolution of both tax administrative practices and Anti-Injunction Act jurisprudence since that time. INTRODUCTION .................................................................................... 1684 I. A JURISPRUDENTIAL MESS, AND WHY IT MATTERS ...................... 1688 A. Exploring the Doctrinal Tensions.......................................... 1690 1. Confused Anti-Injunction Act Jurisprudence .................. 1691 2. The Administrative Procedure Act’s Presumption of Reviewability ................................................................... 1704 3. The Tax Injunction Act .................................................... 1707 B. Why the Conflict Matters ....................................................... 1712 * Distinguished McKnight University Professor and Harlan Albert Rogers Professor in Law, University of Minnesota Law School.
    [Show full text]
  • The Joint Committee on Taxation and Codification of the Tax Laws
    The Joint Committee on Taxation and Codification of the Tax Laws George K. Yin Edwin S. Cohen Distinguished Professor of Law and Taxation University of Virginia Former Chief of Staff, Joint Committee on Taxation February 2016 Draft prepared for the United States Capitol Historical Society’s program on The History and Role of the Joint Committee: the Joint Committee and Tax History Comments welcome. THE UNITED STATES CAPITOL HISTORICAL SOCIETY THE JCT@90 WASHINGTON, DC FEBRUARY 25, 2016 The Joint Committee on Taxation and Codification of the Tax Laws George K. Yin* February 11, 2016 preliminary draft [Note to conference attendees and other readers: This paper describes the work of the staff of the Joint Committee on Internal Revenue Taxation (JCT)1 that led to codification of the tax laws in 1939. I hope eventually to incorporate this material into a larger project involving the “early years” of the JCT, roughly the period spanning the committee’s creation in 1926 and the retirement of Colin Stam in 1964. Stam served on the staff for virtually this entire period; he was first hired (on a temporary basis) in 1927 as assistant counsel, became staff counsel in 1929, and then served as Chief of Staff from 1938 until 1964. He is by far the longest‐serving Chief of Staff the committee has ever had. The conclusions in this draft are still preliminary as I have not yet completed my research. I welcome any comments or questions.] Possibly the most significant accomplishment of the JCT and its staff during the committee’s “early years” was the enactment of the Internal Revenue Code of 1939.
    [Show full text]
  • Measuring Tax Burden: a Historical Perspective
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth Volume Author/Editor: Ernst R. Berndt and Jack E. Triplett, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-04384-3 Volume URL: http://www.nber.org/books/bern91-1 Conference Date: May 12-14, 1988 Publication Date: January 1991 Chapter Title: Measuring Tax Burden: A Historical Perspective Chapter Author: B. K. Atrostic, James R. Nunns Chapter URL: http://www.nber.org/chapters/c5981 Chapter pages in book: (p. 343 - 420) 11 Measuring Tax Burden: A Historical Perspective B. K. Atrostic and James R. Nunns 11.1 Introduction 11.1.1 Overview Measures of tax burden are indicators of how well tax policy meets one of its primary goals, equitably raising the revenues needed to run government. Equity has two aspects. The first, vertical equity, concerns the way taxes are distributed among taxpayers with different abilities to pay. The second, hori- zontal equity, concerns the way taxes are distributed among taxpayers with the same ability to pay. Tax burden measures thus answer broad economic and social questions about the effect of tax policy on the distribution of income and wealth. The history of these measures incorporates the histories of economic and world affairs, major tax and economic policy legislation, intellectual and so- cial movements, and data and technological innovation in the fifty years since the first meeting of the Conference on Research in Income and Wealth.
    [Show full text]
  • Line Item Veto and the Tax Legislative Process: a Futile Effort at Deficit Reduction, but a Step Toward Tax Integrity Gordon T
    Hastings Law Journal Volume 49 | Issue 1 Article 1 1-1997 Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity Gordon T. Butler Follow this and additional works at: https://repository.uchastings.edu/hastings_law_journal Part of the Law Commons Recommended Citation Gordon T. Butler, Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity, 49 Hastings L.J. 1 (1997). Available at: https://repository.uchastings.edu/hastings_law_journal/vol49/iss1/1 This Article is brought to you for free and open access by the Law Journals at UC Hastings Scholarship Repository. It has been accepted for inclusion in Hastings Law Journal by an authorized editor of UC Hastings Scholarship Repository. For more information, please contact [email protected]. The Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity by GORDON T. BUTLER* Table of Contents Introduction ...................................................................... 2 I. The Problem of the Deficit and the Budget Process ............... 4 II. The Line Item Veto ...................................................... 21 A. 1995 Congressional Proposals ................................. 21 (1) House Bill 2 and "Enhanced Rescission" ................ 22 (2) Senate Bill 4 and "Separate Enrollment". ............... 24 B. The Line Item Veto of 1996 ...................................... 26 (1) The Act ....................................................... 26 (2) Constitutionality of the Line Item Veto .................. 31 (a) Separate Enrollment Form ............................... 41 (b) Enhanced Rescission Form ............................ 43 (3) Comparison with State Item Veto Authority ............... 52 (4) Critique of the Line Item Veto Act of 1996 ............. 56 m. Are "Tax Expenditures" Expenditures? .........
    [Show full text]
  • Report No. 82-156 Gov Major Acts of Congress And
    REPORT NO. 82-156 GOV MAJOR ACTS OF CONGRESS AND TREATIES APPROVED BY THE SENATE 1789-1980 Christopher Dell Stephen W. Stathis Analysts in American National Governent Government Division September 1982 CONmGHnItNA^l JK 1000 B RE filmH C SE HVICA^^ ABSTRACT During the nearly two centuries since the framing of the Constitution, more than 41,000 public bills have been approved by Congress, submitted to the President for his approval and become law. The seven hundred or so acts summarized in this compilation represent the major acts approved by Congress in its efforts to determine national policies to be carried out by the executive branch, to authorize appropriations to carry out these policies, and to fulfill its responsibility of assuring that such actions are being carried out in accordance with congressional intent. Also included are those treaties considered to be of similar importance. An extensive index allows each entry in this work to be located with relative ease. The authors wish to credit Daphine Lee, Larry Nunley, and Lenora Pruitt for the secretarial production of this report. CONTENTS ABSTRACT.................................................................. 111 CONGRESSES: 1st (March 4, 1789-March 3, 1791)..................................... 3 2nd (October 24, 1791-March 2, 1793)................................... 7 3rd (December 2, 1793-March 3, 1795).................................. 8 4th (December 7, 1795-March 3, 1797).................................. 9 5th (May 15, 1797-March 3, 1799)....................................... 11 6th (December 2, 1799-March 3, 1801)................................... 13 7th (December 7, 1801-Marh 3, 1803)................................... 14 8th (October 17, 1803-March 3, 1805)....... ........................... 15 9th (December 2, 1805-March 3, 1807)................................... 16 10th (October 26, 1807-March 3, 1809)..................................
    [Show full text]