Legislative Action Alert: The Neutral Tax Submitted to House Ways and Means Committee

The Neutral Tax plan has been submitted to the House Ways and Means Committee as they consider comprehensive reform of the federal tax code.
The Neutral Tax plan was included in the Joint Committee on Tax Reform’s Working Group Report and is available for download directly from the Ways and Means web site:
Please take a moment to see if your representative is on the House Ways and Means Committee and give them a call to let them know you support The Neutral Tax. Here is a list of the members:
If your representative is not on the committee, or you don’t know who your representative is, you can use our handy tool to look them up:
Let your representatives know that you support The Neutral Tax!
Rep. Kelly OWNS Fired IRS Commish–Gets Rousing Ovation

Rep. Kelly OWNS Fired IRS Commish–Gets Rousing Ovation
IRS Won’t Say If It Will Comply With Congressional Demand for All Communications and Names Involved in Discriminating Against Tea Party Groups

(CNSNews.com) – The Internal Revenue Service has given no indication to the House Ways and Means Committee about whether it will respond to the committee’s demand, delivered in writing last Friday, that the agency hand over copies of all internal communications containing the words “tea party,” “patriot,” or “conservative” and the names and titles of all IRS officials involved in discriminating against tea party and conservative groups when they submitted applications for tax-exempt status.
IRS spokesmen also did not respond to repeated emailed and telephone inquiries that CNSNews.com made between Friday afternoon and Tuesday morning asking if the IRS intended to comply with the committee’s demand–and if not, why not.
On Friday, the Associated Press broke the news that Lois Lerner, head of the IRS’s Exempt Organizations division, had told an American Bar Association conference that the IRS had targeted for heightened scrutiny groups whose tax-exempt status applications included the words “tea party” or “patriot.”
“That was wrong,” Lerner said. “That was absolutely incorrect, it was insensitive and it was inappropriate. That’s not how we go about selecting cases for further review.”
“The IRS would like to apologize for that,” Lerner said.
The AP reported that Lerner claimed the practice was initiated by low-level IRS workers in Cincinnati and was not politically motivated.
After this news broke, Rep. Charles Boustany, chairman of the House Ways and Means Subcommittee on Oversight, sent a letter Acting IRS Commissioner Steve Miller. The letter instructed the IRS to provide the committee by Wednesday with “all communications containing the words ‘tea party,’ ‘patriot or ‘conservative,’” and the “names and titles of all individuals involved in this discrimination.”
On Friday afternoon, after the committee sent this letter to the IRS, CNSNews.com contacted IRS spokesman Dean J. Patterson via telephone and asked him a series of written questions by email. One of the questions was: “Does the IRS intend to comply with this request?”
The IRS did not respond to CNSNews.com on Friday.
On Monday, morning CNSNews.com asked IRS Spokesman Patterson via email: “Will the IRS comply with the committee’s request to provide these things by Wednesday?”
When IRS Spokesman Patterson had not responded by Monday afternoon, CNSNews.com followed up with this if question: “If the IRS does not intend to comply with the House Ways and Means Committee’s request for ‘all communications containing the words ‘tea party’ ‘patriot’ or ‘conservative’” and the “names and titles of all individuals involved in” discriminating against tea party and conservative groups by subjecting their applications for tax exempt status to heightened scrutiny, on what basis would the IRS refuse such a request from the congressional committee that has oversight over it?”
On Tuesday morning, CNSNews.com asked the House Ways and Means Committee if the IRS had indicated to the committee whether it intended to comply with the committee’s request for the communications and names. A committee spokesperson said: “We have not yet received a response from the IRS or gotten indication that they will respond.” The spokesperson noted that “the date we requested all materials is tomorrow.”
CNSNews.com then contacted the IRS press office again and was put through to the voicemail of IRS Spokesman Patterson. CNSNews.com left a message asking, again, whether the IRS intended to comply with the committee’s request.
CNSNews.com then contacted IRS Spokesman Anthony Burke and put the question to him verbally and via emails that were carbon copied to both Burke and his colleague Patterson.
These IRS spokesmen did not immediately respond.
Acting IRS Commissioner Miller is now scheduled to testify in the Ways and Means Committee on Friday alongside Russell George, the Treasury Inspector General for Tax Administration, whose office has conducted an as-yet unpublished audit of the IRS in this matter.
Weekly Republican Address: Chairman Dave Camp (R-MI)

Chairman of the House Ways & Means Committee Dave Camp (R-MI) delivered this week’s address, discussing the House’s recent action to permanently extend current tax rates for 98% of Americans. It’s now House Republicans’ focus in the 113th Congress to cut out-of-control spending to reduce our crippling debt, and reform our tax code.
Ryan: House Takes Step Toward Pro-Growth Tax Reform
WASHINGTON – Today the U.S. House of Representatives advanced another pro-growth solution by passing The Pathway to Job Creation Through a Simpler, Fairer Tax Code Act. Following yesterday’s decisive vote to stop the President’s looming tax increases, today’s legislation provides for expedited consideration of tax reform legislation in 2013.
After the vote, House Budget Committee Chairman Paul Ryan issued the following statement:
“Yesterday, the House took action to prevent a massive tax increase from hitting every family and small business in the county. Today, we took another step closer toward enacting common-sense tax reform, a critical component of reforms needed to get our economy growing again.
“Our tax code has become an antiquated and complex maze that stifles economic growth and job creation. The tax code is littered with special-interest loopholes that prioritize the politically connected at the expense of hardworking American taxpayers. These special interest carve outs not only disproportionately benefit the well off, but they also narrow the tax base and lead to higher marginal tax rates to make up the lost revenue.
“The President’s demands for greater complexity and higher tax rates are at odds with a growing bipartisan consensus for reform that lowers rates and broadens the tax base. The House Republican budget included a framework for tax reform and I applaud Chairman Dave Camp of the Ways and Means Committee for his leadership on this front. With the right leadership in the White House, I have no doubt we will reform the tax code to make it fair, simple, and geared toward creating jobs and increasing economic growth.”
Ryan Statement On House Vote To Prevent Looming Tax Hikes
WASHINGTON – Earlier today, the U.S. House of Representatives passed legislation to prevent an across-the-board tax increase on families and job creators, set to take effect in January 2013. The legislation comes on the heels of analyses that the President’s proposed tax increases would adversely impact job creation and economic growth.
Following a bipartisan House vote to prevent a massive tax increase, House Budget Committee Chairman Paul Ryan of Wisconsin issued the following statement:
“The results are unmistakable: the President’s insistence on taking more from hardworking taxpayers to fuel ever-higher Washington spending is not working. Economic growth has slowed to 1.5 percent and unemployment is stuck above 8 percent. Now the White House and leading Senate Democrats want to double down on these policies with massive tax increases that will hit small businesses, not to pay down the debt but to simply chase unsustainable spending increases. There is bipartisan opposition to this failed approach, and to provide certainty and confidence for job creators, the time to act is now.
“The House took action today to protect families and workers from a massive tax increase, which the Congressional Budget Office warned would push our economy into another recession.
“I applaud the leadership of House Ways and Means Chairman Dave Camp and my colleagues in Congress for their efforts to stop the President’s massive tax increase, while paving the way forward for pro-growth tax reform. Keeping tax rates low, cutting spending, and advancing fundamental reforms to our government’s structural budget challenges are the keys to get America back on track.”
Feds Fine Rangel $23,000 for Campaign Finance Violations
SPIN CYCLE: Then-Speaker Pelosi Promised That Democrats Would “Demand The Highest Ethics From Every Public Servant”:
“Our goal is to restore accountability, honesty and openness at all levels of government. To do so, we will create and enforce rules that demand the highest ethics from every public servant, sever unethical ties between lawmakers and lobbyists, and establish clear standards that prevent the trading of official business for gifts.” (Nancy Pelosi’s “A New Direction for America,” Page 21)
RINSE CYCLE: Charlie Rangel’s (D-NY) Ethics Problems Continue After The Federal Election Commission’s General Counsel Determined He Violated Campaign Finance Limits By Using A Rent-Controlled Apartment As His Campaign Office:
The commission’s general counsel found that Mr. Rangel, a Democrat from Harlem who has been in office since 1971, and his campaign effectively accepted campaign contributions beyond the legal limit when he leased the rent-stabilized apartment at a price below market rate from the owner, according to the documents.
The case grew out of a 2008 report in The New York Times that showed Mr. Rangel was able to lease four rent-stabilized apartments in the Lenox Terrace luxury apartment complex in Harlem even as tenants across New York City were being evicted from such apartments.
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Instead, the findings focused on a one-bedroom apartment on the 10th floor that he used as a campaign office for two of his political committees, despite city and state guidelines that require rent-stabilized apartments to be used solely as a primary residence.
Because the fourth apartment was rent-stabilized, Mr. Rangel paid $630 per month, while similar market-rate units in the building rented for $1,700 a month and higher, according to The Times. Shortly after the leasing arrangement became public, Mr. Rangel moved his campaign office out of the apartment.
In an e-mail on Monday, Hannah Kim, a spokeswoman for Mr. Rangel, said, “People settle not because they’re guilty but because they don’t want to go through the arduous process and expense to show they’re not guilty.”
The commission’s general counsel also found fault with Fourth Lenox Terrace Associates, the owner of the building. It said that in allowing Mr. Rangel’s political committees to pay less than the market rate, the owner made “excessive in-kind contributions” to the committees.
A phone message left Monday evening with the agent for the owner was not immediately answered.
The findings resolve a case brought by National Legal and Policy Center, a watchdog group in Washington, which filed a complaint with the Federal Election Commission in 2008, charging that the discounted rent was in essence an illegal contribution. The commission’s report is yet another blow for Mr. Rangel, a prominent figure in New York, who was censured in 2010 on grounds that he brought discredit to the House.
He was censured after the House Ethics Committee found him guilty of 11 counts of ethical violations, including failure to pay taxes, improper solicitation of fund-raising donations and failure to report his personal income accurately.
Short of expulsion, the censure was the most severe penalty the House could impose on Mr. Rangel; he was the first House member in nearly three decades to face such punishment, and his standing in Congress was severely damaged as a result of the scandal.
Mr. Rangel’s ethical problems went beyond the questions over his acceptance of the rent-stabilized apartments.
In the months following the reports about the leasing arrangements, he faced scrutiny over other issues, including his failure to pay taxes on rental income from a villa in the Dominican Republic and his failure to report hundreds of thousands of dollars in assets on financial disclosure forms.
The fund-raising he did for a City College school being built in his honor also became part of the ethics inquiry, after he used Congressional stationery and postage to request donations. In addition, he asked for contributions from companies and executives with business before Congress.
Eventually, Mr. Rangel gave up his chairmanship of the Ways and Means Committee, a position he had coveted for much of his career. (Raymond Hernandez, “Rangel and His Campaign to Pay $23,000 Fine Over Misuse of Rent Law,” The New York Times, 3/27/12)
To read the entire story, click here.
House Ways and Means Committee Announces Hearing on Oabma FY 2013 Budget with HHS Secretary Sebelius
Chairman Camp Announces Hearing on the President’s Fiscal Year 2013 Budget Proposal with U.S. Department of Health and Human Services Secretary Kathleen Sebelius
Feb 28, 2012
Focus Of The Hearing:
U.S. Department of Health and Human Services Secretary Sebelius will discuss the details of the President’s HHS FY13 budget proposals that are within the Committee’s jurisdiction.
Hearing Advisory:
Chairman Camp Announces Hearing on the President’s Fiscal Year 2013 Budget Proposal with U.S. Department of Health and Human Services Secretary Kathleen Sebelius
Submission of Written Comments:
Click here to submit comments for the record.
House Ways and Means Committee Chairman Dave Camp (R-MI) today announced that the Committee on Ways and Means will hold a hearing on President Obama’s budget proposals for fiscal year 2013. The hearing will take place on Tuesday, February 28, 2012 in 1100 Longworth House Office Building, beginning at 1:00 P.M.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from the invited witness only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
BACKGROUND:
On February 13, 2012, President Obama submitted his fiscal year 2013 budget proposal to Congress. The President’s proposed budget contained his tax, spending, and policy proposals for the coming fiscal year, including his proposed budget for the Department of Health and Human Services and the programs it operates and oversees. Many of the Department’s programs such as Medicare, efforts to assist those who lack health insurance, and Temporary Assistance for Needy Families are within the Committee’s jurisdiction.
In announcing this hearing, Chairman Camp said, “Given that the President’s plan does nothing to protect and save the Medicare program for future generations, it will be interesting to learn why the Administration is content to end Medicare as we know it. While the Administration turns a blind eye to Medicare and the seniors it serves, they are aggressively pushing forward with implementation of their health care law, despite the Supreme Court reviewing its constitutionality, resistance from many states, and opposition from the American people. Finally, Members will review the Administration’s proposals affecting human services programs, including Temporary Assistance for Needy Families, child support, and child welfare.”
FOCUS OF THE HEARING:
U.S. Department of Health and Human Services Secretary Sebelius will discuss the details of the President’s HHS FY13 budget proposals that are within the Committee’s jurisdiction.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Please Note: Any person(s) and/or organization(s) wishing to submit for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select “Hearings.” Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word or WordPerfect document, in compliance with the formatting requirements listed below, by the close of business on Tuesday, March 13, 2012. Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-1721 or (202) 225-3625.
FORMATTING REQUIREMENTS:
The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All submissions and supplementary materials must be provided in Word format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears. A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness.
The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.
Chairmen Camp and Baucus Announce Joint Hearing on Tax Reform and the Tax Treatment of Debt and Equity
Congressman Dave Camp (R-MI), Chairman of the House Committee on Ways and Means, and Senator Max Baucus (D-MT), Chairman of the Senate Committee on Finance, today announced that the Committees will hold a joint hearing to review the tax treatment of debt and equity and to consider distinctions in the treatment of each in the context of comprehensive tax reform. In connection with the hearing, the staff of the Joint Committee on Taxation (JCT) will release two reports that analyze the taxation of household debt and business debt. The joint hearing will take place on Wednesday, July 13, 2011, in Room HVC-210 of the Capitol Visitor Center, beginning at 9:00 A.M.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committees and for inclusion in the printed record of the hearing. A list of invited witnesses will follow.
BACKGROUND:
At the March 15, 2011 organizational meeting of the Joint Committee on Taxation, Chairman Camp and Chairman Baucus – in their capacities as JCT Chair and Vice Chair, respectively – directed JCT staff to analyze how debt financing is taxed relative to equity financing and to report on the effects of such differences on household and business debt levels. Chairman Camp and Chairman Baucus believe that the policy and economic information provided by JCT staff will be important for the tax-writing committees to consider in the formulation of comprehensive tax reform legislation. The two JCT reports will be formally presented to the Ways and Means Committee and Senate Finance Committee at the joint hearing.
With regard to the joint hearing, Chairman Camp made the following statement:
“The relative taxation of debt and equity has serious consequences for the economy and job creation, and it needs to be given careful consideration in the context of comprehensive tax reform. With both the Ways and Means Committee and the Senate Finance Committee actively pursuing tax reform, it will be critical for Congress’s two tax-writing panels to be working together closely. I look forward to having our two committees convene this historic joint hearing – the first on a tax issue since 1940 – to receive these staff reports on this important issue.”
Chairman Baucus said, “As part of tax reform, we must examine how we can improve our economy and create jobs, and to do so, we need to ask how to encourage businesses to invest in growth. This hearing will look at the effects of different tax treatment of debt and equity on our economy. We’ll need to work together to simplify and improve our tax code to help businesses create jobs, which is why these joint hearings between our two committees are so important.”
FOCUS OF THE HEARING:
The hearing will focus on the taxation of debt and equity and the broader economic implications of this treatment. At the hearing, JCT staff will formally present two reports on the taxation of debt financing relative to equity financing. These JCT staff reports were requested by Ways and Means Committee Chairman Camp and Senate Finance Committee Chairman Baucus at the organizational meeting of the Joint Committee on Taxation on March 15, 2011.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select “Hearings.” Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close of business on Wednesday, July 27, 2011. Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-3625 or (202) 225-2610.
FORMATTING REQUIREMENTS:
The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission or supplementary item not in compliance with these guidelines will not be printed but will be maintained in the Committee files for review and use by the Committee.
1. All submissions and supplementary materials must be provided in Word format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears. A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness.
The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days’ notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.
Fox News Reports on Ways and Means Hearing into AARP’s Structure and Finances

Fox News Reports on Ways and Means Hearing into AARP’s Structure and Finances
Related Article: Behind the Veil: The AARP America Doesn’t Know




