of analysis relating to

e to any Member of

like assistance in

sals and examining the

 administrative, and

ch proposals.

LATION

volved in every aspect

ocess. Among other

1) prepares hearing

cuments, committee

eports (statements of

e House and Senate

 drafting of statutory

bers of Congress with

proposals, (4) assists

addressing constituent

5) prepares revenue

ion considered by the

kes investigations and

s of the Federal tax

annual analysis of the

President’s budget. In

, the JCT staff has

s on proposals relating

onomically distressed

mation by tax-exempt

 to political activities,

he marriage penalty,

individual alternative

marginal income tax

al gains, tax incentives

al tax reform.

UTIES

ired to (1) investigate

f Federal taxes and the

administration of such taxes, (2) investigatemethods to simplify such taxes, (3) report theresults of such investigations and makerecommendations, and (4) review proposedincome tax refunds in excess of $2 million.From time to time, the JCT staff is asked toundertake special studies or investigations. Forexample, in the early 1970's, the JCT staff wasasked to review President Nixon’s tax returns. In2000, the JCT staff completed an investigationinto allegations of bias in the IRS handling ofexempt organization matters.The JCT staff also prepares special reports thatare required by law or requested by a Member.The JCT staff is required to prepare a complexityanalysis of provisions contained in revenuelegislation that are of widespread applicability toindividuals and small business. The JCT staffcompleted studies in 1999-2000 of (1) the interestand penalty provisions in the Internal RevenueCode, and (2) provisions relating to taxpayerconfidentiality. The JCT staff will complete in2001 a study of complexity of the present-lawFederal tax system. The JCT staff is alsorequired to prepare materials in connection withannual joint hearings relating to IRS operationsfor calendar years 1999-2003.Each year the JCT staff prepares and publishes alist of tax expenditures, as required by theCongressional Budget and Impoundment ControlAct of 1974 (the “Budget Act”). Taxexpenditures are “revenue losses attributable toprovisions of the Federal tax laws which allow aspecial exclusion, exemption, or deduction fromgross income or which provide a special credit, apreferential rate of tax, or a deferral of taxliability.” The most recent JCT tax expenditurereport was published in April 2001.

REVENUE ESTIMATES

Under the Budget Act, the JCT staff is the officialscorekeeper of Congress for the budgetaryimplications (“revenue effects”) of any proposedrevenue legislation.Any Member of Congress may request a revenueestimate for a tax proposal. A written requestsigned by the requesting Member should be sentto the Chief of Staff, Joint Committee onTaxation, 1015 Longworth House OfficeBuilding. The request should describe in detailthe proposal to be estimated (including theeffective date) and should include the name of acontact person in case there are questions aboutthe proposal. Statutory language should beincluded if available.Work on revenue estimates generally is done ona first-in first-out basis, with some exceptionsmade for previously estimated proposals. Someresponses take longer than others because ofdifficulties in obtaining data and developing thenecessary models. When revenue legislation ispending in the House or the Senate, requestsrelating to such pending legislation receive higherpriority.When revenue estimates are completed, therequesting Member receives a written responsefrom the JCT Chief of Staff. The responsecontains a brief summary of the proposal and therevenue estimate for the proposal. The JCT staffdoes not provide verbal (telephone) responses torevenue requests.

ESTIMATING METHODOLOGY

The starting point for many revenue estimates isthe tax return data supplied to the JCT staff bythe Internal Revenue Service (“IRS”). Theseconfidential data include statistically validsamples of individual and corporate tax returns.
in different income

nerally are much more

n revenue estimates

ssible to measure the

s in total taxes paid

ese tax changes are

roups, (2) data on the

ted taxpayers are not

) in some cases, no

lable to allocate to

 by businesses. The

distributional analyses

n which the effects of

ome groups cannot be

accuracy.

Y OF REQUESTS

ers of Congress to the

imates, distributional

istance are treated as

 responses to such

o the Member making

T response remains

mber decides to make

This confidential

posals extends to the

egislation, which may

sultation between a

aff) and the JCT staff.

 provided to the JCT

ulation of a revenue

nfidential and is not

aff.

may request a revenue

on which has been

wise has entered the

revenue estimate has

y available document

mmarizing a markup

 markup), the estimate

e upon request.

JCT PUBLICATIONS

The JCT website (www.house.gov/jct)contains a listing of all JCTpublications issued since 1981.Copies may be obtained from the JCTdocuments room (1620 LongworthHOB), by calling (202) 225-2647, orby sending an e-mail request tojctpublications@mail.house.gov.Publications issued after 1997 areavailable on the website for viewingor downloading. Publications issuedin 2001 generally will be available onthe website within one or two days ofpublication.

JCT OFFICES

The JCT maintains offices on boththe House and Senate sides of theCapitol.The main JCT offices are located at:1015 Longworth House OfficeBuildingWashington, D.C. 20515Phone: 202-225-3621Fax: 202-225-0832204 Dirksen Senate Office BuildingWashington, D.C. 20510Phone: 202-224-5561

BACKGROUND

INFORMATION

RELATING TO THE

JOINT COMMITTEE

ON TAXATION

April 10, 2001

JCX-24-01