We are pleased with the recent court decisions in the Compaq and Winn-Dixie cases. They confirm a central judgment we made in preparing our corporate tax shelter proposals-that a strong, coherent economic substance doctrine is critical in addressing these transactions. Litigation, however, is an inefficient and expensive tool to deal with this problem. Significant resources are being expended to address and combat these transactions. Our Corporate Tax Shelter White Paper took up many of the concerns that had previously been raised regarding our proposals.
Simplicity is our fourth tax policy goal.
Clear and simple tax rules foster respect for our tax system. They facilitate voluntary compliance and improve the ability of the IRS to administer the Code. The more complex a rule, the less likely it is to be applied and enforced. The Administration's budget this year advanced simplification by proposing to extend for two years a provision effective in 1998 which allows personal credits to offset the tentative Alternative Minimum Tax. This will relieve over one million children from the burden of filing.