•HRES 467 IH
pluses—thus spending more for the Federal bureaucracy,
and less for the American family;
Whereas as part of the $116 billion in tax and fee
increases—
(1) the President proposes to raise taxes by $12.8
billion on the insurance products which Americans rely
on to protect their families, homes, and businesses,
(2) the President proposes a stealth tax on our chil-
dren by raising the death tax by $3.5 billion,
(3) the President asks us to increase taxes on energy
by $1.5 billion at a time of rising energy prices and in-
creasing dependence on foreign oil, and
(4) the President wants to raise medicare premiums
and other health care costs by $3.2 billion at the very
time we are trying to insure our seniors’ health security
by preserving and protecting medicare; and
Whereas the President’s solution is to take hard-earned
money and send it to Washington where politicians can
spend it: Now, therefore, be it
Resolved, That is it the sense of the House of Rep-
resentatives that—
(1) despite having successfully balanced the
budget and created budget surpluses,
(2) despite having protected social security and
restored the integrity of the social security trust
fund,
(3) despite the fact that in 1999 governments
at all levels collected $9,562 in taxes for every man,
woman and child,
•HRES 467 IH
(4) despite the fact our tax burden is at 20.0
percent of gross domestic product—a post-World
War II record high, and
(5) despite the fact that our oversight activities
have identified billions of taxpayer’s dollars that are
subject to waste, fraud and abuse,
the Congress should support the adoption of the package
of tax and user fee increases proposed by the Clinton/Gore
administration in their fiscal year 2001 budget, as reesti-
mated by the Joint Committee on Taxation, and as out-
lined below.
PROPOSED TAX AND FEE INCREASES
(Millions of dollars)
2000–05
I. PROPOSED TAX INCREASES
A. Corporate Tax Provisions
1. Five corporate tax provisions with general application ......
2,340
2. Require accrual of time value element on forward sale of
corporate stock ....................................................................
3. Modify treatment of ESOP as S corporation shareholder
169
4. Limit dividend treatment for payments on self-amortizing
stock ....................................................................................
5. Prevent serial liquidations of U.S. subsidiaries of foreign
corporations ........................................................................
6. Prevent capital gains avoidance through basis shift trans-
actions involving foreign shareholders ................................
270
7. Prevent mismatching of deductions and income inclusions
in transactions with related foreign persons .......................
229
8. Prevent duplication or acceleration of loss through as-
sumption of liabilities ..........................................................
9. Amend 80/20 company rules ..............................................
167
10. Modify corporate-owned life insurance (‘‘COLI’’) rules ...
2,026
11. Increase depreciation life by service term of tax-exempt
use property leases ..............................................................
B. Financial Products
1. Require cash-method banks to accrue interest on short-
term obligations ..................................................................
2. Require current accrual of market discount by accrual
method taxpayers ................................................................
•HRES 467 IH
PROPOSED TAX AND FEE INCREASES—Continued
(Millions of dollars)
2000–05
I. PROPOSED TAX INCREASES
3. Modify and clarify certain rules relating to debt-for-debt
exchanges ............................................................................
136
4. Modify and clarify straddle rules .......................................
5. Provide generalized rules for all income-stripping trans-
actions .................................................................................
6. Require ordinary treatment for options dealers and com-
modities dealers ...................................................................
7. Prohibit tax deferral on contributions of appreciated
property to swap funds .......................................................
NR 1
C. Provisions Affecting Corporations and Pass-
Through Entities
1. Conform control test for tax-free incorporations, distribu-
tions, and reorganizations ...................................................
2. Treat receipt of tracking stock as property .......................
477
3. Require consistent treatment and provide basis allocation
rules for transfers of intangibles in certain nonrecognition
transactions .........................................................................
145
4. Modify tax treatment of certain reorganizations in which
portfolio interests in stock disappear ..................................
283
5. Clarify definition of nonqualified preferred stock ..............
6. Clarify rules for payment of estimated taxes for certain
deemed asset sales ..............................................................
120
7. Modify treatment of transfers to creditors in divisive reor-
ganizations ..........................................................................
8. Provide mandatory basis adjustments if partners have
significant built-in loss in partnership property .................
159
9. Modify treatment of closely-held REITs ............................
10. Apply RIC excise tax to undistributed profits of REITs
11. Allow RICs a dividends paid deduction for redemptions
only if the redemption represents a contraction in the RIC
1,911
12. Require REMICs to be secondarily liable for the tax li-
ability of REMIC residual interest holders ........................
13. Deny change in method treatment in tax-free trans-
actions .................................................................................
14. Deny deduction for punitive damages ..............................
233
15. Repeal the lower-of-cost-or-market inventory accounting
method ................................................................................
2,032
16. Disallow interest on debt allocable to tax-exempt obliga-
tions ....................................................................................
17. Capitalization of commissions by mutual fund distribu-
tors ......................................................................................
461
D. Cost Recovery Provisions
1. Provide consistent amortization periods for intangibles ....
969
2. Establish specific class lives for utility grading costs ........
307
3. Extend the present-law intangibles amortization provi-
sions to acquisitions of sports franchises ............................
245
E. Insurance Provisions
1. Require recapture of policyholder surplus accounts ...........
1,622
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PROPOSED TAX AND FEE INCREASES—Continued
(Millions of dollars)
2000–05
I. PROPOSED TAX INCREASES
2. Modify rules for capitalizing policy acquisition costs of in-
surance companies ..............................................................
5,084
3. Increase the proration percentage for property and cas-
ualty insurance companies ..................................................
323
4. Modify rules that apply to sales of life insurance contracts
140
5. Modify qualification rules for tax-exempt property and
casualty insurance companies .............................................
F. Tax-Exempt Organization Provisions
1. Subject investment income of trade associations to tax .....
730
2. Penalty for failure to file Form 5227 ................................
G. Estate and Gift Tax Provisions
1. Restore phaseout of unified credit for large estates ..........
430
2. Require consistent valuation for estate and income tax
purposes ..............................................................................
3. Require basis allocation for part-sale, part-gift trans-
actions .................................................................................
4. Eliminate the stepped-up basis in community property
owned by surviving spouse ..................................................
229
5. Require that qualified terminable interest property for
which a marital deduction is allowed be included in the
surviving spouse’s estate .....................................................
6. Eliminate non-business valuation discounts .......................
2,985
7. Eliminate gift tax exemption for personal residence trusts
8. Eliminate the Crummey rule and modify requirements for
annual exclusion gifts .........................................................
H. Pension Provisions
1. Increase elective withholding rate for nonperiodic distribu-
tions from deferred compensation plans .............................
2. Increase section 4973 excise tax on excess IRA contribu-
tions ....................................................................................
3. Impose limitation on prefunding of welfare benefits ..........
873
4. Subject signing bonuses to employment taxes ...................
5. Clarify employment tax treatment of choreworkers em-
ployed by State welfare agencies ........................................
RS 2
6. Prohibit IRAs from investing in foreign sales corporations
126
I. Compliance Provisions
1. Modify the substantial understatement penalty for large
corporations ........................................................................
2. Repeal exemption for withholding on certain gambling
winnings ..............................................................................
3. Require information reporting for private separate ac-
counts ..................................................................................
NR 1
4. Increase penalties for failure to file correct information
returns .................................................................................
J. Miscellaneous Revenue-Increasing Provisions
1. Modify deposit requirement for Federal Unemployment
Tax Act (‘‘FUTA’’) .............................................................
1,367
2. Reinstate Oil Spill Liability Trust Fund excise tax and
increase trust fund ceiling to $5 billion (through 9/30/10)
1,022
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PROPOSED TAX AND FEE INCREASES—Continued
(Millions of dollars)
2000–05
I. PROPOSED TAX INCREASES
3. Repeal percentage depletion for non-fuel minerals mined
on Federal and formerly Federal lands ..............................
410
4. Impose excise tax on purchase of structured settlements ..
5. Require taxpayers to include rental income of residence in
income without regard to period of rental ..........................
6. Eliminate installment payment of heavy vehicle use tax ...
320
7. Require recognition of gain from the sale of a principal
residence if acquired in a like-kind exchange within 5
years of the sale ..................................................................
K. International Provisions
1. Require reporting of payments to, and restrict tax bene-
fits for income flowing through, identified tax havens .......
100
2. Modify treatment of built-in losses and other attribute
trafficking ...........................................................................
524
3. Simplify taxation of property that no longer produces in-
come effectively connected with a U.S. trade or business ..
NR 1
4. Impose mark-to-market tax on individuals who expatriate
500
5. Expand U.S.-effectively connected income rules to include
more foreign-source income ................................................
6. Limit basis step-up for imported pensions .........................
7. Replace sales-source rules with activity-based rules ..........
7,828
8. Modify rules relating to foreign oil and gas extraction in-
come ....................................................................................
1,151
9. Recapture overall foreign losses when controlled foreign
corporation stock is disposed ..............................................
10. Modify foreign office material participation exception ap-
plicable to certain inventory sales .......................................
L. Other Provisions Requiring Amendment of the
Internal Revenue Code
1. Hazardous Substance Superfund Taxes:
a. Reinstate environmental tax imposed on corporate
taxable income and deposited in the Hazardous Sub-
stance Superfund ........................................................
3,600
b. Reinstate excise taxes deposited in the Hazardous
Substance Superfund ..................................................
3,853
2. Convert a portion of the excise taxes deposited in the Air-
port and Airway Trust Fund to cost-based user fees (Ad-
ministration’s estimate) ......................................................
6,667
3. Increase excise taxes on tobacco products ..........................
37,313
4. Repeal harbor maintenance excise tax and authorize im-
position of cost-based harbor services user fee ...................
¥2,742
5. Accelerate rum excise tax coverover payments to Puerto
Rico and the U.S. Virgin Islands .......................................
—
6. Restore Premiums for United Mine Workers of American
benefit fund .........................................................................
Total: Provisions increasing revenue .............................
88,946
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PROPOSED TAX AND FEE INCREASES—Continued
(Millions of dollars)
2000–05
II. PROPOSED FEE INCREASES
A. Proposals for Discretionary User Fees
1. Offsetting collections deposited in appropriation
accounts
Department of Agriculture:
Food Safety Inspection Service fees .......................................
3,098
Animal and Plant Health Inspection Service .........................
Grain Inspection, Packers and Stockyards Administration ...
115
Department of Commerce:
National Oceanic and Atmospheric Administration, Naviga-
tional assistance fees ...........................................................
Fisheries management fees .....................................................
100
Department of Health and Human Services:
Food and Drug Administration fees .......................................
Health Care Financing Administration fee proposals:
Managed care application and renewal fees ...........................
105
Provider initial certification fees ............................................
Provider recertification fees ....................................................
250
Paper claims submission fees .................................................
415
Duplicate and unprocessable claims fees ................................
265
Increase Medicare+Choice fees ..............................................
646
Nursing home criminal abuse registry fee ..............................
Department of the Interior:
User fees on Outer Continental Shelf lands ...........................
Department of Justice:
Hart-Scott Rodino pre-merger filing fees ...............................
190
Department of Transportation:
Coast Guard, navigational services fees .................................
2,826
Federal Railroad Administration, rail safety inspection fees
515
Hazardous materials transportation safety fees .....................
Surface Transportation Board fees ........................................
Department of the Treasury:
Customs, automation modernization fee .................................
1,050
Federal Trade Commission:
Hart-Scott Rodino pre-merger filing fees ...............................
190
National Transportation Safety Board:
Commercial accident investigation fees ..................................
2. Offsetting collections deposited in receipt ac-
counts
Department of Justice:
Immigration premium processing fee .....................................
Increase inspection user fees ..................................................
835
Department of Transportation:
Pipeline safety fees .................................................................
Environmental Protection Agency:
Pesticide registration fees .......................................................
Pre-manufacture notice (PMN) fees ......................................
Nuclear Regulatory Commission:
Extend Nuclear Regulatory Commission user fees ................
1,475
•HRES 467 IH
PROPOSED TAX AND FEE INCREASES—Continued
(Millions of dollars)
2000–05
Subtotal, proposals for discretionary user fees ...............
12,856
B. Proposed Fee Increases to Offset Mandatory
Spending
1. Offsetting collections deposited in appropriation
accounts
Department of Agriculture:
Federal crop insurance ...........................................................
Department of Labor:
Implement alien labor certification fees .................................
626
Federal Emergency Management Agency:
Flood map license fee for flood map modernization ...............
546
2. Offsetting collections deposited in receipt ac-
counts
Department of Agriculture:
Recreation and entrance fees ..................................................
162
Concession, land use, right of way, and filming permits ........
Department of Health and Human Services:
Medicare premiums .................................................................
1,446
Department of the Interior:
Recreation and entrance fees ..................................................
297
Filming and special use permits fees .....................................
Hardrock mining production fees ...........................................
Department of the Treasury:
Customs, extend conveyance/passenger fee ............................
889
Customs, extend merchandise processing fee .........................
2,095
Subtotal user fee proposals to offset mandatory spend-
ing ...............................................................................
6,287
Total user fee proposals .......................................................
19,143
1 Negligible or no revenue effect.
2 Requires specification.
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