HRES 467 EH
Whereas on February 7, 2000, President Clinton and Vice President Gore submitted a budget for fiscal year 2001 that raises taxes and fees on working families by $116 billion over 5 years, creates 84 new Federal programs, places Government spending increases on auto-pilot, and fails to offer any serious proposal to strengthen Social Security or Medicare;
Whereas over the next decade the Clinton-Gore budget would spend $1.3 trillion on bigger Government--consuming 70 percent of the projected $1.9 trillion in budget surpluses--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 children 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 increasing 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
PROPOSED TAX AND FEE INCREASES
(Millions of dollars)
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2000-05
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1. Five corporate tax provisions with general application 2,340
2. Require accrual of time value element on forward sale of corporate stock 41
3. Modify treatment of ESOP as S corporation shareholder 169
4. Limit dividend treatment for payments on self-amortizing stock 10
5. Prevent serial liquidations of U.S. subsidiaries of foreign corporations 43
6. Prevent capital gains avoidance through basis shift transactions 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 assumption of liabilities 93
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 66
1. Require cash-method banks to accrue interest on short-term obligations 76
2. Require current accrual of market discount by accrual method taxpayers 52
3. Modify and clarify certain rules relating to debt-for-debt exchanges 136
4. Modify and clarify straddle rules 95
5. Provide generalized rules for all income-stripping transactions 65
6. Require ordinary treatment for options dealers and commodities dealers 93
7. Prohibit tax deferral on contributions of appreciated property to swap funds NR1
1. Conform control test for tax-free incorporations, distributions, and reorganizations 86
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 73
6. Clarify rules for payment of estimated taxes for certain deemed asset sales 120
7. Modify treatment of transfers to creditors in divisive reorganizations 46
8. Provide mandatory basis adjustments if partners have significant built-in loss in partnership property 159
9. Modify treatment of closely-held REITs 45
10. Apply RIC excise tax to undistributed profits of REITs 4
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 liability of REMIC residual interest holders 69
13. Deny change in method treatment in tax-free transactions 25
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 obligations 87
17. Capitalization of commissions by mutual fund distributors 461
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 provisions to acquisitions of sports franchises 245
1. Require recapture of policyholder surplus accounts 1,622
2. Modify rules for capitalizing policy acquisition costs of insurance companies 5,084
3. Increase the proration percentage for property and casualty 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 87
1. Subject investment income of trade associations to tax 730
2. Penalty for failure to file Form 5227 7
1. Restore phaseout of unified credit for large estates 430
2. Require consistent valuation for estate and income tax purposes 50
3. Require basis allocation for part-sale, part-gift transactions 5
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 8
6. Eliminate non-business valuation discounts 2,985
7. Eliminate gift tax exemption for personal residence trusts 28
8. Eliminate the Crummey rule and modify requirements for annual exclusion gifts 45
1. Increase elective withholding rate for nonperiodic distributions from deferred compensation plans 60
2. Increase section 4973 excise tax on excess IRA contributions 39
3. Impose limitation on prefunding of welfare benefits 873
4. Subject signing bonuses to employment taxes 27
5. Clarify employment tax treatment of choreworkers employed by State welfare agencies RS2
6. Prohibit IRAs from investing in foreign sales corporations 126
1. Modify the substantial understatement penalty for large corporations 15
2. Repeal exemption for withholding on certain gambling winnings 31
3. Require information reporting for private separate accounts NR1
4. Increase penalties for failure to file correct information returns 47
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
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 12
5. Require taxpayers to include rental income of residence in income without regard to period of rental 75
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 45
1. Require reporting of payments to, and restrict tax benefits 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 income effectively connected with a U.S. trade or business NR1
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 26
6. Limit basis step-up for imported pensions 50
7. Replace sales-source rules with activity-based rules 7,828
8. Modify rules relating to foreign oil and gas extraction income 1,151
9. Recapture overall foreign losses when controlled foreign corporation stock is disposed 18
10. Modify foreign office material participation exception applicable to certain inventory sales 25
a. Reinstate environmental tax imposed on corporate taxable income and deposited in the Hazardous Substance 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 Airport and Airway Trust Fund to cost-based user fees (Administration's estimate) 6,667
3. Increase excise taxes on tobacco products 37,313
4. Repeal harbor maintenance excise tax and authorize imposition 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 43
Total: Provisions increasing revenue 88,946
Food Safety Inspection Service fees 3,098
Animal and Plant Health Inspection Service 55
Grain Inspection, Packers and Stockyards Administration 115
National Oceanic and Atmospheric Administration, Navigational assistance fees 70
Fisheries management fees 100
Food and Drug Administration fees 95
Managed care application and renewal fees 105
Provider initial certification fees 65
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 20
User fees on Outer Continental Shelf lands 50
Hart-Scott Rodino pre-merger filing fees 190
Coast Guard, navigational services fees 2,826
Federal Railroad Administration, rail safety inspection fees 515
Hazardous materials transportation safety fees 95
Surface Transportation Board fees 85
Customs, automation modernization fee 1,050
Hart-Scott Rodino pre-merger filing fees 190
Commercial accident investigation fees 50
Immigration premium processing fee 85
Increase inspection user fees 835
Pipeline safety fees 59
Pesticide registration fees 16
Pre-manufacture notice (PMN) fees 36
Extend Nuclear Regulatory Commission user fees 1,475
Subtotal, proposals for discretionary user fees 12,856
Federal crop insurance 69
Implement alien labor certification fees 626
Flood map license fee for flood map modernization 546
Recreation and entrance fees 162
Concession, land use, right of way, and filming permits 52
Medicare premiums 1,446
Recreation and entrance fees 297
Filming and special use permits fees 19
Hardrock mining production fees 86
Customs, extend conveyance/passenger fee 889
Customs, extend merchandise processing fee 2,095
Subtotal user fee proposals to offset mandatory spending 6,287
Total user fee proposals 19,143
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Attest:
Clerk.
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