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Congressional Testimony
September 7, 2000, Thursday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1000 words
COMMITTEE:
HOUSE SMALL BUSINESS
SUBCOMMITTEE:
TAX, FINANCE, AND EXPORTS
HEADLINE: TESTIMONY IMPACT OF
COMPLEX TAX SYSTEM ON SMALL BUSINESS
TESTIMONY-BY:
MANZULLO , REPRESENTATIVE
BODY:
September 7, 2000
Opening Statement of Chairman Manzullo U.S. House of Representatives House
Committee on Small Business "The Impact Of The Complexity Of The Tax Code On
Small Business: What Can Be Done About It? The Subcommittee today looks at a
fundamental problem facing small business owners - the complexity of the tax
code. Like the weather, everyone talks about it but no one does much about it.
Later this week, the House will attempt to solve one small aspect of this
problem with the veto override vote of the estate or "death"
tax repeal. Last week, I was out on the farm of Richard and
Judy Beuth in Seward, Illinois lamenting the President's veto. Like most
farmers, the Beuth's are "dirt rich" but "cash poor." Richard and his two
sisters paid $185,000 in estate taxes when their father died in 1998. They had
to mortgage the 470 acre farm to keep it in the family. Richard had originally
planned to have his 15 year old son inherit the family farm. But now, with the
veto of the Death Tax Elimination Act, Richard isn't so sure. If Richard and
Judy died, their children would have to pay nearly $1 million in estate
taxes to keep the farm in the family. Death tax repeal
would not only make Richard's business life less complicated but would also
remove an emotional toll on his family. I only wished the President visited the
Beuth's farm to explain to them why he thought they are "rich." I realize that
we in Congress are mostly responsible for the tax complexity problem that has
been over 80 years in the making. I called this hearing today to see what more
can be done to alleviate this burden on small business. Small business owners
are responsible citizens. They are willing to pay their taxes. However, most
small businesses have to hire tax experts to help them comply. Unfortunately,
the complexity of the tax code has sometimes driven some small businesses into
technical non-compliance. In some cases, the penalties have created a "gotcha"
mentality at the Internal Revenue Service that frustrates law-abiding small
business owners. I appreciate the work of all the witnesses who will testify
before this Subcommittee. While the purpose of this hearing is not necessarily
to focus solely on comprehensive tax reform, I also want to hear some specific,
common-sense solutions that this Congress or the next Congress could enact to
ease the tax complexity burden on small business. I want to take this brief
opportunity to commend Chairman Jim Talent for his leadership on small business
tax issues. His introduction of the Small Employer Tax Relief Act helped to
prioritize the key small business tax issues for the 106th Congress. Almost all
seven sections of his bill have a serious chance of passing Congress, in one
form or another. If the people of the 16th District of Illinois see fit to send
me back here to represent them next year, I want to work with my fellow Small
Business Committee colleagues in introducing and moving a similar bill that
would prioritize the top ten tax simplification proposals to specifically
benefit small businesses. I now yield for an opening statement by my good friend
and colleague from New York, Mrs. McCarthy.
LOAD-DATE:
September 8, 2000, Friday 
