Hoyer Offers Preview Of Dem Strategy In House Tax Debate

Author: Martin Vaughan

Published: July 14, 2004

House Minority Whip Hoyer charged Tuesday that Republican tax cuts enacted over the last four years have added layers of complexity to the tax code, offering a preview of the Democratic message as House members debate tax policy this week and next.

But seven points that Hoyer outlined as a pathway to simplification of the tax code showed little contrast with Republican proposals to simplify the tax system that will be on display next week.

Hoyer and other Democrats will take to the House floor tonight to highlight their tax simplification agenda.

While acknowledging that Democrats have little chance of shaping legislation this year, Hoyer told reporters Tuesday that he is working to make tax reform a top political priority for Democrats. "This needs to be a major issue for our caucus," said Hoyer.

In a speech to the Urban Institute's Tax Policy Center, Hoyer called for simpler tax filing procedures for small businesses and eliminating confusion for low-income families by establishing a uniform definition of a child. Republicans are weighing a proposal to create an EZ form for businesses under a certain income threshold, and also have included the uniform child definition in their legislation.

Hoyer called for overhaul of the alternative minimum tax -- echoing widespread bipartisan sentiment that Congress needs to guard against the AMT's bite into the incomes of middle-income taxpayers.

In perhaps the most striking difference with Republican calls for simplification, Hoyer backed a proposal by Sen. John Kerry of Massachusetts, the presumed Democratic presidential nominee, to overhaul the international tax system by eliminating deferral for many types of overseas income.

He also said Congress should examine ways to relieve a large percentage of Americans of the need to file tax returns at all.

Hoyer called for more enforcement against cheating on the corporate and individual level, and said the House should hold more hearings on tax simplification issues.

He charged that the reduction of tax rates on dividends and capital gains had created a "nightmare" for tax filers, and said the corporate tax bill that passed the House last month would further complicate the tax code.

A House Ways and Means Committee spokeswoman said that in those cases, the benefits of tax relief took precedence over tax simplification objectives. "Our goal is to provide tax relief, first and foremost," she said.

Democrats who are expected to come to the floor tonight to discuss tax issues include a host of Ways and Means members including Reps. John Tanner of Tennessee, Jim McDermott of Washington, and Stephanie Tubbs Jones of Ohio, and several members gunning for a Ways and Means slot in the next Congress, including Reps. Rahm Emanuel of Illinois, Shelley Berkley of Nevada and Joseph Crowley of New York.