November 5, 1997
The Administration supports House passage of H.R. 2676 as an important step in
the process of Internal Revenue Service (IRS) reform that has been ongoing over
the past two years. The bill reflects an emerging consensus on the need for
additional taxpayer rights, for institutionalized oversight of the IRS, for
greater continuity of leadership at the IRS, and for improved access to private
sector input on customer service and technology. The Administration worked
extensively with the bill's sponsor and other Members to resolve differences
contained in earlier versions of IRS reform proposals, and is pleased that H.R.
2676 incorporates many of the Administration proposals regarding:
H.R. 2676 is subject to the pay-as-you-go requirements of the Omnibus Budget Reconciliation Act of 1990. The Administration's pay-as-you-go estimates for this bill are under development, but very preliminary analysis suggests that the aggregate revenue losses and spending increases may substantially exceed the revenue offset in title V of the bill. The Balanced Budget Act of 1997 reduced the PAYGO balances to zero, and, consequently, any bill that would increase mandatory spending or result in a net revenue loss would contribute to a sequester of mandatory programs as called for in the Budget Enforcement Act. In the case of H.R. 2676, the bill may not contain provisions sufficient to offset the net deficit increases. As a result, if the bill were enacted, any deficit effects could contribute to a sequester of mandatory spending. The Administration supports this bill, but will work with the Congress to ensure that such an unintended sequester does not occur.
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