> On Thursday, September 7, Foundation economist Scott Moody testified
> before the Tax, Finance, and Exports Subcommittee of the House Committee
> on Small Business. Moody presented new estimates of the growing size and
> complexity of the Internal Revenue Code. He explained that even though the
> code's most notoriously complex provisions target large businesses, small
> businesses actually suffer disproportionately from compliance costs. (See
> full testimony at http://www.taxfoundation.org/testimony-compliance.html.)
> Also on the panel with Moody were Rep. Billy Tauzin (R-LA), Rep. Sununu
> (R-NH), Val Oveson; David Lifson; Pamela Olson; Martin Davidoff and Todd
> McCracken.
>
> Of course, that was the same week that the President vetoed estate tax
> repeal, a veto that the House tried in vain to override. Media outlets
> have turned to the Tax Foundation throughout the year for objective
> explanations of how the estate tax works and what repeal might mean, and
> this last legislative gasp brought one more round of inquiries. Most were
> the usual background calls from print reporters who need to fact-check
> their stories, but two radio interviews and one television interview also
> resulted:
>
> * On Friday, September 1, new Executive Director Scott Hodge gave a
> Radio America interview emphasizing the deleterious effects of the tax's
> high rates and monumental complexity.
> * On Thursday, September 7, Tax Foundation Chief Economist Patrick
> Fleenor gave two interviews on the federal estate and gift tax.  On a Cox
> Television segment broadcast across the nation Fleenor argued that these
> taxes discourage entrepreneurism and make it difficult for taxpayers to
> pass small businesses or family farms from one generation to the next.  In
> addition, he argued that they added significant complexity to the tax
> code.
> * Later, on WJR radio in Detroit, Fleenor filled in for House Majority
> Leader Dick Armey, who was called away for a vote, and took calls from
> listeners about the effects of the tax.  Here Fleenor reiterated his
> earlier remarks and argued that the adverse effects of the tax were
> particularly hard to justify in light of the fact that these taxes only
> accounted for about 1 percent of federal revenues.
>
> While spending a lot of time explaining the taxes that are levied after
> death, the staff was also researching the hidden taxes that the living pay
> every day, often without realizing it. Communications director Bill Ahern
> and economist Scott Moody helped ABC News Correspondent John Stossel
> prepare a story on all the taxes that a typical small business owner in
> Missouri faces throughout his workday. If the story is completed as
> scheduled, you can look for the upcoming segment on ABC's 20/20.
>
> If you have any questions or need additional information please contact me
> by phone at 202/661-4226, by e-mail at jrogers@taxfoundation.org or go to
> the Tax Foundation's web site at www.taxfoundation.org.
>
>