WASHINGTON - The House Committee on Ways and Means today held a hearing on fair and equitable tax policy for America’s working families. The panel focused on the current structure of our tax code and the fairness and effectiveness of the Bush tax cuts, the alternative minimum tax (AMT) and the tax treatment of hedge funds and partners in private equity firms. Ways and Means Committee Chairman Charles B. Rangel (D-NY) issued the following opening statement:
"As most of you know, at the beginning of this new Congress, Ranking Member McCrery and I had a number of meetings to determine the issues under our jurisdiction that would lead to bipartisan cooperation. We were very conscious of the fact that there are strong policy differences within our parties that could limit our ability to work together.
"Throughout our discussions, one thing was abundantly clear: as the Committee with primary jurisdiction over revenue measures, we have a responsibility to address the problem presented by the AMT. We have had - and still have - differences of opinion on exactly how to address this problem. However, we hope that the Republican minority would feel comfortable in having input on changes and reform to the existing code, not withstanding the fact that they may not be able to support the final package. While there are some differences of opinion on which way the code should be going, we will continue to have candid discussions and work to simplify our tax laws and make them more fair and equitable for millions of taxpayers.
"We have been driven by the AMT, but there has also been a lot of interest in the press lately about how hedge funds and partners in private equity firms are taxed. It has not been the goal of the committee to target any tax provisions other than the AMT. However, it is fair to say that since the AMT is such an expensive revenue loser - because the revenue it brings in was never expected - that naturally we have to look at the entire tax code to reach our goal of simplifying the code and ensure that the tax code instills some sense of fairness, so that taxpayers would recognize that simply having higher income does not mean a favorable rate. And our overall objective should always be to improve the American economy and make it as strong and profitable as it can be."
