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< 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. < <
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