[Congressional Record Volume 147, Number 17 (Wednesday, February 7, 2001)]
[Senate]
[Pages S1131-S1132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SHELBY (for himself, Mr. Bond, Mr. Thomas, Mr. Hagel, Mr. 
        Sessions, Mr. Helms, Mr. Inhofe, Mr. Burns, Mr. Kyl, Mr. 
        Cochran, Ms. Snowe, and Mr. Allard):
  S. 276. A bill to amend chapter 8 of title 5, United States Code, to 
provide for congressional review of any rule promulgated by the 
Internal Revenue Service that increases Federal revenue, and for other 
purposes; to the Committee on Governmental Affairs.
  Mr. SHELBY. Mr. President, I rise today with my colleague Senator 
Bond, to introduce the Stealth Tax Prevention Act. Perhaps the most 
important power given to Congress by the Constitution of the United 
States, is the responsibility of taxation. The Founding Fathers 
rationale behind bestowing this power on Congress is that as elected 
representatives, Congress remains accountable to the people when they 
levy and collect taxes. Members of Congress, unlike Federal agency 
bureaucrats, are rightly held responsible to the public for producing 
fair and prudent tax legislation.

[[Page S1132]]

  In 1996, Mr. President, Congress passed the Congressional Review Act, 
which provides that when a major agency rule takes effect, Congress has 
60 days to review it. During this time period, Congress has the option 
to pass a disapproval resolution. If no such resolution is passed, the 
rule then goes into effect.
  As you know, Mr. President, the Internal Revenue Service maintains an 
enormous amount of power over the lives and the livelihoods of the 
American taxpayers through their authority to implement and enforce the 
Tax Code. Even though Congress, and only Congress, has the authority to 
tax, the Internal Revenue Service has found a ``backdoor'' way to 
increase our federal tax burden through their interpretive authority. 
The Stealth Tax Prevention Act, that Senator Bond and I are introducing 
along with Mr. Thomas, Mr. Hagel, Mr. Kyl, Mr. Burns, Mr. Helms, Mr. 
Inhofe, Mr. Sessions, Mr. Cochran, Ms. Snowe, and Mr. Allard, will 
return the authority of taxation to the United States Congress by 
expanding the definition of a major rule to include any IRS regulation 
which increases Federal revenue.
  For example, if the Office of Management and Budget finds that the 
implementation and enforcement of a rule would result in an increase of 
Federal revenues over current practices or revenues anticipated from 
the rule on the date of the enactment of the statute, the Stealth Tax 
Prevention Act would allow Congress to review the regulations and take 
appropriate measures to avoid raising taxes on hard working Americans 
and small businesses.
  The discretionary authority of the Internal Revenue Service exposes 
small businesses, farmers, and individual taxpayers to the sometimes 
arbitrary actions of bureaucrats, creating an uncertain and, in many 
instances, a hostile environment in which to conduct day-to-day 
activities. The Stealth Tax Prevention Act will be particularly helpful 
in lowering the tax burden on small business which suffers 
disproportionately, Mr. President, from IRS regulations. This tax 
burden discourages the startup of new firms and ultimately the creation 
of new jobs in the economy, which has really made America great.
  Average American families and small businesses are saddled with the 
highest tax burden in our country's history. Americans pay federal 
income taxes, they pay state income taxes and they pay property taxes. 
On the way to work in the morning they pay a gasoline tax when they 
fill up their car and a sales tax when they buy a cup of coffee. 
Allowing federal bureaucrats to increase taxes even further at their 
own discretion through interpretation of the tax code is intolerable. 
The Stealth Tax Prevention Act will leave tax policy where it belongs--
to elected members of Congress--not an unelected and unaccountable IRS.
  Mr. BURNS. Mr. President, I rise today with my colleague from Alabama 
to introduce the Stealth Tax Prevention Act. I sponsored this bill in 
the 105th and again in the 106th Congress. I felt strongly enough about 
this bill to sponsor it again this year.
  One of the most common concerns I hear from my constituents is 
regarding the Federal Government's authority to levy and collect taxes. 
This is an important role that we in Congress do not take lightly as we 
are accountable to the voters who pay those taxes.
  Three years ago, Congress passed the Congressional Review Act, which 
provides that when a major agency rule takes effect, Congress has 60 
days to review it. During this time period, Congress has the option to 
pass a disapproval resolution. If no such resolution is passed, the 
rule then goes into effect.
  The Stealth Tax Prevention Act will expand the definition of a major 
rule to include any IRS regulation which increases taxes. It is not the 
role of the IRS to make decisions that will result in increased taxes.
  For example, if the Office of Management and Budget finds that the 
implementation and enforcement of a rule would result in an increase of 
Federal revenues over current practices or revenues anticipated from 
the rule on the date of the enactment of the statute, the Stealth Tax 
Prevention Act would allow Congress to review the regulations and take 
appropriate measures to avoid raising taxes on hard working Americans, 
in most cases, small businesses.
  Bureaucrats are not directly accountable to taxpayers--I am.
  Under the bill introduced today, an IRS implemented stealth tax could 
not go into effect for at least 60 days following its publication in 
the Federal. Register. This window would allow Congress the opportunity 
to review the rule and vote on a resolution to disapprove the tax 
increase before it is applied to a single taxpayer.
  I urge my colleagues to join us in supporting this important 
legislation to ensure that the IRS neither usurps the proper role of 
Congress--nor skirts its obligations to identify the impact of its 
proposed and final rules. When the Department of the Treasury issues a 
final IRS rule that increases taxes, Congress should have the ability 
to exercise its discretion to enact a resolution of disapproval before 
the rule is applicable to a single taxpayer.
  The Stealth Tax Prevention Act will leave tax policy where it 
belongs, to elected Members of the Congress, not unelected and 
unaccountable IRS bureaucrats.
  Thank you, Mr. President, I yield the floor.
                                 ______