[Congressional Record Volume 149, Number 52 (Tuesday, April 1, 2003)]
[Senate]
[Pages S4635-S4636]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH (for himself, Mr. Breaux, Mr. Baucus, and Mr. 
        Grassley):
  S. 753. A bill to amend the internal Revenue Code of 1986 to provide 
for the modernization of the United States Tax Court, and for other 
purposes; to the Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce the Tax Court 
Modernization Act. I am joined in this legislation by my colleague 
Senator Breaux, and by the Chairman and Ranking Democrat of the Finance 
Committee, Senator Grassley and Senator Baucus.
  The United States Tax Court plays an important role in our tax 
system. However, it has been years since Congress has taken a good hard 
look at the Tax Court. This bipartisan piece of legislation will 
improve this Court in a number of ways, and I would like to take a 
moment to summarize some of its provisions.
  First, the TCMA would make minor changes in the Tax Court's 
jurisdiction. These are small changes that will

[[Page S4636]]

have a big impact on the Court's efficiency. For example, the bill 
would allow the Tax Court to hire employees on its own, just as other 
courts do. Currently, the Tax Court is forced to hire through the 
Executive Branch's Office of Personnel Management, entangling the 
executive power with the judicial power. Restoring the constitutional 
separation of powers in the hiring process will increase the 
independence of the Tax Court.
  Second, the TCMA would improve the way that Tax Court judges receive 
retirement benefits and other non-salary benefits. I believe that Tax 
Court judges should be treated the same way that bankruptcy, Court of 
Federal Claims, and Article III judges are treated when it comes to 
fringe benefits.
  Tax Court judges are often not provided with the same benefits as 
similarly appointed Article I and Article III judges. For example, 
Congress allows Article III, bankruptcy, and Court of Federal Claims 
judges to participate in the Thrift Savings Plan in addition to the 
Civil Service Retirement System, while Tax Court judges are ineligible 
to participate in this program. These disparities in the treatment of 
our Tax Court judges affect the Court's ability to attract and retain 
seasoned judges, as well as talented employees.
  I have spent many years observing the Federal judiciary. I have spent 
many years trying to improve the Judicial Branch of our government and 
to make it the very finest court system the world has ever known. I 
look forward to working with my colleagues on the Senate Finance 
Committee on this important piece of legislation. I urge my colleagues, 
both on the Finance Committee and in the Senate as a whole, to support 
this legislation.
  Mr. BAUCUS. Mr. President, I rise today to support the Tax Court 
Modernization Act. I am pleased to be an original cosponsor of this 
important legislation.
  In 1969, Congress elevated the U.S. Tax Court as a Federal court of 
record under Article I of the Constitution of the United States.
  Congress created the Tax Court to provide a judicial forum in which 
affected persons could dispute tax deficiencies determined by the 
Commissioner of the Internal Revenue Service prior to payment of the 
disputed amounts. That means that the Tax Court's jurisdictional 
requirements are, in part, a recognition that lower and middle income 
taxpayers cannot necessarily pay the tax deficiency before taking their 
dispute to court.
  Congress also closely linked the legislation governing the Tax Court 
with the laws governing the Article III District Courts. Unfortunately, 
the Congress did not include the Tax Court in the changes made for 
Article III courts.
  This legislation is designed to restore parity between the Tax Court 
and Article III courts, and to modernize their personnel and pension 
systems.
  I also want to thank Senators Breaux and Hatch for their efforts in 
moving this legislation forward. The Finance Committee intends to 
markup the Tax Court Modernization Act tomorrow. It is my hope that the 
Committee favorably reports the legislation. I also hope that, soon 
after Committee action, Majority Leader Frist and Minority Leader 
Daschle bring the Tax Court Modernization Act to the floor for swift 
passage.
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