[House Report 115-309]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-309
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RESOLUTION OF INQUIRY DIRECTING THE SECRETARY OF THE TREASURY TO
PROVIDE TO THE HOUSE OF REPRESENTATIVES THE TAX RETURN INFORMATION OF
PRESIDENT DONALD J. TRUMP AS WELL AS THE TAX RETURNS OF EACH BUSINESS
ENTITY DISCLOSED BY DONALD J. TRUMP ON HIS OFFICE OF GOVERNMENT ETHICS
FORM 278E
_______
September 14, 2017.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Brady of Texas, from the Committee on Ways and Means, submitted the
following
ADVERSE REPORT
together with
DISSENTING VIEWS
[To accompany H. Res. 479]
The Committee on Ways and Means, to whom was referred the
resolution (H. Res. 479) of inquiry directing the Secretary of
the Treasury to provide to the House of Representatives the tax
return information of President Donald J. Trump as well as the
tax returns of each business entity disclosed by Donald J.
Trump on his Office of Government Ethics Form 278e, having
considered the same, report unfavorably thereon without
amendment and recommend that the resolution not be agreed to.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 4
II. EXPLANATION OF THE BILL..........................................4
III. VOTES OF THE COMMITTEE...........................................4
IV. BUDGET EFFECTS OF THE BILL.......................................5
A. Committee Estimate of Budgetary Effects............. 5
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 5
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 5
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......5
A. Committee Oversight Findings and Recommendations.... 5
B. Statement of General Performance Goals and
Objectives......................................... 5
C. Information Relating to Unfunded Mandates........... 5
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 5
E. Duplication of Federal Programs..................... 6
F. Disclosure of Directed Rule Makings................. 6
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............6
VII. DISSENTING VIEWS.................................................7
I. SUMMARY AND BACKGROUND
A. PURPOSE AND SUMMARY
H. Res. 479 requests that the Secretary of the Treasury
provide the House of Representatives with ten years of tax
returns and other financial information of President Donald J.
Trump. The resolution also requests that the Secretary of the
Treasury provide the House of Representatives with ten years of
tax returns for each of the more than 500 business entities
listed on the President's financial disclosure, Office of
Government Ethics Form 278e.
B. BACKGROUND AND NEED FOR LEGISLATION
On July 27, 2017, H. Res. 479 was introduced by
Representative Bill Pascrell. H. Res. 479 is a resolution of
inquiry, which is a means infrequently used by the House of
Representatives designed to obtain certain factual information
from the Executive Branch. Under clause 7 of rule XIII, a
resolution of inquiry is subject to a motion to discharge from
committee if the resolution is not reported by the committee to
which it was referred within 14 legislative days of its
introduction.\1\ Accordingly, the Committee on Ways and Means
scheduled a markup of H. Res. 479 within the 14-day period.
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\1\Rules of the House of Representatives rule XIII, clause 7.
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The Committee reported the resolution unfavorably because,
among other flaws, the resolution asks the Secretary of the
Treasury to break the law by disclosing the tax returns of the
President directly to the House of Representatives.
Furthermore, it would set a dangerous precedent by targeting a
single individual's confidential tax returns and associated
financial documents for disclosure.
This resolution asks the Secretary of the Treasury to
deliver tax returns and return information to the House of
Representatives, which would be a violation of current law.
Section 6103(a) of the Internal Revenue Code sets out the
general rule that all tax returns and return information are to
be kept confidential unless explicitly authorized in
statute.\2\ The Code authorizes a handful of exceptions to the
general rule of confidentiality, such as for criminal
investigations relating to a missing or exploited child.\3\
Congress is authorized to receive tax returns and return
information under a codified exception, but only under certain
circumstances.\4\ Specifically, after a written request by the
Ways and Means Committee Chairman, the information is to be
furnished to the Committee ``only when sitting in closed
executive session unless such taxpayer otherwise consents in
writing to such disclosure.''\5\ The Code does not authorize
the House of Representatives to receive confidential tax
returns and return information from the Secretary of the
Treasury, as H. Res. 479 directs.
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\2\6 U.S.C. Sec. 6103(a) (2012).
\3\See generally 26 U.S.C. Sec. 6103 (2012).
\4\26 U.S.C. Sec. 6103(f) (2012).
\5\26 U.S.C. Sec. 6103(f)(1) (2012); see also 26 U.S.C.
Sec. 6103(f)(3) (2012) (authorizing non-tax writing committees to
receive tax returns and return information only when sitting in closed
executive session).
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In addition to being legally flawed, H. Res. 479 would set
a dangerous precedent. At times, this Committee has sought the
tax returns and return information of individuals as a part of
our legislative responsibility to oversee the tax code;
however, the purpose of this resolution is to single out one
individual. Such action would be the first time the Committee
exercised its authority to wade into the confidential tax
information of an individual with no tie to any investigation
within our jurisdiction. Some Members have suggested there is a
precedent for this--that the tax-writing committees used the
authority granted under Section 6103(f) to access and review
President Nixon's tax returns in 1973. However, such assertions
are not supported by the facts. The facts are these: President
Nixon voluntarily released his own tax returns and he also
requested a review of them by the Joint Committee on
Taxation.\6\
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\6\John Herbers, ``Voluminous Data,'' The New York Times, Dec. 9,
1973.
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Not only would targeting an individual in this manner be an
abuse of authority, it would also be an invasion of privacy.
Tax returns contain highly confidential and sensitive
information and Congress has rightly put high walls around this
information's disclosure. There is no exception under current
law for the disclosure of confidential personal tax return
information for purposes of embarrassing or attacking political
figures of another party. Those very sorts of partisan attacks
were the motivation for Congress' enacting changes in the Tax
Reform Act of 1976 that comprise current law and are designed
to protect taxpayers' privacy.\7\ Directing the Secretary of
the Treasury to now break current law by violating the
confidentiality of tax return information is profoundly
misguided.
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\7\See 122 Cong. Rec. 24012-13 (July 27, 1976) (statement of Sen.
Dole) (``I cannot stress enough the importance of preserving the
confidentiality of individual tax returns. These reforms respond in
part to the challenge we face as public officials--the restoration of
public trust in Government and Government officials. Past abuses and
lax administration demonstrate the need for reform of the Nation's
income tax system so that doubts in the public mind about the integrity
of the Internal Revenue Service can be dispelled . . . The tax return
privacy provisions of this bill balance Government's need for tax
return information with the citizens' right of privacy.'')
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Furthermore, as was made clear in the Committee's markup,
there is no legal requirement in the Code for the President to
release his tax returns. While this may be the practice that
recent Presidential candidates have followed, each has done so
voluntarily, and not because he or she was bound by law to do
so.
In addition to its other flaws, the resolution amounts to a
fishing expedition. A recent report by the nonpartisan
Congressional Research Service notes that resolutions of
inquiry are a tool used by the minority increasingly to score
partisan points and get Members ``on the record with difficult
policy votes.''\8\ This is demonstrated by the fact that the
Committee has already dispensed with a nearly identical
resolution of inquiry by the same Represenative just four
months prior to this one. On March 9, 2017, H. Res. 186 was
introduced by Representative Bill Pascrell and was also a
resolution of inquiry requesting the Secretary of the Treasury
provide the House of Representatives with ten years of tax
returns and other financial information of President Trump. H.
Res. 186 was similarly dispensed with on March 28, 2017.
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\8\Christopher M. Davis, Cong. Research Serv., R40879, Resolutions
of Inquiry: An Analysis of Their Use in the House, 1947-2011, at 9-10
(2012).
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C. LEGISLATIVE HISTORY
Background
H. Res. 479 was introduced by Representative Bill Pascrell
on July 27, 2017, and was referred to the Committee on Ways and
Means.
Committee hearings
The Committee held no hearings on H. Res. 479.
Committee action
The Committee on Ways and Means marked up H. Res. 479 on
September 7, 2017, and ordered the bill unfavorably reported
(with a quorum being present).
II. EXPLANATION OF THE BILL
H. Res. 479 directs the Secretary of the Treasury to
provide to the House of Representatives the tax returns and
other specified financial information of President Donald J.
Trump along with the tax returns of more than 500 business
entities included on the President's financial disclosure Form
278e.
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H. Res. 479, ``Of inquiry directing the
Secretary of the Treasury to provide to the House of
Representatives the tax return information of President Donald
J. Trump as well as the tax returns of each business entity
disclosed by Donald J. Trump on his Office of Government Ethics
Form 278e.,'' on September 7, 2017.
The resolution was ordered unfavorably transmitted to the
House by a rollcall vote of 21 yeas and 15 nays (with a quorum
being present). The vote was as follows:
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Representative Yea Nay Present Representative Yea Nay Present
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Mr. Brady...................... x ........ ......... Mr. Neal......... ........ x .........
Mr. Johnson.................... x ........ ......... Mr. Levin........ ........ x .........
Mr. Nunes...................... x ........ ......... Mr. Lewis........ ........ x .........
Mr. Tiberi..................... x ........ ......... Mr. Doggett...... ........ x .........
Mr. Reichert................... x ........ ......... Mr. Thompson..... ........ x .........
Mr. Roskam..................... x ........ ......... Mr. Larson....... ........ x .........
Mr. Buchanan................... ........ ........ ......... Mr. Blumenauer... ........ x .........
Mr. Smith (NE)................. x ........ ......... Mr. Kind......... ........ x .........
Ms. Jenkins.................... x ........ ......... Mr. Pascrell..... ........ x .........
Mr. Paulsen.................... x ........ ......... Mr. Crowley...... ........ ........ .........
Mr. Marchant................... x ........ ......... Mr. Davis........ ........ x .........
Ms. Black...................... ........ ........ ......... Ms. Sanchez...... ........ x .........
Mr. Reed....................... x ........ ......... Mr. Higgins...... ........ x .........
Mr. Kelly...................... x ........ ......... Ms. Sewell....... ........ x .........
Mr. Renacci.................... x ........ ......... Ms. DelBene...... ........ x .........
Mr. Meehan..................... x ........ ......... Ms. Chu.......... ........ x .........
Ms. Noem....................... x ........ .........
Mr. Holding.................... x ........ .........
Mr. Smith (MO)................. x ........ .........
Mr. Rice....................... x ........ .........
Mr. Schweikert................. x ........ .........
Ms. Walorski................... x ........ .........
Mr. Curbelo.................... ........ ........ .........
Mr. Bishop..................... x ........ .........
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IV. BUDGET EFFECTS OF THE BILL
A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS
Clause 3(d) of rule XIII of the Rules of the House of
Representatives is inapplicable.
B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX EXPENDITURES BUDGET
AUTHORITY
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives is inapplicable.
C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee advises that the
Congressional Budget Office did not provide a cost estimate for
the resolution.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. INFORMATION RELATING TO UNFUNDED MANDATES
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF
BENEFITS
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
H. Res. 479 do not contain any congressional earmarks, limited
tax benefits, or limited tariff benefits within the meaning of
the rule.
E. DUPLICATION OF FEDERAL PROGRAMS
In compliance with Sec. 3(g)(2) of H. Res. 5 (115th
Congress), the Committee states that no provision of H. Res.
479 establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program;
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139; or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
F. DISCLOSURE OF DIRECTED RULE MAKINGS
In compliance with Sec. 3(i) of H. Res. 5 (115th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that H. Res. 479 specifically
directs to be completed no specific rule makings within the
meaning of 5 U.S.C. Sec. 551.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, the Committee advises that H.
Res. 479 would not make any changes to existing law.
VII. DISSENTING VIEWS
Committee Democrats strongly oppose the Committee's action
of unfavorably reporting H. Res. 479, Resolution of inquiry
directing the Secretary of the Treasury to provide to the House
of Representatives the personal and business tax returns of
President Donald J. Trump, and other specified financial
information. Committee Republicans continue to block our
requests for this Committee to exercise its authority under
Section 6103 of the Internal Revenue Code to obtain, examine,
and make available to the public President Trump's federal tax
returns.
This Committee has broad jurisdiction over a variety of
laws that affect the lives of millions of Americans, including
the federal tax law. The President and Congressional
Republicans have been very vocal regarding their desire to
enact comprehensive tax reform this Congress. Committee
Democrats believe that it is imperative for the public to know
and understand how such tax reform will benefit the President,
his 515 financial positions in domestic and foreign
companies,\1\ and his self-reported net worth of more than $10
billion.\2\
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\1\https://www.washingtonpost.com/wp-stat/graphics/politics/trump-
archive/docs/trump-fec-financial-disclosure-2015.pdf.
\2\www.washingtontimes.com/news/2016/may/24/donald-trump-net-worth-
10-billion-campaign-manager/.
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Since the early 1970s, all presidents, Republican and
Democrat, have chosen to release their individual tax returns
with the exception of Republican Gerald Ford who released a tax
summary.\3\ These presidents include: Richard Nixon (4 years),
Jimmy Carter (3 years), Ronald Reagan (6 years), George Bush (3
years), Bill Clinton (8 years), George W. Bush (8 years), and
Barack Obama (16 years). In recent years, presidential
candidates and their vice-presidential candidates also have
released their individual tax returns, including Hillary
Clinton (16 years), Tim Kaine (9 years), Mitt Romney (2 years),
and Paul Ryan (2 years).
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\3\http://www.taxhistory.org/www/website.nsf/web/
presidentialtaxreturns.
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Tax returns provide the clearest picture of a president's
financial health, including how much he earns, how much tax he
pays, his sources of income (e.g., capital gains, dividend
income, and certain business income), the size of his
deductions, whether he makes charitable contributions, and
whether he uses tax shelters, loopholes, or other special-
interest provisions to his advantage. All of these items are
critical in order for the public to gain a more complete
understanding of how tax reform will benefit President Trump
and his vast business empire.
If ever there was a president with respect to which this
Committee should exercise its Section 6103 statutory authority
to obtain individual tax returns, President Trump is the one. A
president with a vast domestic and international business
empire. A president who has rebuked over 40 years of tradition
and refused to release his individual tax returns to the
public. A president who will negotiate and ultimately may sign
comprehensive tax reform into law. A president who is not the
average American--he has assets, business interests, and
foreign entanglements that far surpass the average taxpayer.
Moreover, the Constitution of the United States, in Article II,
vests the power of the Executive Branch exclusively in the
president. The Constitution of the United States, in Article I,
vests in him with the sole authority to sign bills into law. No
other American has such power. Hence, Committee Democrats
remain steadfast in our pursuit to have his federal tax returns
disclosed to the public.
Members of Congress on both sides of the aisle have called
on President Trump to release his tax returns. Starting in
February, Committee Democrats began pressing Committee
Republicans to use the authority under Section 6103 to obtain
President Trump's tax returns and make them available to the
public. Committee Democrats have sent letters urging, and
offered amendments to force, the Chairman to obtain President
Trump's tax returns for review by the Committee. The Chairman
and Committee Republicans have refused to act and voted down
our amendments on party lines.
There is no doubt that the Chairman has the power to obtain
President Trump's personal and business tax returns for review
by the Committee. With respect to this Committee, Section
6103(f)(1) provides that, upon written request from the
Chairman, the Treasury Secretary shall furnish to the Committee
any return or return information specified in the written
request. However, any information that can be associated with a
particular taxpayer shall be furnished to the Committee only
when sitting in closed executive session unless the taxpayer
consents otherwise in writing to such disclosure. Section
6103(f)(4)(A) further provides that any return or return
information obtained by or on behalf of the Committee pursuant
to this section may be submitted by the Committee to the House.
Procedurally, upon submission to the House, the tax return and
return information would become available to the public.
Committee Republicans used these exceptions in the past to
release confidential taxpayer information.
In closing, there is nothing in Section 6103 that prohibits
a taxpayer from releasing the taxpayer's own tax returns or
consenting to the disclosure of such tax returns or return
information. In a January 2017 ABC/Washington Post poll, three-
quarters of Americans say that President Trump should release
his tax returns--including nearly 50 percent of his own
supporters. It is our sincerest hope that President Trump will
release his tax returns to the American public as virtually all
presidents have done since Richard Nixon.
Richard E. Neal,
Ranking Member.
Bill Pascrell, Jr.