Nearly 800 tax executives discuss tax reform, regulatory developments, CEP initiatives.

• Position: Coordinated Examination Program

Spring in Washington, D.C. is cherry blossoms, the District of Columbia's answer to snow removal, and Tax Executives Institute's 46th Midyear Conference. This year's conference, held on the cusp of the vernal equinox, attracted nearly 800 TEI members and guests. The March 16-20 program featured the presentation of the Institute's Distinguished Service Award to former Treasury Secretary and Senator Lloyd Bentsen and addresses by Senator Orrin Hatch, Congressman Bill Archer, Canada's Associate Deputy Minister of Revenue lan Bennett, Assistant Treasury Secretary Leslie Samuels, and IRS Commissioner Margaret Richardson. In addition, an outstanding array of TEI members and private practitioners gave technical presentations on issues ranging from the use of accounting methods, to dividend planning to the development of a tax department's best practices, from the use of the Internet to digital imaging developments, from hot state and local topics to ... well, you get the idea.

The congressional speakers focused on the prospects for fundamental tax reform. In his keynote address on Tuesday morning, Senate Finance Committee member Orrin Hatch observed that there will be "winners and losers' in any reform legislation. He added that taxpayers are searching for the "tax nirvana' that they believe is out there - if only Congress could get its act together. Noting that some good ideas are "on the table,' Senator Hatch urged TEI's members to get involved in the debate. We have not heard anything about the effect of tax reform on industries, he said.

The next morning, the Chairman of the House Ways and Means Committee, Bill Archer, defended his call to pull the income tax out by its roots" as "not so radical' an idea. Noting that 68 percent of the American people believe the income tax should be abolished, Congressman Archer referred to the hearings to begin later that day on the functioning of the income tax system. He suggested that the country would benefit if tax collectors and tax practitioners were "out producing wealth rather than shifting it around."

Assistant Treasury Secretary Samuels also commented the prospect for tax reform, noting that "as we go down that yellow brick road," more issues will arise. Don't be lured by the rhetoric, he cautioned, that may be fool's gold - not a pot of gold - at the end. He expressed concern about the effect of "radical" reform proposals such as Congressman Armey's flat tax on health insurance coverage and...