Prospects for tax legislation, LMSB initiatives dominate TEI's 54th Midyear Conference: treasury deputy secretary Bodman debuts at conference; Bob Wenzel and Rob Wright honored.

• Position: Tax Executives Institute 54th Midyear Conference

The 54th Midyear Conference was a grand success. Attendance at the spring meeting exceeded 500, with everyone benefitting from the unparalleled opportunity to attend outstanding educational sessions and to network with their peers. At the conclusion of the conference, TEI President Ray Rossi expressed the Institute's appreciation to TEI's committee chairs who planned the technical sessions; to the outside speakers and members who served as speakers, panelists, and moderators; and to the tax executives who travelled to Washington for the conference.

A highlight of the conference was the public debut of recently confirmed Deputy U.S. Secretary of the Treasury, Samuel Bodman, who delivered his inaugural tax policy speech at the conference. Other 2003 keynoters were House Ways and Means Committee Chairman Bill Thomas, IRS Commissioner Mark Everson (making his first conference presentation), and LMSB Commissioner Deborah Nolan.

The conference's technical sessions were both timely and tremendous. Whether the subject was FAS 109 and documentation of tax accruals, tax shelters, capitalization, R&D, Canadian tax developments, or multistate tax audits, participants were treated to practical and insightful presentations. A CD-ROM containing the handout materials will be available later this spring. (It will be available for sale to non-conference registrants.) Photographic highlights of the conference will be reprinted in the May-June issue of The Tax Executive, and will posted to the website by the first of May.

Keynote Addresses Raise TEI's Profile

Ways and Means Committee Chair Bill Thomas opened the Midyear Conference on March 22 with a spirited and sometimes pointed defense of the benefits of the international tax reform provisions in the American Competitiveness Act (H.R. 2896). Mr. Thomas explained that, although the bill was revenue neutral overall, it did not afford the same level of tax benefits to those that currently benefit from the FSC Repeal and Extraterritorial Income Exclusion (ETI) Act. As a result, critics of H.R 2896 have been vigorous in lobbying against the bill. The ETI Act, which has been declared an illegal export subsidy by the World Trade Organization, must be repealed, Mr. Thomas said. He urged supporters of the international tax reform provisions in H.R. 2896, especially broad-based business organizations, to step up their efforts. He averred that the Ways and Means Committee's bill would significantly enhance the competitiveness of American companies vis-a-vis foreign companies.

Mr. Thomas expressed little enthusiasm for a bill reducing the tax rate on domestic manufacturing, noting that such a bill would likely increase the number of taxpayers claiming to be engaged in manufacturing without increasing manufacturing output or jobs in the United States. Mr. Thomas also expressed...