Neither rain, fire, nor whirlwind of legislation will keep TEI from its appointed rounds.

• Author: Rossi, Raymond G.
• Position: Tax Executive Institute - President's Page

The last two months have reminded all of us that, despite best-laid plans and our earnest hopes for well-ordered lives, we often find ourselves at the mercy of events outside our control. The beginning of TEI's year was anything but auspicious; as members of the Institute's Board of Directors and committee chairs were heading home from the annual meeting of members in Alberta, major portions of the northeastern United States and Ontario were thrown into darkness when the electrical grid failed. Many of us attending the Banff meeting also found ourselves affected by forest fires in western Canada, though the inconvenience we experienced was nothing compared to that suffered by those whose livelihoods or homes were affected by the flames, soot, and ash.

A little more than a month later, Mother Nature manifested herself in the form of Hurricane Isabel, wreaking havoc on the eastern seaboard and effectively shutting down Washington and many other cities for several days. Some members of TEI's staff found themselves with out power for up to five days. I am pleased to report, however, that members of' the staff made their way into the office even as the federal government battened down the hatches and closed for two days.

The Whirlwind of Legislation

The last challenge deserving mention is the man-made whirlwind of tax legislation (and proposed legislation) that has moved to center stage, not only in Washington, but also in the States. Unlike the power grid's failure, however, or the fallen trees and other hurricane-related damage, the "end" is not in sight for the legislative whirlwind that often characterizes the centers of government. Indeed, as TEI approaches its 58th Annual Conference, quite the opposite is true. In Washington, pressure from the European Union for immediate replacement of the FSC/ETI export incentive has spawned numerous competing proposals. Some of these proposals address long-needed reform of the Code's international provisions. Others promise tax reductions in respect of manufacturing income and repatriated earnings. And still others combine positive changes with proposed revenue offsets that would, in tandem, produce winners and losers across the business community, as well as engender more than a modicum of confusion and uncertainty.

Similarly, the question of tax shelters continues to command congressional attention, with the Senate Finance Committee having already approved legislation to increase penalties and require...