TEI Testifies on Complexity of Tax Code's International Provisions.

Calling proposed legislation to simplify the international tax provisions of the Internal Revenue Code a "major leap forward," Tax Executives Institute President Lester D. Ezrati urged the House Ways and Means Oversight Subcommittee to find ways to bring further clarity to what are among the most complicated provisions in the tax law.

"TEI believes that the Code's foreign provisions need fundamental reform and simplification," he said in June 22 testimony, "and for this reason we support H.R. 2018, the International Tax Simplification for American Competitiveness Act of 1999." The act was introduced on June 7 by Oversight Subcommittee Chairman Amo Houghton and several other representatives, and its provisions address areas including foreign tax credits and the tax treatment of controlled foreign corporations.

"Enactment of this bill," said Mr. Ezrati, "will generally reduce the costs of preparing U.S. corporate tax returns for American companies engaged in international trade without any material diminution in tax dollars flowing to the treasury. The bill will not only reduce compliance costs -- thereby enhancing the country's competitiveness -- but it...