Letter to Philip Morris from the Tax Foundation
Author: Scott A. Hodge, Executive DirectorDate: 2001-02-05
TAX FOUNDATION
1280 H Street, NW, Suite 750
Washington, DC 20005.3908
202 783-2760 Tel
202 783-6868 Fox
tf@taxfoundation.org
www.taxfoundation.org
February 5, 2001
Mr. Michael Stojsavevich
Manager, Fiscal and Economic Issues
Philip Moms Management Corp.
120 Park Avenue
14th Floor
New York, NY 10017-5592
Dear Mike:
Thanks to Philip Morris' support, 2000 was a very successful year for the Tax Foundation. As the Tax Foundation enters its 64' year, we are witnessing one of the most exciting times in tax policy in nearly two decades. For the first time since 1981, Washington will debate meaningful tax cuts, including: cutting individual tax rates; eliminating estate and gift taxes; expanding IRAs and other savings measures; cutting capital gains rates; and, fixing the Alternative Minimum Tax.
We believe that the reputation we have established over the past six decades positions us extremely well to weigh in on this important debate. As you know, the close margins in the House and Senate will demand a greater degree of bipartisanship in order to enact any tax reform legislation. Members of Congress in both parties will need the best unbiased analysis of these issues in order to craft economically sound tax policy. The Tax Foundation is one of the few organizations in Washington whose research is held in high regard by lawmakers and staff of both parties.
I want to take a minute to tell you about the exciting plans we have for the year and request that Philip Moms renew its annual support for the Tax Foundation in the amount of $50,000.00. I would also like to see Philip Morris continue as a gold sponsor of the Tax Foundation's 64th Annual Dinner in the amount of $7,500.00. Furthermore, I would also ask that Philip Moms make a $25,000.00 contribution toward the Tax Foundation's Excise Tax Conference held early in January at Jacksonville, Florida.
Our first attention this year will focus on building the case for cutting marginal tax rates and simplifying the tax code. We will soon release a study showing that since the economic boom began, the tax code's progressive rate structure ensured Federal individual tax collections grew 65 percent faster than Americans' personal incomes. In fact, since 1992, the growing economy generated more than $2.8 trillion in new personal income. Unfortunately, half of new personal income went to taxes at the federal, state, and local levels.
One of the most important projects we now have underway is our Next Generation Tax Model project. Patrick Fleenor, our Chief Economist, is just weeks away from completing the first stage of this project - a "static" tax model similar to that used by Congress's Joint Committee on Taxation and other organizations such as Citizens for Tax Justice. This new model will allow us to analyze President George W. Bush's tax proposal, as well as congressional tax plans, in a matter of hours rather than days or weeks.
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Mr. Michael Stojsavljevich February 5, 2001
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The Tax Foundation is also looking to expand its "Tax Complexity Project" which is investigating the areas of the tax code that pose the most complexity for corporate and individual taxpayers. Last year, the Tax Foundation estimated that it costs at least $125 billion per year for individual and corporate taxpayers to comply with the nation's tax laws - equal to the combined revenue of Motorola, Intel, Microsoft, Cisco, Sun, Oracle, Seagate, and America Online. In a recent CNNfn report, Tax Foundation economist Scott Moody said "We must not stop agitating for a simpler tax code with reasonable rates that raise the income the government needs - no more and no less."
I'm sure you are also familiar with the Tax Foundation's International Tax Conference program which has educated over one hundred congressional staff persons on the challenging tax issues faced by U.S. multinational corporations. The Tax Foundation wants to expand this program by creating a Senior Fellow position in International Tax Economics. This new position will allow the Tax Foundation to provide timely analysis of the major tax issues being debated in the Congress, the OECD, and the EU.
Like you, I read the daily business pages documenting the decline in corporate profits and the slowdown in the U.S. economy. I'm fully aware that these events may effect contributions to organizations such as ours. But given the importance of our program agenda and the critical decisions to be made in tax policy this year, I hope you will continue to recognize the importance of our work and renew Philip Morris' general support contribution of $50,000.00.
Additionally, I am asking that Philip Morris continue to sponsor the Tax Foundation's Annual Dinner at the gold level with a contribution of $7,500.00. Each year at the Tax Foundation's Annual Dinner Distinguished Service Awards are given to a public sector and private sector recipient who have excelled in the field of tax policy. In 2000, Representative Jennifer Dunn (RWA) and Mr. Charles G. Koch, President and Chief Executive Officer of Koch Industries were honored. Other past recipients include Presidents Herbert Hoover and Dwight Eisenhower, Secretaries of the Treasury George Schultz, William Simon, and James Baker Ill, Federal Reserve Chairman Alan Greenspan, and corporate leaders such as Alcoa chairman Paul O'Neil, H-P chairman John Young, CSX chairman John Snow, and GTE Chairman Charles R. Lee.
Philip Morris' contribution toward this event will cover admittance of up to 4 attendees to the VIP reception and admittance to the general reception, reserve a table of eight at the dinner, admittance to the post-dinner reception, and sponsorship listing in the dinner and conference programs and on the Tax Foundation's web site. I hope Philip Morris will be able to once again sponsor this event
I am also asking Philip Morris to make a $25,000.00 contribution toward the January 11-13, 2001 Excise Tax Conference held in Jacksonville, Florida at the Ponte Vedra Resort. The purpose of the conference was to allow the excise tax community to harmonize strategy and take stock of the intellectual ammunition at their disposal so that they will be prepared to make the most of any opportunity for reform. The conference also addressed other areas of interest to the excise tax community such as the emerging issue of electronic commerce.
The conference began with dinner Thursday night featuring key note speaker Slade O'Brien, director of Florida Citizens for a Sound Economy. Mr. O'Brien emphasized the critical role that grassroots can play in the excise tax reform debate. On Friday, two panels discussed the
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Mr. Michael Stojsavljevich
February 5, 2001
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outlook for federal excise tax reform. On the first panel, public policy experts Stephen Entin of the Institute for Research on the Economics of Taxation and Sonia Arrison of the Pacific Research Institute talked about the political economy of excise taxes. The second panel featured congressional staff Beth Vance of the House Ways and Means Oversight Committee, Chris Hatcher with Rep. Mclnnis, David Morgan with Rep. Jefferson, and Mac Campbell with Sen. Lincoln. This panel talked about the prospect of excise tax reform in the 107th Congress. During lunch Rep. Phil English (R-PA) presented his view on the mood for excise tax reform among the House of Representatives.
In the afternoon, John Dunham of American Economics Group looked at the secondary regressivity effects of excise taxes. At dinner, Declan McCullagh, Washington Bureau Chief of Wired News talked about excise taxes in the new economy focusing on the growing issue of e-commerce.
On Saturday, areas of interest to the excise tax community, such as state and local tax policy were addressed by Scott Bucy a tax agent for the Ohio Department of Revenue. Also, former congressional staffer Steven Glaze, now with Hooper Owen & Winburn, talked about how to mobilize congressional action on excise tax reform. Given the importance of this conference to the ongoing excise tax reform movement I hope Philip Morris will provide the $25,000.00 sponsorship requested for this event.
I look forward to keeping you up-to-date on the work made possible by Philip Morris' ongoing support. I have enclosed an invoice itemizing these contributions, if you have any questions please let me know by contacting me by phone at 2021783-2760 or e-mail at shodge@taxfoundation.org. I would also encourage you to look at the Tax Foundation's web site at www.taxfoundation.org for all the latest information available from the Tax Foundation.
Sincerely,
Scott A. Hodge
Executive Director
SAH:ran
Enclosure
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