CONTENTS ADMINISTRATION WITNESS Hon. John E. Chapoton, Assistant Secretary for Tax Policy, Department of PUBLIC WITNESSES Page 86 American Council on Education, James C. Olson 184 Association of American Universities, James C. Olson. 184 211 211 Computer and Business Equipment Manufacturers Association, Kevin T. Con- Considine, Kevin T., on behalf of Computer and Business Equipment Manu- 167 167 Cramer, David, managing director, PUMP Financial Services, Inc.. McCrea, Dr. Peter F., for Scientific Apparatus Makers Association National Association of Mutual Savings Banks, Keith G. Willoughby. National Association of Secondary School Principals, Scott Thomson.. National Association of State Universities and Land-Grant Colleges, James C. Olson, Dr. James C., president of the University of Missouri for American Council on Education, Association of American Universities, and the Na- tional Association of State Universities and Land-Grant Colleges Pitt, Theo, Jr., for United States League of Savings Institutions Thomson, Scott, the National Association of Secondary School Principals... United States League of Savings Institutions, Theo Pitt, Jr. Gary P. Arnold for Semiconductor Industry Association Hon. Ed Zschau, U.S. Representative, California 68 Hon. Don Ritter, U.S. Representative, Pennsylvania 79 Hon. John E. Chapoton, Assistant Secretary for Tax Policy, Department 96 Prepared statement of-Continued Scott D. Thomson, National Association of Secondary School Principals..... David A. Cramer, managing director, PUMP Financial Services, Inc........... COMMUNICATIONS Page 256 265 278 275 287 Letter and statement on Senate Bills S. 738, S. 1194, and S. 1195, Arthur 295 Statement of Bernard L. Hardiek, director of taxes, Deere & Co 310 Letter on S. 654 from The Foxboro Co............... 316 IBM Corp. statement.. 318 Statement, Machinery and Allied Products Institute. 329 Statement on S. 1194 and S. 1195, Saul K. Fenster, president, New Jersey 344 Letter on S. 1195 from Norman Hackerman, president, Rice University 352 Letter on S. 1194 and S. 1195 from Tandy Corp./Radio Shack. 354 365 382 Article from the New York Times, "Plugging Teachers Into Computer Era". 357 358 Article from The Miami News, "Computer Confusion in the Dade Classroom". 360 370 Letter from Federal National Mortgage Association. 384 1983-84 MISCELLANEOUS TAX BILLS-II MAY 27, 1983 U.S. SENATE, SUBCOMMITTEE ON TAXATION AND DEBT MANAGEMENT, COMMITTEE ON FINANCE, The subcommittee met, pursuant to notice, at 9:07 a.m. in room SD-215, Dirksen Senate Office Building, Hon. John C. Danforth presiding. Present: Senators Danforth and Heinz. [The press release announcing the hearing, background information on S. 738, S. 1147, S. 1194, and S. 1195, and the prepared statement of Senator Bensten follow:] PRESS RELEASE No. 83-139 [For immediate release-May 9, 1983] U.S. SENATE, COMMITTEE ON FINANCE, SUBCOMMITTEE ON TAXATION AND DEBT MANAGMENT FINANCE SUBCOMMITTEE ON TAXATION AND DEBT MANAGMENT SETS HEARING ON FIVE MISCELLANEOUS TAX BILLS Senator Bob Packwood, Chairman of the Subcommittee on Taxation and Debt Management, announced today that a hearing will be held on Friday, May 27, 1983, on five miscellaneous tax bills. The hearing will begin at 9:00 a.m. in Room SD-215 of the Dirksen Senate Office Building. The following legislative proposals will be considered: S. 654.-Introduced by Senator Wallop and others. S. 654 would permit the deduction of all research and experimentation expenditures for research conducted in the United States against U.S. source income. S. 738.-Introduced by Senator Danforth and others. S. 738 would make permanent the credit for increasing activity. S. 1147.-Introduced by Senators Danforth and Tsongas. S. 1147 would exclude from income amounts arising out of the discharge of indebtedness on a principal residence. S. 1194.-Introduced by Senator Danforth. S. 1195.-Introduced by Senators Bentsen and Chafee. S. 1194 and S. 1195 would increase the charitable contribution deduction for certain scientific equipment, expand the tax credit for research activities and extend the exclusion from income for certain amounts received by students. STATEMENT OF SENATOR LLOYD BENSTEN Mr. Chairman: The R&D bills being discussed today have three major components: Expansion of the R&D tax credit to cover faculty salaries and graduate student aid; Expansion of the charitable deduction provision to include high-tech equipment donated for teaching purposes to colleges and VocEd schools; (1) |