State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 24

88th Congress, lot Session

House Report No. 749

REVENUE ACT OF 1963

REPORT
OF THE

COMMITTEE ON WAYS AND MEANS
HOUSE OF REPRESENTATIVES
TO ACCOMPANY

H.R. 8363
A BILL TO AMEND THE INTERNAL REVENUE CODE OF
1954 TO REDUCE INDIVIDUAL AND CORPORATE
INCOME TAXES, TO MAKE CERTAIN
STRUCTURAL CHANGES WITH
RESPECT TO THE INCOME
TAX, AND FOR OTHER
PURPOSES

SEPTEMBFR 13, 1963.-Colmmitted to the Committee of the Whole House
on the State of the Union and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1968

22-514 0
_

e

I

·

48

REVENUE ACT OF 1903

taxes. The categories of taxes which may not be deducted under
present1.law are: income taxes.
Federal
2. Federal'war profits and excess profits taxes.
3. Federal import duties and Federal excise and stamp taxes
(except that these taxes may be deductible as business expenses or
taken into account as expenses incurred in the production of
income).
4. Estate, inheritance, gift, and similar taxes;
5. Most local improvement taxes.
6. Foreign income and excess profits taxes and similar taxes
imposed by U.S. possessions (if the taxpayer elects to take a
taxes
deduction).
foreign tax credit for theseabove in lieu of ataxes is to
The practical effect of the
listing of
deny any
deduction for Federal taxes paid by the taxpayer (except to the extent
that taxes listed in category 3 above qualify as business expenses or
expenses incurred in the production of income).
State and local taxes on the other hand generally are deductible,
except death and gift taxes and most local improvement taxes. The
most important State and local taxes, and the revenues derived from
them by State and local governments in 1961, are as follows:
1. Real and personal property taxes, $18 billion.
2. Income taxes, $3.9 billion.
3. General sales and gross receipts taxes, $5A4 billion.
The three categories of taxes indicated above account for $7.5
bhlion of the total $10 billion of taxes taken as non-business deductions
on taxable returns for Federal income tax-purposes in 1960. The
local taxes, fqr which
principal remaining State and with revenues derived deductions may
from thim by
be taken, together
presently
State and local governments in, 1i61, are as follows:
1. Gasolinetaxes, $3.5 billion.
2. Alcoholic beverage taxes, $0.7 billion.

3. Tobacco taxes, $1.1 billion.

4. Aiuto and drivers' licenses, $1.8 billion.
5. Selective sales or excise taxes not included above

(such

as

those on admissions, room occupancy etc.), $1.8 billion.
General reasons for the provisin.--Your committee recognized
(b) there were
that
important reasons for continuing the deductibility
of property taxes, income taxes, and general sales taxes. The burden
of property taxes varies widely among individuals according to whether
or not they are homeowners. Thus anyv denial of deductions in such
cases would result in an important shift in the distribution of Federal
income taxes between homeowners and nonhomeowners'.
In the case of State and local income taxes, continued deductibility
an
where
represents localimportant. means of accommodation Federal both the
on
State and
Governgovernments this one hand and the
ment on the other hand tap
sdme revenue source, in some cases
to an important degree. A failure to provide deductions in this case
could mean that the combined burden of the State, local, and Federal
income taxes might be extremely heavy.
If property and income taxes are to be deductible in computing
income subject to Federal income tax, it also becomes important to
allow the deduction of general sales taxes as well. These are the three
major sources of State and local government revenue, and were the