James Couzens, Andrew Mellon, the 'Greatest Tax Suit in the History of the World,' and Creation of the Joint Committee on Taxation and Its Staff
In early 1924, James Couzens was a Republican Senator from Michigan and reportedly the richest member of Congress. Andrew Mellon was beginning his fourth year as Secretary of the Treasury — a service that would eventually span 11 years under three Republican Administrations — and one of the wealthiest persons in the entire country. This article describes how a feud between these two men, an ensuing investigation led by Couzens of the Bureau of Internal Revenue (BIR) (predecessor to the modern-day IRS), and a tax case against Couzens that was described as the “greatest tax suit in the history of the world,” helped lead to creation of the U.S. Joint Committee on Taxation (JCT) and its staff. The events — filled with political intrigue, backstabbing (real or imagined), and unintended consequences — antagonized Congress’s relationship with the executive branch, but improved cooperation between the House and Senate, and both were instrumental in the JCT’s creation. The story also helps to explain certain of the unique characteristics of the JCT and its staff since their formation. Finally, the article describes how creation of the JCT became entangled with two of the most contentious tax issues of the day — the publicity of tax return information and the depletion allowance for oil and gas production — and played a role in changing the law in both areas. Although the feud and its aftermath were direct factors in the JCT’s creation, the development of the modern income tax during roughly its first decade was an essential ingredient. The decisions made by Congress, the Treasury, and the BIR during that period, and their later understanding (or misunderstanding) of the law and its effects, set the stage for the feud and subsequent events. Thus, in addition to detailing the largely untold story of the origins of an important Congressional committee and its staff, this article explains and analyzes key, early portions of our nation’s 100-year-old law as well as the sometimes flawed decision-making process — involving an intriguing mix of policy, politics, and personality — that helped produce this new institution of government.
Protecting Taxpayers from Congressional Lawbreaking
Introduction Current law generally prohibits the disclosure of tax return information by the government. A violation of this law is a misdemeanor, and a willful violation is a felony. The law exists to protect the privacy interests of taxpayers and reflects a Congressional policy concern dating back at least as early as 1870. This article describes how the U.S. House Ways & Means Committee—“arguably the most powerful panel on Capitol Hill”—broke this law in 2014 when it voted to allow confidential tax return information of 51 taxpayers to be made public. The disclosure probably resulted in a minimal invasion of the privacy rights of the taxpayers involved, and if the release had occurred inadvertently, it might have been overlooked altogether. But the disclosure was not inadvertent. Advised that a document he wanted to release to the public contained confidential tax return information, the chairman of the committee convened a markup session for the specific purpose of debating and authorizing the release. The chairman contended that an obscure provision in the tax law, available only to the Congressional tax committees and apparently rarely invoked in its 90-year history (most recently in connection with a bipartisan decision in 1974 to release a staff report investigating President Nixon’s taxes), provided the necessary support for the committee’s action. Following the debate, the committee voted strictly along party lines to approve the chair’s recommended action.
Introduction to Dutch Law for Foreign Lawyers
Part 1 Dutch legal system: history sources judicial organization legal education and the legal profession classification. Part 2 Private law: family law property law law of obligations representation and procuration legal persons law of succession commercial law air law civil procedure private international law. Part 3 Public law: constitutional law administrative law criminal justice system tax law economic law. Part 4 Labour law. Part 5 Legal philosophy.