CONGRESSIONAL INDEX THE WEEK IN CONGRESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000700030042-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: November 21, 2005
• Sequence Number: 42
• Publication Date: June 7, 1974
• Content Type: SUMMARY

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CONGRESSIONAL INDEX O
THE WEEK IN CONGRESS (19)
June 7, 1974
Washington, D. C.
TAX REFORM
The Senate Finance Committee began hear-
ings this week on various tax increase pro-
posals expected to be offered as amendments
on the Senate floor to H.R. 8217, a minor
tariff bill. Lead-off witness Treasury Sec-
retary William Simon told the Committee that
the Administration strongly supports tax re_.;
forms. He emphasized that changes in the tax
laws such as those the Committee is consider-
ing should only be made after careful com-
mittee consideration, and he urged the Com-
mittee to work with the House and the Admin-
istration to consider all proposals for tax
reform fully and fairly.
With regard to proposals the Committee
is considering, the Secretary opposed enact-
ment of measures that would repeal the per-
centage depletion allowance for oil and gas
production, eliminate the more rapid depreci-
ation of machinery and equipment permitted
under the Asset Depreciation Range system,
phase out the investment tax credit as the
cost of qualifying property increases, re-
peal of the tax provisions allowing deferred
reporting of part of the overseas income of
a domestic international sales corporation
(DISC), and increase the present minimum
tax. The Secretary did not object to
limiting the use of the foreign tax credit.
allows consideration of any in order
germane amendment, is complicated only
by the fact that unanimous consent is
required to cut off general debate on
the bill. Mills said that he still favo
a closed rule for tax bills but that if
certain amendments were going to be con-
sidered he wanted all applicable amend-
ments to be considered including a few
he said he would offer.
Mills explained that all tax bills
used to be brought up under this privi-
ilege of committee procedure until the
Smoot-Hawley tariff bill, enacted in
1930, was so weighted down on the floor
with House and Senate protective amend-
ments. Since that time the Ways and Means
Committee has sought and received closed
rules to protect tax and trade bills
from numerous amendments.
A senior Democrat on the Rules
Committee Rep. Richard Bolling questioned
Mills' motives in light of the strong
case he has always made for closed rules.
Mills replied that he was only trying
to comply with the wishes of his col-
leagues: The Rules Committee meeting,
which was rather chaotic, ended without
hearing from other witnesses when
Rep. B. F. Sisk's motion for adjournment
easily carried.
OIL TAX BILL PROGRESSES? REVENUE SHARING
Chairman of the House Ways and Means
Committee Wilbur Mills pulled another of his
surprise moves when he appeared before the
House Rules Committee, which was meeting to
consider a rule for H.R. 14462, the Oil and
Gas Tax Act of 1974. A recent action by the
House Democratic Caucus required that Demo-
cratic members of the House Rules Committee
support a rule allowing two certain amend-
ments to the bill to tie considered. Mills
short circuited this'requirement by asking
the Rules Committee not to act on the bill
since he intended to.get permission from the
Ways and Means Committee to bring the bill up
on the floor under the privileges of
committee procedure.
The Rules of the-House provide that rev-
enue and appropriations bills may be brought
to the floor anytime without a rule governing
Treasury Secretary William Simon
testified this week before a Subcommittee
of the Senate Government Operations Com-
mittee which held hearings on the impact
and progress of general revenue sharing.
The testimony was a review of the types
of programs that have been undertaken
by local governmental units to utilize
the $12 billion which has been sent from
Washington in the past 18 months.
Many of the programs the Secretary
described were unique in that they filled
a community need that would not have been
met under categorical grant programs.
He asked that the Congress continue to
consider New Federalism initiatives to
establish broad-based grant programs
as substitutes for narrow categorical
grant programs now in operation.
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SUGAR ACT EXTENSION REJECTED
The House voted to end the forty-year
life of the Sugar Act. By a vote of 175'yeas
to 209 nays the House failed to pass H. R.
14747, which would have extended the Act for
an additional five-years and made changes in
the Act's labor provisions, reduced the pay-
ment rate to sugar producers, and altered the
price objective formula, which determines the
amount of,subsidy sugar producers received
under the Act. The Sugar Act was originally
enacted to protect U.S. sugar growers and
producers in order to assure an adequate do-
mestic supply of sugar at reasonable prices.
SENATE CONSIDERS MILITARY
PROCUREMENT BILL
The Senate this week began consideration
of S. 3000, the Military Procurement Authori-
zation Bill for fiscal year 1975. According
to Armed Services Committee Chairman John
Stennis, the bill as reported by his Committee
would authorize approximately $21.8 billion
which is 5.5 percent less than the amount
requested by the Administration and about
$750 million less than approved by the House.
In manpower catagories, the bill would
cut 49,000 from the active duty force planned
for the end of fiscal 1975, a two percent
reduction, and would cut 44,600 civilian,
employees as proposed by the Defense Depart-
ment, a.reduction of about four percent.
During floor consideration of the bill,
the Senate rejected amendments to reduce fund-
ing for development of the B-1 'bomber program
and the Navy Submarine Launch Cruise Missile
program, and also amendments designed to
further reduce the maximum number of active
duty military personnel.
CLEAN AIR ACT IMPLEMENTATION
EPA Administrator Russell Train testi-
fied before the Senate Public Works Com-
mittee's Environmental Pollution Subcommittee
which concluded oversight hearings this week
on the implementation of the Clean'Air Act.
Overall, Train said that tremendous progress
has been made in meeting the Act's objectives.
He said that during the period 1970 to 1972
total suspended particulates for a composite
average of selected major metropolitan cities
declined approximately ten percent, and for
sulfur dioxide the decline was about 15
percent.
HOUSING BILL MARK-UP
The House Banking and Currency Con.
mittee completed mark-up of Title II
of the Housing and Urban Development Act
of 1974 (H.R. 1449Q)_. The chief amend--
m.ent to Title II was'one which changed
the basis for establishing rental
levels from 30% of operating costs to
not less than 10% of the gross income of
the tenants. An amendment was also
adopted which allows state and local
agencies to use Section 235 interest
reduction assistance without requiring
that they also use FHA mortgage insurance.
The House passed H.R. 10701, which
would provide for licensing, construction
and operation of deepwater ports. A
deepwater port is located 15 to 30 miles
offshore and consists of an anchored
buoy so that super tankers can tie
u,ip and pump their oil into pipelines
Leading to onshore facilities. ... The
:louse passed without` amendment the
$4.4 billion Public-Works for Water and
Power Development and Atomic Energy
Commission Appropriations bill, H.R. 15155.
The Senate cleared for the House
S. 3311, which would simplify Govern-
ment procurement procedures when the
amount does not exceed $10,000. ...
The House passed H.R.'14833, which
would extend the Renegotiation Act
until December 31, 1975. ... The
Senate agreed to the conference report
on H.R. 12565, supplemental funds for
military procurement for fiscal 1974,
clearing the measure for the White
House.
Conferees reached agreement on a
compromise version of:14.R. 7130, which
is designed to reform-Congressional
procedures for the enactment of fiscal
policy. ... S. 2846, a bill designed
to assure: an adequate supply of
chlorine necessary for safe drinking
water and, waste water treatment, passed
the Senate.
Jack Bennett and Edward Schmults
were confirmed by the Senate to be Under
Secretary of the Treasury for Monetary
Affairs and Under Secretary of the Trea-
sury respectively.
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