Letter to the President of the Senate and to the Speaker of the House on the Tax Reform Proposals.

Dear Mr. President: (Dear Mr. Speaker:)

The Treasury Department specialists in tax policy some time ago undertook a major effort to prepare tax reform proposals of a comprehensive nature.

The Congress, in the Revenue and Expenditure Control Act of 1968, requested that proposals for a comprehensive reform of the Internal Revenue Code be submitted by December 31.

The studies and proposals for tax reform have been developed by the staff of the Treasury Department.

These studies and proposals, although reviewed by Secretary Fowler, should be viewed primarily as the technical product of the Treasury Staff. I have not received, considered, or made any judgments on these staff proposals. They are the technical product of the tax specialists in the Department and have not been discussed or examined by me.

I have conferred with the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee, the appropriate committees handling this legislation, concerning what seems most appropriate under existing circumstances. We believe that in justice to the Administration that will take office within the next month and who will have to live with and administer any legislation passed, it is only appropriate that they have the opportunity to examine carefully and make their judgment on these matters. All data pertaining to this matter will be made available to the incoming Secretary of the Treasury promptly, and he and I have discussed this procedure and the Secretary-designate concurs in this decision,

The Chairman of the House Ways and Means Committee has been informed that since the Congress will not resume until January 3, all data are available to the Congress when they desire to receive it. I have been today informed by the Chairman of the House Ways and Means Committee, the Ranking Minority Member and the new Secretary that they will make their own arrangements for the proper consideration of any tax proposals that may be desired at a date acceptable to the three of them.

Sincerely,

LYNDON B. JOHNSON