Clinton Reverses on IRS Reform

Faced with the defection of House Minority Leader Richard Gephardt, D-Mo., and mounting Democratic support for an IRS reform plan cosponsored by Sen. Robert Kerrey, D-Neb., and Rep. Rob Portman, R-Ohio, the Clinton administration Tuesday reversed itself and embraced a version of the Kerrey-Portman proposal that will be marked up Wednesday by the House Ways and Means Committee.

"We support the bill in its current form. But we also believe that there are changes that can be made and should be made, and we will work toward making those changes," Treasury Secretary Robert Rubin told reporters.

For months, Rubin had criticized the Kerrey-Portman proposal for an independent board to oversee the IRS. But Rubin Tuesday cited a change made by House Ways and Means Chairman Bill Archer, R-Texas, late last week that would preserve the president's right to hire and fire the IRS commissioner; the original plan would have given that power to the oversight board.

For his part, Archer wasted no time in claiming victory. "I'm glad that President Clinton has completely changed his position on reforming the IRS," Archer declared.

Rubin said the administration would pursue further changes in the bill regarding burden of proof in taxpayer lawsuits and the relationship between the oversight board and the executive branch.

An administration source said the White House hopes to pass the legislation this year, and Portman told CongressDaily he has received indications from the Senate that this is possible. However, a Finance Committee aide reiterated past comments by Chairman William Roth, R-Del., that he wants to wait until next spring to give him time to further study proposed reforms.