[Federal Register: January 15, 1998 (Volume 63, Number 10)]
[Notices]               
[Page 2413-2414]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15ja98-83]

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INTERNATIONAL TRADE COMMISSION

[Investigation 332-389]

 
Implications for U.S. Trade and Competitiveness of a Broad-Based 
Consumption Tax

AGENCY: United States International Trade Commission

ACTION: Institution of investigation and scheduling of public hearing.

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EFFECTIVE DATE: January 8, 1998.

SUMMARY: Following receipt on December 15, 1997, of a request from the 
House Committee on Ways and Means (Committee), the Commission 
instituted investigation No. 332-389, Implications for U.S. Trade and 
Competitiveness of a Broad-based Consumption Tax, under section 332(g) 
of the Tariff Act of 1930 (19 U.S.C. 1332(g)).

FOR FURTHER INFORMATION: Information on economic aspects of the 
investigation may be obtained from Hugh Arce, Office of Economics (202-
205-3234) or William Donnelly, Office of Economics (202-205-3223), and 
on legal aspects, from William Gearhart, Office of the General Counsel 
(202-205-3091). The media should contact Margaret O'Laughlin, Office of 
External Relations (202-205-1819). Hearing impaired individuals are 
advised that information on this matter can be obtained by contacting 
the TDD terminal on (202-205-1810).

Background

    The Committee's letter noted that there are several proposals to 
significantly reform the current U.S. income tax system, including many 
that can be characterized as consumption taxes. Examples noted in the 
letter include a flat tax, a national retail sales tax, and a value-
added tax. It noted that a number of studies have examined the effects 
of consumption-based taxes on international trade and found a wide 
range of effects on investment, imports, and exports, depending upon 
how the consumption tax is structured.
    As requested by the Committee, the Commission in its report on the 
investigation will provide an analysis of the implications for U.S. 
trade and competitiveness of replacing the current income tax system 
with a broad-based consumption tax. The Commission will also analyze 
various consumption tax proposals such as those noted above. In 
addition, the Commission will provide a review of current economic 
analyses on this topic, and a discussion of the key technical issues 
that can significantly affect the relationship between tax policy and 
international trade.
    The Commission will provide its report by June 15, 1998.

Public Hearing

    A public hearing in connection with the investigation will be held 
in the Commission hearing room, 500 E Street, SW, Washington, DC 20436, 
beginning at 9:30 a.m. on March 5, 1998. All persons have the right to 
appear by counsel or in person to present information and to be heard. 
Requests to appear at the public hearing should be filed with the 
Secretary, United States International Trade Commission, 500 E Street, 
SW, Washington, DC 20436 no later than COB, February 26, 1998. 
Prehearing statements should be filed not later than COB February 26, 
1998. Any posthearing submissions must be filed not later than COB 
March 19, 1998.
    In the event that, as of COB March 4, 1998, no witnesses have filed 
a request to appear at the hearing, the hearing will be canceled. Any 
person interested in attending the hearing as an observer or non-
participant may call the Secretary to the Commission (202-205-1816) 
after March 4, 1998, to determine whether the hearing will be held.

Written Submissions

    Interested persons are invited to submit written statements (one 
original and 14 copies) concerning the matters to be addressed in the 
report. Commercial or financial information that a party desires the 
Commission to treat as confidential must be submitted on separate 
sheets of paper, each clearly marked ``Confidential Business 
Information'' at the top. (Generally, submission of separate 
confidential and public versions of the submission would be 
appropriate.) All submissions requesting confidential treatment must 
conform with the requirements of Sec. 201.6 of the Commission's Rules 
of Practice and Procedure (19 CFR 201.6). All written submissions, 
except for confidential business information, will be made available in 
the Office of the Secretary to the Commission for inspection by 
interested persons. To be assured of consideration by the Commission, 
written statements relating to the Commission's report should be 
submitted at the earliest practical date and should be received no 
later than March 19, 1998. All submissions should be addressed to the 
Secretary, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436.
    Persons with mobility impairments who will need special assistance 
in gaining access to the Commission

[[Page 2414]]

should contact the Office of the Secretary at 202-205-2000.

    By order of the Commission.

    Issued: January 9, 1998.
Donna R. Koehnke,
Secretary.

[FR Doc. 98-966 Filed 1-14-98; 8:45 am]
BILLING CODE 7020-02-P