Hr 3637 Travel Reform And Savings Act of 1996 Hearing Before the Subcommitt

Cover Hr 3637 Travel Reform And Savings Act of 1996 Hearing Before the Subcommitt
Hr 3637 Travel Reform And Savings Act of 1996 Hearing Before the Subcommitt
Information United States Congress House Committee On Gover
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Are there any other things we should add that we haven't added?
Mr. Wagner. I think I have already mentioned the Defense De- partment's fire safety recommendation. That would be the only one I would add at this time.
Mr. Horn. Then we note that the joint task force legislative rec- ommendation that is not included in either the House or Senate versions of the bill is modification of the income taxation, that and moving expenses, to obviate the need for a relocation income tax allowance. Can you
... elaborate a little on how that works?
Mr. Wagner. This is whenever we get into tax areas, I find my- self — I am sure I understand it, then about 10 minutes later I am not positive I do anymore, so I may need to augment the record on my answer here.
As I understand it, when you move, there is a taxable compo- nent. Internal Revenue Service treats the payments we make for relocation as income. Therefore, we add on to that amount of money for direct pajrments an amount of money to pay the taxes on the additional payments then, because nothing is simple, you get taxed on that additional amount, and it is literally — I have to go back to college.


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