Reference no: EM132647896

Problem - Delegating Authority to the Nonelected

In no other area of the tax law has Congress given the Treasury such leeway in crafting both major principles and details as in the area of consolidated returns. Because Treasury staff members are not elected officials, this delegation of authority might appear to be a shirking of congressional duty and a dangerous assignment of legislative power to an isolated group of individuals.

To what extent should Congress delegate its powers over the country's largest businesses (not only the largest players in the global economy but also the largest contributors to campaign and reelection funds)? Can the delegation of congressional powers to Washington-based civil servants, who are virtually immune to the checks and balances of the election process, be healthy for all taxpayers?

You are a member of the House Ways and Means Committee, and your chances of reelection are jeopardized when you must take a position on a consolidated tax return issue: taxes on old-line manufacturers would increase, whereas those on more environmentally friendly, high-tech industries would fall. Should you avoid the debate altogether by deferring the issue to the Regulations process?