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Treas.

HJ
10

.AU
P4

v.386

Department of the Treasury

PRESS RELEASES

The following numbers were not used:
371 and 388

Number 189 and 212 are not available.

Number 405 (dated 6-4-2001) is listed on the June Index

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
April 02, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:

91-Day Bill
April 05, 2001
July 05, 2001
912795HA2

High Rate:

4.125%

Investment Rate 1/:

4.228%

Price:

98.957

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 32%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type

Tendered

Competitive
Noncompetitive
FIMA (noncompetitive)

19,788,630
1,335,514
155,000

SUBTOTAL

21,279,144

Federal Reserve

4,854,314

TOTAL

Accepted

26,133,458

7,511,130
1,335,514
155,000
9,001,644 2/
4,854,314

13,855,958

Median rate
4.100%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
4.070%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-Cover Ratio

21,279,144 / 9,001,644

2.36

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $1,058,058,000

http://www.publicdebt.treas.gov

PO-126

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
April 02, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Term:
Issue Date:
Maturity ,Date:
CUSIP Number:
High Rate:

182-Day Bill
April OS, 2001
October 04, 2001
912795HR5
4.020%

Investment Rate 1/:

4.160%

Price:

97.968

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 21%.
All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive

Tendered

SUBTOTAL

17,317,630
1,091,339

18,408,969

Federal Reserve
TOTAL

Accepted

8,001,569 2/

4,307,692

22,716,661

6,910,230
1,091,339

4,307,692

12,309,261

Median rate
3.960%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.945%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
BID-TO-COVER RATIO = 18,408,969 / 8,001,569 = 2.30
NO FIMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $867,080,000

http://www.publicdebt.treas.gov

PO-127

DEPARTlVlENT

THE

TREASURY

NEWS
OffiCE OFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

April 2, 2001
For Immediate Release

Contact: Tara Bradshaw
(202)622-2960

JEFFREY H_ PARAVANO JOINS OFFICE OF TAX POLICY AT THE
TREASURY DEPARTMENT

Today, Jeffrey H. Paravano joined the OUice of Tax Policy as Senior Advisor to
Mark Weinberger, Assistant Secretary (Tax Policy). In that position, Paravano is
responsible for providing advice on a variety of tax policy issues of interest to the
Secretary and Assistant Secretary, including technical and legal advice on legislation to
amend, revise, and reform the Internal Revenue Code.

"We are extremely pleased to have Jeff on board. He brings a wealth of
experience and expertise in a wide variety of tax issues," Weinberger stated.
Prior to joining Treasury, Paravano was a Tax Partner at Baker & Hostetler LLP.
He has a broad tax background covering corporate, partnership and venture capital
transactions, tax controversy, taxation of banks and real estate investment trusts, and
domestic and cross-border tax planning. For six years, he has been an adjunct professor
oflaw in the LL.M. tax program at Case Western Reserve University Law Center,
teaching classes in corporate taxation, taxation of property transactions, and tax
procedure and research methods. He was Vice-Chair to the American Bar Association
Tax Section's Affiliated and Related Committee, a member of the Editorial Advisory
Boards of Corporate Business Taxation Monthly and The Tax Adviser, and Chair of the
Cleveland International Tax Forum. He was written and lectured extensively on tax
topics and is co-author of the Tax Management Portfolio on Corporate Tax Shelters, T.M.
798, to be released in 2001.
Paravano has an undergraduate degree in accounting, cum laude, from John
Carroll University. He received his law degree, magna cum laude, from Georgetown
where he was Editor-in-Chief of The Tax Lawyer, and holds an LL. M. in taxation, with
distinction, also from Georgetown. Paravano is admitted to practice in New York,
Connecticut, Ohio, Colorado, Maryland, and Washington, D.C.
PO-128
-30-

Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·u.s. Government Prlntlna Office:

1998 - 619-559

D EPA R T 1\1 E N T

0 F

THE

T REA SUR Y

NEWS
omCE OF PUBliC AFFAIRS .1500 PENNSYLVANIA AVENUE, N.W. • WASHINGTON, D.C. • 20220 • (202) 622-2960

Contact: Tara Bradshaw
(202)622-2960

April 2, 2001
For Immediate Release

WILLIAM F. SWEETNAlVI, JR JOINS OFFICE OF TAX POLICY AT THE
TREASURY DEPARTlVIENT
Today, William F. Sweetnam, Jr. joined the Office of Tax Policy as an Associate
Benefits Tax Counsel. As part of the Office of the Benefits Tax Counsel, Sweetnam is
responsible for providing Assistant Secretary (Tax Policy) Mark Weinberger with policy
analysis and advice on all aspects of employee benefits taxation and related matters
including qualified retirement plans, Employee Stock Ownership Plans, employee
welfare plans, health and long term care benefits, social security taxes, and executive
compensation.
"We are very fortunate to have an individual with Bill's experience in employee
tax benefits join the Benefits Tax Counsel team," stated Weinberger.
Prior to his appointment, Sweetnam was Tax Counsel with the Majority Staff of
the U.S. Senate Committee on Finance, responsible for issues dealing with retirement
plans and other retirement savings vehicles (such as IRAs), medical and other employee
benefits, compensation matters, insurance, and tax-exempt organizations. Prior to his
service with the Committee, Sweetnam was a technical consultant in the Vahalla, New
York, office of Towers Perin, an internationally-based benefit and compensation
consulting firm. He previously was Chief Counsel, Tax and ERISA at Sunoco, Inc., an
energy company headquartered in Philadelphia.
Sweetnam is a graduate of Rutgers University and holds a J.D. degree from
Fordham University School of Law. He is a member of the New York and Pennsylvania
Bar. As author of a several articles, including Statutory Stock Options, BNA Tax
Portfolio No. 381 (1991), Sweetnam is a frequent speaker and lecturer on employee
benefits issues. Sweetnam resides in the District of Columbia.
PO-129

-30-

Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

DEPARTMENT

THE

TREASURY

NEWS
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

For Release Upon Delivery
March 30, 2001

STATElVIENT OF PAUL H. O'NEILL
SECRETARY DEPARTlVIENT OF THE TREASURY
TO THE HOUSE GOVERNMENT REFORM
SUBCOMMITTEE ON GOVERNlVIENT EFFICIENCY, FINANCIAL MANAGEMENT
AND INTERGOVERNMENTAL RELATIONS
U. S. HOUSE OF REPRESENTATIVES
FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT
FISCAL YEAR 2000

Mr. Chainnan and members of the Subcommittee, I am pleased to submit a statement today
on the Financial Report of the United States Government. I would like to thank you, Mr.
Chainnan, Ms. Schakowsky, and other members of the Subcommittee for focusing on improving
Federal Government financial accountability and reporting.

While the fiscal year 2000 Financial Report meets the statutory deadline again this year, I
believe that reporting fmancial results 6 months after the close of a fiscal year is simply not good
enough. While incremental progress is being made each year by the Federal financial management
community, incremental progress will not move us forward quickly enough to close what I see as
the gap between the current state of financial management and a condition that would adequately
meet our responsibilities to the American people.
I believe that we need to establish some challenging objectives for governmental financial
management; objectives that parallel those found in the private sector that will force people to think
creatively. We should start with the amount of time it takes to close our books. 'When I was in the
private sector, we closed the books and had an audit opinion in 3 working days. We need the
Government to establish a similar goal. This will force Government to look at the closing process
differently than it does today. It will require transaction-based systems to produce the reports,
instead of the after-the-fact accounting we utilize today. It will also require the establishment of
more frequent agency reporting. In short, it will go a long way toward making Governmental
accounting more useful, both to agency management and to Congress by improving the quality of
the data.
PO-l30

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
6

In order to achieve this goal, we need to work together as a government. Treasury can lead
this effort, but the agencies are the key to success. We need to do 3 things now. First, we need
agencies to identifY short-tenn process improvements to reduce the closing time. Second, in the
longer tenn, we need to reexamine our overall financial management process to look for ways
changes to our systems can help. Finally, Treasury, in conjunction with the Office of Management
and Budget COMB) and the General Accounting Office (GAO), will conduct a comprehensive
review of the financial statement production process to establish the specific goals for the timing of
future financial reporting and to build goals for the content of the reports so that they will become
more meaningful.
I want to emphasize one previous point. We must expand the audience for our reports by
making them more useful. Looking through this year's report I see a number of ways that it could
be improved. First, it has too much infonnation in many areas and not enough in others. No one
will take the time to wade through all this supplementary data. The report needs to be put on a
serious diet. Second, all reports need a reference point. Financial statements without comparative
results are meaningless. We need to add last year's amounts to our reports. Third, we need to fmd
ways to include detail schedules to show the financial results of each component unit. Finally, the
Government should directly track and report agency progress toward meeting important financial
management goals in areas such as internal controls, and transaction processing.
I believe that the work that has been done to date is valuable and is an important starting
point. Together we should improve these reports to become more useful both within the Executive
Branch management and to Congress. Mr. Hammond's statement addresses many of our challenges
and concerns in greater detail.

-30-

'.
,

D,E'J?-A.RTMENT

THE

TREASURY

IREASURY

NEWS

OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C. - 20220 - (202) 622-2960

u.s. International Reserve Position

04/04/01

The Treasury Department today released US. reserve assets data for the week ending March 30, 2001. As indicated in
this table, U.S. reserve assets totaled $63,719 million as of NIarch 30, 2001, down from $65,283 million as of March 23,
2001.

(in US millions)

I. Official U.S. Reserve Assets

TOTAL
L Foreign Currency Rese. yes
a. Securities

Euro

March 23: 2001

March 3ar 2001

65,283

63,719

Yen

TOTAL

Eufa

5.319

10.746

16.065
0

5,240

Yen
10,497

8,958

4,652

13,610
0
0
0
0

8,834

4,544

Of which: issuer headauartered inthe:U S.

TOTAL
15,738
0

b. Total deposits with:
b.i. Otbercentrai banks. and BIS
b.iL Banks. headquartered inthe.U~S.
b.iL Of which, banks located abroad
b.iii. Banks headquartered outside:theU;S.
b.iiLOfwhicht banks located in. the U.S.

2;JMF Reserve Position

13,378
0
0
0
0

13,741

13,179

3. Special Drawing Rights (SDRs) 2

10,821

10,379

4.. Gold. Stock. 3

11,046

5. Other Reserve Assets

11 Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
(SOMA), valued at current market exchange rates. Foreign currency holdings listed as securities reflect marked-to-market values, and
deposits reflect carrying values.
21 The items, "2. IMF Reserve Position" and "3. Special Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar terms at the official SDRIdoliar exchange rate for the reporting date. The IMF data for March 23 are final. The entries in the table
above for March 30 (shown in italics) reflect any necessary adjustments, including revaluation, by the U.S. Treasury to the prior week's IMF
data.
31 Gold stock is valued monthly at $42.2221 per fine troy ounce. Values shown are as of February 28, 2001. The January 31, 2001 value
was $11,046 million.

PO-131

u.s. International Reserve Position (cont'd)
II. Predetermined Short-Term Drains on Foreign Currency Assets
March 23, 2001
1. Foreign currency loans and securities

March 30, 2001

o
o
o

2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a.-vis the U.S. dollar:
2.8. Short positions
2.0. Long positions
3. Other

fII. Contingent Short-Term Net Drains on Foreign Currency Assets
March 23, 2001
1. Contingent liabilities in foreign currency
1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U.S.
3. c. With banks and other financial institutions
headquartered outside the U. S.
4. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Shoft positions
4.a.1. Bought puts
4.a.2. Written calls
4.b. Long positions
4.b.1. Bought calls
4.b.2. Written puts

March 30, 2001

o
o

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt· Washington, DC 20239

FOR RELEASE AT 3:00 PM
April 5, 2001

Contact: Peter Hollenbach
(202) 691-3502

PUBLIC DEBT ANNOUNCES ACTIVITY FOR
SECURITIES IN THE STRIPS PROGRAM FOR MARCH 2001

The Bureau of the Public Debt armounced activity for the month of March 2001, of securities within the
Separate Trading of Registered Interest and Principal of Securities program (STRlPS).
Dollar Amounts in Thousands
Principal Outstanding
(Eligible SecUlities)

$2,146,612,860

Held in Un stripped FOlm

$1,966,926,547

Held in Stripped Form

$179,686,313

Reconstituted in March

$16,854,720

The accompanyIng table gives a breakdown of STRlPS activity by individual loan description. The balances in
this table are subject to audit and subsequent revision. These monthly figures are included in Table V of the
Monthly Statement of Treasury Securities, entitled "Holdings of Treasury Securities in Stripped Form."
The Strips Table along with the new Monthly Statement of Treasury Securities is available on Public Debt's
Internet site at: www.publicdebt.treas.gov.Awide range of inforn1ation about the public debt and Treasury
securities is also available at the site.
000

PO-132
www.publicdebt.treas.gov

TABLE V - HOLDINGS OF TREASURY SECURITIES IN STRIPPED FORM MARCH 31 2001

Loan Description

Treasury Bonds:
CUSIP:
912810DM7
008
OR6
DU9
ON5
OPO
DS4
OT2
DVl
DW5
OX3
OYI
OZ8
EA2
EBO
EC8
ED6
EE4
EFI
EGg
EH7
EJ3
EKO
EL8
EMS
EN4
EP9
EO?
ES3
ETl
EV6
EW4
EX2

Interest Rate.
11-5/8
12
10-3/4
9-3/8
11-3/4
11-1/4
10-5/8
9-7/8
9-1/4
7-1/4
7-1/2
8-3/4
8-718
9-118
9
8-718
8-1/8
8-1/2
8-3/4

8-3/4
7-7/8
8-1/8
8-1/8
8
7-1/4
7-5/8
7-118
6-1/4
7-112
7-5/8
6-7/8
6
6-3/4
6-1/2
6-5/8
6-3/8
6-1/8
5-1/2
5-1/4
5-1/4
6-118
6-1/4
5-3/8

EVO
EZ7
FAI
FB9
FE3
FFO
FG8
FJ2
FM5
FP8

Amount Outstanding in Thousands

Corpus
STRIP
CUSIP

Maturity Date

912803 AB9
ADS
AG8
AJ2
912800 M7
912803 Ml
AC7
AE3
AFO
AH6
AK9
AL7
AM5
AN3
APB
AQ6
AR4
AS2
ATO
AU7
AV5
AW3
AXI
AY9
AZ6
BAD
BB3
BC6
B04
BE2
BF9
BG7
BH5
SJl
BK8
SL6
BM4
SP7
SV4
SW2
CG6
CH4
CK7

11/15/04
05/15/05
08/15105
02115106
11/15/14
02115115
08/15/15
11115/15
02/15116
05115/16
11/15/15
05/15/17
08/15/17
05/15/18
11/15/18
02115/19
08/15/19
02115/20
05115/20
08/15120
02115/21
05/15/21
08/15/21
11/15/21
08115/22
11115/22
02115123
08115/23
11/15124
02115125
08115/25
02115126
08115/26
11115/26
02115/27
08115/27
11115/27
03115/28
11115128
02115/29
08/15/29
05/15/30
02115/31

Total
Outstanding

Total Treasury Bonds ...... ......

Treasury Infiation-Indexed Notes:
Series: Interest Rate:
C USIP.
3-518
9128273A8
J
2M3
3T7
4Y5
5W8
6RB

A
A
A
A
A

3-3/8
3-51B
3-7/8
4-114
3-112

912820 BZ9
BV8
CL9
ON4
EK9
GA9

07115/02
01115107
01/15/08
01115/09
01/15/10
01/15/11

Totallnftation-Indexed Noles .......... .....

Portion Held In
Unstnooed Form

Reconstituted
This Month

Portion Held in
Stnooed Form

3,772.800
2,435,450
3,454400
118,088
4,014,400
5,413,275
1,714,880
2,673,600
318,400
145,400
1,280,400
6,834,640
2,088,400
4,022,400
4,393,400
4,971,300
1,202,880
1,501,500
4,828,160
9,004,240
814,400
4,018,400
1,260,880
17,438,700
790,400
4,665,600 I
7,432,800
3,714,368
6,083,040
7,379,200
4,464,960
1,543,300
2,706,400
5,061,200
3,688,000
1,412,800
7,532,800
510,400
416,000
348,000
92,600
22,016
0

134,400
140,950
21,600
1,600
188,000
675,520
258,880
384,000
275,200
371,400
410,880
485,760
1,180,400
113,600
235,800
1,444,800
180,800
186.100
607,360
644,080
260,800
642,720
436,160
1,802,050
211,200
166,400
349,600
81,568
547,680
836,800
35,200
124,200
624,800
204,000
115,200
148,800
470,400
111,200
103,200
25,600
32,000
0
0

8,301,806
4,260,758
9,269,713
4,755,916
6,005,584
11,350,799
5,105,916
5,890,859
6,347,754
18,823,551
18,824,448
16,621,669
12,674,358
7,217,439
7,639,470
16,330,298
19,315,932
9888,268
8,253,783
18,638,306
10,254,573
10,673,788
10,503,482
31,432,194
10,242,790
8,499,626
17,004,061
22,659,044
9,864162
10,869,170
11,715,207
12,837,916
10,303,418
11,298,177
10,210,971
10,195,756
22,326,339
11,776,201
10,947,052
11,350,341
11,178,580
17,043,162
10,886,993

4,529,006
1,825,308
5,815,313
4,637,828
1,991,184
5,937,524
3,391,036
3,217,259
6,029,354
18,678,151
17,544,048
9,787,029
10,585,958
3,195,039
3,246,070
11,358,998
18,113,052
8,336,768
3,425,623
9,634,066
9,440,173
6,655,388
9,242,602
13,993,494
9,452,390
3,834,026
9,571,261
18,944,676
3,781,122
3,489,970
7,250,247
11,294616
7,597,018
6,236977
6,522 971
8,782,956
14,793539
11,265,801
10,531,052
11,002,341
11,085,980
17,021,146
10,886,993

519,589,630

374,005,353

145,584,277

15,270,708

18,383,052
17,411,928
18,217,332
16,975,332
11,779,802
6,036,261

18,383,052
17,411,928
18,108,970
16,975,332
11,779,802
6,036,261

0
0

108,362
0
0
0

0
0
0
0
0

88,803,706

88,695,344

108,362

18,193,160
21,002,266

18,193,160
20,895,775

0
106,491

39,195,426

39,088,935

106,491

Treasury Inflation-Indexed Bonds:
C USIP:
912810 FD5
FH6

Interest Rate:
3-5/8
3-7/B

Total Infiatlon-Indexed Bonds ..

912803 BN2
CF8

04/15/28
04115/29

TABLE V HOLDINGS OF TREASURY SECURITIES IN STRIPPED FORM,

Corpus
STRIP
CUSIP

Loan OescnpOon

Treasury Notes'.
Senes. Interest Rate
CUSIP
6·114
H
912827 X64
5
X
SE8
8
8
ASS
5·518
T
4E9
6·112
J
Y22
5·1/4
Y
5H1
6·518
K
Y48
5·314
Z
5J7
6-5/8
L
Y71
5·112
A8
SL2
7-7/8
C
892
6-112
M
Z39
5·112
AC
5P3
6·318
N
ZS4
5-5/8
AD
501
6-114
P
Z88
5-7/8
AE
SR9
7-112
0
025
Q
5-718
2C5
6-118
R
2El
6·114
C
2G6
6-318
R
5X6
6·114
0
2L5
6-112
S
6AS
6-5/8
E
2P6
6-112
T
663
6-518
F
2S0
6·318
U
6Cl
7-112
A
F49
6-112
G
2Wl
6-518
V
6E7
6-114
H
2Y7
6-318
6F4
W
6
K
3C4
6-114
6HO
X
6-318
B
G55
6-114
3GS
L
6·118
6K3
Y
5·718
M
3J9
6
6L1
Z
5·314
N
3L4
5·314
P
303
5-5/8
AC
6P2
5·518
3S9
0
5-118
AD
600
5-112
C
3V2
4·314
L
6S6
6-114
J78
A
5-112
3Z3
0
4·518
6Ul
M
5-112
485
E
5·3/4
401
F
5-112
4H2
G
5·318
4K5
H
5-314
L83
B
5-114
4N9
J
4-114
4U3
K
5-718
N81
A
5A6
4·314
E
7-114
P89
B
5-114
5F5
F
7·114
088
C
6
5MO
G
7-718
R87
0
5-718
5S7
H
S86
7-112
A
6-1/2
T85
B
6-314
609
E
6-112
U83
C
5·718
V82
0
6N7
F
5-314
W81
A
5-518
X80
6·718
B
7
Y55
C
6-112
Z62
D
2JO
6-114
8
2U5
C
6-5/8
3EO
6-118
D
3X8
5-112
8
4F5
C
5-518
JV1
4-314
D
5G3
8
5-112

5N8

SZI
6J6
6T4

B
C

6
6-112
5-314

Tctal Treasury Notes

Grand Tctal .

912820 FBB
DTl
8A4
CX3
F04
DW4
FE2
DX2
FF9
DYO
882
FG7
E89
FHS
EC7
FJl
E05
BCO
EG8
EJ2
FK8
EL7
FL6
EN3
FM4
EP8
FN2
E06
B08
FP7
ES2
F05
ETO
FR3
EU7
BE6
FSI
FU6
CC9
FV4
CE5
CH8
FY8
CKI
FZ5
CN5
GB7
BF3
CS4
G03
CU9
CW5
0A2
DC8
BGl
OE4
OJ3
BH9
D07
8J5
OU8
BK2
OZ7
BLO
EE3
8M8
BN6
ER4
BPI
B09
FXO
BR7
855
8T3
8UO
8W6
BX4
CA3
C08
CYI
OKO
OV6

EAl
EMS
FT9
GCS

MA,.ftilld"'n..I"'--....."".........

Amount Outstanding in Thousands
Matunty Date
Total
Outstandino

04130101

04130/01
05115101
05115/01
05131101
05/31101
06130/01

06130/01
07131101
07131101
08115/01
08/31101

08131101
09130/01
09130101
10131101

10131101
11/15101
11130101
12131101
01131102
01131102
02128102
02128102
03131102

03131/02
04130102
04130102
05/15102
05131102
05131102
06130102

06130102
07131/02
07131/02

08115/02
08131102
08131102

09130102
09130102
10131102

11130102
11130102
12131102
12131/02
01131103
01131103
02115103
02128/03
02128103
03131103
04130103
05131103
06130103
0s/15103

08/15103
11115/03
02115104
02115104
05115/04
05115104
08115104

08/15104
11115/04
11115/04
02115/05
05/15/05
05115105
08/15/0S
11115105

11115/05
02115106

05115106
07115106

10115/06
02115/07
05/15/07
08115107

02115/08
05115/08
11115108

05115109
08/15109
02115110
08115/10
02115111

Portion Held in
Unstripped Form

Reconstituted
This Month

Portion Held in
StriPped Form

13)80,470
21,033,523
12,398,083
12,873,752
13,721,702
19,885,985
14,282,240
19,001,309
14,136,833
20,541,318
12,339,185
14,000,224
20,118.595
14,518,514
18,797,828
14,639,843
19,196,002
24,226,102
33,504,627
31,166,321
13,453,346
19,381,251
13,799,902
16,563,375
14,301,310
17,237,943
14,474,673
17,390,900
11,714,397
13,503,890
14,871,823
13,058,694
14,320.609
12,231,057
15,057,900
23,859,015
12,731,742
15,072,214
12,806,814
15,144,335
26,593,892
12,120,580
15,058,528
12,052,433
14,822.027
13,100,640
15,452,604
23,562,691
13,670.354
14,6SS,095
14,172,892
12,573,248
13,132,243
13,126,779
28,011,028
19,852,263
18,625,785
12,955,077
17,823,228
14,440,372
18,925,383
13,346,467
18,089,806
14,373,760
32,658,145
13,834,754
14,733,504
28,562,370
15,002,580
15,209,920
28,062,697
15,513,587
16,015,475
22.740.446
22,459,675
13,103,678
13,958,186
25.636,803
13.583,412
27,190.961
25,083,125
14794,790
27.399,894
23.355)09
22.437.594
11.975,972

13,780,470
21,031,123
7,041,008
12,873,752
13,715,702
19,785,985
14,282,240
18,995,709
14,136,833
20,083,318
7,304,185
13,986,624
20,118,595
14,480,114
18.297,028
14,639,843
19,194,402
19,485,222
33,499,827
31,083,121
13,398,338
19,381,251
13,799,902
16,531,775
14,278,910
17,235,543
14,474,673
17,390,900
7,755,917
13,503,890
14,849,423
13,058,694
14,318,609
12,231,057
15,057,900
20,110,215
12,731.742
15,072,214
12,768,414
15,144,335
26,534,692
11,831,780
14,990,688
11,667,793
14,822,027
13,100,640
15,452,604
22,376,195
13,626,354
14,685,095
14,172,092
12,573,248
13,103,843
13,125,179
26,754,228
19,742,663
18,266,585
12,484,477
17,823,228
13,841,172
18,925,383
11,808,067
18,089,806
14,368,960
32,6.58,145
13,209,314
14,739,104
28,562,370
15,002,580
14,710,720
28,062,697
15,491,107
15,676,755
22,740,446
22,459,675
12,978,814
13,713,386
25,220,803
13,571,812
27,046,001
25,000,725
14,288,390
27,351,594
23.163,309
22,437,594
11.975,972

0
2,400
5,357,075
0
6,000
100,000
0
5,600
0
458,000
5,035,000
13,600
0
38,400
500,800
0
1,600
4,740,880
4,800
83,200
55,008
0
0
31,600
22,400
2,400
0
0
3,958,480
0
22,400
0
2,000
0
0
3,748,800
0
0
38,400
0
.59,200
288,800
67,840
384,640
0
0
0
1,186,496
44,000
0
800
0
28,400
1,600
1,256,800
109,600
359,200
470,600
0
599,200
0
1,538,400
0
4,800
625,440
400
0
0
499,200
0
22,480
338,720
0
0
124,864
244,800
416,000
11,600
144,960
82,400
506,400
48,300
192,400
0
0

27,300
0
0
0
0
0
0
0
33.600
0
0
0
0
0
0
843,000
0
0
0
0
0
0
25,600
0
0
0
127,440
0
0
0
0
0
0
80,000
0
0
0
0
0
2,400
0
0
0
0
0
124,992
0
0
0
0
0
0
196,000
0
0
14,400
25,600
16,000
0
14,400
0
0
0
19,6S0
0
0
0
11,200
0
0
13,600
0
0
1,600
0
4,800
800
0
1,600
0
0
0
0
0

1.499.024.098

1.455,136,915

33,887,183

1,584.012

2146.612.860

1.966,926,547.

-_._<-

ORICE OJ' nllLJC ArrAms e1500 'BNNnLl'ANU',AVENOI, N.W.eW,ASHlNGTON. D.C.- 20110-(201) QJ..2Ke

_dGOB tII1T%l. 2130 P •••
APril 5, 2001
~y

CCDrrACll':

Office of piDa..JleiDQ
202/6'1-3550 '

OFJIDB 13-WUZ AlII) 26-WBBK Bu.LS

will auction two aerie. of ~ealNZY bill. totalillsr
$17,000 ~111OD ~ ~fuD4 ,22,884 ~111OD of pgbli~ly bela
.ecN.ri.~1. . _tuz'izaQ .zoil 12, 2001, aza4 to pay ckMz1 a]:)out $5,884 JailliOA.

fte

app~t . . ta1y

D a441ticm to the public bolcli.Daa, I'e4eJ:&l. "s~ aaak. f~ tbe1r own
&CCOUllta b.ol4 '10,114 _llion of ~. _turing :bills, Which may be Z'8fUDcllea at
tM !U.gust 41.COUZlt Z'&te of accept.Mi CCllP4:t!. tiva t.eD4e~.. &1DcNz:a.t. &WaX'4e4
to tlaa •• &aCou.Dt8 rill IN ill ad4iticm ~o the offubg, ~~.

Up ~ $1,000 1li115.cm 1D lIODC~ti~1," b148 fZ'OIl ~Z'.igD an4 IDterD&~1caal

1lcaeu.%Y AUthority (FIlA) account. biddj"" ~h ~ Pec1eral.
. . .ene JIaAk of II., 'f~k vi11 :be lDclWSe4 witbiA t.U 'offeriDg UM:NBt of eac:h
auct1cm. ~ •• DODccapetLti". :biU w111
a 1!a1t
.200 a!.111=. paz'
&CCCNDi:. &D4 rill be aCCJep~e4 J.zl ~ OZ'4~ of -.11•• t to 1azge.~, v.p to the
anrrep.~ • ...zd liait of ,l,OOO.ail.lJ.cm.

ave

~.1Z'eC7~ cna..tGDU'8 lav. ~te4

that . . Z1IiJrv'eat. tbeir'maturiJIg

bolcU.zag. a! aDProz.... t.ly '1,018 ailUOIl lata u. 13-...k hi.ll
aill.icm. 1Dto

=- 2 . . . . . . Id.l,l..

$1,135

'1'.bJ.. ol~er1Dg of 'IreaS1IZY securities i . O~ ~ the tam- ua4 ooza41tlODa . .~ ~ortl1 1D the UIL1fona O~fU'1D; .Ciz-cu1ar for the 8a1. aD4 X.aue gf
IlarkeUbl. ~-JiDtzy b'ea&w:y Bill., IIOte•• U4 JkmAa (31 CPa Part: 356, _
a8D4e4).

-= of

Detail. about.
offeriDg higb11g.bt. ••

PO-133

4:ba IWW aecv.rltJ... are gl98D 1D the attaabe4

RZ'GHLIQlUS 01'

~URY

OPFBllD9GS OF BILLS

20 BB Z880BD APRr.L 12, 2001

-.r11

5, 2001

,8,000 ai1lioa
Offerinl Amount ••••••••••••••••••••••••••9,000 mlllion
U..~!,tloD of Of!.rlnp.
182-4Q bill
~ra an4 type of .eouritr •••••••••••••••• l-~blll
912795 Cl8 ,
CUSt. numb.r •••••••••••••••••••••••••••• '127'5 Be.
april I, 2001
Auction aat ••••••••••••••••••••••••••••• Apr!l 9, 2001
apl:;I,1 12,. 2001
Z•••e 4.t••••••••••••••••••••••••••••••• April 12, 2001
oatober 11, 2001
Matlrity d.t •••••••••••••••••••••••••••• ~17 12, 2001
April 12, 2001
Ori,inal is.u. dat••••••••••••••••••• ·••• JaDUar,r 11, 2001
CUrr.ntly out.tanding •••••••••••••• ·••••••15,428 ~liOD
,1,000
MinbmwD bid amount and .ultlpl•••••••••••l,OOO
~ followinq zul •• appl7 to all securiti••••atiaaed abovel
Submi •• lon of 314s.
.
Woncampetitiv. bids. Acce,pt.4 in full up to $1 million at the higheat aiseount rate o! acceptea
campeCltive bi4s.
P'vceign an4 Zlitez.nation.l lIon.tazy Authority (rDIA) b~da. ROllCGlqpetltiv. bid• .umdttecS
through the rederal Xe.erve a.nk. a. agenta lor· WXML accounts. Aec.pte~ in or4er of si.e
fram .malle.t to l.~e.t ~ith DO more than $200 mlllloD a.ardecS per account. The total
ftOncOIDpetitiYe amount aW.rded to Federal ....zv. Bank. a. agent a for rillA account •.,n11
not exced $1,000 million. A .Ingle bid that would c.us. the limit to b. exaeecSed wl11
be partially accepted in the amount that bEings the .ggr.gate a ••rd total to the $1,000
mi11ion 1:lJn:lt. However, if ther:e are two or more b14. of: eczual lIII\OUilt.a th.t would Clause
the limit to b. exc.ea.d, each will be prorated to avoid axceeding the limit.
Competitive bld••
(1) MUst ba expre••e! •• & ai.count r.te with three aeeimal. in iGcrem8nt8 of .005%, e.g.,
7.100%, 7.105%.
(2) Ret long position for aach biMer aust be reportea when the aUll\ of the total bId amount,
at all d1scount r.t•• , .nd the Det long »o.~tion is $1 billion or gr••ter.
(3) Rat 10ng positioa must b. 4at.~ine4 aa of one half-hour prior to the clo.ing time foz
r.c.ipt of c~etitive teDder••
Maximum aeoognized Bi4 at a Single aat ••••• 35% o~ »Ubl10 offering
Maxbmwm Award •••••••••••••••••••••••••••••• 3~ of public offering
Receipt of Tender.J
tloncOJl\Petltlve tender••• Prior to 12100 BOOD .aa~erll clayl:1.srht saving time on auotion cSay
Competitive tendera ••••• Prior to 1:00 p ••••••tern daylight .aving time on auction 4&y
p!.f!ent t'emal BY charge to a fund. account at a ..eder.l aeserve Bank on i8sue date, or Dapent
ot! full par lUII.O\Iilt with tender. 2're••uzyD1rect .cuatcmera can u.. the Pay Direct te.tur. which
aut.hori •• _ a ch.rge to tbeir .ccount of record at their financial lD8titutioft on ~ ••u. date.

TREASURY

NEWS

OFFICE OF PUBLIC AFFAIRS e1500 PENNSYLVANIA AVENUE, N. W•• 'WASHINGTON. D.C.e 10220. (102) UZ·n60

CONTACT:

2MBAltGOED UNTIL 2: 3 0 P. M.

April 5, 2001

Office of Financing
202/691-3550

APRIL

HOL~DAY

SCHEDULE FOR

TREASURY'S WEEKLY BILL ANNOUNCEMENT

Due to an early market closing

Thursday, April l2,

~OOl,

Treasury will release its aIlDOUllcement of weekly hills at ·12:00 noon.
ehat day.

000

PO-134

Fo, P'eJS ,e/eaul. speeches, p"blie sched"l" and Dfficial bio[f'tlphiu. call our 24-ho.1' /vc Une at (202) 622.2040

NEWS
omCE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C .• 20220. (202) 622-2960

For Immediate Release
April 6, 2001

Contact: Tara Bradshaw
(202) 622-2960

MEDIA ADVISORY:
DEPARTMENT OF THE TREASURY TECHNICAL BRIEFING ON TAX
RELIEF PROPOSALS IN THE PRESIDENT'S FY '02 BUDGET
This is a Background Briefing. Pen and Pad Only. No Cameras will be Admitted.
WHO:

Assistant Secretary for Tax Policy Mark Weinberger and other Treasury Tax
Policy Staff

WHAT:

A background briefing on all the elements of the President's tax relief plan. This
session wil1 provide a synopsis of the tax relief plan and will also allow for a
Question and Answer session with Tax Policy staff.

WHEN:

Monday, April 9th at 11 :00 a.m.

WHERE:

Diplomatic Reception Room (3 rd floor, Room 3311)
U.S. Department of Treasury
th
1500 Pennsylvania Ave., NW (Please use Visitor's Entrance on 15 Street)

Media without Treasury or White House press credentials pl31ming to attend should contact
Treasury's Office of Public Affairs at (202) 622-2960 with the following infonnation: full name.
organization, social security number and date of birth. This information may also be faxed to
(202) 622-1999.
PO-135

For Fe' ~

___ 4

sJi~~dI~,

jmb/i:c" schedules and <?fficial biographies, call our 24-hour fax line at (2(2) 622-2040

DEPARTMENT

TREASURY

THE

TREASURY

NEWS

~~/78~9~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1I

..................................

OFFICE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622·2960

For Immediate Release
Friday, April 6th , 2001

Contact:

Treasury Public Affairs
202-622-2960

TREASURY SECRETARY TO DELIVER POST-CABINET MEETING
REMARKS
Treasury Secretary Paul O'Neill will participate in a brief stakeout on the Bell
entrance steps of the Treasury Department to remark on the President's budget
and tax relief plan.
Location:
Date:
Time:

The Treasury Department, Bell Entrance Steps
Monday, April 9th
10:00 am (This is an approximate time that could be moved up or
back based on the duration of the Cabinet Meeting. Thank you in
advance for your understanding)

PO-136

-30-

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·U S Government Printing Office 1998 - 619-559

DEPARTMENT

THE

TREASURY

NEWS

TREASURY

omCE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

FOR IMMEDIATE RELEASES
Friday, April 6, 2001

Contact: Public Affairs
(202) 622-2960

O'NEILL CONGRATULATES SENATE ON BIPARTISAN SUPPORT FOR
MEANINGFUL TAX RELIEF

Treasury Secretary PaulO 'Neill made the following statement after Senate passage of
the FY02 budget resolution:
Tax reform, one of the major elements of the President's policy prescription for America,
took another important step forward today as the Senate voted to support a budget including $1.3
trillion in tax relief with retroactive relief this year. The House budget resolution called for $1.6
trillion in tax relief, and I look forward to Congress working out a final resolution that embraces
the principles of the President's tax relief plan.
Americans pay a higher tax burden today than at any time in our nation's history. The
President has made it a top priority to reduce the tax burden and make the tax code more fair, so
working Americans keep more of what they earn.
As this process goes forward, I look forward to working with members of the House and
Senate to enact the President's priorities of reducing marginal tax rates, eliminating the death tax,
providing relief from the marriage penalty and doubling the child tax credit. Working together,
we can eliminate the structural over-taxation in today's tax code that squeezes family budgets
and imposes a drag on the economy.
--30--

PO-137

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
'U S Government P"nltng Of lice 1998 - 619-559

DEPARTlVIENT

THE

TREASURY

NEWS
omCE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIDNGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
-l.4 MILLION ALABAMA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

1.4 million people in Alabama who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

246,000 small business owners and entrepreneurs in Alabama were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 432,000 taxpayers in Alabama who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposaL

REDUCING THE MARRIAGE PENALTY
•

There are approximately 775,000 married couples in Alabama who filed jointly last
year. Many ofthose couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-138
Fur press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
,

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.4 million filers in Alabama who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returnsjiled in the
year 2000 for tax year 1999.

-30-

DEPARTMENT

THE

TREASURY

NEWS
OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
282,000 ALASKA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

282,000 people in Alaska who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

55,000 small business owners and entrepreneurs in Alaska were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 72,000 taxpayers in Alaska who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 115,000 married couples in Alaska who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-139
For pres.s releases, speeches, uhlic schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 249,000 filers in Alaska who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DA TA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPARTMENT

IREASURY

THE

TREASURY

NEWS

OFFICE OF PUBLIC AFFAIRS .1500 PENNSYLVANIA AVENUE, N.W.• WASmNGTON, D.C. • 20220 • (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.6 MILLION ARIZONA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

1.6 million people in Arizona who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

276,000 small business owners and entrepreneurs in Arizona were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 445,000 taxpayers in Arizona who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 856,000 married couples in Arizona who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-140
Fur pr~s releases, s eeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITART,E CONTRIBUTIONS

•

The 1.4 million filers in Arizona who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPARTMENT

THE

TREASURY

NEWS
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASlDNGTON, D.C .• 20220. (202) 622-2960

Apri19,2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
787,000 ARKANSAS T AXP AYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOlVIE TAX RATES
•

787,000 people in Arkansas who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

164,000 small business owners and entrepreneurs in Arkansas were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 243,000 taxpayers in Arkansas who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 491,000 married couples in Arkansas who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-141
For pres.s releases~ speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

------~,====~~~~--~------~~--~~--~------~~~~~~~~----

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 856,000 filers in Arkansas who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999

-30-

DEPARTMENT

THE

TREASURY

NEWS
omCE OF PUBLIC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASHINGTON, D.C.• 20220. (202) 622.2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
11 MILLION CALIFORNIA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

11 million people in California who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

2.3 million small business owners and entrepreneurs in California were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 3 million taxpayers in California who took the child credit
last year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 6 million married couples in California who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-142
For pr~s releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHAlUTABLE CONTRIBUTIONS

•

The 9.3 million filers in California who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DA TA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPART]\;IENT

'IREASURY

THE

TREASURY

NEWS

OFFICE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220. (202) 622-2960

April 9,2001

FOR llv1MEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.6 MILLION COLORADO TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

1.6 million people in Colorado who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

329,000 small business owners and entrepreneurs in Colorado were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 400,000 taxpayers in Colorado who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 805,000 married couples in Colorado who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-143
For pres.~eleases, s eeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.3 million filers in Colorado who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPARTJ\tIENT

fIREASURY

THE

TREASURY

NEWS

omCE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIDNGTON, D.C .• 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.4lVllLLION CONNECTICUT TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more oftheir own money. He's proposed:
CUTTING INCOME TAX RATES
•

•

1.4 million people in Connecticut who paid Federal income taxes last year would
stand to keep more of what they earned once the President's income tax rate cut is
law.
218,000 small business owners and entrepreneurs in Connecticut were taxed on their
business income under the individual rates last year. These small business
. entrepreneurs are the engine of growth in our economy. The tax reliefthey receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 300,000 taxpayers in Connecticut who took the child credit
last year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 643,000 married couples in Connecticut who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-144

For frre!.s releases,

eeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1 million filers in Connecticut who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returnsjiled in the
2000 for tax year 1999.

~vear

-30-

DEPARTMENT

THE

TREASURY

NEWS
omCE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASlllNGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
300,000 DELAWARE TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

300,000 people in Delaware who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

38,000 small business owners and entrepreneurs in Delaware were taxed on their·
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 75,000 taxpayers in Delaware who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 141,000 married couples in Delaware who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-145

Forpr~

ases s eeches, public schedules and official biographies, call our 24-huur fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 238,000 filers in Delaware who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPARTMENT

TREASURY

THE

TREASURY

NEWS

omCE OFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIllNGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
5.5 MILLION FLORIDA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTING INCOME TAX RATES
•

5.5 million people in Florida who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

1 million small business owners and entrepreneurs in Florida were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 1.3 million taxpayers in Florida who took the child credit
last year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 2.8 million married couples in Florida who filed jointly last
year. Many of those couples paid a marriage penalty and will get malTIage penalty
relief from the President's income tax cut.

PO-146

Ffn' pre~ releases s eeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 5.4 million filers in Florida who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax: year 1999.

-30-

DEPARTlVlENT

'IREASURY

THE

TREASURY

NEWS

OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2.7 MILLION GEORGIA TAXPAYERS
This week, as millions oftaxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He/s proposed:
CUTTING INCOME TAX RATES
•

2.7 million people in Georgia who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

486,000 small business owners and entrepreneurs in Georgia were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President/s plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 802,000 taxpayers in Georgia who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President/s
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 1.3 million married couples in Georgia who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-147

For press..reli:J1ses, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
---'

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 2.3 million filers in Georgia who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

lREASURY

NEWS

OffiCE OFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIDNGTON, D.C. - 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
433,000 HAWAII TAXPAYERS
This week, as millions of taxpayers will be scrambling to tIle their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

433,000 people in Hawaii who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

80,000 small business owners and entrepreneurs in Hawaii were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hi're additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 107,000 taxpayers in Hawaii who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE lVIARRIAGE PENALTY
•

There are approximately 222,000 married couples in Hawaii who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-148

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
<====

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 372,000 filers in Hawaii who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."
DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returnsjiled in the
year 2000 for tax year 1999.

-30-

DEPARTMENT

'IREASURY

THE

TREASURY

NEWS

OFFICE OFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
405,000 IDAHO TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

405,000 people in Idaho who paid Federal income taxes last year would stand to keep
more of what they earned once the President's income tax rate cut is law.

•

94,000 small business owners and entrepreneurs in Idaho were taxed on their business
income under the individual rates last year. These small business entrepreneurs are
the engine of growth in our economy. The tax relief they receive under the President's
plan could be used to invest in new equipment, hire addi.tional workers and increase
pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 125,000 taxpayers in Idaho who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 263,000 married couples in Idaho who filed jointly last year.
Many of those couples paid a marriage penalty and will get marriage penalty relief
from the President's income tax cut.

PO-149

For press~eleases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 360,000 filers in Idaho who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPARTlVIENT

THE

TREASURY

NEWS
OFFICE OF PUBIJC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
4.5 MILLION ILLINOIS TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

4.5 million people in Illinois who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

700,000 small business owners and entrepreneurs in Illinois were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 1.2 million taxpayers in Illinois who took the child credit
last year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 2.2 million married couples in Illinois who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-ISO

For pr~releases. speeches,

publi~

schedules and official biographies, call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 3.9 million filers in Illinois who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

DEPARTlVIENT

THE

TREASURY

NEWS
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W.• WASlllNGTON, D.C .• 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2.2 MILLION INDIANA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

2.2 million people in Indiana who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

343,000 small business owners and entrepreneurs in Indiana were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax reliefthey receive
. under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 613,000 taxpayers in Indiana who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 1.2 million married couples in Indiana who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-15I

For press releases, s eeches, ublic schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 2 million filers in Indiana who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns flIed in the
year 2000 for ta.x year 1999,

-30-

DEPARTMENT

'IREASURY

THE

TREASURY

NEWS

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASIllNGTON, D.C .• 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.1 MILLION IOWA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

1.1 million people in Iowa who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

194,000 small business owners and entrepreneurs in Iowa were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 287,000 taxpayers in Iowa who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 605,000 married couples in Iowa who filed jointly last year.
Many of those couples paid a marriage penalty and will get marriage penalty relief
from the President's income tax cut.

PO-lS2

For press releases, speeches, public> schedules and official biographies, call our 24-hour fax line at (202) 622-2040

________ L

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 964,000 filers in Iowa who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands ofthe people who earned it this year."
DA TA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year ]000 for ta.., year J999.

-30-

DEPARTMENT

THE

TREASURY

NEWS
OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASlllNGTON, D.C .• 20220. (202) 622.2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
954,000 KANSAS T AXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES
•

954,000 people in Kansas who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

178,000 small business owners and entrepreneurs in Kansas were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 266,000 taxpayers in Kansas who took the child credit last
year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 541,000 married couples in Kansas who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-lS3

For press ryleases, speeches, public schedules and official biographies, call our 24..lwur fax line at (202) 622-2040
,

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 865,000 filers in Kansas who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year ]000 fOr tax year 1999.

-30-

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 200 I

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.3 l\lILLION KENTUCKY TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTING INCOME TAX R-\ TES
•

1.3 million people in Kentucky \\"ho paid Federal income taxes last year would stand
to keep more of\\"hat they earned once the President's income tax rate cut is law.

•

240.000 small business owners and entrepreneurs in Kentucky were taxed on their
business mcome under the indi\idual rates last year. These small business
entrepreneurs are the eng me of gro\\th in our economy. The tax relief they receive
under the President's plan could be used to in\'est in new equipment. hire additional
workers and increase pay,

DOUBLI~G

•

There are approximately 364.000 taxpayers in Kentllcky who took the child credit last
year, \\'ho are potential beneficiaries of doublmg the credit under the President's
proposal.

REDUCI~G

•

THE CHILD TAX CREDIT

THE !\IARRIAGE PEI\'AL TY

There are approximately 779,000 marned couples in Kentucky who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-IS4

For press reil'a.H's. speeches, public schedules and official biographies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.2 million filers in Kentucky who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The data were compiled b\' the illternal Re\'('Ill/(' Ser\'ice based on income lax returns filed ill the
ycar loau for tax year /999.

-30-

DEPARTMENT

' .

THE

TREASURY·

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622·2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.3 MILLIO~ LOUISIANA TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOI\IE TAX RATES
•

1.3 million people in Louisiana who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

240,000 small business owners and entrepreneurs in Louisiana were taxed on their
business income under the indi\'idual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they recei\'e
under the President's plan could be used to imcst in new equipment. hire additional
workers and Increase pay

DOUBU\,G THE CHILD TAX CREDIT
•

There are approximately 429,000 taxpayers in Louisiana \\'ho took the child credit
last year. who are potential beneficianes of doubling the credit under the President's
proposal.

REDUCING THE I\IARRIAGE PENALTY
•

There are approximately 690,000 married couples in Louisiana who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-ISS

For press releases. speeches. public schedules and official biographies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.5 million filers in Louisiana who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions,

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're \vorking
to put money back in the hands of the people who earned it this year."

DATA SOURCE: TIll: datu were compzled by rhe internal Re\'efllll! Service based on income tax returns/iled in the
year 2000 for tax year 1999.

-30-

•

, D EPA R T'M E N T

0 F

THE

T REA

SUR Y
,

•

.
,

TREASURY;tU)
NEW
S
__----------.~v"~/,~~_____________
17k"........

OFFlCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA A\'E~UE. N.W.. WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
465,000 l\1AIl\'E TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX RATES

•

~65.000

•

I O~,OOO small business owners and entrepreneurs in Maine were taxed on their
business income under the indi\'idual rates last vear. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they recei\'c
under the President'S plan could he used to ill\'est in ne\\ equipment. hire additional
workers and increase pay

people in Maine who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

DOUBUl\G THE CHILD TAX CREDIT
•

There are approximately 116.000 t;l\payers 111 ~1all1e who took the child credit last
year, who are potential beneficiaries of douhling the credit under the President's
proposal.

REDlTING THE l\lARRIAGE PE:\ALTY
•

There are approximately 256.000 married couples in Maine v,;ho filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-IS6

For press releuseJ ..\·peeches. public schedules and official biow-aphies. call our 24-hour fax lille at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 420,000 filers in Maine who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The data were compiled br the IntenIal RC\'('flue Service based on income tax returns filed in the
year lUaU for tax year 1999.

-30-

DEPARTMENT

TREASURY

THE

TREASURY

fW) NEW S

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2 l\ULLION l\lARYLAND TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTING INCOI\IE TAX RATES
•

2 million people in Maryland \\ho paid Federal income taxes last year would stand to
keep more of what they eamed once the President's income tax rate cut is law.

•

327.000 small business owners and entrepreneurs in Maryland were taxed on their
business income under the indi\'idual rates last vear. These small business
entrepreneurs are the engine of gro\\th in our economy. The tax relief they receive
under the President's plan could be used to in\'est in new equipment, hire additional
workers and increase pay.

DOUBLI1\"G THE CHILD TAX CREDIT
•

There arc approximately 520,000 taxpayers in \1aryland who took the child credit last
year, \\'ho are potential beneficiaries of douhling the credit under the President's
proposal

REDUCING THE l\IARRIAGE PENALTY
•

There are approximately 916.000 married couples in Maryland who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income ta\ cut.

PO-IS7

For press release,l. speeches, public schedules and official

bio~aphies.

call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.4 million filers in Maryland who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data wen: campi/cd by the IlItcnw!
ycar ]000 for tax year 1999.

Rl'I'CIIIIl'

-30-

SelTlce hased on income tax reTUrns/iled ill rhe

DEPARTMENT

THE

TREASURY

TREASURyfg) NEW S
178')

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2.5 MILLION IVIASSACHUSETTS TAXPAYERS
This \\·eek. as millions of taxpayers will be scrambling to file their tax returns. its worth
pointing out that \Vashington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME TAX R4 TES
•

2.5 million people in Massachusetts who paid Federal income taxes last year would
stand to keep more of what they eamed once the President's income tax rate cut is
law.

•

427.000 small business owners and entrepreneurs in Massachusetts were taxed on
their business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment. hire additional
\\orkers and increase pay.

DOUBLI;\,G THE CHILD TAX CREDIT
•

There arc approximately 537.000 taxpayers in Massachusetts \vho took the child
credit last year. who are potential hcneficiaries of doubling the credit under the
President's proposal.

REDUCING THE 1\1ARRIAGE PENALTY
•

There are approximately 1.1 million married couples in Massachusetts who filed
jointly last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-IS8
For press reieasn. speeches, public schedules and official biowaphies, call our 24~our fax line at (202) 622-2040

ALLO\VING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.9 million filers in Massachusetts who did not claim itemized deductions last
year would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data H"(;'r(;' cOlllpilcd bl' Ihc inlcTl/al Rc\'cIIUC Sen'ice based all income tax returns/iled in the
rcar ]000/01' lax ",'ear f 1)99

-30-

DEPARTMENT

THE

TREASURY~~j

TREASURY

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVAMA AVENuE. N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
3.6 MILLIOl\ l\HCHIGAN TAXPAYERS
This \\eek. as millions of taxpayers \\'i11 he scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTI!'.'G INCOME TAX RATES

•

3.6 million people in Michigan who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

536.000 small business owners and entrepreneurs in Michigan were taxed on their
business income under the lI1di\'idual rates last year. These small business
entrepreneurs arc the engine ofgrO\\th in our economy. The tax relief they receive
under the President's plan could be used to imest in new equipment, hire additional
workers and increase pay.

DOUBLI~G

•

THE CHILD TAX CREDIT

There arc arrroximately 927.000 taxraycrs in Michigan who took the child credit last
year, who arc potential beneficiaries of douhlll1g the credit under the President's
proposal.

REDUCI!'.'G THE I\IARRIAGE PEt\ALTY

•

There are approximately 1.9 million married couples in Michigan who filed jointly
last year. Many of those couples raid a marriage renalty and will get marriage
penalty relief from the President's income tax cut.

PO-J59

For press rl'il'a.\es. speeches. public schedules and official bioffaphies. call our 24·llOur fax line at (202) 622-2lHO

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 3 million filers in Michigan who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions_

DA TA SOURCE: The data were compiled b\' the Illternal
year lOOO/or tax year 1999.

Rl'I'L'llllL'

-30-

Sen-ice based all income tax returns filed ill rhe

DEPARTMENT

THE

TREASURY (~)

TREASURY

NEW S

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANlA AVENUE. N.W .• WASHINGTON, D.C.. 20220. (202) 622·2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.9 MILLION l\lI~NESOT A TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and anow people to keep more of their own money. He's proposed:

CUTTING INCOME TAX RATES
•

1.9 million people in Minnesota who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

337,000 small business owners and entrepreneurs in Minnesota were taxed on their
business income under the indi\·idual rates last year. These small business
entrepreneurs are the engine of growth III our economy. The tax relief they receive
under the President's plan could be used to imest in new equipment. hire additional
workers and increase pay.

DOUBLI~G

•

THE CHILD TAX CREDIT

There are approximately ~82,000 taxpJycrs III Mlllnesota who took the child credit
last year. who are potential benefiCiaries of doubling the credit under the President's
proposal.

REDUCING THE :\IARRIAGE PE:\ALTY
•

There are approximately 982,000 mJITIed couples in Minnesota who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-J60

For press re/l'Usl's. speeches. public schedules and official biographies. call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.4 million filers in Minnesota who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE The data were compiled b\' the inlernal Rel't..'lll/e Sen'ice husf'd all mcome rax returns filed in the
rcar 2000 for tax veal' 1999.

-30-

DEPARTMENT

THE

IREASURY {~~':",
. . ":.\
\~

,'('

:I.:e;';"

TREASURY

NEW S

_-----------~/7Rqc....------------.
OFFICE OF PUBUC AFFAIRS • 1500 PENNS'r'LVAfI,;lA AVENUE. N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 200 1
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
300,000 l\10NTANA TAXPAYERS
This week, as millions of taxpayers will he scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allo\\" people to keep more of their own money. He's proposed:
CUTTING INCO!\IE TAX R.\. TES

•

300.000 people in Montana who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

76.000 small business owners and entrepreneurs in Montana were taxed on their
business income under the indi\idual rates last year. These small business
entrepreneurs arc the engine of gro\\'th in our economy, The tax relief they recei\'e
under the President's pbn could be used to inyest in new equipment. hire additional
workers and II1crease pay.

DOUBLI~G

•

THE CHILD TAX CREDIT

There are approximately 77.000 taxpayers III ~10ntana who took the child credit last
year. who are potential beneficiarIes of doubling the credit under the President's
proposal.

REDUCI!\,G THE MARRIAGE PE:\ALTY

•

There are approximately 183.000 marned couples in Montana who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-J61

For pres.~ relm.\cs. !;pel·ches. public schedules and official biographies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 293.000 filers in Montana who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The dara were compiled b\' the Interna!
lOOO jar rax ,)'eur 1999.

RCl'L'III1l'

lcar

-30-

Sen'lce based on iI/come tax returns filed ill the

DEPARTMENl:'

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON. D.C .• 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
786,000 MISSISSIPPI TAXPAYERS
This week, as mi \lions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CLTTI~G

INCOl\lE T AX RATES

•

786,000 people in Mississippi \\'ho paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

149,000 small business owners and entrepreneurs in Mississippi were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of gro\\th in our economy. The tax relief they receive
under the PresIdent's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOLBU:\G THE CHILD TAX CREDIT
•

There are approximately 286,000 taxpayers in Mississippi who took the child credit
last year. who are potential beneficianes of doublIng the credit under the President's
proposal.

REDUCI:\G THE MARRIAGE PEl\ALTY
•

There are approximately 426,000 mar[!(~d couples in Mississippi \vho filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-162

Far press releaSl'.\ ..\peeches. public schedules and official biowaphies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 936,000 filers in Mississippi who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DA T A SOURCE: The data were: compiled by the Internal Rel'enue Sen'ice based on income tax returns filed in the
year ~ooo for tax vear 1999,

-30-

D EPA R T M'E N T

0 F

THE

TREASURY~J

T REA SUR Y

NEW S

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.9 MILLION MISSOURI TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their O\\"n money. He's proposed:

CUTTING INCOl\lE TAX R'\ TES
•

1.9 million people in Missouri who paid Fedcral income taxes last year v.:ould stand
to keep more of what they earned once the President's income tax rate cut is law,

•

346,000 small business owners and entrepreneurs in Missouri were taxed on their
business income under the indl\'idual rates last year, These small business
entrepreneurs are thc engine of gro\\th in our economy. The tax relief they receive
under the President's plan could be used to im'cst in ncw cquipment, hire addItional
workers and increase pay,

DOl'BLI:"G THE CHILD TAX CREDIT
•

Thcrc arc approximately 532,000 taxpayers in Missouri who took the child credit last
year. who are potential beneficiarics of doubling thc crcdit under the Presidcnt's
proposal.

REDVCI~G

•

THE l\IARRJAGE

PE~ALT\,

There arc approximately 1 million married couples in Missouri who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriagc penalty
relief from the President's income tax cut.

PO-163

Far press rell'Q,5('s. speeches. public schedules and official biographie,5. call our 24-hour fax line at (202) 622-2f.H.0

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.8 million filers in Missouri who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're \\!orking
to put money back in the hands of the people who earned it this year."

DA TA SOCRCE: The data Irere compiled b\' the II/lema! RCI'ellue Sen'ICe based 011 illcome tax returns/lIed in lhe
yearlOOO/or tax yea)' 1YYY.

-30-

D EPA R T lVl E N T

0 F

T, H E

T REA SUR Y

lREASURy!l1!
NEW
S
C.........................................
17R Q

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESID.ENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2.7 MILLION NORTH CAROLINA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay do\vn the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTING Il\CO!\lE TAX RATES
•

2.7 million people in ;\orth Carolina \\ho paid Federal income taxes last year would
stand to keep more of what they earned once the President's income tax rate cut is
law.

•

488,000 small business owners and entrepreneurs in North Carolina \vere taxed on
their business income under the II1di\'idual rates last year. These small business
entrepreneurs arc the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment. hire additional
\\'orkers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 777,000 taxpayers 111 ;\orth Carolina who took the child
credit last year. who are potential hcneficianes of doubling the credit under the
President's proposal.

REDUCING THE MARRIAGE PEl\ALTY
•

There are approximately 1.5 million married couples in North Carolina who filed
jointly last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-164

For press releases. speeches, public schedules and offinal biographies. call our 24-4'zour fax line at (202) 622-2(H0

ALLO\VING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 2.4 million filers in North Carolina who did not claim itemized deductions last
year would now be eligible to take a deduction for their charitable contributions.

DA T A SOURCE: The datu lI'crc compilcd by III/.' flllc-mal RCl'cnuc Sen-ice based on income tax rcturns filed in thc
.Imr 20{)O/or lax year 1999

-30-

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON. D.C.. 20220. (202) 622·2960

April 9. 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622~2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
231,000 NORTH DAKOTA TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this over~
taxation and allo\\ people to keep morc of their own money. He's proposed:

CLTTIl\G Il\COME TAX RATES
•

231,000 people in North Dakota who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

-tS,OOO small business owners and entrepreneurs in North Dakota were taxed on their
business income under the indi\idual rates last year. These small business
entreprencurs arc the englIle of gro\\·th in our economy. The tax relief they receive
under the President's plan could be used to Ill\"est III new equipment. hire additional
\\orkers and increase pay.

DOLBU:\G THE CHILD TAX CREDIT
•

There arc approximately 61.000 taxpayers In ~orth Dakota who took the child credit
last year. who are potential bcncficlanes of doubling the credit under the President's
proposal.

REDLCI:\G TilE :\JARRIAGE PE!'ALTY
•

There arc approximately] 33,000 marned couples in North Dakota who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-165

For press re/l'aW.I. ~pf'f'che.\. public schedules and offiCIal bior.;raphics. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 248,000 filers in North Dakota who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributionso

DATA SOURCE: The data were compiled bl the Intcr/wl RCI"I!llue SenOlce based on income tax returns filed in the
rear lUOO for UL'( year 1999.

-30-

DEPARTMENT

THE

1REASURY~)

TREASURY

NEW S

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANiA AVENUE. N.W.• WASHINGTON. D.C.. 20220. (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9. 1001

FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
631,000 NEBRASKA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their O\\"n money. He's proposed:

CUTTI!,;G INCOl\IE TAX RATES
•

631.000 people in Nebraska who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

117,000 small business owners and entrepreneurs in Nebraska were taxed on their
business income under the mdividual rates last year. These small business
entrepreneurs are the engine of gro\\th m our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment. hire additional
workers and increase pay.

DOL'BLI:\G THE CHILD TAX CREDIT
•

There are approximately 169,000 taxpayers in \:ebraska who took the ehild credit last
year. who are potential beneficianes of doubling the credit under the President's
proposal.

REDUCIl\G THE l\IARRIAGE
•

PE~AL TY

There are approximately 349,000 married couples in Nebraska who filed jointly last
year. Many of those couples paid a mamage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-166

Far press releases, speeches. public schedules and offioal biowaphies, call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 586,000 filers in Nebraska who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The data were campi/I'd bl' the InTerna/ Re\,ellue Sen'ice based all illcome ta.t returns filed ill the
rear ]000 for ta.r year 1999.

-30-

DEPARTMENT

THE

TREASURY'

~/78q~. . . . . . . . . . . . . . . . . ..

....................

OFFlCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
730,000 NEVADA TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CLTTI!\G I!\COI\IE TAX R-\ TES
•

730,000 people in Nevada who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

107,000 small business owners and entrepreneurs in Nevada were taxed on their
business income under the indi\'idual rates last year. These small business
entrepreneurs are the engine of growth Il1 our economy. The tax relief they receive
under the President's plan could be used to il1\'est in new equipment. hire additional
workers and Il1crease pay.

DOL:BLI'G THE CHILD TAX CREDIT
•

There arc approximately 19-t.OOO taxpayers 111 Nevada who took the child credit last
year. who are potential beneficiaries of doubling the credit under the President's
proposal.

REDCCIl\G THE MARRIAGE PE!'ALTY
•

There are approximately 3-t3.000 married couples in Nevada who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-167

Far press relea.\{'.\. speeches. public schedules ami official bioWaphics. call our 24·/lIOur fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 614,000 filers in Nevada who did not claim itemized deductions last year \\fould
now be eligible to take a deduction for their charitable contributions.

DA TA SOURCE: The data were compiled by lhe Illlalla/ RC\'i!IllU! Sen'lce based on Income tax returns filed in the
year 2000 for ta.x year J999.

-30-

DEPARTMENT

THE

TREASURY'

OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622·2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
507,000 NE\V HAMPSHIRE TAXPAYERS
This week, as millions of taxpayers \\·ill be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and aifow people to keep more of their o\\·n money. He's proposed:
CUTTI~G

•

INCOME TAX RATES

507,000 people in New Hampshire who paid Federal income taxes last year would
stand to keep more of \\hat they earned once the President's income tax rate cut is
law.

•

92,000 small business owners and entrepreneurs in New Hampshire were taxed on
their business income under the indl\idual rates last year. These small business
entrepreneurs are the engine ofgro\\·th In our economy. The tax relief they receiYe
under the President's plan could be used to Invest in new equipment, hire additional
workers and increase pay.

DOUBLIl'IG THE CHILD TAX CREDIT
•

There are approximately 124.000 taxpayers III \:ew Hampshire who took the child
credit last year, who are potentIal heneficlarIes of douhling the credit under the
President's proposal.

REDUCING THE l\IARRIAGE PE:\ALTY
•

There are approximately 257.000 married couples in New Hampshire who filed
jointly last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-J68
For press releases, .~pel'ches, public schedules and official biowaPhie~. call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 414,000 filers in New Hampshire who did not claim itemized deductions last
year would now be eligible to take a deduction for their charitable contributions .

.. It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. .. We're working
to put money back in the hands of the people who earned it this year."

DA TA SOURCE: The data were compiled by the Inrernal RCl'enue Service based on income tax returns filed in the
rear 2000 for ra_rl'ear 1999

-30-

DEPARTMENT

THE

TREASURY

TREASURY!.) NEW S
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradsha\v
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
3.21\1ILLION ~E\\, JERSEY TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOl\lE TAX RATES
•

3.2 million people in Nc\\ Jerscy who paid Federal income taxes last year would
stand to keep more of \\hat they earncd once the President's income tax rate cut is
law.

•

465~000 small business o\\ners and entrepreneurs in New Jersey were taxed on their

business income under the individual rates last year. These small business
entrepreneurs are thc engine of gro\\·th in our economy. The tax relief they receive
under the President's plan could be used to il1\est in new equipment, hire additional
\\orkers and incrcase pay.
DOUBLI:\G THE CHILD TAX CREDIT
•

Therc arc approximately 754.000 taxpayers 111 !'\e\\ Jersey who took the child credit
last year. who are potential beneficIaries of doubling the credit under the President's
proposa\.

REDt.:CIi\G THE MARRIAGE PEl\ALTY
•

There are approximately l.5 million marned couples in New Jersey who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-J69
Far press releasc.\. spl'l'che~. public schedules and official bioWaphif's. call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 2.4 million filers in New Jersey who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DA T A SOURCE: The data \l't:re compiled by the Inlema!
year lOO()/or tax rear! 999

R('\'CflUC

-30-

Service based on income tax relums flied

lfl

the

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNS'r'LVANIAAVENVE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
539,000 NE\V l\-lEXI CO TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTI~G

•

INCOI\IE TAX RI\TES

539.000 people in New \1exico \\'ho paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

113.000 small business owners and entrepreneurs in New Mexico were taxed on their
business income under the individual rates last year. These small business
cntrcpreneurs arc the enginc of gro\\th 111 our cconomy. The tax relief they receive
under the President's plan could he used to in\est in new equipment, hire additional
\\'orkers and increase pay.

DOL'BU:\G THE CHILD TAX CREDIT
•

There arc approximately 161.000 taxpJycrs in :'\cw l\1exico who took the child credit
last year. who are potential beneficlanes of doubling the credit under the President's
proposal.

REDL'CI:\G TilE :\IARRIAGE PE:\ALTY
•

There are approximately 304.000 married couples in New Mexico who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-170

For press re/t'ascs ..,peeches, public schedules and official biowaPhie.~, call uur 24-hour fax line at (202) 622-2040

ALLO\VING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 583.000 filers in New' Mexico who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions,

DATA SOURCE: The data were compiled bl' thl! Illtallal
rl!ar ::000 jar tax Yl!a,. 1999,

RI!I'I!IIlII!

-30-

Sl!n'ice based 011 income tax returns filed in the

DEPARTMENT

THE

TREASURY ~~

TREASURY

NEW S

17Hq:.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .

ornCE OF PUBUC AFFAIRS. 1500 PENNS\'LVt\.'\TlA AVENUE. N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDE~T'S TAX RELIEF PROPOSALS CUT TAXES FOR
6.5 l\IILLIO:\ :\E\" YORK TAXPAYERS
This week. as millions of taxpayers \\'ill be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
ClTTI:\'G

I~COl\IE

TAX RATES

•

6.5 million people in :\e\\ York who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is la\\',

•

1.2 million small business owners and entrepreneurs in New York were taxed on their
business income under the IIldi\'idual rates last year. These small business
entrepreneurs are the englllc ofgro\\th 111 our economy, The tax relief they receive
under the President's pIJn could he used to inn::st in new equipment. hire additional
\\orkers and Increase pay,

DOl"BU:\'G THE CHILD TAX CREDIT
•

There arc approxlmatcly 1.5 million taxpayers I!1 \,'e\\ York who took the child credit
last year. \\ho are potential heneficlarles of doubling the credit under the President's
proposal.

REDlTI:\'G THE :\I.·\RRIAGE PE:"iALTY
•

There arc approximately 3 million married couples III New York who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-I71

. Far press n·lm\(·\.\p(·(·ch(·s. public schedules and official bio{(T"aphiE·!,. call our 24.Jzour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 5.3 million filers in New York who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The dara \I'ere compiled hr rhe 11lll'l"IIa! Rl'Il'lllie Sen'lce based on mcolne ta.x return.lfiled III the
year lOOO/or raJ: year 1999.

-30-

DEPARTl\1ENT

THE

TREASURY~tI)

TREASURY

NEW S

OFFICE OF PUBUC AFFAIRS • 1500 PENNS\1..VANlA AVENUE. N.W.· WASHINGTON, D.C.. 20220. (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
4.4 l\lILLIO;\ OHIO TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTI~G

INCOl\IE TAX R-\ TES

•

4,4 million people in Ohio who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is la\\'.

•

638,000 small business owners and entrepreneurs in Ohio were taxed on their
business income under the indi\'ldual rates last vear. These small business
entrepreneurs arc the engine of gro\\th 111 our economy, The tax relief they recei\'e
under the President's plan could be used to il1\cst in nc\\ equipment. hire additional
\\'orkers and increase pay.

DOl'BLI:"G THE CHILD TAX CREDIT
•

There arc approximately 1.1 million taxpayers in Ohio who took the child credit last
year. who are potential beneticianes or doubl1l1g the credit under the PresIdent's
proposal.

REDUCI~G

•

THE l\IARRIAGE

PE~ALTY

There are approximately 2 million marned couples in Ohio who filed jointly last
year. Many of those couples paid a marnage penalty and will get marriage penalty
relief from the President's income lax cut.

PO-I 72

Far press relcajcj. speeches. public schedules and official biographies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 3.8 million filers in Ohio who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data 1I't?re compiled b\' lhe /I/lcn/a/ Rt!I't!lIl1L' St!n'lce based 011 Income lax rerurnsjiled In the
.rear lOOO for tax year 1999

-30-

D EPA R T MEN T

0 F

THE

TREASURY.~

T: R E' A SUR Y

NEW S

~/78q~. . . . . . . . . . . .. .

. . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS· 1500 PENNSnVANlAAVENUE, N.W .• WASHINGTON, D.C.. 20220· (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1 MILLION OKLAHOMA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTII"G INC01\lE TAX R<\ TES
•

1 million people in Oklahoma who paId Federal income taxes last year would stand
to keep more of \\hat they earned once the President's income tax rate cut is law.

•

236.000 small business owners and entrepreneurs in Oklahoma were taxed on their
business income under the indi\'idual rates last year. These small business
entrepreneurs are the engIne of growth in our economy, The tax relief they receive
under the President's plan could be used to im'est in new equipment hire additional
\\orkers and increase pay.

DOl"BU:\G THE CHILD TAX CREDIT
•

There are approximately 306.000 taxpayers In Oklahoma who took the child credit
last year, who are potential beneficiaries of doubling the credit under the President's
proposal.

REDL'CI:\G THE 1\lARRIAGE
•

PE~ALTY

There are approximately 649.000 marned couples in Oklahoma who filed jointly last
year, Many of those couples paid a marnage penalty and will get marriage penalty
relief from the President's IIlcome ta.\ cut.

pO-In

Far press releasl',\. spl'cchc!>. public schedules and official biowaphies. call uur 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 1 million filers in Oklahoma who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data lI"ere compiled bl· the lllter/wl RCI"l'lluC SenlCl! based on income tax returns filed in the
.war ::000 for tax year 1999.

-30-

DEPARTMENT

THE

TREASURY 'f.)

TREASURY

NEW S

OFFICE OF PUBUC AFFAIRS -1500 PENNSnVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.2 MILLION OREGON TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CL'TTING INCOME TAX RATES
•

1.2 million people in Oregon \\'ho paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

235.000 small business O\\'ners and entrepreneurs in Oregon were taxed on their
business income under the indi\'idual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to in\'est in new equipment, hire additional
workers and increase pay.

DOL'BLI~G

•

There arc approximately 290.000 taxpayers in Oregon who took the child credit last
year, \\'ho are potential beneficiaries of doubllllg the credit under the President's
proposal.

REDUCI~G

•

THE CHILD TAX CREDIT

THE !\lARRIAGE

PE~ALTY

There are approximately 655,000 married couples in Oregon who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-174

For press relea,\l's, speeches, public schedules and official biowaphies, call our 24·llOur fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 931.000 filers in Oregon who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Ren'nue SernCt' based on income ta.t returnsjiled ill the
rear ]000 for ta.t year 1999.

-30-

DEPARTMENT

TREASURY

THE

TREASURY

(It) NEW S
17R'l

OFFICE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
4.5 1\1ILLION PEl\'NSYL V ANIA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their o\\n money. He's proposed:

CUTTING INCOl\lE TAX RATES
•

4.5 million people in Pennsyh'ania \\ho paid Federal income taxes last year would
stand to keep more of \\hat they earned once the President's income tax rate cut is
law,

•

674.000 small business o\\'ners and entrepreneurs in Pennsylvania were taxed on their
business income under the II1dl\'ldual rates last year, These small business
entrepreneurs arc the engine of gro\\th in our economy, The tax relief they receive
under the President's plan could be used to in\l~st in nc\\ cquipment, hire additional
workers and increase pay,

DOUBU\G TilE CHILD TAX CREDIT
•

There arc approximately I million taxpayers In Pennsylvania who took the child
credit last year. \\'ho an: potcntlal benefiCiarIes of doubling the credit under the
President's proposal.

REDl;CING THE i\lARRIAGE PENALTY
•

There are approximately 2.3 million marned couples in Pennsylvania who filed
jointly last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the PreSident's Income tax cut.

PO-175

Far press re/msn, ~p('eches, public schedules and official biographies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 4 million filers in Pennsylvania who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions .

DA TA SOURCE: The datu Here compiled by Ihe illtemal R('I '('11 lIC Service based all Income tax retunzsjilf!d III thf!
rem- ~(J()Of()r TuX l°f!ar 1999

-30-

D EPA R T 1\1 E N T

O,F

THE

1REASURY;rI);

T R' E A SUR Y

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANiA AVENUE. N.W,. WASHINGTON. D.C.. 20220. (202) 622·2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
385,000 RHODE ISLAND TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money, He's proposed:

CUTTII"G INCOl\lE T A.X R-\ TES

•

385,000 people in Rhode Island who paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

60,000 small business owners and entrepreneurs in Rhode Island were taxed on their
business income under the individual rates last vear. These small business
entrepreneurs are the engine of growth in our economy. The tax rei ief they receive
under the President's plan could be used to l!l\'est in ne\\ equipment. hire additional
workers and increase pay.

DOrBUl\'G THE CHILD TAX CREDIT
•

There are appro\imately 91.000 taxpayers 111 Rhode Island who took the child credit
last year. who are potential beneficiaries of doubling the credit under the President's
proposal

REDUCING THE MARRIAGE PEl\'ALTY
•

There are appro\imately 182.000 married couples in Rhode Island who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income ta\ cut.

PO-176

Far press releases. spel>ches. public schedules and official biographies. call our 24-hour fax line at (202) 622-2040
·U S GO\lernfTlent Prlnllng 0111((:' 1'J<:.j,"\

619-55'-1

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 313,000 filers in Rhode Island who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. II We're working
to put money back in the hands of the people who earned it this year."

DA TA SOURCE: The data H·ere compiled b\' the Internal Rel'enuc Sen'I('c based on income tax returns filed in the
rcar ::OOO/or tax year 1999,

-30-

DEPARTMENT

THE

1REASURY{~\
~~~
,,/~~

TREASURY

NEW S

~/78q~. . . . . . . . . . . . . . . . . .. .

....................

OFFlCE OF PUBUC AFFAIRS • 1500 PENNSYLVAl'.'IA AVENUE, N.W .• WASHINGTON, D.C.. 20220.

(202~

622·2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
I.3l\HLLION SOlJTH CAROLINA TAXPAYERS
This week. as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that \Vashington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CL'TTI:\G

I~COt\IE

TAX R.\ TES

•

1.3 million people in South Carolina \\ho paid Federal income taxes last year would
stand to keep more of "hat they earned once the President's income tax rate cut is
la\\.

•

218.000 small business owners and entrepreneurs in South Carolina were taxed on
their business income under the indi\'ldual rates last year, These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to Im'Cst in new equipment. hire additional
workers and increase pay.

DOL'BLI~G

•

THE CHILD TAX CREDIT

There are approximately 400.000 taxpayers In South Carolina who took the child
credit last year. who arc potential heneficiaries of doubling the credit under the
President's proposal.

REDL'CI:\G THE !\IARRIAGE
•

PE~ALTY

There are approximately 673.000 marned couples III South Carolina who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's II1comc tax cut.

pO-In
Far press re/eQs(',\. ,\·pt>l'ches. public schedules and official biowaphies. call our 24~our fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 1.3 million filers in South Carolina who did not claim itemized deductions last
year would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: Tht: data were compiled by {he /l/tL'Tflal Rt:l'L'fllIL' SernC'e based on income tax retunls{iled in {he
n!Gr 2000/or fiLt year /999

-30-

DEPARTMENT

THE

TREASURY {~}

TREASURY

NEW S

ornCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradsha\v
(202) 622-2960

THE PRESIDEl\T'S TAX RELIEF PROPOSALS CUT TAXES FOR
263,000 SOUTH DAKOTA TAXPAYERS
This week, as millions of taxpayers will he scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is propOS1l1g structural tax code changes to relieve this overtaxation and allow people to keep more of their o\\n money. He's proposed:
CUTTING

Il~COl\lE

TAX RATES

•

263.000 people in South Dakota \\ho paid Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

55.000 small husiness owners and entrqm:neurs in South Dakota were taxed on their
business income under the Illdl\idual rates last year. These small business
entrepreneurs arc the cngll1e orgrowth 111 our economy. The tax relief they receive
under the President'S plan could he used to \I1\'est in new equipment, hire additional
workers and increase pay.

DOUBLI~G

•

THE CHILD TAX CREDIT

There arc approximatel~ 72.000 la\payers in South Dakota who took the child credll
last year, \\'ho arc pOlentlal heneliclarlcs or douhllllg the credIt under the President's
proposaL

REDliCI1\G THE l\IARRIAGE PE:\..\LTY

•

There are approximately 152.000 lllaITIed couples in South Dakota who fi led jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's Il1come tax cut.

PO-178

Far press rell'asl'.\, SPl'l'ches, public schedules and official bio{;('"aphies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 300,000 filers in South Dakota who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DA T A SOURCE' The dota \\'t're compiled hI' fhe /llfCrJlU/ RL'I'CIIIIC Sen'lce based all /llcome ta.t returns filed
rear ]000 for [{lX yt'ar /999

-30-

III

the

DEPARTMENT

THE

TREASURY~.

TREASURY

NEW S

OFFlCE OF PUBUC AffAIRS • 1500 PENNS'l1..VANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622·2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

THE PRESIDEl\'T'S TAX RELIEF PROPOSALS CUT TAXES FOR
1.9 l\lILLIO:\, TE1\:\ESSEE TAXPAYERS
This week. as millions of taxpayers will be scramblIng to file their tax returns, its \vorth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allo\\' people to keep more of their own money. He's proposed:
CUTTING

I~CO!\IE

TAX R.\ TES

•

1.9 million people in Tennessee who paid Federal income taxes last year would stand
to keep more of \\hat they camed oncc the President's income tax rate cut is law.

•

372.000 small business owners and entrepreneurs in Tennessee were taxed on their
busmess income under the indi\"idual rates last year. These small business
entrepreneurs arc the engllle of gro\\th In our economy. The tax relief they receive
under the President's plan could be used to 111\ cst in ne\\ equipment, hire additional
workers and IIlcrease pay

DOrBLI~G

•

THE CHILD TAX CREDIT

There arc approximately 5-41.000 taxpayers in Tennessee who took the child credit
last year. \\ho are potential benefiCiaries of doubling the credit under the President's
proposal.

REDt.:CING THE :\IARRIAGE

•

PE~ALT\

There arc approximately 1 million ll1;lrned couples in Tennessee who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief frolll the President's income ta.\ cut.

PO-179

For press re/m.\('\, .\pl'cchc.\, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS

•

The 2 million filers in Tennessee who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions,

DATA SOURCE: The data were compiled b\' the InTernal Re\'enue Service based on income tax returns filed in the
year 2000 for ta.x year J999.

-30-

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . ..

. . . . . . . . . . . . . .

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
6.4 l\lILLIOl\' TEXAS TAXPAYERS
This week. as millions of taxpayers \\ill be scrambling to file their tax returns. its worth
pointing out that \\'ashington is taking more from people than it needs to run the go\'ernment and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their o\\'n money. He's proposed:
CVTTIl\G INCOl\IE TAX R'\ TES
•

604 million people in Texas who paid Federal income taxes last year would stand to
keep more of \\hat they earned once the President's income tax rate cut is Ia\,'.

•

1A million small business owners and entrepreneurs in Texas were taxed on their
busll1ess income under the indi\ldual rates last year. These small business
entrepreneurs arc the engine of gro\\th in our economy. The tax relief they receive
under thL' President's plan could be used to 111\ est in ne\\ equipment. hire additional
workers and increase pay.

DOl'BU:\G THE CHILD TAX CREDIT

•

There are approximately 2 million taxpayers in Texas \\'ho took the child credit last
year. who arc potential beneficianes of doublll1g the credit under the President's
proposal.

REDLCI:\G THE :\IARRIAGE PE:\ALT"

•

There are approximately 3.5 million married couples in Texas who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-ISO

For press release,\ ..~pe('chcs. public schedules and official biographie\. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 7 million filers in Texas who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

" It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind." said Treasury Secretary Paul O'Neill. "We're working
to put money back in the hands of the people who earned it this year."

DATA SOURCE: The dara lI'cre compiled b\' fhl' !//lcrna! Rn'CIIIIl' Scr\"lCL' based on incolll!! tax reTllrtlsf/!ed

rca I' ::OOOfor TaX year J999.

-30-

/11

fhe

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
693,000 l'T AH TAXPAYERS
This week. as millions of taxpayers \\'ill be scrambling to file their tax returns. its \vorth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTIl\G INCO;\lE TAX RATES

•

693.000 people in L:tah \\ho p;.lIll Federal income taxes last year would stand to keep
more of \\'hat they earned once the President's income tax rate cut is 1aw.

•

135.000 small business owners and entrepreneurs in Utah were taxed on their
business income under the II1di\ldual rates last year. These small business
entrepreneurs are the engll1e of growth 111 our economy, The tax relief they receive
under the President's plan could be used to 111\ est in new equipment. hire additional
\\'orkers and increase pay,

DOUBLI:\G THE CHILD TAX CREDIT
•

There are approximately 231.000 taxpayers in Utah \\ho took the child credit last
year. who are potential benefiCiaries of doublll1g the credit under the President's
proposal,

REDVCI:\G THE :\IARRIAGE PE:\:\LTY
•

There are approximately ~28.000 marned couples in Litah who filed jointly last year.
Many of those couples paid a marnage penalty and will get marriage penalty relief
from the President's income tax cut.

PO-lSI

For press releas('.\. speeches. public schedules and official biographies. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 563,000 filers in Utah who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data m:re compiled b\' the IIITerllai Rcn'lIl1c Scn'lce based on income lax returns flied in the
r(;'ar ::000 jor TaX Y(;'(1r f 999

-30-

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . ..

. . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
232,000 VERl\IO:\T TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:

CUTTING INCOME T AX RATES
•

232,000 people in VemlOnt who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

53,000 small business owners and entrepreneurs in VernlOnt were taxed on their
business income under the individual rates last year. These small business
entrepreneurs are the engine of growth In our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment. hire additional
workers and increase pay.

DOUBU:\G THE CHILD TAX CREDIT
•

There are approximately 57,000 taxpayers 111 \. emlOnt who took the chi Id credit last
year, who are potential beneficiancs of douhllllg the credit under the President's
proposal.

REDUCING THE 1\1ARRIAGE
•

PE~ALTY

There are approximately 121,000 married couples in Vermont who filed jointly last
year. Many of those couples paid a marriage penalty and \vill get marriage penalty
relief from the President's income tax cut.

PO-182

For press releases. speeches. public schedules and official biowaphies. call our 24.Jzour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 206.000 filers in Vennont who did not claim itemized deductions last year would
now be eligible to take a deduction for their charitable contributions.

DA TA SOL!RCE: The data Il'ere compiled b\' the II/terrllli Rel'el/lle Sen'ice based on income tax returns filed in the

rcar lOOO/or

tlL>':

,I'ear I YYY.

-30-

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . ..

. . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

Contact: Tara Bradshaw
(202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2.6 MILLION VIRGINIA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOME T AX RATES

•

2.6 million people in Virginia who paid Federal income taxes last year would stand to
keep more of what they earned once the President's income tax rate cut is law.

•

396.000 small business owners and entrepreneurs in Virginia were taxed on their
business income under the indl\'idual rates last year. These small business
entrepreneurs are the engine of growth m our economy. The tax relief they receive
under the President's plan could be used to im'est in new equipment, hire additional
workers and increase pay.

DOUBLI~G

•

THE CHILD TAX CREDIT

There are approximately 663.000 taxpayers m Virginia who took the child credit last
year. who are potential beneficiaries of doubling the credit under the President's
proposal.

REDUCIl\;G THE MARRIAGE
•

PE~ALTY

There are approximately 1.3 million married couples in Virginia who filed jointly last
year. Many of those couples paid a marriage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-IS3

For press releases. speeches. public schedules and official biowaphies. call our 24-llOur fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 2 million filers in Virginia who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions,

DATA SOURCE: The data were compiled br the Illlema! Rn'ellllc Sen'lce based on income ta."( returns filed in the
rear ::000 for tax year 1999.

-30-

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

April 9. 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2.2 l\1ILLIOl\ \\,ASHI~GTON TAXPAYERS
This week, as millions of taxpayers will he scrambling to file their tax
pointing out that Washington, DC is taking more from people than it needs to
goyernment and pay down the debt. The President is proposing structural tax
relie\'e this oyer-taxation and allo\\' people to keep more of their own money.
CUTTI~G I~CO!\IE

returns, its worth
run the
code changes to
He's proposed:

TAX R.\ TES

•

2.2 million people in \\'ashlngton \\ ho paid Federal income taxes last year \\'ould
stand to keep more of \\ hat they earned once the President's income tax rate cut is
law,

•

363.000 small business owners and entrepreneurs in Washington were taxed on their
business income under the Indl\'idual rates last year. These small business
entrepreneurs are the engllle of gro\\th 111 our economy. The tax relief they receiYe
under the President's plan could be used to 111\ est III ne\\ equipment, hire additional
workers and increase pay.

DOliBU:\G THE CHILD TAX CREDIT
•

There are approximately 550.000 ta.\pa~ers III Washington \\'ho took the child credit
last year, who are potential henefiClarIes of douhllllg the credit under the President's
proposal.

REDUCI:\G THE 1\1ARRIAGE PE:\:\LTY
•

There are approximately 1.1 million marned couples in Washington who fi led jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's II1come tax cut.

PO-JS4
For press rl'leaw,\, spt'cches, public schedules aTld official bio,E.,rraphie,\, call (Jur 24-hour fax /iTle at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.8 million filers in Washington who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions,

DATA SOURCE: The data were complied bl' the internal RCI'enuc Sen'ice based on /Ilcome tax returns filed in the
ycar lOOOfor tax ,lear 1999

-30-

DEPARTMENT

THE

TREASURY

~17R~Qa.. . . . . . . . . . . ..

..............

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
2 l\IILLIO!\ \\'ISCO:\SI:\ TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allo\\" people to keep more of their O\\'n money. He's proposed:
Ct;TTI~G I~COl\lE

TAX RATES

•

2 million people in Wisconsin \\ho p;'lId Federal income taxes last year would stand
to keep more of what they earned once the President's income tax rate cut is law.

•

293.000 small business owners and entrepreneurs in Wisconsin were taxed on their
business income under the indl\'idu;.tl r;.ttes l;.tst year. These small business
entrepreneurs are the engine of gro\\th in our economy. The tax relief they receive
under the President's plan could be used to In\l.?st in ne\\ equipment, hire additional
workers and increase pay.

DOUBLI:\G THE CHILD TAX CREDIT
•

There arc approximately 533.000 taxpayers In \\'Isconsin who took the child credit
last year. who are potentIal benefiCIarIes of doubling the credit under the President's
proposal.

REDl:CI:\G THE MARRIAGE PE:\ALTY
•

There are approximately 1 million mamed couples in Wisconsin who filed jointly
last year. Many of those couples paId a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-185

Far press re/ease.\.\plwht's, public schedules and official bi0K'"aphie.\. call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 1.6 million filers in Wisconsin who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The dara were compIled b\' the !I/terna! Rn'el/ue Sen'ice based on I1lcome tax returns filed
rear ]OOU for tax year 1999,

-30-

III

the

DEPARTMENT

THE

_------~17!\~Q~

TREASURY

______•

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
546.000 'VEST VIRGIl\;IA TAXPAYERS
This week, as millions of taxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their o\\'n money. He's proposed:

CUTTII\G INCOl\lE TAX RATES
•

5~6.000 people in West Virginia who paid Federal income taxes last year would stand

to keep more of what they earned once the President's income tax rate cut is law.

•

92.000 small business o\\'ners and entrepreneurs in West Virginia were taxed on their
business income under the II1dividual rates last year. These small business
entrepreneurs are the engll1e of gro\\th 111 our economy. The tax relief they receive
under the PresIdent's plan could be used to invest in new equipment, hire additional
workers and increase pay,

DOl'BU:\G TilE CHILD TAX CREDIT
•

There arc approximately 1~0.000 taxpayers 111 West Virginia who took the child
credit last year. who arc potentIal hendicianes of doubling the credit under the
President's proposal.

REDl'CI:\G THE :\lARRIAGE PEi\ALTY
•

There are approximately 356.000 maITled couples in West Virginia who filed jointly
last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's Income tax cut.

PO-186

For press re/msl's. splwhes, public schedules and official bioKT"aphil>,\, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 622,000 filers in West Virginia who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data H'('re compiled h\' the Illtemal Re\'ClIlIC SelTICC bascd on incomc tax rcrumsf/lcd
rcar }UOO jar tax ycar 1999.

-30-

III

thc

DEPARTMENT

lREASURY

THE

TREASURY

fa) NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
176,000 \\,YOl\lING TAXPAYERS
This week. as millions of taxpayers \\'ill be scrambling to file their tax returns. its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allo\\ people to keep more of their o\\n money, He's proposed:
CUTTI~G

INCO!\IE TAX RATES

•

176.000 people in Wyoming who paid Federal income taxes last year would stand to
keep more of \\hat they earned once the President's income tax rate cut is law.

•

38.000 small business owners and entrepreneurs in Wyoming were taxed on their
business income under the indi\idual rates last year. These small business
entrepreneurs are the engine of gro\\,th in our economy, The tax relief they receive
under the PreSident's plan could be used to il1\est in new equipment. hire additional
workers and increase pay,

DOL:BU:\G THE CHILD TAX CREDIT

•

There are approximately ~8.000 taxpayers III \\"yoming \\ho took the child credit last
year. \\ho are potential beneficlanes of douhllIlg the credit under the President's
proposal.

REDUCI:\G THE :\IARRIAGE PE:\ALTY

•

There are approximately 1O~.OOO marned couples in \\'yoming who fi led jointly last
year. Many of those couples paid a marnage penalty and will get marriage penalty
relief from the President's income tax cut.

PO-lS7

Far press releaS('.~. sptwhes. public schedules and official bio,:;raphies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 189,000 filers in Wyoming who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions,

DATA SOURCE: The data II't'TC complied h"lhe Illlallul RLTL'llllL' Sen'ICC based on illcome tax rClu/'Ilsjiled III Ihe
rear ::OUO(or tax ,,'ear 1999

-30-

DEPARTMENT

THE

TREASURY

~17R~Qa.. . . . . . . . . . . ..

..............

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw
(202) 622-2960

THE PRESIDENT'S TAX RELIEF PROPOSALS CUT TAXES FOR
98 MILLION UNITED STATES TAXPAYERS
This week, as millions oftaxpayers will be scrambling to file their tax returns, its worth
pointing out that Washington is taking more from people than it needs to run the government and
pay down the debt. The President is proposing structural tax code changes to relieve this overtaxation and allow people to keep more of their own money. He's proposed:
CUTTING INCOlVIE TAX RATES
•

98 million people in United States who paid Federal income taxes last year would
stand to keep more of what they earned once the President's income tax rate cut is
law.

•

17.4 million small business owners and entrepreneurs in United States were taxed on
their business income under the individual rates last year. These small business
entrepreneurs are the engine of growth in our economy. The tax relief they receive
under the President's plan could be used to invest in new equipment, hire additional
workers and increase pay.

DOUBLING THE CHILD TAX CREDIT
•

There are approximately 26 million taxpayers in United States who took the child
credit last year, who are potential beneficiaries of doubling the credit under the
President's proposal.

REDUCING THE MARRIAGE PENALTY
•

There are approximately 50 million married couples in United States who filed
jointly last year. Many of those couples paid a marriage penalty and will get marriage
penalty relief from the President's income tax cut.

PO-I88
Furpress rele~ speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

ALLOWING NON-ITEMIZERS TO DEDUCT CHARITABLE CONTRIBUTIONS
•

The 87 million filers in United States who did not claim itemized deductions last year
would now be eligible to take a deduction for their charitable contributions.

DATA SOURCE: The data were compiled by the Internal Revenue Service based on income tax returns filed in the
year 2000 for tax year 1999.

-30-

Individual Income Tax Rctums Filed for 1999
(Number of returns in

thou~ands)

Income

United States
Alabama
Alaska
Arizona
Arkansas

California
Colorado
Connecticut
Delaware

Florida
Georgia

Tax After

Non-Farm

Non-Refund

Proprietor

Child

Joint

Standard

Credits'

Income

Tax Credit

Relurns

Deduction

97,957

17.-163

1,354

246

282

1,603

Claim

Use

50,221

87,138

432

"/75

1,377

I 15

249

856

1,356

787

164

445
243

491

856

10,957

2,342

2,991

5,523

9,260

1,633
1,374

329

399
297

805
643

1,259

218

299

141

238

5,456
2,663

1,019

1,323

2,763

5,382

486

802

1,340

2,334

Y84

Hawaii

433

107

405

125

222
263

372

Idaho
Illinois

4,493

700

1,162

2,179

3,855

Indiana

2,193
1,072

343

613

1,193

1,996

194

287

605

964

Iowa

360

954

178

266

541

865

1,286

364
429

779

1,221

690

1,515

465

240
240
104

116

256

420

Maryland

2,020

327

520

916

1.376

Massachusetts

2,540

427

537

1,142

1,902

Michigan

3,600
1,927

536
337

927
482

1,850

2,995

982

1,424

299
786

183

293

149

286

426

936

Kansas

Kenrucky
Louisiana
Maine

Minnesota
Montana
Mississippi

1,278

Missouri

1.945

346

532

1,064

1,809

North Carolina
North Dakota

2,735

488

777

1,453

2,391

231

631

117

169

133
349

248

Nebraska
Nevada

730

107

194

343

614

507

92
465

124

257

414

754

1,530
304

2,353

2,925
1,952

5,324

New Hampshire
New Jersey

3,231

586

583

539

I 13

161

;\few York

6,473

U40

Ohio

4.417

1,187
638

Oklahoma

1,047

236

)06

649

1,045

Oregon
Pennsylvania

1,192

290

655

4,491

235
674

1,074

2,337

931
4,022

385
1,310

182

313

218

398

673

1,250

New Mexico

Rhode Island
South Carolina

1,108

3,768

263

152

Tennessee

1,906

372

541

1,054

298
2,012

Texas

6,384
693

1,364

1.985

3,537

7,079

135

231

428

563

232

121

206

Virginia
Washington

2,619

396
363

663
550

1,329
1,143

2,051

2,193

Wisconsin

2,087

293
92
38

533

1,081

1,642

140

356

622

104

189

South Dakota

Utah
Vermont

West Virginia

Wyoming

546
176

1,815

210

172

Other Areas

625

387

1,049

Notes and footnotes appear on followmg page.

Notes and Footnotes to Table

Individual Income Tax Returns Filed for 1999

The tigures in the table were tabulated from all individual income tax returns filed and processed
through the IRS Individual Master File (IMF) during calendar year 2000. Most returns filed in
2000 were for tax year 1999.
Classitication by state was based on the address used on the return. Usually this address is the
taxpayer's home address. However, some taxpayers may have used the address of a tax attorney
or accountant, or a place of business, and that address could be in a different state than the
taxpayer's home.
Footnotes
This column shows the number of returns that had positive income tax (including alternative
minimum tax) after non-refundable credits (such as the child credit).
I

Only returns with positive non-farm proprietor income are included.

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960

April 9, 2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

TREASURY RELEASES PRESIDENT'S TAX RELIEF PROPOSALS
Today the Treasury Department released the '"General Explanations of the Administration's
Fiscal Year 2002 Tax Relief Proposals," a document which outlines the President's tax relief
plan.
"This plan reflects the President's vision and priorities for providing tax relief for American
families. I look forward to the day when the tax overpayment that is sent to Washington is
returned to the hardworking Americans who earned it," stated Treasury Secretary Paul O'Neill.
Hiehliehts of the President's Tax Plan
Replaces the current marginal income tax rates of 15,28,31,36, and 39.6 percent with a
simplified rate structure of 10,15,25, and 33 percent.
The five current tax rate brackets ranging from 15 percent to 39.6 percent would be
replaced with four tax brackets ranging from 10 percent to 33 percent. The lower tax rates would
be phased in between 2002 and 2006.
The current 15 percent tax rate bracket would be split into two rate brackets, 10 percent
and 15 percent. The 10 percent tax rate would apply to the first $6,000 of taxable income for
single taxpayers, the first $10,000 for unmarried heads of household, and the first $12,000 for
married taxpayers filing jointly.
Create new 1O-percent bracket: The tax relief is $310.6 billion over 10 years.
Reduce individual income tax rates: The tax relief is $500.6 billion over 10 years.
Doubles the child tax credit to $1,000 per child and applies the credit to the Alternative
Minimum Tax. (AMT)
The amount of the child tax credit would be doubled to $1,000 per child, and the credit
would phase out more slowly and at higher incomes.
The tax relief of this provision is $200 billion over 10 years.
Reduces the Marriage Penalty by reinstating the 10 percent deduction for two-earner
couples.
PO-190
For press releas~ speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
---------~,-----------------------------------------------------------------------

To reduce malTiage penalties, the two-earner deduction that was in effect between 1982
and 1986 would be restored. Joint filers would be allowed to deduct 10 percent of the first
530,000 of the earned income of the lower paid spouse.
The tax reliefofthis provision is $112.8 billion over 10 years.
Expands the charitable deduction for non-itemizers.

Taxpayers who do not itemize would be allowed to deduct charitable contributions in
addition to their standard deduction.
The tax reliefofthis provision is $52 billion over 10 years.
Eliminates the death tax.

The estate, gift and generation-skipping transfer taxes would be phased out between 2002
and 2008 and repealed in 2009.

The tax relief of this provision is $271.5 billion over 1 years.
Makes the Research and Experimentation (R & E) tax credit permanent.

The tax relief of this provision is $49.5 billion over 10 years.

###

The full text of this document is available in Adobe Acrobat format on the Internet at:
http://www.treas.gov/taxpolicy/librarylbluebk01.pdf

DEPARTMENT

lREASURY

THE

TREASURY

fa) NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

For Immediate Release
Monday, April 9 2001

Contact: Sean Miles
(202) 622-2960
(202) 841-4507

Treasury Secretary Paul O'Neill will participate in a tour of the Philadelphia Regional Financial
Center.
Location: Philadelphia Regional Financial Center
13000 Townsend Road
Philadelphia, PA 19154
Date:

Thursday ,April 122001

Time:

Tour will start at 1:30 pm. Press should arrive no later than 1:00 for credentialing

PO-191

For press reietJ.SR.S, speeches. public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
April 09, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
91-Day Bill
April 12, 2001
July 12, 2001
912795HC8

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.820%

Investment Rate 1/:

3.912%

Price:

99.034

All noncompetitive and successful competitive bidders were awarded
securities at the high rate. Tenders at the high discount rate were
allotted 60%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)

Competitive
Noncompetitive
FIMA (noncompetitive)

20,089,429
1,376,583
300,000

5,528,937

Federal Reserve

27,294,949

7,323,692
1,376,583
300,000
9,000,275 2/

21,766,012

SUBTOTAL

TOTAL

Accepted

Tendered

Tender Type

14,529,212

Median rate
3.790%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.750%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-cover Ratio = 21,766,012 /

9,000,275 = 2.42

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $1,117,643,000

http://www. publicdebt.treas.gov

PO-192

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
April 09, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:

182-Day Bill
April 12, 2001
October 11, 2001
912795GS4

High Rate:

3.815%

Investment Rate 1/:

3.945%

Price:

98.071

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 87%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type

Accepted

Tendered

Competitive
Noncompetitive
FIMA (noncompetitive)

18,241,300
1,479,973
50,000

8,001,513 2/

19,771,273

SUBTOTAL

TOTAL

4,307,692

Federal Reserve
$

24,078,965

6,471,540
1,479,973
50,000

12,309,205

Median rate
3.775%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.760%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-cover Ratio

= 19,771,273

/ 8,001,513

2.47

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $1,209,726,000

http://www.publicdebt.treas.gov

PO-193

DEPARTMENT

THE

TREASURY

17!\Q

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

u.s. International Reserve Position

04/10/01

The Treasury Department today released U.S. reserve assets data for the week ending April 6, 2001. As indicated ill this
table, U.S. reserve assets totaled $64,994 million as of April 6, 2001, up from $64,317 million as of March 30, 2001.

(in US millions)

TOTAL
1. Foreign Currency Reserves

a. Securities
Of which. issuer headquartered m the U S

Euro

Yen

5.::40

10.491

8.334

4.544

TOTAL
15.738

13.378
0

b.iii. Banks headquartered outside the U.S.
b.iii. Of which, banks located in the U.S

2. IMF ReservE:; Position

3. Special Drawing Rights (SDRs)

t Gold Stock

i. Other Reserve Assets

Euro

Yen

TOTAL

5.369

10.6::5

15.994
:J

9051

4.600

13,650

b. Total deposits with:
b.i. Other central banks and SIS
b.ii. Banks headquartered in the U.S.
b.li. Of which. banks locaied aoroad

April 6, 2001
64,994

March 30. 2001
64,317

'I. Official U_S. Reserve Assets

0
0

''';

73,361

10.379

<0.1.1::

1 i .D46

: ; 046

deposits reflect carrying values.

21 The items, "2. IMF Reserve Position" and "3. SpeCial Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar terms at the official SDRJdollar exchange rate for the reporting date. The IMF data for March 30 are final. The entries in the table
above for April 6 (shown in Italics) reflect any necessary adjustments, including revaluation, by the U.S. Treasury to the prior week's IMF
data.
31 Gold stock is valued monthly at $42.2221 per fine troy ounce. Values shown are as of February 28, 2001. The January 31, 2001 value

)0-194

J
"

13.

was $11,046 million.

u.s. International Reserve Position (cont'd)
II. Predetermined Short-Term Drains on Foreign Currency Assets
March

3~.

2001

1. Foreign currency loans and securities

April 6. 2001

o
o
o

2; Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:
2.a. Short positions
2.b. Long positions
3. Other

III. Contingent Short-Term Net Drains on Foreign Currency Assets
March 30. 2001
11. Contingent liabilities in foreign currency
1.a. Collateral guarantees on debt due within 1 year
I.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U.S.
3.c. With banks and other financial institutions
headquartered outside the U. S.
4. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calls
4.b. Long positions
4.b.1. Bought calls
4.b.2. Written puts

April 6. 2001

o
o

0
<D
(j)

federal finoncinq
WASHINGTON. DC

FEDERAL FINANCING BANK

Kerry Lanham, Secretary, Federal Financing Bank (FFB),
announced the following activity for the month of February 2001.
FFB holdings of obligations issued, sold or guaranteed by
other Federal agencies totaled $38.9 billion on February 28,
2001, posting a decrease of $424.1 million from the level on
January 31, 2001.
This net change was the result of a decrease
in holdings of agency debt of $475.0 million, and an increase in
holdings of government-guaranteed loans of $50.9 million.
FFB
made 41 disbursements and received 13 prepayments during the
month of February.
In addition, FFB processed 13 refinancings
and 3 buydowns during the month of February.
Attached to this release are tables presenting FFB February
loan activity and FFB holdings as of February 28, 2001.

PO-195

N
N

'?
0

if)

(/)

~
Cl.

31, 2001

March

N
N
'?
N

20220

LL.
LL.

Page 2
FEDERAL FINANCING BANK
FEBRUARY 2001 ACTIVITY
Borrower

Date

Amount
of Advance

Final
Maturity

Interest
Rate

2/02
2/05
2/05
2/06
2/06
2/07
2/08
2/16
2/20
2/20
2/21
2/22
2/23
2/23
2/28

$350,500,000.00
$195,000,000.00
$512,700,000.00
$80,000,000.00
$267,700,000.00
$186,600,000.00
$45,700,000.00
$176,700,000.00
$150,000,000.00
$394,400,000.00
$257,800,000.00
$70,000,000.00
$300,000,000.00
$351,700,000.00
$525,000,000.00

2/05/01
2/06/01
2/06/01
2/07/01
2/07/01
2/08/01
2/09/01
2/20/01
2/21/01
2/21/01
2/22/01
2/23/01
2/26/01
2/26/01
3/01/01

5.184%
5.123%
5.187%
5.184%
5.197%
5.197%
5.207%
5.142%
5.207%
5.166%
5.145%
5.134%
5.145%
5.018%
4.979%

2/07
2/22
2/23

$414,454.84
$1,931,475.80
$292,270.94

8/01/05
1/30/02
8/01/05

5.010% S/A
4.874% S/A
5.011% S/A

2/01
2/01
2/01
2/02
2/05
2/06
2/06
2/07
2/09
2/15
2/15
2/15
2/16
2/16
2/16
2/20
2/22
2/23
2/27

$490,000.00
$934,000.00
$300,000.00
$785,000.00'
$400,000.00
$9,539,441.00
$1,135,000.00
$15,413,000.00
$750,000.00
$1,208,000.00
$2,000,000.00
$30,160,000.00
$1,500,000.00
$252,000.00
$350,000.00
$490,000.00
$2,749,000.00
$9,660,000.00
$1,412,040.52

1/03/34
1/03/34
3/31/31
1/03/34
1/03/34
12/31/25
1/03/34
12/31/30
1/03/34
1/03/34
7/02/01
12/31/25
1/03/34
12/31/30
12/31/24
3/31/03
7/02/01
1/03/05
1/03/22

GENCY DEBT

U.S. POSTAL SERVICE
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
J.S.
J.S.
J.S.
J.S.
J.S.
1.S.
1.S.

Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal

Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service

S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A

)VERNMENT-GUARANTEED LOANS
;ENERAL SERVICES ADMINISTRATION
,an Francisco OB
I.tlanta CDC Lab
,an Francisco OB
~URAL

UTILITIES SERVICE

:arroll Elec. #618
ltsego Electric #653
'. Indiana Rural Elec. #548
~imarron Electric #567
:ig Horn Rural Elec. #631
:eorgia Trans. Corp. #559
rand Elec. Coop. #546
outh Miss. Elec. #691
cLeod Coop. Power #554
rand Valley Rural #600
eade County Elec. #662
Farmers Elec. #701
ental Virginia Elec. #593
harles Mix Elec. #630
outh Texas Electric #505
ewitt Elec. #697
icking Valley Elec. #522
orth Arkansas Elec. #683
~sin Electric #232

5.477%
5.477%
5.472%
5.398%
5.447%
5.401%
5.430%
5.463%
5.411%
5.425%
5.024%
5.427%
5.491%
5.501%
5.613%
4.726%
4.952%
4.777%
5.417%

Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.

Page 3
FEDERAL FINANCING BANK
FEBRUARY 2001 ACTIVITY
Borrower
3asin Electric #232
3asin Electric #232
3lue Ridge Elec. #512
~arrison County #532
~cLennan County Elec. #675
Jpsala Coop. Tele. #429
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
:entral Elec. Power #923
Carnes Elec. #568
S/A is a Semiannual rate.
Qtr. is a Quarterly rate.
interest rate buydown
306C refinancing

Date
2/27
2/27
2/27
2/27
2/27
2/27
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28
2/28

Amount
of Advance
$1,182,910.80
$484,919.97
$4,000,000.00
$1,000,000.00
$500,000.00
$7,720.00
$114,877.81
$96,512.16
$58,440.32
$97,531.09
$71,699.51
$138,874.10
$246,891.39
$79,426.94
$114,992.61
$55,344.73
$1,350,515.75
$70,913.84
$92,939.79
$1,400,000.00

Final
Maturity

Interest
Rate

1/03/23
1/03/23
1/03/33
7/01/02
6/30/31
4/01/02
12/31/14
12/31/14
12/31/14
12/31/14
12/31/15
12/31/15
1/03/17
12/31/19
12/31/19
12/31/19
12/31/20
1/03/22
1/03/22
4/01/02

5.447%
5.447%
5.530%
4.440%
5.343%
4.574%
5.002%
5.002%
5.002%
5.002%
5.039%
5.039%
5.081%
5.216%
5.216%
5.216%
5.257%
5.293%
5.293%
4.447%

Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.

Page 4
FEDERAL FINANCING BANK HOLDINGS
(in millions of dollars)

Program

February 28. 2001

January 31. 2001

Monthly
Net Change
2/1/01- 2128/01

Fiscal Year
Net Change
10/1/00- 2128/01

Agency Debt:
U.S. Postal Service
National Credit Union Adm.-ClF
Subtotal*

$6.075.0
$4.0
$6.079.0

$6.550.0
$4.0
$6.554.0

-$475.0
$0.0
-$475.0

-$3.187.0
$4.0
-$3.183.0

Agency Assets:
FmHA-RDIF
FmHA-RHIF
DHHS-Medical Facilities
Rural Utilities Service-CBO
Subtotal*

$3.070.0
$5.155.0
$0.5
$4.326.9
$12.552.4

$0.0
$0.0
$0.0
$0.0
$0.0

-$340.0
-$385.0
-$0.2
$0.0
-$725.2

Government-Guaranteed lending:
DOD-Foreign Military Sales
DoEd-HBCU+
DHUD-Community Dev. Block Grant
DHUD-Public Housing Notes
General Services Administration+
DOl-Virgin Islands
DON-Ship lease Financing
Rural Utilities Service
SBA-State/local Development Cos.
DOT-Section 511
Subtotal*

$2.291.4
$22.5
$9.7
$1,278.7
$2.295.4
$13.6
$949.1
$13.281.4
$147.6
$3.5
$20.292.9

$2.325.1
$22.5
$9.7
$1,278.7
$2.292.8
$13.6
$949.1
$13 .197.4
$149.7
$3.5
$20.241. 9

-$33.7
$0.0
$0.0
$0.0
$2.6
$0.0
$0.0
$84.1
-$2.1
$0.0
$50.9

-$99.0
$1.8
-$1.1
-$69.8
-$17.2
-$1.1
-$98.4
$291.9
-$11. 5
$0.0
-$4.5

Grand total*

$38.924.3

$39.348.3

-$424.1

-$3.912.6

* figures may not total due to rounding
+ does not include capitalized interest

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

FOR IMMEDIATE RELEASE

Contact: Tara Bradshaw

April 12, 2001

(202) 622-2960

O'NEILL STATEMENT ON THE IRS OVERSIGHT BOARD INTERIM
REPORT ON THE IRS FY 2002 BUDGET
Like President Bush, I believe strongly the IRS should enforce the tax code fairly
and evenly with the least imposition on the taxpayer. Consistent with that goal, I believe
the President has requested adequate resources to fund necessary IRS improvements.
In balancing competing priorities in the budget, the President has requested a
sensible but significant 7 percent increase in funding for the IRS, which is nearly twice
the average government-wide increase.

The budget includes close to $400 million in responsible investments to modernize
the IRS' outdated computer systems. This multi-year project will provide the IRS with
the modern tools needed both to deliver first class customer service to America's
taxpayers and to ensure that compliance programs are administered efficiently. The
President's budget also includes follow-on funding for the STABLE initiative to
complete the hiring of almost 4,000 staff to address these same issues.
Commissioner Rosotti and the IRS have made progress implementing the 1998
reforms mandated by Congress, and the IRS has laid out a clear plan to improve service
and enforcement while protecting taxpayer rights.
I am confident that the amount in the President's budget will allow the IRS to
provide America's taxpayers with better quality service and help to enforce the tax law
with integrity and fairness. To achieve that goal, I will continue to work with rank-andfile employees of the IRS, members of the IRS Oversight Board, and Members of
Congress.

PO-196
-30-

Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960

~GOED UNTIL 12:00 NOON
April 12, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY OFFERS 13-WEEK AND 26-WEEK BILLS
The Treasury will auction two series of Treasury bills totaling
approximately $17,000 million to refund $90,228 million of publicly held
securities maturing April 19, 2001, and to pay down about $73,228 million.
The amount of maturing publicly held securities includes the 50-day cash
management bills issued February 28, 2001, in the amount of $28,036 million,
and the 21-day cash management bills issued March 29, 2001, in the amount of
$40,010 million.
In addition to the public holdings, Federal Reserve Banks for their own
accounts hold $9,794 million of the maturing bills, which may be refunded at
the highest discount rate of accepted competitive tenders. Amounts awarded
to these accounts will be in addition to the offering amount.
Up to $1,000 million in noncompetitive bids from Foreign and Inter-

national Monetary Authority (FIMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of each
auction. These noncompetitive bids will have a limit of $200 million per
account and will be accepted in the order of smallest to largest, up to the
aggregate award limit of $1,000 million.
Treasu~Direct

customers have requested that we reinvest their maturing
holdings of approximately $889 million into the 13-week bill and $660 million
into the 26-week bill.
We expect to issue a short-term cash management bill on Thursday,
April 19, 2001. Details will be announced Tuesday, April 17, 2001.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable Book-Entry Treasury Bills, Notes, and Bonds (31 CFR Part 356, as
amended) .
Details about each of the new securities are given in the attached
)ffering highlights.
000

\ttachment
'0-197
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERINGS OF BILLS
TO BE ISSUED APRIL 19, 2001

April 12, 2001
Offering Amount .•.•.••••.••••.••.••••••• $9,000 million
Description of Offering:
Term and type of security .•.•••••.••••••
CUSIP number •.••••...••••••••••.••••.•••
Auction date .••••••••••••••.••••.••••..•
Issue date •.••••••••••••••••••••••.•••.•
Maturity date ••.•••..••.••••••••••..••.•
Original issue date .•••••••...••••..••..
Currently outstanding ••••.•.•••.•••..•.•
Minimum bid amount and multiples ..•..••.

91-day bill
912795 GP 0
April 16, 2001
April 19, 2001
July 19, 2001
January 18, 2001
$15,518 million
$1,000

$8,000 million
182-day bill
912795 HS 3
April 16, 2001
April 19, 2001
October 18, 2001
April 19, 2001
$1,000

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids submitted
through the Federal Reserve Banks as agents for FIMA accounts. Accepted in order of size
from smallest to largest with no more than $200 million awarded per account. The total
noncompetitive amount awarded to Federal Reserve Banks as agents for FIMA accounts will
not exceed $1,000 million. A single bid that would cause the limit to be exceeded will
be partially accepted in the amount that brings the aggregate award total to the $1,000
million limit. However, if there are two or more bids of equal amounts that would cause
the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g.,
7.100%, 7.105%.
(2) Net long position for each bidder must be reported when the sum of the total bid amount,
at all discount rates, and the net long position is $1 billion or greater.
(3) Net long position must be determined as of one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid at a Single Rate .•.. 35% of public offering
Maximum Award .....•....•......•............ 35% of public offering
Receipt of Tenders:
Noncompetitive tenders .. Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders •.... Prior to 1:00 p.m. eastern daylight saving time on auction day
Payment Terms: By charge to a funds account at a Federal Reserve Bank on issue date, or payment
of full par amount with tender.
Treasu~Direct customers can use the Pay Direct feature which
authorizes a charge to their account of record at their financial institution on issue date.

DEPARTMENT

THE

_------~17!\~Q~

TREASURY

______•

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 13,2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

JOHN F. KELLY, JR. JOINS THE OFFICE OF TAX POLICY AT THE
TREASURY DEPARTMENT
On April 9, John F. Kelly, Jr. joined the Office of Tax Policy as the Special Assistant to
Mark Weinberger, the Assistant Secretary for Tax Policy. In that position, John is
responsible for assisting the Assistant Secretary in research, analysis, and liaison relating
to the Office of Tax Policy's congressional and public affairs activities.
"With more than 15 years oflegislative affairs experience, specializing in tax and budget
policy, John is a tremendous asset to our tax policy team," stated Weinberger.
Prior to joining Treasury, John Kelly was an Associate of Patton Boggs, LLP. As a
Legislative Affairs Specialist with the firm's Public Policy Group, John supported clients
with legislative interests before the Senate Committee on Finance and the House
Committee on Ways and Means focusing federal tax budget issues. John previously
served as a legislative coordinator for Davis, Polk & Wardwell, and as a legislative
assistant for Silverstein and Mullens.
John holds a Bachelor of Science in Accounting from the Wheeling Jesuit University. He
has served as a contributing editor for Tax Management Primary Sources and on the
editorial board of the Washington Tax Review, both Bureau of National Affairs
pUblications. He is an executive board member of the North Ridge Citizens Association.

-30PO-198

For press relea.'ies•.peeches, public schedules and official biographies, call our 24-hoor fax line at (202) 622-2040

PUBLIC DEBT NEWS
)epartment of the Treasury • Bureau of the Public Debt • Washington, DC 20239

Contact: Office of Financing
202-691-3550

FOR IMMEDIATE RELEASE
April 17,2001

TREASURY'S INFLATION-INDEXED SECURITIES
MAY REFERENCE CPI NUMBERS AND DAILY INDEX RATIOS
Public Debt announced today the reference Consumer Price Index (CPI) numbers and daily
index ratios for the month of May for the following Treasury inflation-indexed securities:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

3-3/8% lO-year notes due January 15,2007
3-5/8% 5-year notes due July 15,2002
3-5/8% 10-year notes due January 15, 2008
3-5/8% 30-year bonds due April 15,2028
3-7/8% 10-year notes due January 15,2009
3-7/8% 30-year bonds due April 15, 2029
4-114% 10-year notes due January 15, 2010
3-112% 10-year notes due January 15,2011

This information is based on the non-seasonally adjusted U.S. City Average All Items Consumer Price
Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics of the U.S.
Department of Labor.
In addition to the publication of the reference CPI's (Ref CPI) and index ratios, this release
provides the non-seasonally adjusted CPI-U for the prior three-month period.
This information is available through the Treasury's Office of Public Affairs automated fax
system by calling 202-622-2040 and requesting document number 199. The information is also available
on the Internet at Public Debt's website (http://www.publicdebUreas.gov).
The information for June is expected to be released on May 16, 2001.
000

Attachment

PO-199

http://www. publicdebt. treas.gov

TREASURY INFLATION-INDEXED SECURITIES
Ref CPI and Index Ratios for
May 2001

Security:
Description:
CUSIP Number:
Dated Date:
Original Issue Date:
Additional Issue Date(s):

3-3/8% 10-Year Notes
Series A-2007
9128272M3
January 15, 1997
February 6, 1997
April 15, 1997

3-5/8% 5-Year Notes
Series J-2002
9128273A8
July 15, 1997
July 15,1997
October 15, 1997

3-5/8% 10-Year Notes
Series A-2008
9128273T7
January 15, 1998
January 15, 1998
October 15, 1998

3-5/8% 30-Year Bonds
Bonds of April 2028
912810FD5
April 15, 1998
April 15, 1998
July 15, 1998

Maturity Date:
Ref CPI on Dated Date:

January 15, 2007
158.43548

July 15, 2002
160.15484

January 15, 2008
161.55484

April 15, 2028
161.74000

Date
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001

CPI-U (NSA) for:

Ref CPI

Index Ratio

175.80000
175.81290
175.82581
175.83871
175.85161
175.86452
175.87742
175.89032
175.90323
175.91613
175.92903
175.94194
175.95484
175.96774
175.98065
175.99355
176.00645
176.01935
176.03226
176.04516
176.05806
176.07097
176.08387
176.09677
176.10968
176.12258
176.13548
176.14839
176.16129
176.17419
176.18710

1.10960
1.10968
1.10976
1.10984
1.10993
1.11001
1.11009
1.11017
1.11025
1.11033
1.11041
1.11050
1.11058
1.11066
1.11074
1.11082
1.11090
1.11098
1.11107
1.11115
1.11123
1.11131
1.11139
1.11147
1.11155
1.11164
1.11172
1.11180
1.11188
1.11196
1.11204

1.09769
1.09777
1.09785
1.09793
1.09801
1.09809
1.09817
1.09825
1.098331.09841
1.09849
1.09857
1.09865
1.09874
1.09882
1.09890
1.09898
1.09906
1.09914
1.09922
1.09930
1.09938
1.09946
1.09954
1.09962
1.09970
1.09978
1.09986
1.09994
1.10002
1.10010

1.08818
1.08826
1.08834
1.08841
1.08849
1.08857
1.08865
1.08873
1.08881
1.08889
1.08897
1.08905
1.08913
1.08921
1.08929
1.08937
1.08945
1.08953
1.08961
1.08969
1.08977
1.08985
1.08993
1.09001
1.09009
1.09017
1.09025
1.09033
1.09041
1.09049
1.09057

1.08693
1.08701
1.08709
1.08717
1.08725
1.08733
1.08741
1.08749
1.08757
1.08765
1.08773
1.08781
1.08789
1.08797
1.08805
1.08813
1.08821
1.08829
1.08837
1.08845
1.08853
1.08860
1.08868
1.08876
1.08884
1.08892
1.08900
1.08908
1.08916
1.08924
1.08932

January 2001

175.1

February 2001

175.8

March 2001

176.2

TREASURY INFLATION-INDEXED SECURITIES
Ref CPI and Index Ratios for
May 2001

Security:
Description:
CUSIP Number:
Dated Date:
Original Issue Date:
Additional Issue Date(s):

3-7/8% 10-Year Notes
Series A-2009
9128274Y5
January 15, 1999
January 15, 1999
July 15, 1999

Maturity Date:
Ref CPI on Dated Date:

January 15, 2009
164.00000

Date
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001

CPI-U (NSA) for:

3-7/8% 30-Year Bonds
Bonds of April 2029
912810FH6
April 15, 1999
April 15, 1999
October 15, 1999
October 15, 2000
Apri I 15, 2029
164.39333

4-1/4% 10-Year Notes
Series A-201 0
9128275W8
January 15, 2000
January 18, 2000
July 15, 2000

3-112% 10-Year Notes
Series A-2011
9128276R8
January 15, 2001
January 16, 2001

January 15, 2010
168.24516

January 15, 2011
174.04516

Ref CPI

Index Ratio

1.07195
1.07203
1.07211
1.07219
1.07227
1.07234
1.07242
1.07250
1.07258
1.07266
1.07274
1.07282
1.07290
1.07297
1.07305
1.07313
1.07321
1.07329
1.07337
1.07345
1.07352
1.07360
1.07368
1.07376
1.07384
1.07392
1.07400
1.07408
1.07415
1.07423
1.07431

1.06939
1.06946
1.06954
1.06962
1.06970
1.06978
1.06986
1.06994
1.07001
1.07009
1.07017
1.07025
1.07033
1.07041
1.07049
1.07056
1.07064
1.07072
1.07080
1.07088
1.07096
1.07103
1.07111
1.07119
1.07127
1.07135
1.07143
1.07151
1.07158
1.07166
1.07174

1.04490
1.04498
1.04506
1.04513
1.04521
1.04529
1.04536
1.04544
1.04552
1.04559
1.04567
1.04575
1.04582
1.04590
1.04598
1.04605
1.04613
1.04621
1.04628
1.04636
1.04644
1.04651
1.04659
1.04667
1.04674
1.04682
1.04690
1.04697
1.04705
1.04713
1.04720

1.01008
1.01016
1.01023
1.01031
1.01038
1.01045
1.01053
1.01060
1.01068
1.01075
1.01082
1.01090
1.01097
1.01105
1.01112
1.01119
1.01127
1.01134
1.01142
1.01149
1.01157
1.01164
1.01171
1.01179
1.01186
1.01194
1.01201
1.01208
1.01216
1.01223
1.01231

January 2001

175.1

February 2001

175.8

March 2001
---

176.2

PUBLIC DEBT NEWS
Department of the Treasury· Bureau of the Public Debt· \Vashington, DC 20239
TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONT.l'CT:

FOR IMMEDIATE RELEASE
~pril 16, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF I3-WEEK BILLS
91-Day Bill
April 19, 200:
July 19, 200~
912795GPO

Te:::-m:
Issue Date:
Maturity Dat.e:
CUSIP Numbe:::-:
Hlgh Rate:

4.050%

Invest.ment. Rate 1/

4.150%

Price:

98.976

All noncompetlt.lve and successful compet:t.lve bldders were awarded
;ecurities at. the high :::-ate.
Tenders at. t.~e h!g~ dlscount rate were
lllotted 91%.
All tenders at lower rates were accept.ed in full.
Al'10UNTS TENDERED AJ'JD ACCE?T::::) (::1 thousands)
Te:-:::iered

Tender ;y-pe
Compet.it.ive
Noncompet.it.:ve
FIMA (noncompet.!t.lve)

Accepted

:7,289,237
: , 2'; :? , 794

2S:;,000

7,508,237
1,249,794
250,000
9,008,O]~

5,627,725

Federal Reser'le

TO,AL

14,635,756

Median rat.e
4.020%: 50% of the amount. of accept.ed competitlve tenders
as tendered at. or below that. rate
Low rat.e
3.920%:
5% of the amount
f accepted compe::t.lve t.e:1ders was t.endered at. or oeiow that. rate.
ld-to-Cover

Rat.l~

= :5,789,031 / 9,008,03:

J:1

/ Equivalent. coupc~-:ss~e Yleld.
/ Awards t.o ;REAS~7.'r' D:iECT = $970,337,008

http://w\\\\ .publicdebl. treas.go\'

'0-200

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt· Washington, DC 20239
TREASURY SECURITY ALJC7ION RESULTS
BUREAU OF THE PUBLIC DEB~ - WASHINGTON DC
CONTACT:

:OR IMMEDIATE RELEASE
\pril 16, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S A'JC-:-::)N OF 26-WEEK BILLS
182 - Da y 3 ~ ~ ~
ApY"il ~9, :'00:
OctobeY" 18, 200:
912795HSJ

TeY"m:
Issue Date:
Maturity Date:
CUSIP Number:
4.060%

High Rate:

Investmen~

Ra~e

4.20H

Price:

97.947

All noncompetitive and successful co~pe~:~lve bidders were awarded
;ecurities at the high rate.
Tenders a~ ~he n~gn dIscount rate were
lllotted 25%.
All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEP7ED (In thousands)
Accepted

Tender Type

Competitive
Noncompetitive
FlMA (noncompe~itlve)

: -; , S 7 3 3 4 1
I

QS:',498
':<, JOO

7,002,091
952,498
50,000
8,00';,589 =/

SUB70TAL

4,166,321

F"ederal Reserve

TOTAL

22,742,160

12,170,910

Medlan rate
3.990%: 50% of the amour.~ of accep~ed co~petitlve tenders
as tendered a~ or below ~ha~ rate.
Low ra~e
3.9S0%:
s% of the amount
f accepted compe~i~ive tenders was ~en8erej at 0: oelow that rate.
Id-to-Cover

Ra~:o

18,575,839

9,004,58~

~j2

Equivalent co~pon-:ss~~ y:e!d.
Awards to TREASURY D:RECT = S714,62S,000

http://W\H\ .pu hlicdebt.treas,gov

PO-201

DEPARTMENT

THE

TREASURY

17!\Q

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

u.s. International Reserve Position 4/17/01
u.s.

The Treasury Department today released
reserve assets data for the week ending Apr:il13, 2001. As indicated in this
table,
reserve assets totaled $64,768 million as of Apr:il13, 2001, down from $64,862 million as of Apr:il6, 2001.

u.s.

(in US millions)
~ril

I. Official U.S. Reserve Assets

1. Foreign Currency Reserves

a. Securities

Euro
5.369

Yen
10.0:::5

b.iii. Banks headquartered outside the U.S.

b.iil. Of which. banks located in the U.S.
2. IMF Reserve Position

3. Special Drawing Rights (SDRs)

14. Gold Stock 3
5. Other Reserve Assets

AQril 13.

TOTAL

Euro

15,994

5,:::91

Yen

TOTAL

10.015

Of whlen. Issuer headauartered In the US

b. Total deposits with:
b.i. Other central banks and BIS
b.ii. Banks headquartered in the U.S.
b.li. Of.vhich, banks located abroad

2001
64,768

6.2001
64.862

TOTAL

9,051

4.ciOO

13,650

3.944

4,590

13,539

{)

13,793

13.053

10.379

:0 . .1:'.1

11.040

11,J46

11 Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
(SOMA), valued at current market exchange rates. Foreign currency holdings listed as securities reflect marked-ta-market values, and
depOSits reflect carrying values.
21 The items, "2. IMF Reserve Position" and "3. Special Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar tenms at the official SDRJdollar exchange rate for the reporting date. The IMF data for April 6 are final. The entries in the table above
for April 13 (shown in italics) reflect any necessary adjustments, including revaluation, by the U.S. Treasury to the prior week's IMF data.

31 Gold stock is valued monthly at $42.2221 per fine troy ounce. Values shown are as of February 28, 2001. The January 31, 2001 value
was $11,046 million.

PO-202

15,906

u.s. International Reserve Position (cont'd)
II. Predetermined Short-Term Drains on Foreign Currency Assets
April 6, 2001
1. Foreign currency loans and securities

April 13, 2001

o
o
o

2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:
2.a. Short positions
2.b. Long positions

3. Other

III. Contingent Short-Term Net Drains on Foreign Currency Assets
April 13, 2001

April 6,2001
1. Contingent liabilities in foreign currency
1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U. S.
3.e. With banks and other financial institutions
headquartered outside the U. S.
4. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calls
4.b~ Long positions
4.b.1. Bought calls
4.b.2. Written puts

o
o

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

DIBUGOlm

~x.

2,30 P •••

Contact:

April 17, 2001

Office of F1n anc1ng

202/691-3550

'l'he 'r:"easury will auction approximately $39,000 aillioD of 4-clay
~t bills to be issueQ. April 19, 2001.

"h'eaauz::{ ca.sh

'l'enaers will ~ ]:)e accepted. for bills to be maintained
of the Depart.ment of Ule Tz:'e&Sw::f (i'reasu.r.yDirec::t).

the book-entry

~ecozds

Up to $1,000 million. in DODCQDlpetitive bids £rom Foreign ~ Dlt.sxuational
Honeta:cy Authority (FDIA) accounts bickl~ng thrOugh tbe Federal Jtes&rI1'e BaDk o:f
New York will be included within the of£ering amgunt of the auctiou. 'rhese
DCmcc:apetiti'V'e bicis will bave a limit of $200 mill~cm p6%' accou:c.t aDd will be
acc:ept:ec1 in ~e orier of -.118.t to largest, up to the aggregate award limit.

of $1,000 million.

't'he a.u.ct::i.c:n:~ :bei=.g' ~ed today will be conducted in the single-price
auction fo:mat. All. ccmpetitlva &Del DODeCllll;>etit,1ve awards will ])e at t~
highest cli&e:O\U1t rate of accepted ~.ti.ti'9'e ~e=e.rs.

1l1OT!i; Competi tiva bicia in cash JDa.Z3a,gement bill liucti<=s must be
6Xpnssec1 as a diSCOWlt rate with two aec:i.mal., e.g., '.1.0%.

of ~reasury securities is governed })y the terms and conditioAS set forth ill "t.he ODifoz:m O££er~ Cireu.l.ar for the Sa.le and Issue of

"r.bJ.&

of£er~

Marketable Book-Bntzy

Treasury

Bill.s, Motes,

ana

BoDds (31

Part 356, as

ameDGed) •

Detai.ls about

1:~

new sec:urity are given in the attached offering

highlights.
000

PO-203

For ,rlSS rrleu", ,petelt,s, pw.blie ,ela,dMI.$ I",d o.f1iciGl hiog,apld'l. eall ou,.l4-laour fU lin, at (202) 622.2040

m:GElLXGB'fS 0" Il'UAS'tJRY 0!'F1mDtG
OP '-])AY CASE ~ B:ILLS

APril 17, 2001
Offering AmoUnt ••••••••••••••••••••• ·$39,000 ~llion
Description of Offering:
~--.
Bill
~ aDd type of security ••••••••••• ,-day cash ~gement
COSIP ~nmber •••••••••••••••••••••••• 912795 EE 3
AUction aato •••••••••••••••••••••••• April 18, 2001
Iasue date •••••••••••••••••••••••••• April 19, 2001
Maturity 4ate •••••••••••••••••••••••·April 23, 2001
orig~ iasue date ••••••••••••••••• April 19, 2001
Min;m". bid UIQUZlt and mu.ltiples •••• $1,000
SUbmission of Bids:
IlJcncCIIDIPetitive bids: Ac:cepte4 1n full \lp to $1 mill.ion at the highest
discount rate of acoepted competitive ~ida.
Poreign aDd :IDterDatioDal. JIODeta%'Y Authority (PIllA) bids: I1cmcompetitive bids su.bmitt.ed through ~ FeaR&! Reserve Banks as agents f~
!'lXA accounts. Aceapted iu. order of size frcm sma.l1est to largest
wi~ DO more thaA $200 million awiLrdad per account.
The total DODccmpetitive amount awarde4 to Federal Reserve Banks as agents for
FJ:HA accounts will DOt exceed $1,000 milliOD. A single ]:'i4 that.
woW,c! cause tha limit to be axc:eec1e4 will be parti.ally acceptea in
the amount. that brings the aggregate award t.otal t.o the $1,000
million limit. Bow~, if there are ~wo 0: more bids of equ.al
DOUDts that WCNld cause tl:Le limit to be exeaec!ed., eac:h will be
pro%'&t.ecl t.o avoid exceec11l:t.5J tba limit.
oampat.itive bids:
(1) Klast be expresaect as & tiacOUDt Z'&t. with two decimals, a.g.,
7.10%.
(2) lIlet l.cmsr position for _em bia4a: mus't. be reported ~ the.
&'WIl of the total bid amount, at all c1iscount rates, aDd the net
long posi't,iOl1 is $1 billion or greater.
(3) JIlet long posit.ion must be 4etenn i ned as of one balf-bolu" p:ior
t.o the closing time for Z'eCei,pt of ccmpet1.tl.V8 taMers.

Maximum Rec:ognized Bid at fA Single Rate:
Maximum Awarcl: 35% of pul)lic: offe:.i.Dg

35% of public offering

Beceipt of Tenders:
JJoDCClDpetiti.,. tca4ez-a:
lTiLozo
12.00 ~ . . .tU'Zl c!a¥lisrht . .'ring t.ime Oil. &uctic= clay
Competitive taDdera:
Prior to 1.00 P ••• ..stern ~light aaV'ing tm. OIl auction 4ay

-g

Payment Te:ms:
0=.

By eha:ge to a funds account at a Federal Reserve Bank
OZ" . .~t:. o£
£'11.11 ~ ~1:. wit:h te=dar.

:L.IJ'A. . . . .~.,

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 18,2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

BARBARA ANGUS JOINS THE OFFICE OF TAX POLICY AT THE
TREASURY DEPARTMENT

On April 9, Barbara M. Angus joined the Office of Tax Policy as the Acting
International Tax Counsel. In this position, Ms. Angus serves as principal legal advisor
with respect to all aspects of international tax policy matters, including the development
of legislation, the promulgation of administrative guidance, and the negotiation of tax
treaties, and represents the United States before international tax fora.
"The breadth of Barbara's experience and her proven track record in international
tax law make her an ideal fit," said Mark Weinberger, Assistant Secretary for Tax Policy.
"We are fortunate to have an individual of Barbara's caliber take the lead in the
international tax arena."
Before coming to Treasury, Ms. Angus was a partner in the Federal Tax Policy
Group of Pricewaterhouse Coopers Washington National Tax Services office, where she
represented clients on international tax planning and tax legislative matters. Prior to
joining the firm, Ms. Angus was Business Tax Counsel for the Congressional Joint
Committee on Taxation. As a senior staff member of the Joint Committee, Ms. Angus
had primary responsibility for all international tax matters, including the international
provisions contained in the 1996 and 1997 tax legislation. Ms. Angus also coordinated
the Joint Committee's responsibilities with respect to the review and analysis of income
tax treaties considered by the Senate Foreign Relations Committee. She was previously a
partner with Kirkland & Ellis in Chicago.
Ms. Angus received an A.B., magna cum laude and Phi Beta Kappa, from
Dartmouth College, a J.D., cum laude, from Harvard Law School, and an M.B.A., with
high honors, from the University of Chicago Graduate School of Business. Ms. Angus
has taught tax courses as a member of the adjunct faculty in the L.L.M. programs at
Chicago-Kent College of Law and DePaul University College of Law.
PO-204

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

DEPARTMENT

THE

'IREASURY (g)

TREASURY

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

DBARGOED mRIL 9: 00 A.M.

POBLIC CON'rAC'r: Office of Pinancing

Apz-il 18, 2001

202-691-3550
DDIA CON'l'ACT:

Office of pUblic Affairs
202-622-2960

RDStmY UlNOO'NCBS DEBT B'CYBAClt OPERATION
em Apxil 19, 2001, the 'rrea8U%l" will buy back up to $2, 000 mill~oZl pa.:
of its ou~.t:.naiz'Sl issu•• t:ba.t mature ~tween Pebru.a..ry 2015 and AUguSt 2019.
~aasu%y reserves the right to accept leBs tha:L the announced amount.

This debt boyback (redemption) opexation will

conducted

Treasury's

Fiscal. Ag'tmt, the Federal Reserve Bank of Hew Yo:rk, usiDg its Open lIta:t·ket
op8%"&td.oZUI .yst:em. cml.y institutions that the Federal Reserve ~ 0: Hew
Yo::-k has epp:ovec! to c::o=uc::t Open JII:Ll:'ket -tz-oansactiona may sul:mait offers ou
behalf of themselves aDd their c:ustome%'S. Offer. at the highest accepted
price foZ' • particular ia.u.e may :be accaptea Oil a p~zoate4 Da.i., rou.n4e4 up
to the zwxt $100,000. As a result of this rOUDding, t.he Treasury may ]:)uy
back an ~t. .li§htly larger than the em. a:mou.nced. above.

'rlUa debt l::N.yback operation is govens.e4 by the texms &:Ild cOAditions set
forth in 31 en Put 375 ancl this &m1~emen.t.
The debt buYback operation regulations are available on the Bureau of
the Public ~'. veb.i~. at www.pUb1icdebt.t:reas.gov.
Details about the ope~Ation aDd each of the eligible" issues are given
in the att:ac:bed hisrbl.ighe8.
COo

.Att:acbmeDt

PO-20S

BIGBLZGH'rS OF TRDSOR'Y DD'r Bt1YBAC1tOPERAT:ION

April 18, 2001
Par tImOlmt to be bought back •••• Up to $2,000 million

Operation date •••••••••••••••••• APril 19, lOOl
OperatioZl close time ••••••• ~ •• ~ • 11: 00 a .~. eastern daylight saving' time
settlement date ••••••••••••••••• April 23, 2001
••••••• $10,0"000
Multiples of par ., •••••••••••••• $1.00, 000
Fonaat for offers ••••• Ezpressed in ~e%mB of price per $100 o:f par With
three decimals. The first t:wo decimals reprellaAt
fractional 32-- of a dollar. The third dec:imal '
repre.aDts eighehs of a 32114 o£ • dollar, &Ad IIlWIt
be a 0, 2, 4, o~ 6.
Delivozoy iuatl:'uc:tioD.S ............ ABA ~ 021001a08 nus mC/ctrST

Mini....,. par offer amcNAt

'l'rea.sw;y issue. eligible for clebt bUyback

ope:'~tiOJ1 (in millions):
p~

C:O~D

llate

<%)

11.250
10.625
9.875
9.250
7.250
7.500
8.750
8.875
9.125
9.000
8.875
8.125

•

. .~'Wd.t".

Date
02/15/203.5
08/15/2015
11/15/2015
02/15/2016

05/15/2016
11/15/2016
05/15/2017
08/15/2017
,05/15/2018

11/1512018
02/1.5/2019
08/1.5/2019

:.&% AIaouDt
CVSIP
CNtstanding'*
NUmber
11,351
912810 DP 0
5,],06
912810 DS4
5,,891
912810 D'1'2
6,348
912810 'fN7
18,824
912810 DW5
18,624
912810 DX 3
912810 nY 1
16,622
12,'674
912810 I>Z 8
7,217
913810 ZA 2
912810 EB 0 '
7,.639
912810 EC 8
16,330
912810 En 6
19,316
'roe a. 1
146,1.Z

Amount

Privately
Beld.9.505
3,939
4,884
5,31.1.
17,724
17,189
13,867
1.0,616
5,.978
6.799
13,957
17,1.12'
126,881

Par Amo\mt
1Ie1.4 as
STR.I~S*·

5,201
1,889
2, '-'2
504
18S'
1,326
7,396
2,391
4,074

4,241
5,4,27
"1,221
36,503

Ap~il 17, 2001.
Par UlCW1ts are as of ~il 16, 2001.

Par aaouAts are as of

~ diff~c:e l::>et:weeA the pa:' fUDOUIlt outstanding and the par amount
held is the par amount o~ those issues he1d by the J"ec1eral

p:r~vatel.y

Rese%Ve System..

DEPARTMENT

THE

lREASURY fa)

TREASURY

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

FOR IMMEDIATE RELEASE
April 18,2001

Office of Public Affairs
(202) 622-2960

STATEl\,lENT BY TREASURY SECRETARY PAUL H. O'NEILL

The Administration respects the independence of the Federal Reserve in making decisions about
our nation's monetary policy, We share the Federal Reserve's goals of maintaining healthy
economic growth while preserving low inflation.

-30-

For press releases" speeches, public schedules and official biographies, call Dur 24-h,our fax line at (202) 622-2()4()
•• r C

r::.r.'·I'un,..,...,nnl O.,nl,rv. Illf,f""o' 1QCln _ h,Q.""Q

OHICE OF PUBLIC AFI<'AIRS .1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON, D.C.. 20220. (202) 622.2960

EMBARGOED UNTIL 2:30 P.M.
April 18, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY TO AUCTION $10,000 MILLION OF 2-YEAR NOTES
The Treasury will auction $10,000 million of 2-year notes to refund $29,184
million of publicly held securities maturing April 30, 2001, and to pay down about
$19,184 million.
In addition to the public holdings, Federal Reserve Banks hold $5,630 million
of the maturing securities for their own accounts, which may be refunded by issuing
an additional amount of the new security.
Up to $1,000 million in noncompetitive bids from Foreign and International
Monetary Authority (FIMA) accounts bidding through the Federal Reserve Bank of New
York will be included within the offering amount of the auction. These
noncompetitive bids will have a limit of $200 million per account and will be
accepted in the order of smallest to largest, up to the aggregate award limit of
$1,000 million.

TreasuryDirect customers requested that we reinvest their maturing holdings
of approximately $683 million into the 2-year note.
The auction will be conducted in the single-price auction format. All competitive and noncompetitive awards will be at the highest yield of accepted competitive
tenders.
The notes being offered today are eligible for the STRIPS program.
Th~s offering of Treasury securities is governed by the terms and conditions
set forth in the Uniform Offering Circular for the Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds (31 CFR Part 356, as amended).

Details about the new security are given in the attached offering highlights.

000

Attachment

PO-207

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF
2-YEAR NOTES TO BE ISSUED APRIL 30, 2001

April 18, 2001
Offering Amount •.••••••••••••••.••.•.••......• $10,000 million
Description of Offering:
Term and type of security .•••..•...•.•••..•••• 2-year notes
Series •.....•.•.••••••••••.••.•............... P-2003
CUSIP nwnber •••.•••.••..•...•••..•••....••.... 912827 6W 7
Auction date •••••.•••••••••.••••••••••.••.•••• April 25, 2001
Issue date •••••••••.•.•.•••••......•....•...•. April 30, 2001
Dated date ••••••••••••..•.•.•.•....•.....•.•.. April 30, 2001
Maturity date ••••.••••••••••••••••••••••.•••.. April 30, 2003
Interest rate •••..•••.•••••••••••.••••••.••••• Determined based on the highest
accepted competitive bid
Yield ...•.•..••••••••••••.••••••...•..••••••• Determined at auction
Interest payment dates •••••••••....•..••••••. October 31 and April 30
Minimum bid amount and multiples ..••.••••••... $1,000
Accrued interest payable by investor ••••...•.• None
Premium or discount ••••••.•••••...•••••••••••• Determined at auction
STRIPS Information:
Minimum amount required ••••.••••••••..•••.•..• $1,000
Corpus CUSIP nwnber ••••..••••.•••.•••••.••••• 912820 GF 8
Due date(s) and CUSIP nwnber(s)
for additional TINT(s) ••...•.•••••.•••••.•.• Not applicable
Submission of Bids:
Noncompetitive bids:
Accepted in full up to $5 million at the highest accepted yield.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids
submitted through the Federal Reserve Banks as agents for FIMA accounts.
Accepted in order of size from smallest to largest with no more than $200
million awarded per account. The total noncompetitive amount awarded to Federal
Reserve Banks as agents for FIMA accounts will not exceed $1,000 million. A
single bid that would cause the limit to be exceeded will be partially accepted
in the amount that brings the aggregate award total to the $1,000 million limit.
However, if there are two or more bids of equal amounts that would cause the
limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a yield with three decimals, e.g., 7.123%.
(2) Net long position for each bidder must be reported when the sum of the total
bid amount, at all yields, and the net long position is $2 billion or greater.
(3) Net long position must be determined as of one half-hour prior to the
closing time for receipt of competitive tenders.
Maximum Recognized Bid at a Single Yield ••••..••..• 35% of public offering
Maximum Award •••••.••••••.••••.•••••.••••...••.••.. 35% of public offering
Receipt of Tenders:
Noncompetitive tenders:
Prior to 12:00 noon eastern daylight saving time on auction day.
Competitive tenders:
Prior to 1:00 p.m. eastern daylight saving time on auction day.
Payment Terms:
By charge to a funds account at a Federal Reserve Bank on issue date,
or payment of full par amount with tender.
TreasuryDirect customers can use the Pay
Direct feature which authorizes a charge to their account of record at their
financial institution on issue date.

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
April 18, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF £i-DAY BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

4-Day Bill
April 19, 2001
April 23, 2001
912795KH3
4.49 %

Investment Rate 1/:

4.56 %

Price:

99.950

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 30%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type

Accepted

Tendered

Competitive
Noncompetitive

67,120,000

TOTAL

67,120,000

39,000,000

Median rate
4.46 %: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
4.35 %:
5% of the amount
of-accepted competitive tenders was tendered at or below that rate.
BID-TO-COVER RATIO = 67,120,000 / 39,000,000 = 1.72
NO FIMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
1/ Equivalent coupon-issue yield.

http://www.publicdebt.treas.gov

PO-208

DEPARTMENT

lREASURY

THE

TREASURY

fa) NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

EMBARGOED UNITL 12:30 P.lY!.
April 19, 2001

Contact: Public Affairs
(202) 622-2960

TREASURY SECRETARY PAUL O'NEILL
TO THE ECONOMIC CLUB OF NEW YORK

Good afternoon. It is great to be here. Since I became Treasury Secretary I've found it is
so easy to get a reservation at the great restaurants in New York. I just call the maitre d' and say
this is Paul O'Neill and I would like to have a table for four at eight o'clock. The maitre d' says
"that will be fine Mr. O'Neill. Is there any chance Derek Jeter or Roger Clemens will be joining
you?"
Okay, so that's the other Paul O'Neill. He's got a great life. He has a 3 for 4 day and the
press accounts are wonderful. Lucky for him he doesn't have a point of view about whether
there is economic stimulus in the President's tax reform or on global climate change or foreign
exchange rates or workplace safety. The other Paul is very expressive. When he has a
particularly bad at bat he shares his feelings with the water cooler in the dugout. I've been
thinking about getting a water cooler for my office.
Thank you for inviting me to give you some inside perspective on President Bush and his
economic agenda. I'm always glad to be invited back to New York - I worked here for ten
years, and there is always a sense of coming home.
I've been in Washington now for three months and I've especially enjoyed getting to
know George W. Bush. He is a serious man who believes deeply in the goodness of America
and what we can achieve. That was clear to me from the day I first met with him to discuss
joining his Cabinet. We talked about principles and policies and means, beginning with
education. The principle is "no child left behind." I have worked on this subject as a policy
analyst in the Federal Government, as Chairman of George H. W. Bush's Education Policy
Advisory Committee, as Chairman of the Pennsylvania State Standards Commission, and at the
local level as Chairman of an Education Policy Group. I have come to the same conclusion as
President Bush. The first priority for our society should be "no child left behind".
I believe it is our obligation to achieve this result, and I am convinced we will achieve it
when citizens at the local level commit themselves to the idea that when children get to be ten
years old they will have the foundation skills they need to be life long learners.
PO-209
For press release.s, .speeches~ public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
,

To deliver this result we need early diagnosis of leaming development and individually
tailored interventions for those who are lagging behind. Yes, it takes money, and the President
has proposed that, but we need standards and measurement too, always focused on the success of
individual children, not on statistical aggregations about groups of children or entire schools.
And we need to check progress every three months and change our interventions if we are not
making progress.
As we discussed the full spectrum of public policy issues on that December day, I found
myself in agreement with all of the important elements of President Bush's vision and that's why
I abandoned my own plans and signed on for this job.
I'm proud to be part of his team, working to foster prosperity in every comer of this
nation, and to playa part in fostering what I believe can be a golden age of economic prosperity
for the world.
I'm proud to join the team of a man who believes our society is only on the frontier of its
true potential. As Treasury Secretary my first priority now is to get the President's tax reform
enacted.
Think back three months ago and you will remember the conventional wisdom was that if
there was to be any tax reform this year it would not come before September or October and it
certainly would not be more than half the size that President Bush was recommending. The
President refused to accept that timetable. The result, the House has already passed several
pieces ofthe President's tax relief plan. And in a vote on April 6th, 65 members of the Senate
supported a ten-year tax cut of $1.27 trillion and $85 billion of immediate tax relief.
I believe next week we will see the House and Senate come together around a tax relief
number that is very close to the President's request. That's leadership in action.
You've all seen projections that we are going to have a $5.6 trillion surplus in
Washington over the next 10 years. Private forecasts are close to Washington forecasts on this
subject. The President has put together a reasonable budget plan that pays down $2 trillion in
publicly held debt, provides $1.6 trillion for tax reform, and funds all of our budget priorities.
We've got some work to do convincing the Congress that a 4 percent increase in spending is
plenty to cover our needs, but we'll get there.
The slowdown in the economy makes it all the more important that the Congress act on
tax relief quickly. We can put money in people's pockets this year, with the knowledge that it is
just the first installment of permanent tax relief, and we can reignite the spark of economic
growth.
As soon as we have tax relief in place, we will tum our attention to Social Security.
Standing alone against the pundits' advice that he should not say anything about Social Security
in his campaign, he championed the cause of long needed reform.

I remember going before the Senate Appropriations Committee in 1973 with George
Shultz who was then-Director of the Office of Management and Budget. He told the Committee
that we needed to fix Social Security before it led to an intergenerational fight between the young
and the old because the system could not be sustained as the age balance in our population
shifted. That was twenty-eight years ago - and, the time to make necessary changes is running
out.
President Bush is committed to fixing Social Security. He has already announced that he
will create a commission to develop the framework we need in order to put specific legislative
recommendations before the Congress. The President will keep us focused on this issue and, as
in tax reform, we will produce a good result for the American people; quicker and better than the
naysayers expect.
Further down the track, it is my hope that we can tum our attention to tax code
simplification. The code today encompasses 9,500 pages of very small print. While every word
in the code has some justification, in its entirety it is an abomination. It imposes $150 billion or
more of annual cost on our society with no value creation. We are worthy of better.
I want to tum for a moment to the world outside the United States and say a few words
about the international financial institutions.
I want to begin with a declaration. I believe the international financial institutions are a
necessary and important part of our past, present and future. But I am concerned that their future
will be constrained unless we can work together to reduce the amount of time and money they
spend on fire fighting. Certainly, there will always be unexpected events that we and the
institutions will have to deal with, but fire fighting should be the exceptional cases for these
institutions, not the norm. In examining some fire fighting cases, it is clear to me that some
professional economists and financial people knew beforehand that economic conditions were
deteriorating. Dealing with such situations before they tum into a contagious disease seems to
me to be the preferred policy. In a sense, doing so in advance requires taking more
responsibility, because you have to stick your neck out and tell people what needs to be done
before crisis forces your hand. But I don't know any other way to fulfill my fiduciary
responsibility to the American people.
As we in the finance ministries of the world talk glibly about billions of dollars of support
for policies gone wrong, we need to remember that the money we are entrusted with came from
plumbers and carpenters who sent 25% of their $50,000 annual income to us for wise use.
Finally, I want to comment on the challenges that are internal to the Treasury Department
and, more broadly, to the Federal Government.
I can tell from some of the editorial comments that I have seen that some people are
mystified as to why I would bother myself with anything that didn't rise to the level of global
finance and Presidential policy making. These commentators don't understand my notion of
leadership. In a nutshell, that notion is this: Excellence is a habit.

If your organization is not striving to be the best in the world at everything you do, then
you are unlikely to be truly excellent as an organization. Let me take this down from the lofty to
the concrete. In the organization that I left in December, it took us 2-112 days to close our
financial books at more than 300 locations in 36 countries. It takes the Federal Government five
months to close our books; and then the auditors give us a qualified opinion. This is not the stuff
of excellence.
Let me hasten to add, this is not the fault of the workforce. The Federal workforce can
deliver what the leadership asks for. I have begun to ask for plenty from the Treasury
Department workforce, beginning with workplace safety. Parenthetically, I find it odd to be
criticized for caring about the health and safety of the 160,000 people who depend on me for
leadership. I proved in my previous work life that it is possible to build an organization that is
known for excellence; based on a foundation of dignity and respect for every individual.
I will continue to do the same in my new work as I strive to give meaning, in every way,
to President Bush's vision.
--30--

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

Text As Prepared For Delivery
Embargoed Until 12:45 p.m. EDT
April 20, 2001

Contact: Public Affairs
(202) 622-2960

TREASURY SECRETARY PAUL O'NEILL
TO THE NEW YORK SAVINGS BOND LUNCHEON

Thank you Ivan (Seidenberg). Please stay here for a moment so I can present you
with this certificate appointing you Chair of the Greater New York Savings Bond
Campaign. And, thank you and the members of your committee for taking leadership for
the savings bond effort here in New York.
I'd also like to thank Richard Carrion, of Banco Popular for leading our national
effort to encourage Americans to save and invest, and make savings bonds an integral
part of their financial plans. Richard has also been playing a key role in working with us
here at Treasury in our efforts to provide banking services to those who have been underserved. I know first-hand how important your work, and the work of the committee is
from two perspectives: first, as a volunteer member ofthis committee a decade ago, and
now as Treasury Secretary.
Now, I'd like to recognize two companies for their achievements in last year's
campaign by presenting them with Treasury's Golden Eagle award. First I'd like to
r.::cognize Johnson&Johnson for its achievement. Will Russ Deyo join me so I can
present the award. With 83 percent of their employees buying bonds, J&J is the
country's participation leader. Great Job!
Next is Metropolitan Life Insurance Company. Will Joseph Reali come forward.
Met Life has 52 percent oftheir employees buying bonds. Thank you for your
tremendous support.
You are all here today because you believe in the savings bond program, and the
larger goal of financial security for America's families. I salute you for working to
expand financial security to more and more Americans.
PO-2l0

For press rele

ublic schedules and official biographies, call our 24-hour fax line at (202) 622-2040

Financial security is at the foundation of the President's agenda for the nation.
First, he has made education his number one priority, because a good education is the
basis for economic success. Second, he's put together a budget that grows family
budgets by trimming wasteful Washington spending and letting working American's
keep more of what they earn. Finally, he's announced he will form a Social Security
commission to ensure personal retirement security for all Americans.
It was clear to me from the day I first met with George W. Bush to discuss joining
his Cabinet that he is a serious man who believes deeply in the goodness of America and
what we can achieve. That was clear to me from the day I first met with him to discuss
joining his Cabinet. We talked about principles and policies and means, beginning with
education. The principle is "no child left behind." And he's intent on putting the policies
and resources in place to achieve that goal.

When all our children are receiving the best possible education, they'll be ready to
join and succeed in a vibrant economy, achieving greater financial security for
themselves and their families.
The President's tax relief plan also will enhance financial security for all
Americans. The typical family will keep $1,600 more of their hard-earned money. And
cutting tax rates will help grow the economy, creating more investment and more jobs.
The President is moving his tax cut plan through the Congress faster than anyone
would have thought possible. In January, the conventional wisdom in Washington held
that the Congress couldn't pass a tax cut before September. The President wouldn't
accept that timetable - he insisted we get money back in people's pockets as soon as
possible. And Congress has responded. The House has already passed several elements
of the President's tax relief plan. In the Senate both RepUblicans and Democrats have
embraced a minimum of $1.3 trillion in tax relief, accelerated to this year.
If we don't send the tax surplus back to the taxpayers, it will be spend in
Washington. The President believes that families know better how to spend and save
their hard-earned income. We're cutting taxes to increase family budgets instead of
increasing Washington's budget.

The President is looking ahead - not just at how to increase family budgets today
but also how to increase retirement security in the future. We need to give every working
American the opportunity to take the initiative now, and save to enjoy those retirement
years. Millions of Americans depend on Social Security, it is a social contract between
the generations that we must honor and we will honor. For too long, Washington has
shied away from this difficult issue.

over the Internet,
through an automatic purchase arrangement by preauthorized debit to your bank
account we call EasySaver,
through payroll savings where you work, and;
as always through banks and thrift institutions.

We're not here today only to extol the virtues of Savings bonds. We're here
today to honor the broader mission of the Savings Bonds Program- and the work that all
of you do as part of the program -- spreading the word and teaching the importance of
saving and investing.

Financial security can't just be handed out from Washington. We can only create
the environment and the tools that enable more individuals to achieve financial security.
Government can foster the environment for sound, sustainable economic growth through
prudent fiscal and tax policy but it is the energy and creativity of the American people
that create the products and services that make the economy grow.
Individual Americans must make the decision to save for their future - and their
children's future. Saving allows families to improve their standard of living over time,
and move up the economic ladder of success. I thank all of you for the work you do
improving the lives of families across America by teaching them to save.
--30--

DEPARTMENT

THE

lREASURY f.)

TREASURY

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

'OR IMMEDIATE RELEASE
\pril 19, 2001

PUBLIC CONTACT: Office of Financing
202-691-3550
MEDIA CONTACT:
Office of Public Affairs
202-622-2960

TREASURY DEBT BUYBACK OPERATION RESULTS

Today, Treasury completed a debt buyback (redemption) operation for $2,000 million
,ar of its outstanding issues. A total of 12 issues maturing between February 2015 and
,ugust 2019 were eligible for this operation. The settlement date for this operation will
e April 23, 2001. Summary results of this operation are presented below.
(amounts in millions)

ffers Received (Par Amount):
ffers Accepted (Par Amount) :
otal Price Paid for Issues
(Less Accrued Interest) :
umber of Issues Eligible:
For Operation:
For Which Offers were Accepted:
3ighted Average Yield
of all Accepted Offers (%):
3ighted Average Maturity
for all Accepted Securities (in years) :

$8,040
2,000

2,696

12
10

5.716

16.4

!tails for each issue accompany this release.

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

211

April 19, 2001
TREASURY DEBT BUYBACK OPERATION RESULTS

(amounts in millions, prices in decimals)
Table I

Coupon
Rate (%)

Maturity
Date

Par
Amount
Offered

1i.250
10.625
9.875
9.250
7.250
7.500
8.750
8.875
9.125
9.000
8.875
8.125

02/15/2015
08/15/2015
11/15/2015
02/15/2016
05/15/2016
11/15/2016
05/15/2017
08/15/2017
05/15/2018
11/15/2018
02/15/2019
08/15/2019

510
685
615
636
118
625
916
1,011
695
701
997
531

Par
Amount
Accel2ted

Highest
Accepted
Price

Weighted
Average
Accepted
P r1ce
.

25
45
34
461
0
0
335
335
145
25
585
10

154.093
148.843
141.750
135.750
N/A
N/A
131. 671
133.203
136.500
135.531
134.312
126.093

154.093
148.835
141. 731
135.681
N/A
N/A
131. 642
133.149
136.496
135.531
134.285
126.093

Weighted
Average
Accepted
Yield

Par Amount
Private1v He1d*

5.580
5.614
5.635
5.659
N/A
N/A
5.713
5.721
5.741
5.757
5.769
5.793

9,480
3,894
4,850
4,850
17,724
17,189
13,532
10,281
5,833
6,774
13,372
17,102

Table II

Coupon
Rate (%)

Maturity
Date

CUSIP
Number

Lowest
Accepted
Yield

11.250
10.625
9.875
9.250
7.250
7.500
8.750
8.875
9.125
9.000
8.875
8.125

02/15/2015
08/15/2015
11/15/2015
02/15/2016
05/15/2016
11/15/2016
05/15/2017
08/15/2017
05/15/2018
11/15/2018
02/15/2019
08/15/2019

912810DPO
912810DS4
912810DT2
912810DV7
912810DW5
912810DX3
912810DY1
912810DZ8
912810EA2
912810EBO
912810EC8
912810ED6

5.580
5.613
5.634
5.653
N/A
N/A
5.711
5.717
5.741
5.757
5.767
5.793

Total Par Amount Offered:
Total Par Amount Accepted:

8,040
2,000

Note: Due to rounding, details may not add to totals.
'Amount outstanding after operation. Calculated using amounts reported on announcement.

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . .. .

. . . . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 20. 2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

TREASURY A!\!!'IOU!'ICES IRS Rl'U:\G PROCESS FOR THE ALTERNATIVE
FLELS CREDIT \\"ILL RESUME

The Intemal Re\"enue Sen'ice today issued Re\enue Procedure 2001-30. announcing it
will resume the ruling process for the section 29 altemative fuels tax credit. This action
re\'erses the October 2000 Re\, Proc, 2()()()--l7. in \\hich the IRS announced that it would
not issue ad\'ance rulings on synthetic fuels tax credit eligibility.
Rulings had been suspended to pro\lde time for the IRS and Treasury to study the issue,
The IRS is resuming ruling based on the standards embraced by the IRS previously to
detem1ine eligibility for the credit. The Re\, Proc, is balanced with provisions to ensure
the credit is limited to facilitIes eligible for the credit under the statute. The decision to
resume the ruling process should increase certalllty for taxpayers seeking private letter
rulings from the IRS on ljuestions related to the application of section 29,

A copy of the Re\, Proc, IS attached,

PO-2 J3

For press re!m.\l',\. ,\pl'{'chn. puhlic schedules and official hiot.,rraphies. call our 24-hour fax line at (202) 622-2040

Part III
Administrative, ProceduraL and Miscellaneous

26 CFR 601.201 Rulings and determination letters
(Also Part L § 29)

Rev Proc 2001-30

SECTIO:\ 1 PL"RPOSE
This revenue procedure mforms the public of the Internal Revenue Ser.llce's decIsion to
issue private letter rulings regarding whether a solid fuel produced from coal is a qualified fuel
under

29( C)( 1)( C) of the Internal Revenue Code under the circumstances described in section :3

of this re\'enue procedure
SECTIO~

2 BACKGROL~l)

Section 2 01 of Rev Proc 2001-3. 200 I-I t R Bill, provides that whenever appropriate
in the mterest of sound tax admintstratlon. it

the policy of the Serv'ice to answer mquines of

individuals and organizations regarding their status for tax purposes and the tax effects of their
acts or transactions. pnor to the filing of returns or reports that are required by the revenue laws
There are. ho\,,;ever. certain areas m \vhlch. because of the inherently factual nature of the

problems involved, or for other reasons. the Service will not issue rulings or determinations
letters
Section . + of Rev Proc 2001-3 sets forth those areas in which rulings or determination
letters will not ordinarily be Issued ":\ot ordInarily" means that unique and compelling reasons
must be demonstrated to Justify the Issuance of a ruling or determination letter Section 2 0 1 of
Re\' 'Proc 2001-3
Section . + 02( 1) of Rev Proc 2001-3 provides that the Service will not ordinarily issue
rulings or determination letters regarding am matter in which the determination requested is
primanly one of fact. for example, market \'alue of property, or whether an interest in a
corporation is to be treated as stock or indebtedness
Section

of Re\ Proc 2001-3 sets forth those areas under extensive studv in \vhich

rulings or determInatIOn letters wIll not be Issued until the Service resolves the issue through
publication of a re\enue ruling. re\enue procedure, regulations, or otherwise
SectIon 5 01 of Re\' Proc :001-3 pro\ldes that the Sef\:ice will not Issue rulings or
determInatlon letters on \vhether a solId fuel other than coke or a fuel produced from waste coal
IS

a qualltied fuel under

:9(c)( 1He) \\aste coal for thiS purpose is limIted to waste coal fines

from normal mInIng and crushing operations and does not include fines produced (for example.
bv crushing run-of-mine coal) for the purpose of claiming the credit
Section 5 01 ofRe\ Proc :001-3 supersedes Re\' Proc 2000-..+7, 2000-46l.RB ..+82
Rev Proc 2000--f:- \vas published because concern had been raised that taxpayers were claiming
the

29 credIt for processIng coal In \vays that mav not have been intended by the Congress

Rev Proc 2000--.l7 requested comments concernIng the standard to be applied in determining

..,

-J-

whether fuel produced from coal is a solid synthetic fuel. The Service received extensive
comments
Section 29 provides a credit against income tax for the production and sale of "qualified
fuels" produced from a nonconventional source Section 29(c)(l)(C) provides that qualified fuels
include liquid, gaseous, or solid synthetIc fuels produced from coal (including lignIte)
Rev Rul 8b-IOO, 198b-2 C B 3, adopts for purposes of § '29(c)( I )(C) the definItion of
synthetic fuel in § I 4S-9(c)(5) of the Income Tax Regulations. Section 1 48-9(c)(5)(iil provides
that, to be "synthetic," a fuel must differ significantly in chemical composition, as opposed to
phYSIcal composition, from the substance used to produce it Rev. RuI 86-100 describes
favorably processes such as gaslticatlon, lIquefactIon, and production of solvent retined coal that
result in substantIal chemIcal changes to the entIre coal feedstock rather than changes that affect
only the surface of the coal
SectIon 29( f) provIdes that § 29 applies to qualified fuels that are produced In a facility
placed In ser,lce after December 31, 1979, and before January I, 1993, and that are sold before
January L :003 Section 29(g)( I HAl proVides that a facility for producing qualified fuels
described In § 29( c)( I )( C) is treated for thIS purpose as being placed in service before January I,
1993, if the facility is placed in servIce before July L 1998, pursuant to a binding \vritten contract
10

etTect before January I, 1997 For a facilIty that meets this condition and is origInally placed

serYlce after December 3 I, 1992, § 29( g)( 1 )( B) provides that the § 29 credit applies to

qualified fuels that are sold before Januarv I, 2008
Property is "placed

service"

the taxable year the property is placed in a condition or

state of readiness and availability for a specifically aSsigned function. See, for example,

-4-

§ 1 167(a)-ll(e)( 1)(i) Thus, the § 29 credit IS not allowed for fuel produced in a facility that was
origmally placed in service for a function other than producing qualified fuel under § 29(c)( 1)(e)
and was not converted into a facility for producmg qualified fuel until after June 30, 1998
The Service Interprets § 29(0 and (g) to allov, the § 29 credit for qualified fuel produced
in a facility after its modification only if the modification was placed in service before July I,
1998, or does not significantly increase the production capacity of the facility or significantly;
extend the life of the facility For example, a facility (mcluding one of multiple facilities located
at the same site) may be relocated without affectmg the availability of the credit if all essential
components of the facility are retamed and the production capacity of the relocated facility IS not
significantly increased at the nev. location If ho\\e\'er, the essential components of a single
facility are combmed after June 30, 1998, with other components that were not part of the facility
on June 30, 1998, to create multiple facilltles or slgnlticantly mcrease production capacity, the
credit will not be allowed for fuel produced at an\' of those facilities
A.fter re\'le\,. mg the comments recel\ed m response to Rev Proc 2000-47 and
reconSidering ItS interpretation of § 29( c)( I )/ C), the Service has decided that the significant
chemical change standard of Rev Rul 8b-IOO IS the correct standard, The Service has also
decided to resume the Issuance of rultngs under

:')( c)( 1)( C), but only in the circumstances

descnbeu below
The Service IS willinl!..... to issue rulms.!s
-- that do not .....~o bevond the processes approved m
~

the rulmgs Issued prIor to 2000 One procedure common to all of those processes (other than
processes for the productIon of coke and SimIlar products) IS the use of elevated temperature and
pressure to produce briquenes, pellets, or an extruded fuel product The Service is also willing to

-5rule with respect to a process that om Its te1lS procedure if the process is otherwise cons Istent with
a process approved in a pre-2000 ruling and the omission of the procedure will not significantly
increase the production output of the facility Accordingly, the Service will issue rulings
regarding whether a solid fuel (other than coke) IS a qualified fuel under § 29( c)( 1)( C) under the
circumstances described In section .3 of thiS revenue procedure
SECTIO~

3 PROCEDLRE

The Sef\'ice will issue rulings that a solid fuel (other than coke) produced from coal is a
qualified fuel under

29( c)( 1)(C) if the conditions set forth below are satisfied and evidence is

presented that all. or substantially all. of the coal used as feedstock undergoes a significant
chemical change The conditions are that
I

The feedstock coal consists entirely of coal fines or crushed coal compnsed of

panicles no larger than \,8 mch,
:

The feedstock coal is thoroughlv mixed in a mixer (a) with stvrene or other

- -

monomers follOWing an acid bath, (b) With qUinoline (C}l,N) or other organic resin and left to
cure for se\'eral days,

(C)

\vnh ultra heavy hvdrocarbons, or (d) wlth,an alummum and/or

magnesium silicate binder follOWing heatmg to a mmlmum temperature of 500 degrees
Fahrenheit. and
.3 The treated feedstock is subjected to elevated temperature and pressure that results in

briquenes, pellets, or an extruded fuel product. or the ta.xpayer represents that the omission of
this procedure Will not Significantly Increase the production output of the facility o\'er the
remainder of the period dunng \vhlch the

2q credit IS allowable

-6-

SECTION 4 EFFECTIY "E DATE
This revenue procedure applies to all ruling requests. including any pending in the
national ot1ice and any submined after the date of publication of this revenue procedure
SECTION 5. EFFECT ON OTHER DOCL'\lE;\TS
Section 5 01 of Re\ Proc 2001-3 IS re\·oked
DRAFT[\;G f\FOR.\IA TION
The principal author of thiS re\·enue procedure is David McDonnell of the Office of
:\ssoclate Chief Counsel (Passthroughs and Special Industries) Other personnel from the [RS
and Treasury pamcipated in its de\·elopment

For further information regarding this revenue

procedure contact \\r \lcDonnell on (202) D22-31:0 (not a toll-free call)

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

For Immediate Release
April 20, 2001

Contact: Karen Mocker, CDFI Fund
(202) 622-8401
Tony Fratto, Treasury
(202) 622-2960

GUIDANCE ISSUED
ON
NEW MARKETS TAX CREDIT PROGRAM

Washington, DC - The Community Development Financial Institutions (CDFI) Fund, U.S.
Department of the Treasury, issued guidance today on the New Markets Tax Credit (NMTC)
Program. At the same time, the Internal Revenue Service (IRS) issued an Advance Notice of
Proposed Rulemaking (ANPRM) on tax issues related to the program. The guidance and the
ANPRM will initially be posted on the Treasury Department's website at
http://www.treas.gov/cdfi/programs/newmarketslindex.html and will be published in the Federal
Register the week of April 23, 2001.
The guidance includes information on how entities will apply to receive allocations of
NMTCs, the competitive procedure through which allocations will be made and actions that will
be taken to ensure that proper allocations are made to appropriate entities. The guidance seeks
comment from the public on certain matters.
The ANPRM requests public comments about various tax issues that the IRS may
address in regulations relating to the New Markets Tax Credit. In order to facilitate the
regulatory process, the ANPRM requests comments within 60 days of its publication in the
Federal Register, although comments after that date are welcome.
On December 21, 2000, the Community Renewal Tax Relief Act of 2000 was signed into
law as a result of a bipartisan initiative. This landmark legislation includes the NMTC, which
will spur the investment of $15 billion in new private capital into a range of privately managed
investment vehicles that make loans and equity investments in low-income communities.
-30PO-214

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·U S Government Printing Ot"ce 1998 - 619-559

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
April 23, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
91-Day Bill
April 26, 2001
July 26, 2001
912795HD6

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.655%

Investment Rate 1/:

3.741%

Price:

99.076

All noncompetitive and successful competitive bidders were awarded
;ecurities at the high rate.
Tenders at the high discount rate were
,llotted 84%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)

Competitive
Noncompetitive
PIMA (noncompetitive)

18,822,975
1,335,596
479,000

5,274,618

Federal Reserve
$

25,912,189

7,185,715
1,335,596
479,000
9,000,311 2/

20,637,571

SUBTOTAL

TOTAL

Accepted

Tendered

Tender Type

14,274,929

Median rate
3.615%: 50% of the amount of accepted competitive tenders
tendered at or below that rate.
Low rate
3.550%:
5% of the amount
E accepted competitive tenders was tendered at or below that rate.

Ld-to-Cover Ratio = 20,637,571 / 9,000,311 = 2.29
/ Equivalent coupon-issue yield.
I Awards
to TREASURY DIRECT = $1,073,683,000

http://www.publicdebttreas.gov

0-215

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
April 23, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:

1B2-Day Bill
Ap.ril 26, 2001
October 25, 2001
912795HT1

High Rate:

3.665%

Investment Rate 1/:

3.786%

Price:

98.147

All noncompetitive and successful competitive bidders were awarded
securities at the high rate. Tenders at the high discount rate were
~llotted
55%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type

Tendered

Competitive
Noncompetitive
FIMA (noncompetitive)

19,604,415
1,441,314
353,000

Accepted
$

8,002,229 2/

21,398,729

SUBTOTAL

4,249,729

Federal Reserve
TOTAL

25,648,458

6,207,915
1,441,314
353,000

12,251,958

Median rate
3.640%: 50% of the amount of accepted competitive tenders
ras tendered at or below that rate.
Low rate
3.630%:
5% of the amount
·f accepted competitive tenders was tendered at or below that rate.
id-to-Cover Ratio

21,398,729 /

B,002,229

2.67

/ Equivalent coupon-issue yield.
/ Awards to TREASURY DIRECT = $1,205,219,000

http://www.publicdebt.treas.gov

)-216

DEPARTMENT

THE

TREASURY

~17R~Qa.. . . . . . . . . . . ..

..............

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 24, 2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

BROAD RANGE OF TAXPAYERS WILL BENEFIT FROM
THE PRESIDENT'S TAX RELIEF PLAN
Today the Treasury Department released new data that show how many Americans will benefit
from the President's tax relief plan when it is fully phased in.
Treasury Secretary Paul O'Neill stated, "These numbers show that President Bush's tax relief
plan will let tens of millions of working Americans and their families keep more of their hardearned income."
When fully phased-in:
•
•
•
•
•
•

103 million individuals and families will receive an average tax cut of $1,117.
74 million women will receive an average tax cut of$I,304.
36 million families with children will keep on average an extra $1,617 for their needs, such
as their children's education.
8 million hard-working single moms will be able to keep on average $712 more oftheir
paychecks for their family's most pressing needs.
13.4 million seniors will be able to keep on average $892 more of their income.
3.6 million individuals and families will have their tax liability completely eliminated by the
President's tax relief plan.

"The numbers speak for themselves and they speak with a single voice: The President's plan
gives tax relief to grandparents, grandchildren, and millions of Americans in between," stated
O'Neill.
Source: Office of Tax Analysis. Projections based on 2002 income and population levels. The analysis is based on
the following provisions: creating a new 10 percent individual income tax bracket, reducing individual
income tax rates, reducing the marriage penalty, providing charitable deductions for non-itemizers, and
increasing the child tax credit.
-30-

PO-217

Forpress releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·u.s.

Government Printing OH,ce: 1998· 619·559

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . .. .

. . . . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 24, 2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

FARMERS REAP BENEFITS FROM
THE PRESIDENT'S TAX RELIEF PLAN
Today the Treasury released new data showing how the President's $1.6 trillion tax cut over ten
years would yield a bumper crop of tax relief for America's fanns-those taxpayers reporting
either fann income or loss.
DIRECT BENEFITS TO FARMERS AND THEIR FAMILIES

•

When fully phased in (in 2006), 1.8 million fanners and their families would benefit from
President Bush's tax cut package.

•

Fanners and their families would receive $33.5 billion in tax relief from the President's rate
cuts over ten years.

•

Fanners and their families also would receive additional tax relief from repeal of the Death
tax over ten years.

•

President Bush's death tax elimination proposal would deliver $272 billion in tax relief
over the next ten years.

•

Individuals with fann assets or liabilities account for 16.3 percent of all death tax
liability.

Fann families also would benefit from the President's new FFARRM savings accounts.
•

These FF ARRM accounts would help families handle the fluctuations of earnings that are
a fact of fann life.

•

Fann families would be able to deposit tax-free up to 20 percent of their fann incomes
annually.

•

Then within five years they could withdraw the money as taxable income and use it to
meet the needs of their families or their fanns.

•

FF ARRM accounts would provide an additional $1 billion in tax relief over ten years.
PO-21B

For press releases, ~p.eches1-public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

FURTHER BENEFITS TO FARMERS AND THEIR FAMILIES
•

Tax relief will mean that farm families have more to invest in their farms, thus earning
greater returns from their work and investment.

•

Death tax repeal will mean farm families will save every year by not having to pay for estate
planning and life insurance premiums to protect the family farm.

•

Of course, farmers, like other American income taxpayers, stand to benefit from the other
elements of President Bush's tax relief proposal - such as marriage penalty relief, education
savings incentives, and others.

Data Source: Office of Tax Analysis

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

FOR IMMEDIATE RELEASE
Apri124,2001

Contact: Public Affairs
(202) 622-2960

TREASURY NAMES COLOMBIAN DRUG KINGPIN TO TRAFFICKERS LIST
The Treasury Department today added the name of Victor Julio Patino Fomeque, a
Colombian drug cartel kingpin, to the list of Specially Designated Narcotics Traffickers
(SDNTs). SDNTs are subject to the economic sanctions imposed against Colombian drug
cartels.
The Treasury action blocks the assets of SDNTs found in U.S. jurisdiction and prohibits
Americans from doing business with them, thereby further exposing, isolating, and
incapacitating Colombian drug cartels and their agents. The Colombian drug kingpin named to
the SDNT list today by Treasury manages maritime drug smuggling operations out of the Pacific
port of Buenaventura, Colombia. In addition to the drug kingpin, Treasury added three
businesses and twenty-six associated individuals that it has determined are acting as fronts for
Victor Julio Patino Fomeque.
This action is part of the ongoing interagency effort ofthe Treasury, Justice and State
Departments to carry out Executive Order 12978, signed on October 21, 1995, which applies
economic sanctions against the Colombian drug cartels. With the addition of the names released
today, the assets of a total of 578 businesses and individuals are blocked under the 1995
Executive Order; and those businesses and individuals are prohibited from American financial
and business dealings. The list of SDNTs now includes ten kingpins from Colombia's drug
cartels, namely Cali cartel drug kingpins Gilberto Rodriguez Orejuela, Miguel Rodriguez
Orejuela, Jose Santacruz Londono, Helmer Herrera Buitrago, and Juan Carlos Ramirez Abadia;
North Coast cartel drug kingpin Julio Cesar Nasser David; and North Valle cartel drug kingpins
Ivan Urdinola Grajales, Julio Fabio Urdinola Grajales, and Arcangel de Jesus Henao Montoya.
The U.S. Government will continue to identify businesses owned or controlled by Colombian
drug cartels and expand the SDNT list to include additional drug traffickers and their
organizations.
The list of businesses and individuals named by Treasury today as SDNTs is attached and
available at www.treas.gov/ofac.asis the entire list of SDNTs. The list will be published in the
Federal Register at a later date.
PO-2l9

Far press releases. speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
*11

~ ~()vprnmpnt

Pnntlnn Office: 1998· 619·559

DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

Additional Specially Designated Narcotics Traffickers

Principal individual:
1. PATINO FOMEQUE, Victor Julio,
(a.k.a. PATINO FOMEQUE, Victor Hugo),
Avenida 4N No. 10N-100, Cali, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
c/o TAuRA S.A., Cali, Colombia;
c/o GALAPAGOS S.A., Cali, Colombia;
DOB 31 Jan 1959;
Cedula No. 16473543 (Colombia) (individual)

Entities:
1. INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
(a.k.a. INPESCA S.A.),
Km. 5 El Pinal, Buenaventura, Colombia;
Av. Simon Bolivar Km. 5 El Pinal, Buenaventura, Colombia;
NIT # 890302172-4 (Colombia)
2. TAURA S .A. ,
Calle 13 No. 68-06, Of. 204, Cali, Colombia;
Calle 13 No. 68-26, Of. 214, 313 & 314, Cali, Colombia;
Carrera 115 No. 16B-121, Cali, Colombia;
NIT # 800183713-1 (Colombia)
3. GALAPAGOS S .A. ,
Calle 24N No. 6AN-15, Cali, Colombia;
Carrera 115 No. 16B-121, Cali, Colombia;
NIT # 800183712-2 (Colombia)

Individuals:
1. ARMERO RIASCOS, Jose Eliecer,
Carrera 5 No. 8-00, Buenaventura, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 16471549 (Colombia) (individual)

2. BUENDIA CUELLAR, Luis Alfonso,
c/o GALAPAGOS S.A., Cali, Colombia;
Cedula No. 6044411 (Colombia) (individual)
3. CAICEDO VERGARA, Nohemy,
(a.k.a. CAICEDO VERGARA, Nohemi),
Km. 4 El Pinal, Buenaventura, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 31375185 (Colombia) (individual)
4. DELGADO GUTIERREZ, Luis Alvaro,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 16718474 (Colombia) (individual)
5. DUQUE BOTERO, Jorge Alirio,
Calle 5 No. 5A-49, Buenaventura, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 616084 (Colombia) (individual)
6. ECHEVERRY HERRERA, Hernando,
(a.k.a. ECHEVERRI HERRERA, Hernando),
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 1625525 (Colombia) (individual)
7. FOMEQUE BLANCO, Amparo,
Mz. 21 Casa 5 Barrio San Fernando, Pereira, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 31206092 (Colombia) (individual)
8. FOMEQUE CAMPO, Deicy,
(a.k.a. FOMEQUE CAMPO, Daysy),
Avenida 4N No. 10N-100, Cali, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombiai
Cedula No. 38650034 (Colombia) (individual)
9. GARAVITO, Doris Amelia,
c/o GALAPAGOS S.A., Cali, colombia;
Cedula No. 31233463 (Colombia) (individual)
10.
GARCIA PIZARRO, Gentil Velez,
c/o GALAPAGOS S.A., Cali, Colombia;
Cedula No. 6616986 (Colombia) (individual)

11.
GARCIA VARELA, Luis Fernando,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 16282923 (Colombia) (individual)
12. GILMAN FRANCO, Maria,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 22103099 (Colombia) (individual)
13. GONGORA ALARCON, Hernando,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 19298944 (Colombia) (individual)
14. GUZMAN VELASQUEZ, Luz Marcela,
c/o TAURA S.A., Cali; Colombia;
Cedula No. 43568327 (Colombia) (individual)
15. HERNANDEZ, Oscar,
Mz. 21 Casa 5 Barrio San Fernando, Pereira, Colombia;
c/o TAURA S.A., Cali, Colombia;
Cedula No. 6157940 (Colombia) (individual)
16. HERRAN SAAVEDRA, Victor Hugo,
c/o GALAPAGOS S.A., Cali, Colombia;
Cedula No. 16447166 (Colombia) (individual)
17. MORALES CASTRILLON, Victor Hugo,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 16620349 (Colombia) (individual)
18. MORENO DAZA, Ricardo Alfredo,
Carrera 38D No. 4B-57, Cali, Colombia;
c/o GALAPAGOS S.A., Cali, Colombia;
c/o TAURA S.A., Cali, Colombia;
Cedula No. 16631400 (Colombia) (individual)
19.
PATINO FOMEQUE, Sonia Daysi,
(a.k.a. PATINO FOMEQUE, Sonia Daicy),
Calle 9 Oeste No. 25-106, Cali, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 66920533 (Colombia) (individual)
20.
PATINO NARANJO, Joaquin Gustavo,
Avenida 4N No. 10N-100, Cali, Colombia;
c/o INDUSTRIA DE PESCA SOBRE EL PACIFICO S.A.,
Buenaventura, Colombia;
Cedula No. 2730245 (Colombia) (individual)

21.
PINZON CEDIEL, John Jairo,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 13542103 (Colombia) (individual)
22.
RAMIREZ ESCUDERO, Pedro Emilio,
Calle 6A No. 48-36, Cali, Colombia;
c/o GALAPAGOS S.A., Cali, Colombia;
Cedula No. 16280602 (Colombia) (individual)
23. ROMAN DOMINGUEZ, Erika,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 66955540 (Colombia) (individual)
24.
SARMIENTO MARTINEZ, Diana,
c/o TAURA S.A., Cali, Colombia;
Cedula No. 65698369 (Colombia) (individual)
25. VILLADA ZUNIGA, Elmer,
Calle 15 No. 20-10, Cali, Colombia;
c/o TAURA S.A., Cali, Colombia;
Cedula No. 14988902 (Colombia) (individual)
26.
ZAMORA RUIZ, Alexander,
c/o INPESCA S.A., Buenaventura, Colombia;
Cedula No. 16498805 (Colombia) (individual)

DEPARTMENT

THE

TREASURY

17!\Q

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622.2960

u.s. International Reserve Position

04/24/01

u.s.

The Treasury Department today released
reserve as'sets data for the week ending Ap:r:il20, 2001. As indicated in this
table,
reserve assets totaled $65,390 million as of Ap:r:il20, 2001, up from $64,809 million as of Ap:r:il1J, 2001.

u.s.

(in US millions)

I. Official U.S. Reserve Assets

AQri I 13, 2001
64,809

TOTAL
1. Foreign Currency Reserves

a. Securities
Of which, issuer headquartered in the US.
b. Total deposits with:
b,/: Other central banks and BIS
b,ii. Banks headquartered in the U.S.
b.li. Of which, banks located abroad
I

b.iii. Banks headquartered outside the U.S.

b.lii. Of which, banks located in the U.S.

;2. IMF Reserve Position

Euro
5,291

Yen
10,615

AQril 20.2001
65,390
TOTAL

Euro

15,906

5,331

Yen

TOTAL

10,757

8,944

-\,596

13,539

16,088
0

9,141

4657

0
0
0
0

13,798

0
0
0
D

13,886

13,966

10,'+32

-;0,-1-92

11,D46

1~ ,;]46

f·

Special Drawing Rights (SDRs)

~. Gold Stock

t. Other Reserve Assets

1/ Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
(SOMA), valued at current market exchange rates. Foreign currency holdings listed as securities reflect marked-to-market values, and
deposits reflect carrying values,
2J The items, "2. IMF Reserve Position" and "3, Special Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar terms at the official SDRJdo!lar exchange rate for the reporting date. The IMF data for April 13 are final. The entries in the table above
for April 20 (shown in italics) reflect any necessary adjustments, including revaluation, by the U,S. Treasury to the prior week's IMF data.
31 Gold stock Is valued monthly at $42.2221 per fine troy ounce. Values shown are as of February 28, 2001. The January 31, 2001 value
was $11,046 million.

PO-220

u.s. International Reserve Position (cont'd)
II. Predetermined Short-Term Drains on Foreign Currency Assets
April 13, 2001

1. Foreign currency loans and securities

April 20, 2001

o
o
o

o
o

2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:
2.a. Short positions
2.b. Long positions
3. Other

III, Contingent Short-Term Net Drains on Foreign Currency Assets
April 13, 2001
1. Contingent liabilities in foreign currency
1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U. s.
3.e. With banks and other financial institutions
headquartered outside the U.
. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calls
4.b.-Long positions

April 20, 2001

o
o

4.b.1. Bought calls
4.b.2. Written puts

DEPARTMENT

lREASURY

THE

TREASURY

fa) NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

EMSARGOED ONTXL 9:00 A.H.
April 25, 2001

PUBLIC CONTACT: Office of Financing
202-691-3550
HEDXA CONTACT: Office of Public Affairs
202-622-2960

ANNOONCZS DEBT atJYBAClt OPERATION

On April 26, 2001, the Treasury will buy back up to $2,000 mil~ion par
of its outstanding issues that mature between February 2019 and February 2023.
~easury reserves the right to accept less than the announced amount.
This Cleb~ buyback (redemption) opera~ion will be conducted by Treasury's

Fiscal Agent, the Federal Reserve BAnk of New YQ.k, using its Open MArket
operations system. On~y institutions that the Federa1 Reserve Bank of 5ew
York has approved to conduct Open Market transactions may submit offers on
behalf of themselves and their customers.' Offers a.t the highest accepted
price for a pa:ticular issue may be aceep~ed en a prorated basis, rounded up
to the Dext $100,000. As a result of this rounding, the Treasury may buy
back an amount slightly larger than the ODe ~ounced above.
This debt bQyback operation is governed by the terms and conditions set
forth in 31. CFR. Part 375 and this amlOWlcement.

The Qabt buyback operation regul~t1oD8 are avai~ab~e on the Bureau of
the Public Debt's website at www.publicdebt.treas.gov.
Details about the operation and each of the eligible issues are given

in the attached hi9h1ights.
000

Attachment
PO-221

For press releases, speeches, public sched"'le:s 'Ina offICial biogrlZphies,

CGIl

our 24-hour ftu line Gr (202) 622-2040

IUGHLXGB'l'S OF TUASORY DEBT BtJ'YBACX OPERATION

April 25, 2001
$2,000 million
Operation date •••••••••••••••••• April 26,2001
Operation close time •••••••••••• 11:00 a.m. eastern daylight saving time
Settlement date •••••••••••••.••• April 30, 2001
M;n;mum par offer amount •••••••• $100,000
MUltiples of par •••••••••••••••• $100,000
I'ODDat for offers ••••• Bxpressed in terms of pri.ce per $100 of par with
three decimals. The first two decimals represent
fractioDlll 32~ of a dollar. The third decimal
represents eighths of a. 32M of a dollar, and must
be a 0, 2, 4, or 6.
Delivery instructions ••••••••••• ABA HUmber 021001~08 FRB NYC/COST
I'El. CUDO'W1t to be bought back •••• 'Up to

TreasuFY issues eligible for debt bwyback operation (in millions):
PO.%' Amount
COlapon

Rate (%)
8.875
8.125
8.500
8.750
8.750
7.875
8.125
8.125
8.000
7.250
7.625
7.125

K&turity
nate
02/15/2019
08/15/2019
02/1.5/2020
05/15/2020
08/15/2020
02/15/2021
05/15/2021
08/15/2021
11/15/2021
08/15/2022
11/15/2022
02/15/2023

Ct1S:IP
Number
912810 EC 8
912810 ED 6
912810 EE 4
912810 EF 1
912810 EG 9
912810 EEl 7
912810 EJ3
912810 EK 0
912810 KL 8
912810 EM 6
912810 EN 4
912810 EP 9
Total

Par Amount

OUtstanding15,745
19,306
9,888
8,:l54
18,638
10,255
10,674
10,503
31,432
10,243
8,500
17,004
170,442

Privately
Beld*.
13,372
17,102
8,402
6,752
16,4.56
9,168
9,056
8,845
28,339
9,359
6,899
14,369
148,1.19

Par AmoUDt
Beld as
STlUPS"
5,360
1,272
1,609
4,741
8,960
813
4,424
1,303
17,954
682
4.,221
7,201
58,540

* Par AmOunts are as of April 24, 2001 •
• - Par amounts are as of April 23, 2001.
The difference between the par amount outstanding andtha paz amount
privately held is the par amount of those issues held by the Peae~al
Reserve System.

DEPARTMENT

THE

_------~17!\~Q~

TREASURY

______•

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

**NOT FOR PUBLICATION ***NOT FOR PUBLICATION
CONTACT:
April 25, 2001

Sean Miles
202-622-2960

MEDIA ADVISORY
The following is a tentative press schedule for the G-7 Finance Ministers meeting hosted by Treasury
Secretary Paul O'Neill. Times are tentative and subject to change.

Friday, April 27,2001
10:00 AM

Secretary O'Neill holds pre G-7 press briefing.
Treasury Department, Diplomatic Reception Room 3311
1500 Pennsylvania Ave. NW
Cameras may set at 9:00 AM

The room will be available for pre-set at 9:00 a.m. Media without Treasury or White House
press credentials planning to attend should contact Treasury's Office of Public Affairs at
(202) 622-2960 with the following information: name, social security number and date of
birth. This information may also be faxed to (202) 622-1999

Saturday, April 28, 2001

) _).,lJ,

11 :30 AM

Arrivals of finance ministers and central bank governors at Blair
House, 1651 Pennsylvania Avenue, NW.
Cameras may set at 11 :00 AM

12:30 PM

Finance ministers and central bank governors group photo at Blair
House.

2:30 PM

Pooled photo opportunity of finance ministers and central bank governors
afternoon working session at Blair House.

5:00 PM

Departures of finance ministers and central bank governors from Blair
House. TIME APPROXIMATE

5:30 PM

Secretary O'Neill holds post G-7 press briefing. Office of Thrift
Supervision (OTS) Amphitheater, 1700 G Street, NW
Cameras may set at 4:45 PM.
TIME APPROXIMATE

Media without TREASURY, WHITE HOUSE, STATE, DEFENSE, CONGRESSIONAL, IMF/WORLD BANK
credentials wishing to attend Secretary O'Neill's briefings at OTS should contact the Office of Public Affairs
by phone at 202-622-2960 or by fax at 202-622-1999 with the following information: name, social security
number and date of birth by 5:00 PM, Thursday, April 26 for Friday's briefing; 5:00 PM on Friday, April 27
for Satllrrlay's briefjng

For press releases, speeches, public schedules and official biographies, call our 24-haur fax line at (202) 622-2040
·U.S. Government Prlnllng Office 1998 - 619-559

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . .. .

. . . . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 25, 2001
For Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

TREASURY STATEMENT ON THE JOINT COMMITTEE ON TAXATION STUDY ON
T AX SIMPLIFICATION

Treasury Secretw)! Palll 0 'Neill welcomed the release of the Joint Committee on Taxation Stlldy
on Tax Simplification:
I welcome the Joint Committee on Taxation's study of complexity in the tax code. The study
points out the seriousness of complexity and the corrosive impact it has on the tax system. It
makes clear that there is a desperate need for reform. The code today encompasses 9,500 pages
of very small print. While every word in the code has some justification, in its entirety it is an
abomination. It imposes $150 billion or more of annual cost on our society with no value
creation. Taxpayers are forced to spend too much time and money trying to comply with the tax
laws. We are worthy of better. Once the President's tax cut is passed, we should tum next to
more fundamental reforms to greatly simplify and minimize the effect the tax system has on both
individual taxpayers and businesses.

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PO-223

For press releases) speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·U S. Government Pnnltnq Office: 1998 - 619·559

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

IMMEDIATE RELEASE
)ril 25, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 2-YEAR NOTES
lterest Rate:
~ries:

JSIP No:

Issue Date:
Dated Date:
Maturity Date:

4%
P-2003
9128276W7
High Yield:

Price:

4.124%

April 30, 2001
Apnil 30, 2001
April 30, 2003

99.764

All noncompetitive and successful competitive bidders were awarded
at the high yield. Tenders at the high yield were
.lotted 50%. All tenders at lower yields were accepted in full.
~curities

AMOUNTS TENDERED AND ACCEPTED (in thousands)

Competitive
Noncompetitive

25,824,110
1,043,091

3,333,333

Federal Reserve
$

30,200,534

8,959,100
1,043,091
10,002,191 1/

26,867,201

SUBTOTAL

-TOTAL

Accepted

Tendered

Tender Type

13,335,524

Median yield
4.100%:
50% of the amount of accepted competitive tenders
.s tendered at or below that rate.
Low yield
4.050%:
5% of the amount
accepted competitive tenders was tendered at or below that rate.
D-TO-COVER RATIO = 26,867,201 / 10,002,191 = 2.69
, FlMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
Awards to TREASURY DIRECT = $813,276,000

http://www.publicdebt.treas.gov

PO-224

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

EMBARGOED UNTIL 11 :30 A.M EDT
April 26, 2001

Contact: Tony Fratto
(202) 622-2960

STATEMENT OF JOHN B. TAYLOR NOMINEE FOR
UNDER SECRETARY OF THE TREASURY FOR INTERNATIONAL AFFAIRS
TO THE COMMITTEE ON FINANCE
UNITED STATES SENATE
Chairman Grassley, Ranking Member Baucus, and members of the Committee on
Finance, thank you for the opportunity to appear before your committee today. I am honored
that President Bush has nominated me to serve as Under Secretary of Treasury for International
Affairs and, if confirmed, to have the opportunity to work with Secretary O'Neill, the Treasury
staff, and others in the new Administration.
If confirmed, I look forward to working closely with this committee, the Senate and your
colleagues in the Congress to advance the President's ambitious economic agenda to further the
well-being of the American people.
I have great enthusiasm for public service. If I am confirmed, this would be my fourth
stint working in the Federal government. I am particularly interested in using my skills and
experience to contribute positively to the formulation of international economic and financial
policy for the United States. I majored in economics at Princeton University, and obtained a
Ph.D. in economics from Stanford University. I have taught economics at Columbia, Yale,
Princeton, and Stanford Universities. I have served as a Senior Economist and then as a Member
ofthe President's Council of Economic Advisers. Some of my most vivid memories as a
Member of the CEA were my international responsibilities, which included trade negotiations
and working on the early days of transition in Poland and other eastern and central European
economies. In recent years I have served as an adviser to the Federal Reserve System and to
many central banks around the world. I have focussed much of my research on developing tools
that central bankers and financial market analysts can use to analyze policy and developments in
financial markets.
The role of the Treasury Under Secretary for International Affairs is to advise the
Secretary and the President on U.S. participation in the international financial system, which
includes such subjects as macroeconomic policy, exchange rate policy, trade and investment, and
our participation in the International Monetary Fund and the World Bank. The Under Secretary
also represents the United States in various bilateral and multilateral fora, and serves as the G- 7
finance deputy for the United States in the G-7 process.
PO-22S

Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·u.s. Government Printing Oflice

1998· 619·559

Should I be confinued, I am committed to implementing the priorities of President Bush
and Secretary O'Neill. The goals of higher productivity growth and rising living standards for
people in the United States will guide my work. These same goals will guide my approach to the
policy challenges in the emerging market and poor developing countries, and elsewhere in the
world.
Mr. Chainuan, I am grateful for this opportunity. I would be pleased to answer any
questions you and the other members of the Committee may have.

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

For Immediate Release
April 26, 2001

Contact: Public Affairs
(202) 622-2960

TREASURY SECRETARY PAUL H. O'NEILL
TESTIMONY BEFORE THE
SENATE APPROPRIATIONS COMMITTEE
SUBCOMMITTEE ON TREASURY AND GENERAL GOVERNMENT

Chairman Campbell, Senator Dorgan, and Members ofthis Subcommittee, I appreciate this
opportunity to discuss Treasury's Fiscal Year 2002 budget request. With me today is Jim Flyzik, the
Acting Assistant Secretary for Management.
This is my first time before this Subcommittee. I look forward to continuing the tradition of
cooperation between the Treasury and Members of this Subcommittee and to working with Senators
DeWine and Landrieu, the new Members ofthe Subcommittee.
The Treasury Department's FY 2002 budget supports the Administration's major goals:
providing tax relief, moderating recent rapid growth in spending, while funding national priorities,
paying down the debt, and protecting Social Security surpluses. Our budget request for FY 2002 totals
$14.631 billion and balances fiscal accountability with the need for the resources required to maintain
Treasury's operations and implement the President's priorities.
We have provided the Committee with a detailed breakdown of Treasury's entire FY 2002
budget request. Let me highlight three important areas of focus.

First, improving service to taxpayers and ensuring compliance with the tax laws.

Second, continuing our efforts to fight drugs and crime.

And third, improving management and performance.

I will address each of these items in tum.
First, Improving Service to Taxpayers and Ensuring Compliance with the Tax Laws
PO-226
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--------.~----------------------------------------------------------------------

In its mission statement, the IRS has pledged to focus on two core priorities: "Provide America's
taxpayers top quality service by helping them understand and meet their tax responsibilities, and apply
the tax law with integrity and fairness to all."

Like President Bush, I believe strongly that the IRS should enforce the tax code fairly and evenly
with the least imposition on the taxpayer. And consistent with that goal, the President has requested
adequate resources to fund necessary IRS improvements. This budget represents a 6.7 percent increase
over the 2001 budget, and recognizes the investments needed to modernize the IRS.
Commissioner Rossotti and the IRS have made progress implementing the 1998 reforms
mandated by Congress, and the IRS has a plan to improve service and enforcement, while protecting
taxpayer rights. But clearly there is mUCh more to accomplish.
The Administration's budget request includes close to $400 million in investments to modernize
the IRS' outdated computer systems. This multi-year project will help provide the IRS with better tools
to improve both customer service to America's taxpayers and compliance programs designed to
administer the tax code in a fair manner. The Committee has shown its support for this program in past
years by making available needed funds, and we ask you to continue to support this critical program.
The President's budget also includes follow-on funding for the STABLE initiative to complete
the hiring of almost 4,000 staff to address these same issues. This investment is important for the
integrity of the tax system, which depends heavily on maintaining voluntary compliance, and to provide
the service the American taxpayers deserve.
The amount in the President's budget will allow the IRS to provide America's taxpayers better
quality service and help to enforce the tax laws with integrity and fairness.

Second, Continuing Our Efforts to Fight Drugs and Crime
Treasury's law enforcement bureaus perform critical roles in implementing the Administration's
anti-drug and anti-crime policies. Treasury's budget request continues to support our responsibilities in
law enforcement and oversight, including efforts: (1) to reduce the smuggling and trafficking of drugs
while facilitating lawful trade; (2) to deter firearms violence; (3) to combat financial crimes and money
laundering; (4) to protect our nation's leaders; and (5) to provide quality law enforcement training.
Although the range of involvement in law enforcement issues across the Department is broad, I want to
highlight some specific examples of Treasury efforts that support the President's priorities of combating
crime and drug abuse and that emphasize improved public safety and enhanced security for our citizens.
In recognition of the President's promise to increase spending to implement the Western
Hemisphere Drug Elimination Act, the Customs Service, in coordination with the United States Coast
Guard, requests $35 million for acquisition of selected air and water craft and surveillance and safety
equipment to improve interdiction efforts against illegal drugs.

The budget recognizes the need for Customs to modernize its automated systems. Continued
rapid growth in trade transactions has magnified both the urgency of proceeding with the overall
modernization effort and the critical need to maintain viability of the existing Automated Commercial
System, which, until recently, had been subject to an increasing number of system outages.
Therefore, the budget seeks (1) additional investments in the Customs automation modernization
program to facilitate and manage its trade operations ($130 million) through the Automated Commercial
Environment and to provide for a government-wide trade data interface through the International Trade
Data System ($5.4 million); and (2) sufficient funding to maintain the existing Automated Commercial
System while the modernization effort is underway.
This budget provides for the Bureau of Alcohol, Tobacco and Firearms to continue its ongoing
efforts in the following programs: the Integrated Violence Reduction Strategy, the Youth Crime Gun
Interdiction Initiative, nationwide crime gun tracing, and the National Integrated Ballistics Information
Network.
Enforcement of money laundering laws also contributes to stemming the flow of drugs, weapons
and other contraband. This budget request maintains support for the Financial Crimes Enforcement
Network to strengthen anti-money laundering efforts and enforce regulatory compliance of the Money
Services Business industry, as required under the Money Laundering Suppression Act.
The threat of global terrorism, whether conventional or cyber, has intensified the demands on
Treasury's enforcement bureaus to formulate innovative protective strategies that seek to integrate cyber
security with traditional physical security. The budget request maintains support for the Secret Service
to continue to address their complex workload and multiple mission requirements. This includes
protecting our nation's leaders and our financial payment infrastructures, protecting the integrity of our
currency in light of global dollarization, and safeguarding the public against terrorist acts, both
conventional and cyber in nature.
Ensuring the physical protection of our nation's leaders and visiting world leaders in an
enviLonment of increased threats to political leaders remains one of Treasury's top priorities. We are
requesting funding for pay reform for the U.S. Secret Service Uniformed Division (authorized in
December 2000) to provide adequate incentive to attract highly qualified recruits and retain skilled and
seasoned personnel.
The Department will ensure that specialized funding sources to support unique programmatic
requirements are spent wisely. The Department will continue the practice of supplementing selected
Treasury law enforcement bureaus' non-recurring operations and investments through the Treasury
Forfeiture Fund. Another fund, the Counterterrorism Fund, supports emergency efforts across the
Department. Treasury will rely on this fund to assist in covering of costs associated with, among other
priorities, Treasury's role in the upcoming Salt Lake City Winter Olympics.
Third, Improving Management and Performance

This budget request also provides resources to sustain the programmatic oversight and technical
support provided by Treasury Departmental Offices. This oversight and support is essential to our
overall leadership role in law enforcement, tax administration, international and domestic economic and
tax policy, and financial management. The request includes funding required to sustain previously
approved staffing levels, with no increase in staffing levels being proposed in this request.
Throughout the Department, I am taking a keen interest in performance and the budget, viewing
them as integral to our efforts to establish goals and measure results. Part of this process will require us
to improve our performance measures to make them more useful in and relevant to the decision-making
process, as well as the improving the timeliness and accuracy of the information systems that capture
and report performance data. This is an opportunity to fundamentally review what we do and why we
do it. Therefore, the FY 2001 and FY 2002 Performance Plans presented in the budget may be revised
pending completion of this review. Treasury will notify Congress of any such revisions in a timely
manner.
Good stewardship of taxpayer resources is a responsibility I take seriously. We must provide the
taxpayers with real value for the hard-earned tax dollars they entrust to the Treasury.
Treasury has a rich reputation for leadership and quality and I want to be a part of continuing that
tradition. My notion of leadership centers on excellence.
I am thoroughly convinced that if your organization is not striving to be the best in the world at
everything you do, then you are unlikely to be truly excellent as an organization. Let me take this down
from the lofty to the concrete. In the organization that I left in December, it took us 2-112 days to close
our financial books at more than 300 locations in 36 countries. It takes the Federal Government five
months to close our books; and then the auditors give us a qualified opinion. This is not the stuff of
excellence.
Let me hasten to add, this is not the fault of the workforce. They can deliver what the leadership
asks for. I proved in my previous work life that it is possible to build an organization that is known for
excellence, based on a foundation of dignity and respect for every individual. Caring about the health
and safety of the 150,000 people in Treasury who depend on me for leadership is important, and it will
continue to be important as I lead a Department with such a rich heritage
Conclusion.

In summary, Mr. Chairman, I believe that Treasury's $14.6 billion request for Fiscal 2002 will
enable us to continue the important initiatives underway throughout the Department, as well as advance
those key priorities set out by the President. I ask for your support of our FY 2002 budget request so
that the Treasury Department can fulfill its wide range ofresponsibilities in serving the American
people.
Thank you very much.

DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

April 26, 2001
F or Immediate Release

Contact: Tara Bradshaw
(202) 622-2960

TREASURY, IRS RELEASE 2001 PRIORITY GUIDANCE PLAN
The Treasury Department and the Internal Revenue Service today released the 2001 Priorities for
Tax Regulations and Other Administrative Guidance. This is an ambitious plan that reflects not
only the priorities of the Treasury Department, but also the combined input of taxpayers,
practitioners and industry groups.

Highlights of the 2001 Priority Guidance Plan:
•

Industry Issue Resolution-a new pilot program designed to resolve frequently disputed tax
Issues.

•

The plan year has been changed from a calendar year to a year ending June 30. This change
will end the annual flood of guidance at the end of the calendar year.

•

The plan contains 299 guidance projects.

Attached is a joint statement from Mark Weinberger, Assistant Secretary (Tax Policy) at The
Treasury Department, and Charles O. Rossotti Commissioner of the Internal Revenue Service,
on the 2001 Priority Guidance Plan.
The 2001 Priority Guidance Plan will be available on the website at www.treas.gov.

PO-227

-30-

For press relea5~, spoeclw$.., puhlic M:heduies and official biographies, call our 24-hou1J" fa::r. line ail (202) 622-2()4{)

DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

2001 PRIORITIES FOR
TAX REGULATIONS AND OTHER ADMINISTRATIVE GUIDANCE

JOINT STATEMENT BY:

Mark A. Weinberger
Assistant Secretary (Tax Policy)
U.S. Department of the Treasury

Charles O. Rossotti
Commissioner
Internal Revenue Service

We are pleased to announce the release of the 2001 Priority Guidance Plan.
This plan reflects our continuing commitment to serve the public through the published
guidance process.
This year's plan reflects two important new developments. First, as part of our
overall commitment to provide timely guidance that resolves issues and reduces
taxpayer burden, this year's plan includes 7 items under a new pilot program, Industry
Issue Resolution. These items are described in a separate IRS News Release (IR2001-48). Industry Issue Resolution is another step in our continuing efforts to work with
taxpayers on a cooperative basis to resolve frequently disputed tax issues.
Second, in response to requests that we alleviate the deluge of guidance that
occurs at the end of the calendar year, and in order to coordinate better with the other
priorities of the Internal Revenue Service and Treasury's Office of Tax Policy, the plan
year has been changed from a calendar year to a year ending on June 30. Accordingly,
this plan year will end on June 30, 2002.
The development of the 2001 Priority Guidance Plan was a cooperative effort. In
Notice 2000-63, we solicited suggestions from all interested parties, including taxpayers,
tax practitioners and industry groups. We believe that a cornerstone of the effort to
provide appropriate and meaningful guidance is direct and continuous communication
between the government and taxpayers. Proposals for guidance were reviewed by
members of the Published Guidance Advisory Committee (PGAC), which includes senior
officials from the Internal Revenue Service and Treasury's Office of Tax Policy. We
believe this process results in a more comprehensive plan that is more responsive to
taxpayer needs.

-2-

The 2001 Priority Guidance Plan is quite ambitious. It contains 299 guidance
projects, 56 more projects than the 2000 Plan and 66 more projects than the 1999 Plan.
This larger plan is consistent with our desire to issue more guidance more quickly.
The plan should not be viewed as an exclusive list of guidance that may be
published in this plan year or of matters that may ultimately result in the publication of
guidance. As in previous years, other areas currently under study ultimately may result
in published guidance. Moreover, the Internal Revenue Service and Treasury's Office of
Tax Policy will respond to developments that may arise throughout the plan year.
In addition to the items on this year's plan, Appendix A lists certain projects to
which substantial resources will be committed in this plan year but which we generally
expect to publish in the succeeding plan year. Appendix B lists the more routine
guidance that is published each year. In addition, before publication of this plan, we
have completed certain items, which we have noted.
The published guidance process can be fully successful only if we have the
benefit of the insight and experience of the taxpayers and practitioners who must apply
the rules. Consequently, we invite the public to provide us with their comments and
suggestions as we write tax guidance.
Additional copies of the 2001 Priority Guidance Plan can be obtained from the
IRS homepage on the Internet (www.irs.gov) under the Tax Professional's Corner,
Administrative Information & Resources, 2001 Priority Guidance Plan, or by calling
Treasury's Office of Public Affairs at (202) 622-2960.
April 26, 2001

OFFICE OF TAX POLICY
AND
INTERNAL REVENUE SERVICE
2001 PRIORITY GUIDANCE PLAN
Consolidated Returns

Conforming amendments to section 446 regulations to reflect changes in the
consolidated return regulations.

Final regulations regarding authorization to act for the consolidated group.

Revenue Procedure regarding designation by common parent of a new agent for
the consolidated group.

Final regulations on tentative carryback adjustments.

Guidance under section 1502 regarding transactions involving obligations of
consolidated group members.

Guidance regarding stock basis adjustments.

Guidance regarding continuation of a consolidated group in certain transactions.

Amend section 1.1502-34 to reflect legislative change.

Clarification of section 1.1502-80.

10.

Revise Rev. Proc. 91-71 regarding reconsolidation within five years.

Corporations and Their Shareholders

Final regulations under sections 301 and 357 regarding corporate distributions.

Guidance regarding redemptions of corporate stock.

Guidance regarding conversions of C corporations to RIC or REIT status.

Guidance regarding taxable asset acquisitions and dispositions of insurance
companies.

Guidance regarding the active trade or business requirement of section 355(b).

Reconsideration of Rev. Rul. 73-236 (regarding application of section 355(b) to
REITs).

Guidance under section 355(e).

-2-

Guidance regarding employee stock options and restricted stock in section 355
transactions.

Update Rev. Proc. 96-30 regarding requests for rulings under section 355.

10.

Guidance under sections 357 and 358 regarding the assumption of liabilities in
certain transfers of property.

11.

Guidance under section 368 regarding mergers of a corporation with a
disregarded entity.

12.

Guidance under section 368 regarding mergers with or into a foreign corporation.

13.

Guidance regarding forward subsidiary mergers under section 368.

14.

Guidance regarding reverse subsidiary mergers under section 368.

15.

Guidance regarding multi-step acquisitions under section 368.

16.

Guidance regarding built-in items under section 382.

17.

Guidance regarding treatment by a corporation of financial instruments based on
the value of that corporation's stock.

18.

Guidance under section 1374 regarding timber transactions.

Employee Benefits
A. Retirement Benefits

Final regulations relating to plan loans under section 72(p).

Final regulations relating to new comparability plan designs.

Guidance relating to the application of nondiscrimination and coverage rules to
church retirement plans.

Final regulations under section 401 (a)(9) on required minimum distributions.

Guidance on reporting of required minimum distributions.

Guidance on the application of section 401 (a)(13) to certain plan loan
transactions.

Guidance relating to section 401 (a)(17).

Guidance relating to cash or deferred arrangements under section 401 (k) and
relating to section 401 (m).

-3 -

Guidance relating to sections 401 (k) and 401 (m) in mergers and acquisitions.

10.

Guidance regarding the interaction between sections 404 and 461.

11.

Guidance with respect to the calculation of net income attributable to returned or
recharacterized IRA contributions.

12.

Guidance relating to the application of section 411 (a).

13.

Guidance regarding issues under section 411 (b).

14.

Guidance relating to cash balance pension plans.

15.

Final regulations under section 411 (c).

16.

Guidance relating to the application of section 411 (d)(6).

17.

Guidance on disclosure to participants regarding their distributions from pension
plans.

18.

Guidance relating to pension distributions and retirement age.

19.

Guidance with respect to mortality tables for defined benefit pension plans.

20.

Guidance relating to funding requirements under section 412.

21.

Guidance on the use of aggregate entry age normal funding method under
section 412.

22.

Guidance for multiemployer plans relating to refund of mistaken contribution and
withdrawal liability payments.

23.

Guidance on exclusive benefit issues relating to qualified plans.

24.

Regulations relating to the definition of employer under section 414.

25.

Guidance relating to the definition of highly compensated employee.

26.

Notice updating Rev. Proc. 2000-20 as it relates to plan provisions implementing
sections 415 and 417.

27.

Guidance updating the definition of compensation to reflect section 132(f) salary
reduction.

-4-

28.

Final regulations relating to the application of the retroactive annuity starting date
provisions under section 417(a)(7).

29.

Final regulations implementing section 420(c)(3)(E).

30.

Proposed regulations relating to section 457(b) plans.

31.

Guidance on determining excise taxes applicable to certain multi-year prohibited
transactions.

32.

Guidance relating to application of section 4980 to certain transactions involving
payment for surplus pension assets.

33.

Final regulations relating to use of new technologies in delivering notice to
interested parties.

34.

Guidance relating to coordination with the Department of Labor delinquent filer
program for Form 5500 annual reports.

35.

Notice on the determination letter process.

36.

Revenue Procedure clarifying Rev. Proc. 2000-20 as it relates to the GUST
amendment process.

37.

Guidance on the GUST remedial amendment period for employers that use M&P
or volume submitter plans. (Completed. See Announcement 2001-12.)

38.

Guidance with respect to sections 401 (a)(9) and 408, in connection with the
determination letter program.

39.

Guidance providing for updating of prototype SEP documents.

40.

Revenue Procedure amending and restating employee plans compliance
resolution system (EPCRS).

41.

Guidance relating to oversight of qualified plan compliance.

42.

Guidance on restorative payments to qualified plans.

B. Executive Compensation, Health Care and Other Benefits, and Employment Taxes
1.

Proposed regulations under section 83 relating to transfers by non-employer
parties.

Guidance on stock option issues under section 83.

Guidance on certain uses of stock interests for deferred compensation.

-5-

Guidance relating to certain arrangements under sections 106 and 125.

Guidance on the application of section 125 in mergers and acquisitions.

Guidance under section 125 relating to cafeteria plans and the Family and
Medical Leave Act.

Guidance on automatic enrollment in cafeteria plans under section 125.

Guidance on demonstrator vehicles provided for use by employees.

Guidance relating to the golden parachute rules under section 280G.

10.

Guidance on issues under section 419A.

11.

Guidance on incentive stock options under section 422.

12.

Guidance on income tax withholding with respect to incentive stock options under
section 422 and employee stock purchase plans under section 423.

13.

Proposed regulations on FICA and FUTA tax with respect to incentive stock
options under section 422 and employee stock purchase plans under section 423.

14.

Revision of the standards set forth in Rev. Proc. 71-19 regarding nonqualified
deferred compensation.

15.

Guidance relating to severance pay plans under section 457(e)(11).

16.

Guidance relating to section 457(f).

17.

Guidance with respect to the employment tax treatment of amounts received in
employment-related litigation.

18.

Guidance on issues relating to reporting and employment tax obligations with
respect to chore workers.

19.

Clarification of regulations under section 3401(d).

20.

Final regulations under section 6205.

21.

Guidance under section 6413 concerning adjustments of employment tax
overpayments.

22.

Guidance with respect to section 7436.

-6-

23.

Final regulations under section 9801 relating to HIPAA.

24.

Guidance on electronic filing of Form 8850.

Excise Taxes

Guidance under section 4051 regarding the definition of highway vehicles in
regulation sections 145.4051 and 48.4061(a)-1.

Proposed regulations under section 4081 relating to the revision of definition of
diesel fuel.

Regulations under section 4081 regarding the measurement of taxable fuels.

Guidance under section 4221 regarding fuel used in foreign trade.

Guidance under sections 4261 and 4271 regarding the transportation of persons
and property by air.

Final regulations under section 6302 regarding deposits of excise taxes.

Exempt Organizations

Guidance on section 501 (c)(4) organizations.

Guidance under section 501(c)(12).

Guidance under section 507 regarding termination of private foundation status.

Final regulations under section 513(i) regarding corporate sponsorship payments
received by exempt organizations.

Guidance under section 514 regarding the investment of proceeds of qualified
501 (c)(3) bonds.

Final regulations under section 529 regarding qualified state tuition programs.

Guidance on split-interest trusts.

Announcement requesting comments on updates to private foundation
regulations.

Final regulations under section 4958 for certain excess benefit transactions.

-7-

Financial Institutions and Products

Guidance regarding securitization of the rights to recover stranded costs.

Guidance regarding accruals on sales of REMIC regular interests between
payment dates.

Guidance regarding the conformity election for banks under section 1.166-2(d)(3).

Guidance under section 263(g) regarding certain interest and carrying costs in the
case of straddles.

Guidance under section 446 regarding notional principal contracts.

Guidance under section 446 regarding prepaid forward contracts.

Guidance to provide an automatic method change for cash method banks.
(Competed. See Rev. Proc. 2001-25.)

Guidance regarding investments by RICs in partnerships.

Guidance under section 856 regarding taxable REIT subsidiaries.

10.

Final regulations regarding REMIC residual interests.

11.

Final regulations under section 1092(c)(4) regarding certain equity options that do
not have standard terms.

12.

Guidance under section 1092 regarding straddles where one position is larger
than the offsetting position.

13.

Final regulations under section 1221 (a)(7) regarding hedging transactions.

14.

Guidance under section 1256(g) regarding securities futures contracts. (Request
for comments published. See Notice 2001-27.)

15.

Guidance under section 1259 regarding constructive sales treatment for
appreciated financial positions.

16.

Guidance under section 1272(a)(6) regarding pools of credit card receivables.

17.

Guidance under section 7701 regarding certain obligation shifting transactions.

18.

Guidance regarding certain equity derivative transactions.

-8-

General Tax Issues
1.

Final regulations under section 25A regarding the Hope Scholarship and Lifetime
Learning credits.

Guidance under section 29 regarding synthetic fuels from coal. (Completed. See
Rev. Proc. 2001-30.)

Final regulations under section 32 regarding EIC eligibility requirements.

Reconsider final regulations under section 41 regarding the research credit.

Final regulations under section 41 regarding computation of the research tax
credit in a controlled group.

Guidance under section 41 regarding the research credit attributable to a
suspension period. (Completed. See Notice 2001-29.)

Guidance regarding treatment of investment earnings on tax-exempt bond
proceeds under section 42(h)(4) and section 1.42-1T(f)(1).

Guidance under section 42 on eligible basis.

Guidance under section 450 regarding the new markets tax credit.

10.

Guidance under sections 46 and 167 relating to normalization.

11.

Guidance under section 61 regarding Indian Tribal trusts for minors.

12.

Proposed regulations under section 104 regarding the exclusion of damages for
personal physical injury or sickness.

13.

Guidance under section 110 regarding the purpose requirement for qualified
lessee construction allowances. (Completed. See Rev. Rul. 2001-20.)

14.

Guidance concerning the treatment of interconnection payments received by
public utilities.

15.

Final regulations under section 121 regarding the exclusion of gain on the sale of
a principal residence.

16.

Guidance under section 167 relating to certain costs of golf course construction.

17.

Proposed regulations under section 167 regarding the income forecast method.

18.

Proposed regulations under section 168 relating to like-kind exchanges.

-9-

19.

Guidance under section 168 regarding the treatment of truck tires.

20.

Guidance on charitable contributions to disregarded entities.

21.

Final regulations under section 221 regarding interest on education loans.

22.

Proposed regulations under section 274 regarding expenses for goods, services,
and facilities that are treated as compensation.

23.

Proposed regulations under section 465 regarding interest other than as a
creditor.

24.

Final regulations under section 469 regarding self-charged interest.

25.

Guidance regarding the determination of recoverable reserves of oil and gas for
cost depletion purposes.

26.

Final regulations under section 1031 regarding the definition of a disqualified
person.

27.

Guidance under section 1041 on the tax treatment of transfers of stock options
and other deferred compensation rights between spouses.

28.

Regulations under section 1041 regarding when transfers of property to third
parties are made "on behalf of' the nontransferring spouse.

29.

Guidance on corporations chartered under Indian tribal law.

Gifts, Estates and Trusts

Notice under sections 1361 and 641 regarding estimated tax election for owners
of ESBTs. (Completed. See Notice 2001-25.)

Update Rev. Rul. 76-270 concerning charitable remainder trusts that make
distributions to a trust for a beneficiary.

Final regulations under section 643 regarding the state law definition of income
for trust purposes.

Final regulations under section 645 regarding an election by certain revocable
trusts to be treated as part of the associated estate.

Notice under section 645 regarding the first (short) taxable year of the trust.
(Completed. See Notice 2001-26.)

-10-

Update Revenue Procedures under section 664 containing sample charitable
remainder trust provisions.

Guidance under section 671 regarding reporting requirements for widely held
fixed investment trusts.

Final regulations under section 2001 relating to an automatic extension for Form
706.

Revise regulations under section 2055 and 2522 based on the 80eshore
decision.

10.

Guidance under section 2056 regarding a Qualified Terminal Interest Property
election that has no effect.

11.

Proposed regulations under section 2057 regarding the estate tax deduction for
certain family owned business interests.

12.

Guidance under section 2519 regarding net gifts.

13.

Final regulations under section 7701 regarding the application of foreign trust
rules to employee benefit trusts.

Insurance Companies and Products

Guidance regarding captive insurance companies.

Guidance under section 807.

Guidance under section 817 A regarding modified guaranteed contracts.

Automatic change in accounting method for premium acquisition expenses.

Final regulations under section 1275(a)(1 )(8)(ii) regarding definition of annuities.

Guidance on split dollar life insurance.

International Issues

A. Subpart F / Deferral
1.

Proposed regulations regarding mark to market procedures for passive foreign
investment companies.

-11-

B. Inbound Transactions
1.

Proposed regulations on the disallowance of deductions under sections 882(c)(2)
and 874(a).

Final regulations under sections 892 and 7701.

Guidance relating to the reporting obligations of nonqualified intermediaries.

Guidance concerning U.S. real property interests.

Other guidance regarding withholding on payments to foreign persons.

Guidance under section 1503(d) concerning triggering events.

C. Outbound Transactions
1.

Guidance on international restructurings.

Final regulations under section 684.

Final regulations under section 679.

Final regulations relating to the grouping rules under section 925. (Completed.
See T.D. 8944.)

Guidance relating to the Extraterritorial Income Exclusion Act.

Guidance under section 1504(d).

Guidance concerning certain extraordinary transactions involving disregarded
entities.

D. Sourcing and Expense Allocation
1.

Guidance relating to the treatment of fringe benefits.

Guidance concerning the allocation and apportionment of expenses.

Final regulations on the treatment of losses from dispositions of personal property
under section 865.

Guidance under section 883.

Update Rev. Proc. 97-31 (listing section 883 countries and types of excluded
income).

-12-

E. Application of U.S. Income Tax Treaties
1.

Guidance concerning the relief from double taxation and adjustments to
taxpayers' accounts arising from section 482 allocations (see Rev. Procs. 96-14
and 99-32).

Final regulations relating to the application of the income tax treaties to payments
from reverse hybrid entities.

Guidance under the Canadian treaty relating to Canadian Registered Retirement
Savings Plans.

Update Rev. Proc. 96-13 relating to the procedures for requesting competent
authority assistance.

Guidance concerning the application of certain U.S. income tax treaties.
(Completed. See Announcement 2001-34.)

Guidance relating to the reporting of bank deposit interest.

F. Other
1.

Guidance relating to the conduct of cross-border, securities dealing operations
("global dealing").

Guidance on the treatment of cross border services under section 482 and
related provisions.

Guidance under section 954(i) relating to the determination of appropriate foreign
loss payment patterns and interest rates.

Guidance concerning the treatment of currency gain or loss.

Guidance under section 4374.

Guidance concerning the international activities of partnerships.

Partnerships

Guidance regarding aggregation for purposes of section 704( c) for certain masterfeeder partnerships.

Final regulations under section 705 regarding special basis rules.

Final regulations under section 706 and foreign partners.

-13 -

Guidance regarding partnership options and convertible instruments.

Proposed regulations under section 752 regarding the assumption of partnership
liabilities.

Final regulations regarding the coordination of sections 755 and 1060.

Final regulations regarding TEFRA partnership proceedings.

Guidance on the receipt of a profits interest subject to a substantial risk of
forfeiture.

Guidance under section 1031 regarding undivided fractional interests in real
estate.

10.

Guidance regarding entity classification and community property owners.

11.

Final regulations amending the check the box regulations under section 7701.

Subchapter S

Final regulations under section 1361 regarding electing small business trusts.

Guidance under section 1361 regarding the time for beneficiary to make a QSST
election.

Guidance under section 1367 regarding shareholder basis and S corp charitable
contributions.

Tax Accounting

Guidance under sections 61 and 451 regarding the characterization of a lessee's
capital cost reduction payments.

Guidance regarding the treatment of costs incurred for railroad track
maintenance.

Guidance under sections 162 and 263 regarding deduction and capitalization of
expenditures.

Guidance under sections 162 and 263 regarding the tax treatment of restaurant
smallwares packages.

Final regulations under sections 263A and 612 regarding the treatment of delay
rentals.

Proposed regulations under sections 441 and 442 regarding accounting periods.

-14-

Update Rev. Proc. 87-32 regarding automatic annual accounting period change
procedures for certain passthrough entities.

Revenue Procedure under section 442 regarding prior approval of annual
accounting period changes.

Update Rev. Proc. 99-49 regarding automatic method change procedures.

10.

Guidance under section 446 regarding general procedures applicable to voluntary
and involuntary changes in methods of accounting.

11.

Guidance under sections 446 and 471 regarding the cash method of accounting.

12.

Guidance under section 451 regarding the treatment of advance payments.

13.

Guidance under section 453 regarding the installment method of accounting.
(Completed. See Notice 2001-22)

14.

Final regulations under section 460 regarding changes in parties to a contract.

15.

Update Rev. Proc. 75-21.

Final regulations under section 4688 regarding certain escrow funds.

17.

Guidance under section 471 regarding the unit livestock price method of
accounting.

18.

Regulations under section 472 regarding the dollar value LIFO inventory method.

19.

Guidance under section 472 regarding the LIFO inventory method.

20.

Final regulations under section 1301 regarding income averaging by farmers.

21.

Guidance under section 1341 regarding claim of right.

Tax Administration

Proposed regulations to implement the section 66(c) provisions for innocent
spouse relief in community property jurisdictions.

Proposed regulations under section 3406 to clarify the counting of notices to
payors when multiple notices are received.

Modification of Rev. Proc. 97-31 regarding the TIN matching program for federal
agencies to expand the scope of reporting agents included.

-.L!:l-

Regulations under section 6011 regarding electronic payee statements.

Regulations regarding electronic filing of attachments to Form 1040.

Guidance under section 6011 to remove impediments to electronic filing of certain
business returns.

Guidance under section 6011 regarding the disclosure of certain large
transactions.

Annual Compilation of Tax Shelter Listed Transactions under section 6011.

Final regulations under section 6015 regarding election by a spouse to limit jOint
and several liability.

10.

Final regulations under section 6041 regarding middleman reporting.

11.

Proposed regulations regarding information reporting and backup withholding for
purchasing card transactions.

12.

Notice clarifying the effect of the section 1441 regulations on the section 6041 A
reporting exceptions.

13.

Guidance under section 6045 regarding reporting of gross proceeds on the sale
of stock acquired by exercising nonqualified employee stock options.

14.

Regulations under section 6045(f) regarding information reporting on payments to
attorneys.

15.

Announcement revising Form W-9 to permit a taxpayer to authorize an agent to
furnish Form W-9 to the payor.

16.

Regulations under section 6050P regarding information reporting on cancellation
of indebtedness.

17.

Guidance regarding information reporting for tuition and student loan interest
under section 6050S.

18.

Revenue Ruling clarifying Rev. Rul. 80-218 regarding application of the timely
mailing/ timely filing rules to foreign postmarks.

19.

Proposed regulations regarding the disclosure of unrelated third party tax
information in tax proceedings.

20.

Final regulations allowing disclosures to the Department of Agriculture for
statistical purposes.

-16-

21.

Proposed regulations regarding the definition of agent in section 6103.

22.

Regulations regarding triangular disclosure of tax return information.

23.

Regulations under section 6110 to address changes enacted in RRA 98.

24.

Guidance under section 6111 regarding corporate tax shelter registration.

25.

Guidance under section 6112 regarding list of tax shelter investors.

26.

Final regulations under section 6302 regarding the amount of tax considered de
minimis and therefore not required to be deposited.

27.

Final regulations removing the Federal Reserve as an option for depositing taxes.

28.

Regulations authorizing payment of taxes by credit card.

29.

Final regulations regarding collection due process with respect to liens.

30.

Final regulations setting forth circumstances under which the IRS may withdraw a
filed notice of federal tax lien.

31.

Final regulations regarding collection due process with respect to levies.

32.

Proposed regulations applying section 6331 (k) to installment agreements.

33.

Revenue Ruling modifying Rev. Rul. 78-127 to remove references to specific form
numbers used to schedule overassessments.

34.

Proposed regulations regarding the suspension of the statute of limitations for
noncompliance with a designated summons.

35.

Update Rev. Rul. 73-305 and Rev. Rul. 79-284 to provide for the application of
undesignated payments to liabilities having the earliest collection statute
expiration date.

36.

Withdrawal of Treas. Reg. §§ 301.6656-1 and 301.6656-2 relating to repealed
penalty for overstated deposit claims.

37.

Revenue Procedure updating Rev. Proc. 90-58 to reflect LIFO method for payroll
tax deposits as required by RRA 98 amendment to section 6656.

38.

Proposed regulations under sections 6662 and 6664 regarding penalties relating
to tax shelters.

-17-

39.

Guidance, including updating Rev. Proc. 83-78 and Rev. Proc. 84-84, regarding
procedures to investigate abusive tax shelters.

40.

Final regulations regarding offers-in-compromise.

41.

Announcement regarding modifications to Appeals Arbitration Pilot Program.

42.

Guidance necessary to facilitate electronic tax administration.

43.

Proposed regulations under section 7430 regarding miscellaneous changes made
by TRA '97 and RRA '98.

44.

Proposed regulations updating prerequisites for bringing damage actions under
section 7433.

45.

Revenue Procedure listing additional tax deadlines that may be postponed under
disaster relief rules.

46.

Final regulations under section 7602(c) regarding third party contacts.

47.

Proposed regulations regarding third party and John Doe summonses.

48.

Proposed regulations to provide exception to return preparer definition in section
7701 (a)(36) for employees of low income tax clinics charging a nominal fee for
return preparation.

49.

Revenue Procedure updating Rev. Proc. 87-24 regarding the role of Appeals in
docketed Tax Court cases.

50.

Guidance regarding practice before the IRS under Circular 230.

51.

Statement of Procedural Regulations regarding Freedom of Information Act.

Tax-Exempt Bonds

Regulations under section 141 regarding allocation and accounting provisions.

Regulations under section 141 regarding refundings.

Clarifying guidance on short-term arrangements under section 141.

Modification of Rev. Proc. 97-13 with respect to adjustment of fees.

Regulations under section 148 regarding investment-type property.

Regulations under section 148 regarding brokers' commissions and similar fees.

-18-

Guidance on procedures for requesting an extension of time to file information
returns required by section 149(e).

-19-

APPENDIX A

Update proposed regulations under sections 1.125-1 and 1.125-2.

Guidance regarding multi-family housing bonds.

Study section 269.

Compendium of retirement plan revenue rulings (An update of Pub. 778).

Final regulations under section 475.

Guidance regarding group rulings under section 501 (c)(3).

Guidance regarding simplifying the advance ruling process for public charities
under section 509(a).

Guidance regarding allocating deductions in computing UBIT.

Guidance under section 707 regarding disguised sales of partnership interests.

10.

Proposed regulations under section 736(b)(3)(B).

11.

Guidance under sections 863(d),(e).

12.

Study section 1001 regulations regarding modifications of debt instruments.

13.

Guidance regarding reporting of payments to employees who own heavy
equipment used by their employers.

14.

Private foundations regulations update.

15.

Guidance under section 6621 regarding interest netting computations.

16.

Update of the section 6655 corporate estimated tax penalty regulations.

17.

Reconsideration of Rev. Rul. 75-191 regarding the application of the section 6656
penalty where taxes should have been withheld but were not.

18.

Application of section 7503 to various factual scenarios.

19.

Final regulations under section 9802.

20.

Revision of Statement of Procedural Regulations section 601.106 regarding
Appeals.

-20-

APPENDIX B
Regularly Scheduled Publication Items
January
1.

Revenue Procedure updating the procedures for issuing private letter
rulings, determination letters, and information letters on specific issues
under the jurisdiction of the Chief Counsel.

Revenue Procedure updating the procedures for furnishing technical
advice to certain IRS offices, in the areas under the jurisdiction of the Chief
Counsel.

Revenue Procedure updating the previously published list of "no-rule"
issues under the jurisdiction of certain Associates Chief Counsel other than
the Associate Chief Counsel (International) on which advance letter rulings
or determination letters will not be issued.

Revenue Procedure updating the previously published list of "no-rule"
issues under the jurisdiction of the Associate Chief Counsel (International)
on which advance letter rulings or determination letters will not be issued.

Revenue Procedure updating procedures for furnishing letter rulings,
general information letters, etc., in employee plans and exempt
organization matters relating to sections of the Code under the jurisdiction
of the Office of the Commissioner, Tax Exempt and Government Entities
Division.

Revenue Procedure updating procedures for furnishing technical advice in
employee plans and exempt organization matters under the jurisdiction of
the Commissioner, Tax Exempt and Government Entities Division.

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288,382,42, and
7520.

Revenue Ruling setting forth the prevailing state assumed interest rates
provided for the determination of reserves under section 807 for contracts
issued in 2000 and 2001.

Revenue Ruling providing the dollar amounts, increased by the 2001
inflation adjustment for section 1274A.

10.

Revenue Ruling setting forth the amount that section 7872 permits a
taxpayer to lend to a qualified continuing care facility without incurring
imputed interest, adjusted for inflation.

-21-

11.

Revenue Procedure providing procedures for limitations on depreciation
deductions for owners of passenger automobiles first placed in service
during the calendar year; amounts to be included in income by lessees of
passenger automobiles first leased during the calendar year; and the
maximum allowable value of employer-provided automobiles first made
available to employees for personal use in the calendar year.

12.

Revenue Procedure providing the domestic asset/liability percentages and
domestic investment yield percentages for taxable years beginning after
December 31,2000, for foreign companies conducting insurance business
in the U.S.

13.

Revenue Procedure updating procedures for issuing determination letters
on the qualified status of employee plans under sections 401 (a), 403(a),
409, and 4975 of the Code.

14.

Revenue Procedure updating the user fee program as it pertains to
requests for letter rulings, determination letters, etc. in employee plans and
exempt organizations matters under the jurisdiction of the Office of the
Commissioner, Tax Exempt and Government Entities Division.

15.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412( c)(7) of the Code for
plan years beginning in January 2001.

16.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

February

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274,1288,382,42, and
7520.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Ruling under section 165 listing the Presidentially declared major
disaster areas for the preceding calendar year.

Notice setting forth the weighted average interest rate and th~ r~~ulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in February 2001.

-22-

March

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288,382,42, and
7520.

Notice providing resident population of the states for determining the
calendar year state housing credit ceiling under section 42(h), and the
private activity bond volume cap under section 146.

Revenue Ruling providing the monthly bond factor amounts to be used by
taxpayers who dispose of qualified low-income buildings or interests
therein during the period January through March, 2001.

Revenue Ruling under section 6621 regarding the applicable interest rates
for overpayments and underpayments of tax for the period April through
June, 2001.

Notice providing a tentative determination under section 809 of the
differential earnings rate for 2000 and the recomputed differential earnings
rate for 1999 for use by mutual life insurance companies to compute their
income tax liabilities for 2000.

Revenue Ruling setting forth the terminal charge and the standard industry
fare level (SIFL) cents-per-mile rates for the first half of 2001 for use in
valuing personal flights on employer-provided aircraft.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in March 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288, 382, 42, and
7520.

Revenue Ruling providing the average annual effective interest rates
charged by each Farm Credit Bank District.

Notice providing the inflation adjustment factor, nonconventional fuel
source credit, and reference price for the calendar year that determines the

-23-

availability of the credit for producing fuel from a nonconventional source
under section 29.
4.

Revenue Procedure providing a current list of countries and the dates
those countries are subject to the section 911 (d)(4) waiver and guidance to
individuals who fail to meet the eligibility requirements of section 911 (d)(1)
because of adverse conditions in a foreign country.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in April 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288,382,42, and
7520.

. Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in May 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Procedure under section 6012 regarding the magnetic media
filing of Forms 1040NR for 2000.

Revenue Procedure providing guidance for use of the national and area
median gross income figures by issuers of qualified mortgage bonds and
mortgage credit certificates in determining the housing cost/income ratio
under section 145.

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288, 382, 42, and
7520.

Revenue Ruling providing the monthly bond factor amounts to be used by
taxpayers who dispose of qualified low-income buildings or interests
therein during the period April through June, 2001.

-24-

Revenue Ruling under section 6621 regarding the applicable interest rates
for overpayments and underpayments of tax for the period July through
September, 2001.

Notice providing the calendar year inflation adjustment factor and
reference prices for the renewable electricity production credit under
section 45.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in June 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274,1288,382,42, and
7520.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in July 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

August
1.

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274,1288,382,42, and
7520.

Revenue Procedure providing the amounts of unused housing credit
carryover allocated to qualified states under section 42(h)(3)(O) for the
calendar year.

Notice providing the inflation adjustment factor to be used in determining
the enhanced oil recovery credit under section 43 for tax years beginning
in the calendar year.

Notice providing the applicable percentage to be used in determining
percentage depletion for marginal properties under section 613A for the
calendar year.

-25-

Revenue Procedure providing the loss payment patterns and discount
factors for the 2001 accident year to be used for computing unpaid losses
under section 846.

Revenue Procedure providing the salvage discount factors for the 2001
accident year to be used for computing discounted estimated salvage
recoverable under section 832.

Revenue Ruling setting forth the terminal charge and the standard industry
fare level (SIFL) cents-per-mile rates for the second half of 2001 for use in
valuing personal flights on employer-provided aircraft.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in August 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

10.

Update Notice 99-41 to add approved applicants for designated private
delivery service status under section 7502(f). Will be published only if any
new applicants are approved.

September

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288,382,42, and
7520.

Revenue Ruling providing the monthly bond factor amounts to be used by
taxpayers who dispose of qualified low-income buildings or interests
therein during the period July through September, 2001.

Revenue Ruling under section 6621 regarding the applicable interest rates
for overpayments and underpayments of tax for the period October
through December, 2001.

Revenue Ruling providing the determination under section 809 of the
differential earnings rate for 2000 and the recomputed differential earnings
rate for 1999 for use by mutual life insurance companies to compute their
income tax liabilities for 2000.

-26-

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Procedure under section 62 regarding the deduction and deemed
substantiation of federal standard mileage amounts.

Announcement on whether the number of Archer MSAs has exceeded the
applicable statutory limits.

October

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288, 382, 42, and
7520.

News release setting forth cost-of-living adjustments effective January 1,
2002, applicable to the dollar limits on benefits under qualified defined
benefit pension plans and other provisions affecting certain plans of
deferred compensation.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in October 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Procedure under section 1 and other sections of the Code
regarding the inflation adjusted items for 2002.

November

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274,1288,382,42, and
7520.

Revenue Ruling providing the "base period T-Bill rate" as required by
section 995(f)(4).

Revenue Ruling setting forth covered compensation tables for the 2002
calendar year for determining contributions to defined benefit plans and
permitted disparity.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the

-27-

purpose of the full funding limitation of section 412(c)(7) of the Code for
plan years beginning in November 2001.
5.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Update Rev. Proc. 2001-11 regarding adequate disclosure for purposes of
the section 6662 substantial understatement penalty and the section 6694
pre parer penalty.

December

Revenue Ruling setting forth tables of the adjusted applicable federal rates
for the current month for purposes of sections 1274, 1288, 382, 42, and
7520.
.

Revenue Ruling providing the monthly bond factor amounts to be used by
taxpayers who dispose of qualified low-income buildings or interests
therein during the period October through December, 2001.

Revenue Ruling under section 6621 regarding the applicable interest rates
for overpayments and underpayments of tax for the period January
through March, 2002.

Notice setting forth the weighted average interest rate and the resulting
permissible range of interest rates used to calculate current liability for the
purpose of the full funding limitation of section 412(c)(7)of the Code for
plan years beginning in December 2001.

Revenue Ruling under section 472 providing the Bureau of Labor Statistics
price indexes that department stores may use in valuing inventories.

Revenue Procedure under section 62 regarding the deduction and deemed
substantiation of federal travel per diem amounts.

Revenue Procedure setting forth, pursuant to section 1397E of the Code,
the maximum face amount of Qualified Zone Academy Bonds that may be
issued for each state during 2002.

Update list of recognized tribes.

DEPARTMENT

THE

TREASURY

17!\Q

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

....,

DBAKGOEJ) O&'1iYi". .:
~ 30

CONTACT:

........

P ....

Office of

~i~a~cing

202/691-3550

April 26, 2001.

The 'l'reasury wil.l. auctiOll two serie..s of 'fi"e&SUrY bills tota.l.iDg
approxhMtely $17 , 000 million ~o refund $22,6" milliOD of pul:Il.icly held
securities maturiAg Kay 3, 20·01, aDd to pay C!oWD about $5,644 mil.lion.

In addition to 'the public hCldiD.gs, I'edaral Reserve Banks for their own
accounts held $12,183 million of the matu:-iDg bil.ls, which may be refunded at
the highest discount; ra~e of accepted CCIIIPetitive tenders. 1tmQ\mts DwaNeQ
to these aCCOUDts will be ;i.Jl ac!di tion to the offering amount.
'Cl;> to $1, 000 mil.lion in noncompetitive bids from Pereigll

XAterZl&tiODal KoDeta.z:y AU~ity (PDIA) accounts bic!cling t..hr0U9A the Federal
Reserve Bank ef Hew York "ill be ~l.u4ea withiD CluI offering amount of each
auction. 'l'hese DOncampetitive bids will haVe .. limit of $200 milliOD. per
&c:count aDc1 will be accepted in the order of smallest to largest, up to the
a~te award limit of $1,000 million.
!l'reasuzyD:fntet: euatcaers have Z'8Cj[Uestecl that we rei.J2v&st auair maturing
fmC! $837

_~ldings of approxiJDately $1,083 million into the 13-week bill
mllion 1nto the 26-weelt bill.

'!'his offering of Treasury secur1 ties is governed ~ the te%mS and. conset fort:.h in the 'OnifoZlll Of:fariAg' Circ:u.lar .for r.h8 Sale aDd Issua of
.Karketal:)le Book-btzy ifreasu:y S!.11s, JIIotas, and Bo"dS (31 CPR Part 356, -as
•

4it~ons

MISUded) •

:Deeails 1I.bout each of the
offering hi9'h1i§h~s.

J:LeW

secu:-lties are given iD the attached

000
Attaelzmen~

P()-228

Fo,. p7"ess

nktl$~s, 'p•• ches, public schedules and official biographies, call ou.r 24-hour flU liM al (202) 622;'2940

HXGHLZGHTS OF TREASURY OFFER7NGS
~

BIL~S

BE ISSUED MAY 3, 2001

April·26, 2001
$8,000 million

Off .ring Amount." ••.••••••••.•••••••••••. $9,000 million
Description of Offering:
an4 type of security ••.•••••••••••• 91-day bill
CUSIP number •.••••••• " •• " ••••••••••••••. 912795 HB 4
Auction date ••••••••••••••••••••••.••••• April 30,2001
zasue dat." ••••••••••.••••••••••••.••••• May 3, 2001
Maturity date •••••••••• , •••••••••••••••• August. 2, 2001
Original iasue dat •••••••••••••••••••••• F.bruary 1, 2001
currently outstanding ••••••••••••••••••• $1',934 nil1ion
Minimum bid amount and multiples •••••••• $1,OOO
~er&

182-day bill
912795 HU 8
April 30, 2001
Hay 3, 2001
November 1, 2001
Hay 3, 2001

$1,000

The following rule. apply to all s.curit~es mentioned abovec
Submission of Bldsc·
Ronc~etitive bids. Accepted 1n full up to $1 million at the highest discount rate of accepted

competitive bids.
.
For.ign and Xnternational MOn.tary Authority (PDMA) bids: Noncompetitive blds submitted
through tbe Federal Reserve Banks as agents for PIMA accounts. Acc.pted in order of Bize
fram smallest to largest with no more than $200 million awarded per account. The total
nonoompetitive amount awarded to re~eral R.serv$ Banks .a agents for FiMA account. will
not exceed $1,000 millidn. A single bid that would·caus. the limit to ba exce.ded wil.l
be partially accepted in the amount that brings the aggregate award tot.al to the $1,0.00
million limit. HO~'i"e1/er, if there are two or more bids of .QUal amount. that would caus.
the limit to be exc.aded, each will be prorated to avoid exce.ding the l~it.
C~etitiva.bid.:

rat.

(1) MUst be eXpresse" as a discount
with three decimals in inaramentB o~ .005%, e.g.,
7.100%, 7.105%.
(2) Net long position for eaoh bidder must be reportea When the Bum of the total bid amount,
at all discount rates, and the net long position is $1 billion o~ gr.ater.
(3) Net long position must h.e dete:r:mlnsd. as. of one half-hour prior to thiS closing time for
r.ceipt ·.of compsti tiv. tenders.
~aH1~.RecogDi ••a.Bia at a Single Rat ••••• 35% of public offering
MaHl'lRUJa. Awa;r4 ............................
35% of public offering'
llecaipt. of, . 'l'e~.r..
.
~6ilcompetiti~ tenders •• Prior to 12 ~ 00 noon eastern daylight saving time on auction clay
C~.~lt~~. tenders ••••• P~ior to 1,00 p.m • •a.tern 4ay~ight saving time on.auction day
0

•••

p~ntTa~Bt
cbarge to a £uo48 account at a Peaera1. Reserve Bank ~n issue date, or p~.n~
at! 1:'-.1.1 par am.ount wi-th. tend.r.
~.'-u.z:l'2'.tr.cc c ..u~tarner. can u •• · the Pay Ditect :r •• t u r . Wh.f.c:h
_-utno:r:l._._

·abarge t o

t .... :!.r ..ccou....t

ot! reoord

at:.

the~.:r

f~_anc~ ...1

~n.t:~t:ut:lon.

~._u.

daCe.

DEPARTMENT

THE

TREASURY

17!\Q

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

FOR IMMEDIATE RELEASE
April 27, 2001

Contact: Public Affairs
(202) 622-2960

STATEMENT BY TREASURY SECRETARY PAUL H. O'NEILL
AT THE PRE-G-7 PRESS CONFERENCE
Good morning. Tomorrow I will host a G-7 meeting in advance of the spring meetings of
the IMF and World Barue These meetings provide an excellent opportunity to advance the
Administration's priorities on key international economic and financial policy issues. In the
course of these discussions, I will make three fundamental points.
First, I have confidence in the resiliency of the u.S. economy. Although the U.S.
economy has slowed, its fundamentals - productivity growth, the flexibility of our labor and
capital markets, and low inflation - remain strong. The slowing economy reinforces the need for
immediate and permanent tax relief to undergird more vigorous economic growth. At the same
time, I attach tremendous importance to strong and balanced global growth in the context of
interdependent U.S., European, and Japanese economies. A healthy global economy requires all
of us to perform to our full potential. I look forward to meeting my new Japanese counterpart,
Masajuro Shiokawa, and learning of his policy plans.
Second, the World Baru<: and other multilateral development banks (MDBs) remain
central to promoting economic development. These institutions need to be even more sharply
focused on the essential goal of increasing productivity in developing economies. Productivitythe amount of goods and services that each worker produces - is the ultimate driver of higher
income per capita and reduced poverty. In specific terms, I look forward to discussing the
outlook for loan pricing reforms and increased coordination among MDBs so that each
institution focuses on its comparative advantage.
Third, I believe that the international financial institutions (IF Is) are necessary and
important, and we who are the shareholders of these institutions must lead them to success. Too
often they have been associated with failure. These institutions, with our leadership, can do a
better job of crisis prevention. This means making clear diagnoses of problems that are still at an
early stage and taking the proper policy response before a problem turns into a crisis.
This is the right thing to do for people all over the world, in the developed and
developing nations. It is proper stewardship of the taxpayers' money that we in Washington
provide to these institutions. Plumbers and carpenters around the nation who earn $50,000 a
year and send 25% of it to Washington expect us to use their money wisely.
PO-229
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Tackling tough decisions is a responsibility we bear as leaders of the free world. We
cannot simply follo\\' in the \\'ake of a crisis, when leadership could have prevented a financial
meltdown ti'OIl1 creating economic strife and destroying people's lives.
Ultimately, the less the IFls are associated with fire-fighting and crisis, the more support
they will ha\'c both internationally and here in the United States. I expect to have a meaningful
discussion with the institutions' management and major shareholders on how we can make
further progress on these important issues.

--30--

DEPARTMENT

THE

TREASURY

~17R~Q. . . . . . . . . . . . . .. .

. . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE. N.W .• WASHINGTON. D.C.. 20220. (202) 622-2960

PUBLIC CONTACT: Office of Financing
202-691-3550
MEDIA CONTACT: Office of Public Affairs
202-622-2960

IR IMMEDIATE RELEASE

ril 26, 2001

TREASURY DEBT BUYBACK OPERATION RESULTS

Today, Treasury completed a debt buyback (redemption) operation for $2,000 million
r of its outstanding issues. A total of 12 issues maturing between February 2019 and
bruary 2023 were eligible for this operation. The settlement date for this operation will
April 30, 2001_ Summary results of this operation are presented below.
(amounts in millions)

Eers Received (Par Amount) :
Eers Accepted (Par Amount) :
:al Price Paid for Issues
(Less Accrued Interest) :
mer of Issues Eligible:
For Operation:
For Which Offers were Accepted:
.ghted Average Yield
of all Accepted Offers

(%):

ghted Average Maturity
for all Accepted Securities (in years) :

$7,138
2,000

2,590

12
11

5.816

19.6

ails for each issue accompany this release.

-330

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April 26, 2001
TREASURY DEBT BUYBACK OPERATION RESULTS

(amounts in millions, prices in decimals)
Table I

Coupon
Rate (%)

Maturity
Date

Par
Amount
Offered

8.875
8.125
8.500
8.750
8.750
7.875
8 .1.25
8.125
8.000
7.250
7.625
7.125

02/1.5/20B
08/1.5/20l.9
02/1.5/2020
05/1.5/2020
08/1.5/2020
02/1.5/2021
05/1.5/2021.
08/1.5/2021
1l./1.5/2021
08/15/2022
1l./15/2022
02/15/2023

845
506
41.3
485
1,293
B7
694
476
886
187
431
725

Par
Amount
Acce!;2t e d

Highest
Accepted
P rl.ce
.

Weighted
Average
Accepted
Price

439
25
0
57
472
7
200
330
255
5
186
25

134.171.
126.000
N/A
133.656
133.812
123.812
126.906
127.093
125.718
116.859
121.687
115.609

134.145
126.000
N/A
133.656
133.795
123.812
126.867
127.039
125.709
116.859
121.651
115.609

Weighted
Average
Accepted
Yield

Par Amount
Privatel:l Held*

5.777
5.799
N/A
5.806
5.812
5.830
5.834
5.834
5.836
5.854
5.844
5.848

12,934
17,077
8,402
6,695
15,984
9,161
8,856
8,515
28,084
9,354
6,713
14,344

Table II

Coupon
Rate (%1

Maturity
Dat e

CUSIP
Number

Lowest
Accepted
Yield

8.875
8.125
8.500
8.750
8.750
7.875
8.1:<.5
8.125
8.000
7.250
7.625
7.125

02/15/2019
08/15/2019
02/15/2020
05/15/2020
08/15/2020
02/15/2021
05/15/2021
08/15/2021
11/15/2021
08/15/2022
11/15/2022
02/15/2023

912810EC8
9l2810ED6
912810EE4
912810EF1
912810EG9
912810EH7
912810EJ3
912810EKO
912810EL8
912810EM6
912810EN4
912810EP9

5.775
5.799
N/A
5.806
5.811
5.830
5.831
5.830
5.835
5.854
5.842
5.848

Total Par Amount Offered:
Total Par Amount Accepted:
Note: Due to rounding,

7,1.38
2,000

details may not add to totals

'Amount outstanding after operation. Calculated using amounts reported on announcement.

DEPARTMENT

THE

IREASURY fU)

TREASURY

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

FOR PLANNING PURPOSES ONLY

Contact Sean Miles
at 202-622-2960.

* * * CORRECTION * * *
* * * TIME CHANGE * * *
G-7 GROUP PHOTO OPPORTUNITY AT BLAIR HOUSE
MOVED TO 1 :45 PM.
THE GROUP PHOTOS WITH G-7 FINANCE MINISTERS AND CENTRAL
BANK REPRESENTATIVES WILL TAKE PLACE AT 1:45 PM AT BLAIR
HOUSE.
POOL PHOTO SPRAY OF G-7 MEETING AT BLAIR HOUSE REMAINS
AT 2:30PM.
G-7 PRESS CONFERENCE WITH SECRETARY O'NEILL REMAINS AT
OFFICE OF THRIFT SUPERVISION, 1700 G STREET, NW
APPROXIMATELY 30 MINUTES FOLLOWING CONCLUSION OF G-7
SESSION. G-7 COMMUNIQUE WILL BE DISTRIBUTED AT THE POST
G-7 PRESS CONFERENCE.

PO-331

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DEPARTMENT

THE

TREASURY

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

Statement of G-7 Finance Ministers and Central Bank Governors
April 28, 2001
Washington
1.

We met today to discuss recent developments in the world economy, strengthening the
international financial system, the reform of the multilateral development banks and
measures to meet the challenges of international development. * We also met with the
Finance Minister and the Deputy Central Bank-Governor of Russia and with representatives
of the European Commission to discuss recent developments in the Russian economy.

Developments in the G-7 Economies
2.

Although global growth has slowed over the past year, the foundations for economic
expansion are sound. In fact, the prospects for improving the world standard of living are
compelling. We are all dedicated to the proposition that it is in the interest of the world
economy for each of our economies to grow closer to their potential. We agreed that we
should be vigilant and forward-looking in maintaining and implementing polices that
promote strong productivity growth, including sound macroeconomic policy, structural
reform and international economic cooperation. We will work together to achieve the goal
of free trade. We recognize that lower energy prices and stable oil markets are important.
•

In the United States, growth has slowed sharply. However, long-term economic
fundamentals - productivity gains and factor market flexibility - remain strong.
Monetary policy should continue to be aimed at contributing to sustained growth and
maintaining price stability. Fiscal policy should also be targeted at bolstering long-term
fundamentals.

•

Growth in Canada has also slowed; in the United Kingdom the slowdown appears to be
only moderate. In both countries, unemployment and inflation remain low. Policies
should continue to support the foundations for sustained growth and employment over the
medium term, while meeting inflation targets.

•

In the euro area, growth prospects have moderated, though remaining favorable. Policies
should continue to emphasize strengthening potential growth and lowering

PO 332
, The President of the Euro Group, the President of the European Central Bank, and the Managing Director of the
International Monetary Fund joined us in reviewing recent events in the world economy. The President of the
World Bank joined us for the discussion ofMDB reform.

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Q

unemployment through further structural reforms that increase the efficient operation of
labor and product markets. Fiscal policy should aim to improve economic efficiency,
notably through tax reform, while preserving the pace of the consolidation of public
finances.
•

In Japan, economic activity has weakened, and prices continue to decline. Against this
background, monetary policy should continue to provide ample liquidity until consumer
price inflation stays at or above zero. Vigorous implementation of financial and
corporate sector reforms is needed in order to support medium-term recovery.

Exchange Rates

We discussed developments in our exchange and financial markets. We reiterated our view
that exchange rates among major currencies should reflect economic fundamentals. We will
continue to monitor developments closely and to cooperate in exchange markets as
appropriate.

Broader Global Economic Developments

4. The slowing in the pace of global economic activity has also affected the prospects for
growth in the emerging market and developing economies. In Asia, on the whole, after two
years of strong growth, there are clear signs of a slowdown. Throughout the region, the
implementation of structural reforms will be crucial to fostering strong, sustained growth. In
Latin America, where growth also has slowed, structural measures are needed to raise
productivity growth, and further fiscal consolidation is required to reduce financing
requirements. In central and eastern Europe, reforms undertaken during the past few years
have contributed to recent strong growth; fiscal consolidation and further structural reforms
are needed to maintain performance. In Africa, although growth continues to rise, per capita
incomes remain very low. Implementation of credible macroeconomic and structural
adjustment remains a prerequisite for strong growth and broad-based poverty reduction.
5. We agree that free trade is an important driver of economic growth. Open markets can
increase efficiency and productivity, thereby promoting development and poverty reduction
in all countries. We strongly support efforts to launch a new WTO round this year, to reduce
trade barriers in both industrialized and developing countries. We also welcome
industrialized country initiatives which, by providing improved market access for exports
from the poorest countries, will facilitate their integration into the world economy. It would
be appropriate for the IMF and World Bank to reflect on ways and means to facilitate trade
liberalization.
Turkey

We welcome Turkey's strong economic reform program as a basis for Turkey to reach
agreement with the IMF on a package that merits the continued support of the international
community's public and private sectors. We look forward to Turkey's rigorous

implementation of all these necessary measures. In this context, we welcome the decision of
the IMF and the World Bank to provide additional assistance for the program.
Russia

We welcome the continued growth of the Russian economy and encourage the Russian
authorities to step up the pace of economic reforms that are necessary for sound and
sustainable economic development. Russia needs to take steps to create an economic
environment conducive to investment, both foreign and domestic, such as enforcing the rule
of law, promoting the free flow of information, attacking nonpayments and barter,
strengthening the banking system, and improving corporate governance. We urge the
Russian authorities to draw on the expertise of the IMF and World Bank in addressing these
issues. We welcome the ratification by the Duma of the Strasbourg anti-money laundering
convention and urge the Russian authorities to move quickly to remedy the deficiencies
identified by the Financial Action Task Force (FATF) in June 2000, in particular by passing
a comprehensive anti-money laundering law. These steps would help facilitate Russia's
integration with the global economic system.

Crisis Prevention, Crisis Resolution, and the IMF

8. We stress that strong and effective crisis prevention is a top priority. Both the IMF and
individual countries should play key roles in this effort. Learning from previous experience,
and with a view to forestalling crises, we resolve to monitor economic and financial
developments more closely and to encourage early action to correct policies. In this context,
we underscore the following:
•

Enhanced IMF surveillance is at the heart of crisis prevention. As part of this effort, the
Fund should accelerate its work in developing and publishing indicators of national
balance sheet and liquidity risk. The Fund should also further its work in building up and
publishing macro-prudential indictors for the financial sector.

•

We believe that implementation of internationally agreed standards and codes offers
countries the opportunity to strengthen their basic infrastructure for growth and stability
and to provide information to markets in a way that reinforces these goals. In this
context, we encourage all countries to intensify their efforts, recognizing their different
stages of development and institutional capacities, to meet international codes and
standards and to publish their Reports on the Observance of Standards and Codes
(ROSCs).

•

We stress the importance of the joint IMF and World Bank effort to assess the strength of
financial sectors through the Financial Sector Assessment Program (FSAP). We welcome
the increased use of FSAPs and ROSCs as essential instruments to detect countries'
vulnerabilities and the future, mutually agreed integration of such assessments in the
IMF's surveillance. We welcome the agreement that countries should have the option of
releasing a summary of Fund/Bank assessments. We call on the IF Is to support countries

in their efforts to strengthen their domestic financial sectors and to pursue capital account
liberalization, in order to mobilize capital both from domestic and international markets.
•

The IMF needs to sharpen its focus on financial markets and their implications for the
sustainability of capital flows. In this context, we welcome the creation ofthe IMF's
International Capital Markets Department and the Capital Markets Consultative Group.

9. More broadly, we urge the IMF itself, as well as member countries, to continue in the drive
toward greater transparency and accountability.
10. We also welcome the ongoing work to review conditions attached to IMF lending. This
review should be aimed at: reinforcing the public integrity of the IMF; ensuring that all IMF
programs meet high-quality standards; helping countries take ownership of programs that
achieve meaningful results; and addressing the macroeconomically relevant structural
challenges confronting economies. As part of this review, it is also critical that progress be
made in strengthening Fund-Bank collaboration so that countries' needs are effectively
addressed.
11. Work is underway in several other areas in the IMF. We note the progress made to establish
an operational framework for private sector involvement in crisis resolution. We call on the
IMF to expedite its program of work on private sector involvement and agree on the
importance of taking future decisions in a way that is consistent with such a framework. We
note the need for further discussion on quotas at the IMF Executive Board.
Reform of the Multilateral Development Banks
12. Since we met in Palermo, we have intensified our dialogue with the MDBs and held informal
consultations with other shareholders. A report on MDB reform will be released at the G-7
Finance Ministers' meeting in Rome on July 7, for submission to the Genoa Summit.
l3. vVe reaffirm our strong commitment to strengthen the MDB system. MDBs must continue to
playa crucial role in supporting economic development and should ensure that their
operations to reduce poverty in developing countries concentrate on enhancing productivity
growth and raising income per capita. Towards these ends, they should adopt a more
selective approach that sharpens the focus and improves the effectiveness of their operations.
We agree that the MDBs' attention should focus on the following areas for immediate action:
•

Strengthening consistency and coordination among MDBs, in particular with respect to
the substance and timing ofMDB Country Strategies and their linkage to country-owned
development strategies such as Poverty Reduction Strategy Papers. It is critical that
MDBs harmonize at the highest appropriate standard operational procedures, policies and
safeguards.

•

Improving internal governance, in particular by ensuring wide public consultation and
debate through the publication of draft and final key institutional policy and strategy

documents, including Country Strategies, and strengthening accountability and
transparency in the budgetary process.
•

Promoting effective public sector management in borrowing countries, in particular by
strengthening analytical and diagnostic work and improving country capacity on
fiduciary and safeguard policies.

14. We agree that the MDBs have an important role to play in combating poverty in Middle
Income Countries (MICs), and welcome the ongoing debate in the World Bank to further
refine this role. In this context, we also agree that the MDBs should expeditiously conduct a
review of their lending instruments and pricing policies with a view to enhancing the
development impact of scarce MDB resources. We commend the Bank for its efforts to
redesign its role in its ordinary lending programs but note that the'proposed approach needs
further study, particularly with regard to the policy environment, institutional capacity, and
accountability of both borrowers and the Bank. We agree that the Bank and its shareholders
should consider in the period ahead the scope and modalities of the Bank's proposed shift to
programmatic lending. We urge the World Bank and, where appropriate, the other MDBs to
continue their work to refine this approach in the next few months.
15. We note the ongoing discussions on the increased use of grants within IDA-13 and encourage
the World Bank to carefully explore the related financial implications and practical
implementation issues. We welcome consideration of measures to improve IDA's
effectiveness, including strengthening the PRSP-Ied approach.

HIPC and Development Beyond Debt Relief
16. We reviewed the implementation of the Enhanced HIPC Initiative. Twenty-two countries are
already receiving interim debt relief under the initiative, which is designed to provide longterm debt sustainabiIity. We urge the other eligible countries, including those in, or emerging
from, conflict, to take the necessary steps to focus on poverty reduction and growth and
benefit from this important international program. We again urge other bilateral creditors to
join with the G-7 and other governments in providing 100% cancellation of all eligible debt.
17. We underscore that debt reduction is only one aspect of development and must be
complemented by strong reform programs in order to secure its true benefits. In this context,
we urge countries receiving HIPC debt relief, working in cooperation with the IFIs, to
strengthen the quality of poverty reduction strategies, to enhance their ability to track and
monitor the savings from debt relief and to focus these savings on priority investments, such
as education and health, and to adopt and implement high quality reforms.
18. We look forward to further discussions on moving beyond debt relief in preparation for the
Genoa Summit. In this context, we underscore the importance of focusing on steps to
increase opportunities for trade, foster more favorable environments for attracting private
investment and promote efficient and coordinated investment in the social sector, as we work
toward the International Development Goals. In particular, we will work constructively with
others on a health initiative to tackle the infectious diseases of tuberculosis, malaria and
5

HIV/AIDS.

Action Against the Abuses of the Global Financial System
19. We reaffirm our support for all the objectives of the multilateral effort to fight against abuse
of the global financial system. We express our support for the ongoing work of FA TF, and
we welcome the significant progress made by most of the 15 jurisdictions listed by FATF as
non-cooperative countries and territories (NCCTs) in June 2000 towards addressing the
deficiencies in their anti-money laundering systems. We encourage those jurisdictions to
implement needed reforms. We note our continued commitment to maintain a dialogue with
these countries, to provide training and technical assistance, to delist those making adequate
progress, and to implement coordinated measures as may be recommended by FATF against
those NCCTs where dialogue has failed to generate sufficient progress. In addition, we
welcome the FATF decision to undertake a review of its 40 recommendations to strengthen
the international money laundering standard. We also welcome the IMF and World Bank
Boards' recent decisions to recognize the FATF 40 Recommendations as the appropriate
international standard for combating money laundering and encourage the Fund and the
Bank, working in collaboration with FATF, to incorporate the relevant FATF 40
Recommendations into a ROSC module as soon as possible.

DEPARTMENT

THE

TREASURY

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For immediate release -April 28, 2001

Contact: Public Affairs
(202) 622-2960

Statement by Treasury Secretary Paul O'Neill following the G-7 Meeting

It was a pleasure to host my G-7 colleagues here in Washington. I enjoyed our candid
and productive discussions.

We all agreed that growth in all our economies is crucial to global prosperity. I
emphasized to my colleagues my belief that in the US, the foundations for economic expansion
are sound. In fact, the prospects for improving the world standard of living are better now than
at any time in our history.
We had a good discussion of the IMF' s work on crisis prevention and crisis resolution.
stressed that strong and effective crisis prevention is a top priority. Both the IMF and individual
countries should play key roles in this effort. Learning from previous experience, and with a
view to forestalling crises, we resolved to monitor economic and financial developments more
closely and to encourage early action to correct policies. The IMF needs to sharpen its focus on
financial markets and their implications for the sustainability of capital flows.
We invited President Wolfensohn of the World Bank to join us in a candid discussion of
reform of the multilateral development banks (MDBs). MDBs must continue to playa crucial
role in supporting economic development and should ensure that their operations to reduce
poverty in developing countries concentrate on enhancing productivity growth and raising
income per capita. Towards these ends, they should adopt a more selective approach that
sharpens the focus and improves the effectiveness of their operations.
--30--

PO-333

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DEPARTMENT

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~17R~Q. . . . . . . . . . . . . .. .

. . . . . . . . . . . . . .

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

Office of Public Affairs
Statement by U.S. Treasury Secretary Paul O'Neill
to the International Monetary and Financial Committee
Washington, D.C.
April 29, 2001

It is a pleasure to join colleagues for my first IMF and World Bank Spring Meetings

Although global growth has slowed since last fall, it is important to focus on the sound
foundation for recovery that is already in place and take further steps to strengthen prospects.
While the U.S. economy has slowed, I have confidence in its resilience. Economic fundamentals
- productivity growth, the flexibility of our labor and capital markets, and low inflation - remain
strong. The slowing economy reinforces the need for immediate and permanent tax relief to
undergird more vigorous economic growth. Others, too, need to contribute to strong global
growth. Japan and Europe have work to do as well. And developing countries also need to do
more to lay the foundation for a bright future. A healthy global economy requires all of us to
perform to our full potential.
We must all focus on the challenge of working together to forge the most effective IMF possible.
I also believe that we need to create an institution that is ever more focused, effective and
accountable. I envision an IMF that, while sharpening its ability to respond to financial
disruptions swiftly and appropriately, does so less frequently because it has succeeded in
preventing crises from developing in the first place. This means making clear diagnoses of
problems that are still at an early stage and taking the proper policy steps before a problem turns
into a crisis.
The ongoing review of conditionality offers further opportunities to set priorities for the Fund's
endeavors. I look forward to further discussion to ensure that key issues receive full
consideration. It will be particularly important to consider a number of questions, such as, how
to achieve country ownership of high quality programs, how to promote selectivity in lending,
how to ensure that programs address macroeconomically relevant challenges facing countries,
and how to maintain the integrity and accountability of the Fund.

I also want to highlight recent progress at the Fund in the ongoing fight against financial abuse.
Anti-money laundering efforts are critical to the integrity of the international monetary system,
which is central to the IMF's role. I welcome the recent decision in the Fund to recognize the
Financial Action Task Force standard for combating money laundering that has been endorsed
by countless international groups representing a significant majority of countries.

For press releases., speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·u.s. Government Printing Office:

1998 - 619-559

In closing, I want to stress one current that should run through all of our efforts to strengthen the
effectiveness of the IMF - enhancing transparency and accountability. The days are long past
when the work of public institutions could be largely shielded from public view. I look forward
to meaningful discussions on how we can make further progress on these important issues.
-END-

DEPARTMENT

THE

IREASURY til)

TREASURY

NEW S

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960

April 29 and April 30, 2001

Contact: Public Affairs
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STATEMENT OF TREASURY SECRETARY PAUL H. O'NEILL
TO FRAME DISCUSSIONS AT
THE JOINT IMFC/DEVELOPMENT COMMITTEE MEETING
AND THE DEVELOPMENT COMMITTEE MEETING
WASHINGTON, D.C.
Effective, accountable and strong international financial institutions remain a very
important part of the international financial architecture and a strong national interest. That said,
I feel a tremendous sense of responsibility as a shareholder in the institutions and as a custodian
of national tax dollars to make the IFIs more effective and more accountable.
When countries have a good policy environment, the IFIs can have an important
development impact if assistance is focused on increasing productivity. Raising productivity
increasing the amount of goods and services that each worker can produce in a day -- is the
ultimate driver of higher incomes per capita and reduced poverty. Prioritizing productivity
growth in the work ofthe Bank and the Fund by spurring more and better capital, more and
better technology, and more and better social investments to its borrowers -- particularly the
poorest -- will be one of this Administration's goals.
Expansion of world trade is also a leading priority. For the poorest countries, the
potential benefits from trade far outweigh any other form of resource transfer. The World Bank
and regional development banks have an important role to play in helping developing countries
to take advantage oftrade opportunities by strengthening their capacity to produce and export
goods.
We will also be fighting hard to shift the resources IFIs spend fire-fighting crises to crisis
prevention. Preventing financial crises through early and clear diagnoses of problems, and
taking the proper, often tough, policy response is critical. In this respect, assessments of country
fiduciary and social safeguard policies should be routinely done, particularly prior to IFI lending,
with remedial actions incorporated into loans.
We will continue to pursue MDB reform, including better coordination among the
MDBs; strengthened efforts to promote good governance and public sector management in
borrowers; and improved internal MDB governance to ensure compliance with approved policies
and maximize transparency.
PO-335
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·U <; GnvprnmAnt PnnlinO OH,ce: 1998 - 619-559

In our quest for higher accountability in the use ofIFI resources, we will remain vigilant
of attempts to shift a higher level of Bank lending to budget support without evidence that it
yields higher development effectiveness and without a clear assessment of its operational and
fiduciary risks. We will continue to look for concrete, measurable results of IFI engagement.

DEPARTMENT

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EMBARGOED UNTIL 3:00 P.M.
April 30, 2001

CONTACT: Tony Fratto
(202) 622-2960

TREASURY ANNOUNCES MARKET FINANCING ESTIMATES
The Treasury Department announced today that it expects to pay down $187
billion in marketable debt during the April - June 2001 quarter and to target
a cash balance of $60 billion on June 30. -This includes the paydown of
$178 billion in marketable Treasury securities and the buyback of an
estimated $9 billion in outstanding marketable Treasury securities. In the
quarterly announcement on January 29,2001, the Treasury announced that it
expected to pay down a total of $197 billion in marketable debt and to target
an end-of-quarter cash balance of $60 billion. The decrease in the paydown
is the result of a lower cash balance at the beginning of the quarter partially
offset by higher net issuances of State and Local Government Series
securities.
The Treasury also announced that it expects to pay down $57 billion in
marketable debt during the July - September 2001 quarter and to target a
cash balance of $60 billion on September 30.
During the January - March 2001 quarter, the Treasury raised $18 billion in
marketable debt and ended with a cash balance of $28 billion on March 31.
On January 29, the Treasury announced that it expected to raise $46 billion
in marketable debt and to target an end-of-quarter cash balance of $45
billion. The decrease in the issuance of marketable debt reflected increased
issuances of State and Local Government Series securities and a lower endof-March cash balance.
The Quarterly Refunding Press Conference will be held at 9:00 A.M. on
Wednesday, May 2, 2001.
PO-336

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PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

OR IMMEDIATE RELEASE
pril 30, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
9l-Day Bill
May 03, 2001
August 02, 2001
912795HE4

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.885%

Investment Rate 1/:

3.978%

Price:

99.018

All noncompetitive and successful competitive bidders were awarded
ecurities at the high rate. Tenders at the high discount rate were
llotted 28.35%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Accepted

Tendered

Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

16,903,984
1,399,756
425,000

9,000,003 2/

18,728,740

SUBTOTAL

TOTAL

4,852,035

Federal Reserve
$

23,580,775

7,175,247
1,399,756
425,000

13,852,038

Median rate
3.850%: 50% of the amount of accepted competitive tenders
is tendered at or below that rate.
Low rate
3.810%:
5% of the amount
: accepted competitive tenders was tendered at or below that rate.
ld-to-Cover Ratio
I
I

18,728,740 / 9,000,003

2.08

Equivalent coupon-issue yield.
Awards to TREASURY DIRECT = $1,154,422,000

http://www.publicdebt.treas.gov

-337

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

IMMEDIATE RELEASE
_pril 30, 2001

'OR

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:

182-Day Bill
May 03, 2001
November 01, 2001
912795HU8
3.860%

High Rate:

Investment Rate 1/:

3.991%

Price:

98.049

All noncompetitive and successful competitive bidders were awarded
;ecurities at the high rate. Tenders at the high discount rate were
lllotted 51.60%.
All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Accepted

Tendered

Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

22,177,112
1,124,205
100,000

8,000,017 2/

23,401,317

SUBTOTAL

TOTAL

4,307,692

Federal Reserve
$

27,709,009

6,775,812
1,124,205
100,000

12,307,709

Median rate
3.825%: 50% of the amount of accepted competitive tenders
'as tendered at or below that rate.
Low rate
3.800%:
5% of the amount
If accepted competitive tenders was tendered at or below that rate.
,id-to-Cover Ratio

23,401,317/8,000,017 = 2.93

/ Equivalent coupon-issue yield.
/ Awards to TREASURY DIRECT = $896,853,000

http://www.publicdebt.treas.gov
)0-338

DEPARTMENT

THE

TREASURY

~17R~Qa.. . . . . . . . . . . ..

..............

omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960
AprIl jU, LUU 1

Contact: Tara Bradshaw
(202) 622-2960

For Immediate Release

ANDREW B. LYON JOINS AS DEPUTY ASSISTANT SECRETARY
FOR TAX ANALYSIS
Today, Andrew B. Lyon joined as the Deputy Assistant Secretary (Tax Analysis) for the
U.S. Department of the Treasury. He will provide economic advice and analysis for the
Office of Tax Policy with regard to all aspects of the economics of Federal taxation. The
Deputy Assistant Secretary (Tax Analysis) is the reporting authority for the Office of Tax
Analysis, which advises and assists Mark Weinberger, Assistant Secretary (Tax Policy),
and his deputies in the development, analysis, and implementation of tax policies and
programs.
"We are thrilled to have Drew leading our Tax Economic Analysis team," said Mark
Weinberger, Assistant Secretary (Tax Policy). "His expertise in economics and his broad
knowledge of taxation make him a perfect fit."
Prior to his appointment as Deputy Assistant Secretary, Drew was an Associate Professor
of Economics at the University of Maryland. He also was a senior economist with
PricewaterhouseCoopers LLP in the firm's Washington National Tax Services office. He
has published numerous articles covering a wide range of tax issues, including the
alternative minimum tax, consumption taxation, distributional analysis oftax reform, and
social security financing. He previously held positions with the President's Council of
Economic Advisers and the Congressional Joint Committee on Taxation.
Drew received an A.B., with distinction and Phi Beta Kappa, from Stanford University
and received his Ph.D. in economics from Princeton University. He has been a faculty
research fellow at the National Bureau of Economic Research and was a visiting fellow at
the Brookings Institution. He is a member of the American Economic Association and the
National Tax Association. Drew lives in Maryland with his wife and two children.

-30PO-339

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·u.s

Government Printing Office 1998 - 619-559

DEPARTMENT

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TREASURY

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FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
May 1,2001

Contact: Public Affairs
(202) 622-2960

DIRECTOR OF THE OFFICE OF MACROECONOMIC ANALYSIS JOHN H. AUTEN
REMARKS TO THE TREASURY BORROWING ADVISORY COMMITTEE
OF THE BOND MARKET ASSOCIATION

When we met three months ago, the economy was in the early stages of a slowdown
whose eventual resolution was difficult to judge. It was obvious that there was increased
downside risk for the economy, but equally obvious that there were important elements of
continuing strength. Now, three months later, that somewhat uneasy balance between strength
and weakness still persists.
Strength can be said to have predominated in the first quarter Gross Domestic Product
results reported at the end of last week -- certainly in the headline number -- with real growth
rising to 2 percent annual rate from 1 percent in the final quarter of last year. It is even more
impressive that auto sales which fell so precipitously late in the fourth quarter of last year
recovered so quickly in the first quarter of this year. Coupled with cuts in production, auto and
light truck inventories have been brought back into a more normal relationship with sales.
Inventories early in the first quarter were averaging in the 90 to 100 day supply range and have
since been reduced to the 60 to 65 day range generally regarded as closer to optimal.
While rapid resolution of the auto inventory problem is surely a sign of strength, the
sluggish pace of inventory adjustment in the high-tech area in the early months of this year can
only be regarded as a sign of weakness. High-tech inventories accumulated at a record rate for
that industry in the fourth quarter oflast year and in book-value terms even a little more than for
autos. The difference is that auto inventories have quickly been reduced into better alignment
with sales while high-tech inventories have not. High-tech inventory accumulation slowed in
January and February at the manufacturing level but shipments slowed even more and inventory
levels still appear to be excessive.

PO-340

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2
One reason that the auto inventory adjustment has gone more smoothly is that the
industry sells its product largely, although not exclusively, t~ cons~ers wher~ demand has ?een
well maintained. The high-tech industry is heavily engaged m busmess-t.o-busmess .transactIOns
where demand has faltered at least temporarily. Real personal consumptIon expenditure has
been remarkably unaffected by the recent slowdown, rising at nearly a 3 percent annual rate of
growth in the fourth quarter and at a little more than a 3 percent rat.e in the. first quarter. In
marked contrast, business capital spending on information-processmg eqUIpment and software
rose at a 10 percent annual rate in the fourth quarter and fell at about a 6-112 percent annual rate
in the first quarter. Strength in consumption and weakness in business capital spending,
particularly in the high-tech area, is becoming an increasingly important feature of the current
economic situation.
Continuing strength in consumer outlays and growing weakness in capital spending is
explained to some degree by recent developments in the wage-productivity-profit area. During
the second half of last year, hourly compensation (wages plus benefits) for the nonfarm business
sector rose at about a 6-112 percent annual rate in nominal terms and productivity grew at a little
above a 2-112 percent annual rate, leaving nearly a 4 percent rise in unit labor costs. During the
same period, the implicit price deflator for nonfarm output (the prices on average that
corporations charged) rose by only about 1-112 percent, down from a 2-112 percent rate of
increase in the first half of the year. In other economic environments, corporations might have
passed through the increase in unit labor costs in the second half of the year with inflationary
consequences. In the recent environment with very little corporate pricing power -- aside from
some energy sectors -- the inevitable result has been a severe squeeze on unit profits and some
increased uncertainty as to the outlook for capital spending. Comprehensive wage-productivityprofit data are not available yet for the first quarter, but from all indications much the same
pattern has persisted.
Private consensus forecasts for the economy remain relatively optimistic. The Blue Chip
consensus of 50-some economists at major corporations, financial institutions and academic
research organizations provides a useful summary. Their growth projections have been scaled
down considerably in the light of recent developments. For example, the consensus projection
for real growth over the four quarters of this year was 3.5 percent last September, 3.0 percent last
December and 2.0 percent by this April. That 2 percent path consisted of a slow start with only a
0.9 percent rate of growth in the first quarter, in contrast to the higher 2 percent figure released
last week, followed by gradually firmer growth during the balance of the year, reaching a little
more than a 3 percent rate by the fourth quarter.
. ~his and si~ilar private forecasts, such as that released last week by the National
ASSOCIatIOn. of Busmess Econo~ists, are inherently plausible. There has not been much sign of
the cun:ulatlve type of economIC weakness which might drive the economy sharply lower, and
some SIgnS th~t the.eco.nomy may already have bottomed with growth still positive. So a
c~utI.ou~ly optimIstiC view of near term economic prospects seems to be warranted. Caution is
s~dl indicated because economic strengths and weaknesses are closely balanced with downside
nsk not yet completely removed from the picture.

3
Recent high-frequency statistical readings, some of them more forward looking than the
comprehensive first quarter Gross Domestic Product results, may provide additional perspective
on the near-term outlook.
•

The Conference Board's index of leading economic indicators continues to trend
downward, but in a gradual fashion more consistent with slow growth than anything
worse.

•

Both the Conference Board's index of consumer confidence and the University of
Michigan's index of consumer sentiment suggest an increasingly cautious attitude on the
part of consumers.

•

The Conference Board's quarterly survey of business confidence plunged to a very low
level at the end of last year, but had rebounded considerably by the end of the first
quarter. The assessment of current conditions was still depressed but expectations for
business conditions over the next six months had improved relative to the previous
survey.

•

Weekly initial claims for unemployment insurance continue on an upward path. This
suggests that even with the continuation of slow to moderate growth on an economy-wide
basis, labor markets may soften somewhat further.

•

Both new and existing home sales rose in March with mortgage rates hovering near a
relatively low 7 percent. It may be significant that at the end of the first quarter both the
housing and auto markets -- traditionally where any serious cyclical weakness might be
expected to emerge -- remained relatively strong.

That is a summary of recent economic developments and the near-term economic
outlook.

DEPARTMENT

THE

TREASURY

17!\Q

OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960

u.s. International Reserve Position

05/01/01

u.s.

The Treasury Department today released
reserve assets data for the week ending April 27, 2001. As indicated in this
table,
reserve assets totaled $65,036 million as of April 27, 2001, down from $65,249 million as of Apri120, 2001.

u.s.

US millions)

Official U.S. Reserve Assets

TOTAL
Foreign Currency Reserves

a. Securities
Ofwhicil, issuer headquartered in the

Special Drawing Rights (SDRs)
Gold Stock

:Jther Reserve Assets

April 27, 2001

65,249

65,036

Yen
10,757

u.s.

b. Total deposits with:
b.i, Other central banks and BIS
b.ii. Banks headquartered in the U.S.
b.ii. Of whic.'l. banks located abroad
b.iii, Banks headquartered outside the U.S,
b.lii. Of which, banks localed in the U.S,
IMF Reserve Position

Euro
5,331

April 20,2001

TOTAL

Euro

16,088

5,3~3

Yen
10,649

TOTAL

°
9,1..l1

4,657

13.798
0
0

8,99b

-+.610

13,606
,)

0
0

~3,886

13,9../6

10,-L32

10,../77

11,046

Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
JOMA), valued at current market exchange rates. Foreign currency holdings listed as securities reflect marked-to~market values, and
,posits reflect carrying values.
The items, "2. IMF Reserve Position" and "3. Special Drawing Rights (SORs)," are based on data provided by the IMF and are valued in
llJar terms at the official SORJdollar exchange rate for the reporting date. The IMF data for April 20 are final. The entries in the table above
r April 27 (shown in italics) reflect any necessary adjustments, including revaluation, by the U.S. Treasury to the prior week's IMF data.
Gold stock is valued monthly at $42.2221 per fine troy ounce. Values shown are as of March 31, 2001. The February 28, 2001 value was
1,046 million.

0-341

>5,962

u.s. International Reserve Position (cont'd)
Predetermined Short-Term Drains on Foreign Currency Assets
April 20, 2001
=oreign currency loans and securities
~ggregate

April 27, 2001

o
o
o

short and long positions in forwards and

futures in foreign currencies vis-a-vis the U.S. dollar:

2.a. Short positions
2.b. Long positions
Other

Contingent Short-Term Net Drains on Foreign Currency Assets
April 20, 2001
Contingent liabilities in foreign currency
.a. Collateral guarantees on debt due within 1 year
.h. Other contingent liabilities
Foreign currency securities with embedded options
Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U. S.
3.e. With banks and other financial institutions
headquartered outside the U. s.
Aggregate short and long positions of options in foreign
currencies vis-ii-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calls
4.b. Long positions
4.b.1. Bought calls
4.b.2. Written puts

April 27, 2001

o
o

DEPARTMENT

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'IREASURY f.)

TREASURY

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For immediate release
May 1,2001

Contact: Rob Nichols/Tara Bradshaw
(202) 622-2960

O'NEILL: TREASURY WILL BE READY TO ISSUE REFUND CHECKS

In order for the Treasury to be prepared to send tax relief to the American people quickly,
Treasury Secretary Paul O'Neill yesterday approved the purchase of paper necessary to print and
mail checks for the retroactive portion of the President's tax cut.
''I'm hopeful the Congress will vote on tax relief by June 1," O'Neill said. "The Treasury
Department will be ready, willing and able to implement the President's tax relief plan as soon as
Congress acts."
Congress has now agreed to send a portion ofthis year's budget surplus back to taxpayers
this year. The Senate budget resolution included $85 billion for this purpose. Secretary O'Neill
has ordered the IRS to consider how they would implement such a tax refund, should Congress
include one as it considers the President's tax relief plan.
Secretary O'Neill yesterday gave approval for the Financial Management Service to prepurchase the paper on which the refund checks will be printed and the envelopes in which the
checks will be mailed. The purchase may cost up to $4 million, and much of the paper could be
used for other purposes in the event Congress does not authorize refund checks.
"It's important to enact the President's tax relief plan quickly to give the slowing
economy a much needed second wind," said Treasury Secretary Paul O'Neill. "We're working to
put money back in the hands of the people who earned it, and to do it this year."
--30-PO-342

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TREASURY

f.) NEW S

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For Immediate Release
May 2, 2001

Contact: Tony Fratto
(202) 622-2960

DEPUTY ASSIST ANT SECRETARY FOR FEDERAL FINANCE
MICHAEL J. PAULUS
REMARKS AT THE MAY 2001 TREASURY QUARTERLY REFUNDING
Good morning. I am pleased to be with you today to discuss the government's refunding
needs for the current quarter. In addition, I will be making a few announcements with respect to
other aspects of Treasury's debt management.
Debt Paydown
On Monday, Treasury announced that we expect to pay down an estimated $187 billion
of outstanding marketable debt during the April-June quarter. When the additional paydown of
$57 billion that is currently estimated for the July-September quarter is considered, we expect to
have paid down $252 billion in marketable Treasury debt for the fiscal year.
Debt Buybacks
Since our last quarterly refunding announcement, we have successfully completed our
buyback operations for the January-March quarter, purchasing $9 billion par amount of
securities. We continue to be pleased with the results of our buyback operations.
In February we announced that we expect to conduct buybacks in the current April-June
quarter of approximately $9 billion par amount. We now expect to slightly increase the amount
of buy backs this quarter to approximately $10 billion.

Additionally, today we are announcing that we expect to conduct buybacks of
approximately $10 billion par amount of securities in the July-September quarter.
4-Week Bill
One of Treasury's primary debt management goals is efficient cash management. This
task has been made more challenging in recent years due to the increasing volatility of
Treasury's cash balances. This volatility has been due to an increase in tax receipts, an increase
in government expenditures, and a reduction in the frequency with which we issue debt as we
have responded to growing budget surpluses.

PO-343
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Traditionally, the Treasury has adjusted its short term bill issuance in response to
expected cash needs, and has issued cash management bills to cover periods of cash shortfall.
Due to the greater volatility of our cash balances over the past few years, however, we have
increasingly relied upon the use of cash management bills. Increasing the issuance of cash
management bills is not the most cost-efficient means of financing our short-term cash needs. In
addition, the Treasury's Borrowing Advisory Committee has recommended that we move to the
regular issuance of a new short-term bill.
Consequently, we are planning to introduce a 4-week bill before the end of this fiscal
year. This will provide Treasury with greater flexibility in managing our cash needs, reduce our
dependence on cash management bills, and improve the cost-efficiency of our short-tenn
financing. We will provide further details on the introduction of the 4-week bill at a later date.
35 Percent Rule

In the November 2000 refunding announcement, Treasury indicated we were studying
potential changes to the application of the 35 percent rule to our auctions. This rule currently
limits the sum of a bidder's net long position plus its competitive awards to 35 percent of the
auction amount. In the case of a reopening, holdings of the outstanding security are counted in
the calculation of a bidder's net long position. The Borrowing Advisory Committee has also
recommended that we revise the manner in which we apply this rule.
During the upcoming quarter we will be releasing for public comment a proposed change
to the rules that limit the size of awards in Treasury's auctions. We look forward to receiving
comments from market participants on this issue and will review all responses carefully as we
address this issue going forward.
Terms of the May Refunding

I will now tum to the terms of the May Refunding. We are offering $22 billion of notes to
refund approximately $21 billion of privately held notes and bonds maturing on May 15,
borrowing approximately $1 billion. The securities are:
•
•

A 5-year note in an amount of$13 billion, maturing May 15,2006.
Are-opening of the 5% 10-year notes issued in February 2001, maturing February 15,
2011, in an amount of $9 billion.

These securities will be auctioned on a yield basis at 1:00 pm eastern time on Tuesday, May
8 and Wednesday, May 9, respectively.

As announced on Monday, we estimate that we will have a $60 billion cash balance on
June 30 and a $60 billion cash balance on September 30. We expect to issue cash management
bills this quarter to bridge seasonal low points in our cash position.
In keeping with Treasury's traditional practice, we will continue to announce any
changes to our debt management policy at our quarterly refunding press conferences. Our next
quarterly refunding announcement will take place on Wednesday, August 1.

-30-

EPA R T 1\1 E N T

0 F

THE

T REA SUR Y

NEWS
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C. • 20220. (202) 622-2960

Contact:

For Immediate Release
Wednesday, May 2, 2001

Rob Nichols
(202) 622-2910

STATEMENT BY TREASURY SECRETARY PAUL O'NEILL ON THE PRESIDENT'S
COMMISSION TO STRENGTHEN SOCIAL SECURITY
I share President Bush's goal of making Social Security stronger and more secure for this
generation and for future generations. We must take action now to enhance personal retirement
security by putting Social Security on a firm financial footing so we can keep our commitment to
current seniors and also meet the needs of our childfen and grandchildren.
Ownership, access to wealth and independence should not be the privilege of the few.
They are the hope of every American, and we must make them the foundation of Social Security.
Modernizing Social Security with voluntary personal retirement accounts will enable
individuals to build financial wealth and retirement security in a way that the current Social
Security system does not. Personal accounts invested in safe private financial markets will earn
higher rates of return than the traditional system and help workers enhance their personal savings
and their freedom to retire. Individual ownership of a real financial asset will protect against
political risk over retirement investment decisions, providing more security for working
Americans.
Since at least 1926, the real return on a portfolio of equities held for 40 years has always
exceeded the real return on a portfolio of government bonds held for 40 years. It's time to put
the miracle of compound interest to work for all Americans.
-30-

PO-344

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
·u.s. Government Printing Office:

1998 - 619-559

EPA R T t\l E N 'f

TREASURY

() J;'

THE

T REA SUR Y

{.'i NEW S

FOR RELEASE WHEN AUTHORIZED AT PRESS CONFERENCE
May 2, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY MAY QUARTERLY FINANCING
The Treasury will auction $13,000 million of 5-year notes and $9,000
million of 9-3/4-year 5% notes to refund $21,390 million of publicly held
securities maturing May 15, 2001, and to raise about $610 million of new
cash.
In addition to the public holdings,. Federal Reserve Banks hold $5,632
million of the maturing securities for their own accounts, which may be
refunded by issuing additional amounts of the new securities.
Up to $1,000 million in noncompetitive bids from Foreign and International Monetary Authority (FlMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of
each auction.
These noncompetitive bids will have a limit of $200 million
per account and will be accepted in the order of smallest to largest, up
to the aggregate award limit of $1,000 million.

TreasuryDirect customers requested that we reinvest their maturing
holdings of approximately $177 million into the 5-year note and $14 million
into the 9-3/4-year note.
All of the auctions being announced today will be conducted in the
single-price auction format. All competitive and noncompetitive awards will
be at the highest yield of accepted competitive tenders. The allocation
percentage applied to bids awarded at the highest yield will be rounded up to
the next hundredth of a whole percentage point, e.g., 17.13%.
All of the securities being offered today are eligible for the STRIPS
program.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue
of Marketable Book-Entry Treasury Bills, Notes, and Bonds (31 CFR Part 356,
as amended).
Details about the notes are given in the attached offering highlights.

PO-345

000

Attachment
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFBRINGS TO THE PUBLIC
MAY 2001 QUARTERLY FINANCING
May 2, 2001
Offering Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,000 million

$9.000 mi 11ion

Description of Offering:
Term and type of security . . . . . . . . . . . . . . . . . . . . . . . . . .
Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CUSIP number . . . . . . . . . . . . . . . . . . . . . . . . . . . . '" ........
Auction date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dated date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maturity date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9-3/4-year notes (reopening)
B-2011
912827 6T 4
May 9, 2001
May 15, 2001
February 15. 2001
February ,15, 2011

Amount currently outstanding . . . . . . . . . . . . . . . . . . . . . . .
Yield . . . . . . . . . . . . . . . . . " ........ , . . . . . . . . . . . . . . . . . .
Interest payment dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum bid amount and multiples . . . . . . . . . . . . . . . . . . .
Accrued interest payable by investor ..............

5-year notes
E-2006
912827 6X 5
May 8, 2001
May 15, 2001
May 15, 2001
May 15. 2006
Determined based on the highest
accepted competitive bid
Not applicable
Determined at auction
November 15 and May 15
$1,000
None

Premium or discount

Determined at auction

$11.976 million
Determined at auction
August 15 and February 15
$1,000
$12.29282 per $1,000 (from
February 15. 2001 to May 15. 2001)
Determined at auction

STRIPS Information:
Minimum amount required . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000
Corpus CUSIP number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 912820 GG 6
Due date(s) and CUSIP number(s)
for additional TINT(s)
. . . . . . . . . . . . . . . . . . . . . . . . . . Not applicable

$1,000
912820 GC 5
Not applicable

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $5,000,000 at the highest accepted yield.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids submitted through the Federal Reserve Banks as
agents for FIMA accounts.
Accepted in order of size from smallest to largest with no more than $200 million awarded per account. The total
noncompetitive amount awarded to Federal Reserve Banks as agents for FIMA accounts will not exceed $1,000 million. A single bid that would
cause the limit to be exceeded will be partially accepted in the amount that brings the aggregate award total to the $1,000 million limit.
However, if there are two or more bids of equal amounts that would cause the limit to be exceeded, each will be prorated to avoid exceeding the
limit.
Competitive bids:
(1) Must be expressed as a yield with three decimals, e.g., 7.123\.
(2) Net long position for each bidder must be reported when the sum of the total bid amount, at all yields. and the
net long position is $2 billion or greater.
(3) Net long pOSition must be determined as of one half-hour prior to the closing time for receipt of competitive tenders.
Maximum Recognized Bid at a Single Yield:
35\ of public offering
Maximum Award: . . . . . . . . . . . . . . . . . 35% of public offering
Receipt of Tenders:
Noncompetitive tenders . . . . . . . . . Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders ..........•. Prior.to 1:00 p.m. eastern daylight saving time on auction day
payment Terms: . . . . . . . . . . . . . . . . . By charge to a funds account at a Federal Reserve Bank on issue date, or payment of full par amount with tender.
TreasuryDirect customers can use the Pay Direct feature which authorizes a charge to their account of record at their
financial institution on issue date.

D EPA R T l\1 E N T

0 F

THE

T REA SUR Y

NEWS
omCEOFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE. N.W. - WASlDNGTON. D.C. - 20220 - (202) 622.2960

For Immediate Release:
May 2, 2001

Contact: Public Affairs
(202) 622-2960

TESTIMONY OF TREASURY ACTING UNDER SECRETARY
DONALD V. HAMMOND BEFORE THE SUBCOMMITTEE ON FINANCIAL
INSTITUTIONS AND CONSUMER CREDIT
OF THE COMMITTEE ON FINANCIAL SERVICES
U.S. HOUSE OF REPRESENTATIVES

Chainnan Bachus, Ms. Waters, and Members of the Subcommittee, I appreciate the
opportunity to appear here today to discuss the joint Federal Reserve-Treasury rule proposal on
whether to pennit financial holding companies and financial subsidiaries of national banks to
engage in real estate brokerage and real estate management under the Gramm-Leach-Bliley Act.
The four-month public comment period for this proposal ended yesterday. Based on the
substantial number of comment letters that the Treasury and the Federal Reserve Board have
received, there clearly is wide public interest in this proposal. We received comments from
several of the Members and witnesses at today's hearing and note that the hearing transcript will
be made part of our rulemaking record. We will carefully review the issues raised by all the
commenters.
Because the rulemaking is pending, I will not be able to discuss the Treasury's views on
substantive issues involved in making a final decision about the proposed rule. Instead, my
prepared remarks will briefly describe the process and factors we considered in making the
proposal and where it stands today.
By way of background, let me begin by highlighting the key provisions of the GrammLeach-Bliley Act that relate to the rulemaking.

Rulemakin2 Provisions of the Gramm-Leach-Bliley Act
At its core, the Gramm-Leach-Bliley Act (the Act) stimulates greater competition and
innovation in the financial services industry. At the same time, the legislation promotes
consumer protection and safety and soundness, and restricts the mixing of banking and
commerce.

PO-346

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2
To accomplish these outcomes, the Act amended the National Bank Act to allow national
banks to control qualifying "financial subsidiaries" that are permitted to engage in certain
activities that national banks may not conduct directly. This authority is separate from but has
some similarities to that of "financial holding companies" under the Bank Holding Company
Act.
The Act permits financial subsidiaries to engage in a broad range of specific activities, as
well as other activities the Treasury determines, in consultation with the Federal Reserve Board,
to be "financial in nature or incidental to a financial activity." According to the Conference
Report, the "financial in nature or incidental" standard represents a significant expansion of the
"closely related to banking" standard that the Board previously applied in determining the
permissibility of activities for bank holding companies.
Under the Act's consultation requirement, neither the Treasury nor the Board may
determine that an activity is financial in nature or incidental to a financial activity if the other
agency disagrees with such a determination in writing. We and the Board are working
cooperatively in making these determinations, as the joint proposal demonstrates.

In making determinations, the Gramm-Leach-Bliley Act requires us to take into account,
among other factors:
•
•
•
•

the Act's purposes,
changes in the marketplace in which banks compete,
changes in the technology for delivering financial services, and
whether the activity is necessary or appropriate to allow a bank and its subsidiaries to
compete effectively with any company seeking to provide financial services in the United
States. \
We also may consider other factors and information that we consider relevant.

The Act prohibits financial subsidiaries of national banks from engaging as principal in
certain specified activities, including real estate investment and development unless otherwise
expressly authorized by law.

Section 5 136A(b)(2) of the Revised Statutes (the National Bank Act) provides that:

"In detennining whether an activity is fmancial in nature or incidental to a fmancial activity, the Secretary shall take
into account (A) the purposes of this Act and the Gramm-Leach-Bliley Act;
(B) changes or reasonably expected changes in the marketplace in which banks compete;
(C) changes or reasonably expected changes in the technology for delivering fmancial services; and
(D) whether such activity is necessary or appropriate to allow a bank and the subsidiaries of a bank to(i) compete effectively with any company seeking to provide fmancial services in the United States;
(ii) efficiently deliver infonnation and services that are fmancial in nature through the use of technological
means, including any application necessary to protect the security or efficacy of systems for the transmission of data
or fmancial transactions; and
(iii) offer customers any available or emerging technological means for using financial services or for the
document imaging of data."

3
Let me tum now, Mr. Chairman, to a description of the process that the Treasury and the
Board are following and where the rulemaking stands currently.
Status of the Rulemakinl: Process

More than a year ago the Treasury and the Board received requests from the American
Bankers Association, the Financial Services Roundtable, and the New York Clearing House
Association asking that we determine that real estate brokerage and real estate management
activities are financial in nature or incidental to a financial activity. Shortly thereafter, the
National Association of Realtors sent a letter opposing such a determination.
In March 2000, the Treasury issued an Interim Final Rule setting forth specific
procedures for requesting determinations under the Act, and we invited the American Bankers
Association and the Financial Services Roundtable to resubmit their requests to conform to these
procedures. The American Bankers Association did so in July, and a month later Freemont
National Bank submitted a request that referenced the American Bankers Association's request.

After considering the factors specified in the Act and other relevant information, and
conSUlting with the Federal Reserve Board and its staff, in December we agreed with the Board
to issue a joint notice of proposed rulemaking with a 60-day comment period. The proposal was
published in the Federal Register on January 3rd •
Following pUblication, it soon became apparent that there was a great deal of public
interest in the proposal. Given this wide public interest and our desire to give the public
sufficient time to consider and comment on the proposal, and in view of letters we received
requesting an extension, the Treasury and the Board decided to extend the comment period
another 60 days.
As I mentioned, the comment period has now closed and we are shifting to the comment
review process. Of the numerous comment letters we and the Federal Reserve have received,
most have come from real estate brokers expressing the same or similar views. We are in the
process of reading and analyzing the comment letters, and we will give serious consideration to
the views expressed.
Mr. Chairman, let me highlight just a few points about the proposal itself.
The Elements of the Proposal
In assessing the requests we received to approve real estate brokerage, we concluded that
a threshold case can be made that direct competition exists between real estate brokers and
banking organizations. For example, as the proposal notes, some depository institutions already
engage in real estate brokerage. According to information provided by the Conference of State
Bank Supervisors, 26 states appear to permit their state-chartered banks or subsidiaries to act as
general real estate brokers. The Office of Thrift Supervision has determined that service
corporation subsidiaries of federal savings associations may provide general real estate
brokerage services.

In addition, banks and bank holding companies participate in most aspects of the typical
real estate transaction other than brokerage. These activities include real estate lending, leasing,
appraisal and investment advisory services, settlement and escrow services, arranging
commercial real estate equity financing, and providing title and private mortgage insurance.
Banks and bank holding companies also engage in a variety of activities that at first glance seem
functionally and operationally similar to real estate brokerage, including finder activities and
securities and insurance brokerage.
The proposal notes that as the financial marketplace continues to evolve, it appears that
many financial companies are adding real estate brokerage to their menu of services. Buyers and
sellers of real estate increasingly may look to a single company to provide all their real estaterelated needs.
The proposal also notes that existing federal and state laws should operate to mitigate the
potential adverse effects of combining banking and real estate brokerage. For example, the
anti tying rules would prohibit the bank from extending credit, furnishing any service, or varying
the consideration for any loan or service on the condition that the customer obtain real estate
brokerage services from the bank or any affiliate, including a financial subsidiary.
If a customer obtained real estate brokerage services from a bank affiliate or financial
subsidiary, the Federal Reserve Act would require any mortgage loan made by the bank to that
customer to be on market terms. The Federal Reserve Act also would limit the amount of credit
and certain other forms of support that a bank could provide to a real estate brokerage affiliate or
financial subsidiary.
In addition, because the proposed real estate brokerage services are activities conducted
as agent, with no principal risk involved, the proposed brokerage activity does not appear to
present significant financial risks to banking organizations or their depository institution
affiliates.

In discussing brokerage activities, our proposal highlights the issue of employee
relocation services, some of which seem less obviously a part of real estate brokerage than
others. The proposed rule would prohibit brokers from taking title to real estate brokered by the
company, but the proposal invites comment on whether taking title might be considered
incidental to real estate brokerage under certain circumstances.
We express some doubts in the proposal as to whether all aspects of real estate
management are financial in nature or incidental. For example, our proposal would preclude a
financial subsidiary or a financial holding company that provides real estate management
services from itself repairing or maintaining the managed real estate.

Conclusion

In conclusion, Mr. Chainnan, we intend to carefully consider the issues raised by all the
commenters, including the views expressed at this morning's hearing. As we move forward, the
Treasury will work closely with the Federal Reserve to ensure that this and other rulemakings
under the financial in nature authority are consistent with the criteria Congress prescribed, the
legal process, and the public interest.
Thank you. I am happy to respond to any questions.

-30-

(!)
(J)
(\J

federal financing
WASHINGTON, D.C. 20220

FEDERAL FINANCING BANK April 30, 2001
Kerry Lanham, Secretary, Federal Financing Bank (FFB) ,
announced the following activity for the month of March 2001.
FFB holdings of obligations issued, sold or guaranteed by
other Federal agencies totaled $39.3 billion on March 31, 2001,
posting an increase of $416.9 million from the level on February
28, 2001.
This net change was the result of an increase in
holdings of agency debt of $406.1 million and in holdings of
government-guaranteed loans of $67.5 million, and a decrease in
holdings of Agency Assets of $56.7 million.
FFB made 82
disbursements and received 13 prepayments during the month of
March.
Attached to this release are tables presenting FFB March
loan activity and FFB holdings as of March 31, 2001.

PO-347

0J c

(\J
(!)

(\J
if)
if)

ll..

c
c(J

C'
C
C'

u
U

Page 2
FEDERAL FINANCING BANK
MARCH 2001 ACTIVITY
Amount
of Advance

Final
Maturity

Interest
Rate

3/01
$330,000,000.00
3/01
$395,100,000.00
3/02 $1,400,000,000.00
3/02
$286,600,000.00
3/05 $1,625,000,000.00
3/05
$266,400,000.00
3/06
$200,000,000.00
3/06
$200,000,000.00
3/06
$200,000,000.00
3/06
$200,000,000.00
3/06
$600,000,000.00
3/06
$173,200,000.00
3/07
$360,000,000.00
3/07
$241,000,000.00
$200,000,000.00
3/08
3/08
$279,600,000.00
3/09
$366,000,000.00
$168,300,000.00
3/12
3/16
$150,000,000.00
3/16
$333,800,000.00
$450,000,000.00
3/19
$356,600,000.00
3/19
$300,000,000.00
3/20
$274,200,000.00
3/20
$170,000,000.00
3/21
$270,500,000.00
3/21
$550,000,000.00
3/22
$266,300,000.00
3/22
3/23 $1,100,000,000.00
$286,100,000.00
3/23
$275,000,000.00
3/26
$310,100,000.00
3/26
$100,000,000.00
3/27
$194,200,000.00
3/27
$164,400,000.00
3/28
$97,600,000.00
3/29
$800,000,000.00
3/30
$331,100,000.00
3/30

3/02/01
3/02/01
3/05/01
3/05/01
3/06/01
3/06/01
2/28/03
11/15/05
2/15/11
2/18/31
3/07/01
3/07/01
3/08/01
3/08/01
3/09/01
3/09/01
3/12/01
3/13/01
3/19/01
3/19/01
3/20/01
3/20/01
3/21/01
3/21/01
3/22/01
3/22/01
3/23/01
3/23/01
3/26/01
3/26/01
3/27/01
3/27/01
3/28/01
3/28/01
3/29/01
3/30/01
4/02/01
4/02/01

4.948%
4.968%
4.979%
4. ';,;6%
4.'::'08%
4.948%
4.543%
4.780%
4.999%
5.417%
4.966%
4.916%
4.948%
4.813%
4.916%
4.802%
4.852%
4.781%
4.667%
4.665%
4.646%
4.657%
4.665%
4.616%
4.657%
4.439%
4.616%
4.387%
4.439%
4.417%
4.387%
4.419%
4.417%
4.470%
4.460%
4.449%
4.460%
4.427%

$9,830.40
$38,909.93

10/01/26
1/30/02

5.477% S/A
4.619% S/A

Date

Borrower
ENCY DEBT
.S. POSTAL SERVICE
.S.
.S.
.S.
.S.
.S.
.S.
.S.
.S.
.S.
·.S.
.S.
·.S.
·.S.
·.S.
·.S.
·.S.
·.S.
'.S.
;.S.
:.S.
r.S.
r,S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.
r.S.

Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal
Postal

Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service

S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A

IVERNMENT - GUARANTEED LOANS
:ENERAL SERVICES ADMINISTRATION
:hamblee Office Building
.tlanta CDC Lab

3/05
3/05

Page 3
FEDERAL FINANCING BANK
MARCH 2001 ACTIVITY
Borrower

eTe

Building
tlanta CDC Lab
hamblee Office Building
tlanta CDC Lab
tlanta CDC Lab
an Francisco OB

Date

Amount
of Advance

Final
Maturity

Interest
Rate

3/14
3/23
3/27
3/28
3/30
3/30

$284,626.65
$5,559.95
$8,251.99
$936.65
$1,409,014.35
$449,576.78

11/02/26
1/30/02
10/01/26
1/30/02
1/30/02
8/01/05

5.446%
4.236%
5.416%
4.402%
4.272%
4.730%

S/A
S/A
S/A
S/A
S/A
S/A

3/12
3/12
3/12
3/12

$76,484.45
$49,464.10
$117,901.61
$283,810.37

9/04/29
9/04/29
9/04/29
9/04/29

5.323%
5.323%
5.323%
5.323%

S/A
S/A
S/A
S/A

3/01
3/02
3/02
3/02
3/05
3/05
3/07
3/13
3/15
3/16
3/16
3/16
3/16
3/20
3/20
3/21
3/21
3/21
3/21
3/23
3/26
3/26
3/26
3/26
3/27
3/28
3/29
3/29
3/30
3/30
3/30
3/30

$490,000.00
$219,000.00
$250,000.00
$4,549,OOO.OQ
$2,194,000.00
$213,000.00
$1,444,000.00
$921,000.00
$4,900,000.00
$500,000.00
$4,000,000.00
$530,000.00
$2,000,000.00
$450,000.00
$1,808,000.00
$380,000.00
$2,000,000.00
$2,697,000.00
$5,650,116.00
$7,000,000.00
$11,250,788.00
$698,690.00
$1,000,000.00
$556,000.00
$141,000.00
$6,648,000.00
$2,697,000.00
$15,006,000.00
$4,200,000.00
$230,000.00
$2,747,000.00
$2,583,000.00

1/03/34
6/30/05
4/01/02
12/31/25
1/02/35
1/03/34
12/31/29
12/31/09
1/03/34
3/31/05
1/02/35
1/02/35
1/02/35
1/03/34
6/30/11
1/03/34
7/02/01
1/03/34
12/31/25
1/03/34
1/03/28
1/03/28
7/02/01
12/31/29
12/31/15
4/01/02
1/03/34
12/31/31
7/02/01
1/03/34
1/03/34
7/02/01

5.299%
4.696%
4.417%
5.217%
5.334%
5.333%
5.347%
4.785%
5.227%
4.403%
5.170%
5.231%
5.232%
5.336%
4.781%
5.209%
4.444%
5.209%
5.161%
5.176%
5.333%
5.208%
4.271%
5.223%
4.860%
4.264%
5.403%
5.521%
4.289%
5.421%
5.421%
4.289%

Qtr
Qtr
Qtr
Qtr
Qtr
Qtr
Qtr
Qtr
Qtr
Qtr
Qtr
Qtr

EPARTMENT OF EDUCATION
ougaloo
ougaloo
ougaloo
ougaloo

College
College
College
College

URAL UTILITIES SERVICE
ri-County EMC #557
entral Texas Elec. #520
elaware County Elec. #682
. Farmers Elec. #701
llinois Electric #708
nited Elec. #519
erendrye Elec. #702
organ County Elec. #710
aurens Elec. #553
entral Texas Elec. #523
art Elec. #698
olk County #637
ebster Electric #705
elfalls Elec. #542
ackson Energy #527
gralite Elec. #543
LUE GRASS ENERGY #674
armers' Elec. #598
eorgia Trans. Corp. #559
orry Electric Coop. #536
airyland Power #588
airyland Power #589
rayson Rural Elec. #619
erendrye Elec. #702
itizens Tel (VA) #680
Te Communications #709
armers' Elec. #598
ash.-St. Tammany Elec. #483
umberland Valley #668
arland Light & Power #558
ighthouse Elec. #590
Jlin Rural Elec. #577
8/A is a Semiannual rate.
Qtr. is a Quarterly rate.

Qtr

Qtr
Qtr,
Qtr,
Qtr,
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.

Page 4
FEDERAL FINANCING BANK HOLDINGS
(in millions of dollars)

Program

March 31, 2001

February 28, 2001

Monthly
Net Change
3/1/01- 3/31/01

Fiscal Year
Net Change
10/1/00- 3131/01

Agency Debt:
U.S. Postal Service
National Credit Union Adm.-ClF
Subtotal *

$6,481.1
$4.0
$6,485.1

$6,075.0
$4.0
$6,079.0

$406.1
$0.0
$406.1

-$2,780.9
$4.0
-$2,776.9

Agency Assets:
FmHA-RDlF
FmHA·RHlF
DHHS-Medical Facilities
Rural Utilities Service-CBO
Subtotal*

$3,070.0
$5,155.0
$0.5
$4,270.2
$12,495.7

$3,070.0
$5,155.0
$0.5
$4,326.9
$12,552.4

$0.0
$0.0
$0.0
-$56.7
-$56.7

·$340.0
-$385.0
·$0.2
-$56.7
-$781. 9

$2,273.7
$22.9
$9.7
$1.278.7
$2,292.8
$13.6
$949.1
$13,371.4
$145.1
$3.5
$20,360.4

$2,291.4
$22.5
$9.7
$1. 278.7
$2,295.4
$13.6
$949.1
$13,281.4
$147.6
$3.5
$20,292.9

-$17.7
$0.4
$0.0
$0.0
-$2.6
$0.0
$0.0
$90.0
-$2.5
$0.0
$67.5

-$116.7
$2.2
-$1.1
-$69.8
-$19.8
-$1.1
-$98.4
$381.9
-$14.1
-$0.1
$63.1

Grand total*

$39,341.2

$416.9

-$3,495.7

* figures may not total due to rounding
+ does not include capitalized interest

=====

$38,924.3

D EPA R T lVI E N T

0 F

THE

T REA SUR Y

NEWS
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASHINGTON, D.C •• 20220. (202) 622-2960

FOR IMMEDIATE RELEASE
May 3, 2001

Contact: Sean Miles
(202) 622-2960

MEDIA ADVISORY

Treasury Secretary Paul O'Neill will host a Photo-Op (pool only) with Senate Finance
Committee Chairman Grassley, Ways & Means Committee Chairman Thomas, and White House
Legislative Affairs Director Nick Calio. The Photo-Op will take place Thursday, May 3,2001 at
7:45 a.m. in the Treasury Department room 3330.
Pool members without Treasury or White House press credentials planning to attend
should contact Treasury's Office of Public Affairs at (202) 622-2960 with the following
information: name, social security number and date of birth. This information may be also faxed
to (202) 622-1999.

-30-

PO-348

FClrpress release$, ~M~ pvb1ic schedules and official biographies, call our 24-hour fax line at (202) 622-2040
Q

DEPARTlVIENT

THE

TREASURY

NEWS
OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622.2960

Embargoed Until 10 a.m. EDT
May 3,2001

Contact: Public Affairs
(202) 622-2960

TREASURY SECRETARY PAUL H. O'NEILL
TESTIMONY BEFORE THE HOUSE APPROPRIATIONS COMMITTEE
SUBCOMMITTEE ON TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT

Chairman Istook, Representative Hoyer and Members of this Subcommittee, I appreciate this
opportunity to discuss Treasury's Fiscal Year 2002 budget request. With me today is Jim Flyzik, the
Acting Assistant Secretary for Management.
This is my first time before this Subcommittee. I look forward to continuing the tradition of
cooperation between the Treasury and Members of this Subcommittee.
The Treasury Department's FY 2002 budget supports the Administration's major goals:
providing tax relief, moderating recent rapid growth in spending, while funding national priorities,
paying down the debt, and protecting Social Security surpluses. Our budget request for FY 2002 totals
$14.631 billion and balances fiscal accountability with the need for the resources required to maintain
Treasury's operations and implement the President's priorities.
We have provided the Committee with a detailed breakdown of Treasury's entire FY 2002
budget request. Let me highlight three important areas of focus.

o First, improving service to taxpayers and ensuring compliance with the tax laws.
o Second, continuing our efforts to fight drugs and crime.

o And third, improving management and performance.
I will address each of these items in turn.

First, Improving Service to Taxpayers and Ensuring Compliance with the Tax Laws
In its mission statement, the IRS has pledged to focus on two core priorities: "Provide America's
taxpayers top quality service by helping them understand and meet their tax responsibilities, and apply
the tax law with integrity and fairness to all."·

PO-349
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a"d official biographies, call our 24-hour fax line at (202) 622.2040

Like President Bush, I believe strongly that the IRS should enforce the tax code fairly and evenly
with the least imposition on the taxpayer. And consistent with that goal, the President has requested
adequate resources to fund necessary IRS improvements. This budget represents a 6.7 percent increase
over the 2001 budget, and recognizes the investments needed to modernize the IRS.
Commissioner Rossotti and the IRS have made progress implementing the 1998 reforms
mandated by Congress, and the IRS has a plan to improve service and enforcement, while protecting
taxpayer rights. But clearly there is much more to accomplish.
The Administration's budget request includes close to $400 million in investments to modernize
the IRS' outdated computer systems. This multi-year project will help provide the IRS with better tools
to improve both customer service to America's taxpayers and compliance programs designed to
administer the tax code in a fair manner. The Committee has shown its support for this program in past
years by making available needed funds, and we ask you to continue to support this critical program.
The President's budget also includes follow-on funding for the STABLE initiative to complete
the hiring of almost 4,000 staffto address these same issues. This investment is important for the
integrity of the tax system, which depends heavily on maintaining voluntary compliance, and to provide
the service the American taxpayers deserve.
The amount in the President's budget will allow the IRS to provide America's taxpayers better
quality service and help to enforce the tax laws with integrity and fairness.

Second, Continuing Our Efforts to Fight Drugs and Crime
Treasury's law enforcement bureaus perform critical roles in implementing the Administration's
anti-drug and anti-crime policies. Treasury's budget request continues to support our responsibilities in
law enforcement and oversight, including efforts: (1) to reduce the smuggling and trafficking of drugs
while facilitating lawful trade; (2) to deter :firearms violence; (3) to combat financial crimes and money
laundering; (4) to protect our nation's leaders; and (5) to provide quality law enforcement training.
Although the range of involvement in law enforcement issues across the Department is broad, I want to
highlight some specific examples of Treasury efforts that support the President's priorities of combating
crime and drug abuse and that emphasize improved public safety and enhanced security for our citizens.
In recognition of the President's promise to increase spending to implement the Western
Hemisphere Drug Elimination Act, the Customs Service, in coordination with the United States Coast
Guard, requests $35 million for acquisition of selected air and water craft and surveillance and safety
equipment to improve interdiction efforts against illegal drugs.
The budget recognizes the need for Customs to modernize its automated systems. Continued
rapid growth in trade transactions has magnified both the urgency of proceeding with the overall
modernization effort and the critical need to maintain viability of the existing Automated Commercial
System, which, until recently, had been subject to an increasing number of system outages.

Therefore, the budget seeks (1) additional investments in the Customs automation modernization
program to facilitate and manage its trade operations ($130 million) through the Automated Commercial
Environment and to provide for a government-wide trade data interface through the International Trade
Data System ($5.4 million); and (2) sufficient funding to maintain the existing Automated Commercial
System while the modernization effort is underway.
This budget provides for the Bureau of Alcohol, Tobacco and Firearms to continue its ongoing
efforts in the following programs: the Integrated Violence Reduction Strategy, the Youth Crime Gun
Interdiction Initiative, nationwide crime gun tracing, and the National Integrated Ballistics Information
Network.

Enforcement of money laundering laws also contributes to stemming the flow of drugs, weapons
and other contraband. This budget request maintains support for the Financial Crimes Enforcement
Network to strengthen anti-money laundering efforts and enforce regulatory compliance of the Money
Services Business industry, as required under the Money Laundering Suppression Act.
The threat of global terrorism, whether conventional or cyber, has intensified the demands on
Treasury's enforcement bureaus to formulate innovative protective strategies that seek to integrate cyber
security with traditional physical security. The budget request maintains support for the Secret Service
to continue to address their complex workload and multiple mission requirements. This includes
protecting our nation's leaders and our financial payment infrastructures, protecting the integrity of our
currency in light of global dollarization, and safeguarding the public against terrorist acts, both
conventional and cyber in nature.
Ensuring the physical protection of our nation's leaders and visiting world leaders in an
environment of increased threats to political leaders remains one of Treasury's top priorities. We are
requesting funding for pay reform for the U.S. Secret Service Uniformed Division (authorized in
December 2000) to provide adequate incentive to attract highly qualified recruits and retain skilled and
seasoned personnel.
The Department will ensure that specialized funding sources to support unique programmatic
requirements are spent wisely. The Department will continue the practice of supplementing selected
Treasury law enforcement bureaus' non-recurring operations and investments through the Treasury
Forfeiture Fund. Another fund, the Counterterrorism Fund, supports emergency efforts across the
Department. Treasury will rely on this fund to assist in covering of costs associated with, among other
priorities, Treasury's role in the upcoming Salt Lake City Winter Olympics.
Third, Improving Management and Performance

to improve our performance measures to make them more useful in and relevant to the decision-making
process, as well as the improving the timeliness and accuracy of the information systems that capture
and report performance data. This is an opportunity to fundamentally review what we do and why we
do it. Therefore, the FY 2001 and FY 2002 Performance Plans presented in the budget may be revised
pending completion of this review. Treasury will notify Congress of any such revisions in a timely
manner.
Good stewardship of taxpayer resources is a responsibility I take seriously. We must provide the
taxpayers with real value for the hard-earned tax dollars they entrust to the Treasury.
Treasury has a rich reputation for leadership and quality and I want to be a part of continuing that
tradition. My notion of leadership centers on excellence.
I am thoroughly convinced that if your organization is not striving to be the best in the world at
everything you do, then you are unlikely to be truly excellent as an organization. Let me take this down
from the lofty to the concrete. In the organization that I left in December, it took us 2-112 days to close
our financial books at more than 300 locations in 36 ·countries. It takes the Federal Government five
months to cl9se our books; and then the auditors give us a qualified opinion. This is not the stuff of
excellence.
Let me hasten to add, this is not the fault of the workforce. They can deliver what the leadership
ask~ for. I proved in my previous work life that it is possible to build an organization that is known for
excellence, based on a foundation of dignity and respect for every individual. Caring about the health
and safety of the 150,000 people in Treasury who depend on me for leadership is important, and it will
continue to be important as I lead a Department with such a rich heritage
Conclusion.

In summary, Mr. Chairman, I believe that Treasury's $14.6 billion request for Fiscal 2002 will
enable us to continue the important initiatives underway throughout the Department, as well as advance
those key priorities set out by the President. I ask for your support of our FY 2002 budget request so
that the Treasury Department can fulfill its wide range of responsibilities in serving the American
people.
Thank you very much.

DEPARTlVlENT

THE

TREASURY

NEWS
OffiCE OFPUBUCAFFAIRS e1500PENNSYLVANIAAVENUE, N.W. e WASIllNGTON, D.C. e 20220 e (202) 622-2960

For immediate release -May 3, 2001

Contact: Rob Nichols/Tara Bradshaw
(202) 622-2960

Treasury Secretary Paul O'Neill Meets with Senate Finance Committee Chairman Chuck
Grassley and House Ways and Means Committee Chairman Bill Thomas

Secretary 0 'Neill made the following statement:
Congress has agreed on a budget framework, including $1.35 trillion for tax relief
We're getting right to work on the details of how we get tax relief to the American people. We
have the opportunity to cut income tax rates retroactively for all Americans, including millions
of small businesses. Ifwe act quickly, refund checks can go out the door this summer and give
the economy a second wind.
Working together, we will put substantial tax relief on the President's desk by the end of
this month, and in the pockets of working Americans only a few weeks later.
--30-

This event was pooled by:
Video:Fox News(Network Pool), NHK(Independent Pool)
Still: Reuters, AFP
Text: Reuters

PO-350

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DEPARTlVIENT

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NEWS
omCE OF PUBliC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASIllNGTON, D.C .• 20220 • (202) 622-2960

FOR IMMEDIATE RELEASE
May 3,2001

Contact: Tara Bradshaw
(202) 622-2960

UNITED STATES AND BANGLADESH INITIAL NEW INCOME TAX TREATY
The Treasury Department announced today that delegations from the United States and
the People's Republic of Bangladesh have reached agreement on the text ofa treaty for the
avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income. The text of the treaty was initialed by the heads of the two delegations.
The initialing of the Agreement indicates the recommendation of the negotiators that the
governments sign the Convention as promptly as possible and complete the steps necessary in
each country to bring the treaty into force. In the United States, this requires that the signed
treaty be transmitted to the Senate for its advice and consent to ratification. If the Senate gives
such advice and consent, and the treaty enters into force, it will be the first such agreement
between the two countries.
The text of the treaty will be made public after signature.

PO-351

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For Release Upon Delivery
Expected at 10:00 a.m.
May 3, 2001
STATEMENT OF
JOSEPH MIKRUT
TAX LEGISLATIVE COUNSEL
DEPARTMENT OF THE TREASURY
BEFORE THE SUBCOMMITTEE ON SELECT REVENUE MEASURES
COMMITTEE ON WAYS AND MEANS

Mr Chainnan, Mr. McNulty, and Members of the Subcommittee:
I appreciate the opportunity to discuss with you today tax incentives for the domestic
production of oil and gas and for energy conservation. There has been renewed interest in the
role of tax incentives in our national energy policy and I would like to begin my testimony with a
discussion of general principles that may be relevant in analyzing particular incentives.
General Principles
The fundamental principle underlying a sound energy policy is that markets should be
allowed to function freely and market interventions should be avoided unless justified by
compelling energy security, economic, environmental, or other concerns. In some instances,
markets may not properly value the benefits of certain investments. For example, a market rate of
return for investments that increase domestic oil and gas reserves may not reflect the contribution
of those investments to ensuring stability in supply and thereby reducing our vulnerability to oil
supply disruptions.
Similarly, market prices may not reflect the environmental damage from the use of fossil
fuels or the benefits of energy produced from clean and renewable energy sources. Individuals
and businesses may not invest in energy-saving and alternative energy technologies at a level that
reflects the benefits the technologies provide to society in excess of their private returns. If a new
technology reduces pollution or emissions of greenhouse gases, those "external benefits" should
be included in the decision about whether to undertake the investment. But potential investors
have an incentive to consider only the private benefits in making decisions. Thus, they avoid
technologies that are not profitable even though their total benefits to society exceed their costs.
Tax incentives can offset the failure of market prices to signal the desirable level of investment in
energy-saving and alternative energy technologies because they increase the private return from
the investment by reducing its after-tax cost. The increase in private return encourages additional
investment in energy-saving and environmentally preferable technologies.
Beyond the fundamental issue of whether a tax incentive is justified at all, a number of
other, often contradictory, considerations must be taken into account in the design of any
particular incentive. For example, incentives should be appropriately targeted to induce desired
activities in a cost-effective manner. Thus, incentives should be designed to minimize windfalls

PO-352

-2for investments that would have been made in the absence of an incentive. At the same time,
however, incentives that are targeted too narrowly may reduce the cost of only some technologies
and discourage investment in other promising approaches. This can result in economic
inefficiency and will contribute to perceptions that the tax system is being used inappropriately to
pick winners and losers among competing technologies.
In addition, incentives should also be designed to minimize complexity and avoid
unnecessary increases in taxpayer compliance burdens and IRS administrative costs.

Increasing Domestic Oil and Gas Production
Before I turn to my discussion of the present tax treatment of oil and gas activities, I
would like to provide a brief overview of this sector.
Overview
Oil is an internationally traded commodity with its domestic price set by world supply and
demand. Domestic exploration and production activity is affected by the world price of crude oil.
Historically, world oil prices have fluctuated substantially. From 1970 to the early 1980s, there
was a fivefold increase in real oil prices. World oil prices fell sharply in 1986 and were relatively
more stable from 1986 through 1997. During that period, average refiner acquisition costs ranged
from $14.91 to $23.59 in real 1992 dollars. In 1998, however, oil costs to the refmer declined to
$12.52 per barrel in nominal dollars ($11.14 per barrel in 1992 dollars), their lowest level in 25
years in real terms. Since 1998, the decline has reversed with refiner acquisition costs (in nominal
dollars) rising to $17.51 per barrel in 1999 and $27.69 per barrel in 2000 (the price has since
dropped to $26.05 per barrel in February 2001, the latest month for which composite figures are
available). The equivalent prices in 1992 dollars are $15.31 per barrel in 1999, $24.28 per barrel
in 2000, and $22.03 per barrel in February 2001.
Domestic oil production has been on the decline since the mid-1980s. From 1978 to 1983
oil consumption in the United States also declined, but increasing consumption since 1983 has
more than offset this decline. In 2000, domestic oil consumption was 28 percent higher than in
1970. The decline in oil production and increase in consumption have led to an increase in oil
imports. Net petroleum (crude and product) imports have risen from approximately 38 percent of
consumption in 1988 to 52 percent in 2000.
A similar pattern of large recent price increases and increasing dependence on imports has
occurred in the natural gas market. During the second half of the 1990s, spot prices for natural
gas exceeded $4.00 per million Btu (MMBtu) in only one month (February 1996). The spot price
again exceeded $4.00 per MMBtu in May 2000, rose above $5.00 per MMBtu in

-3September 2000, and exceeded $10.00 per MMBtu for several days last winter. The current spot
1
price is approximately $5.00 per MMBtu.
The United States has large natural gas reserves and was essentially self-sufficient in
natural gas until the late 1980s. Since 1986, natural gas consumption has increased by more than
30 percent but natural gas production has increased by only 17 percent. Net imports as a share of
consumption nearly quadrupled from 1986 to 2000, rising from 4.2 percent to 15.6 percent.
Natural gas from Canada makes up nearly all of the imports into the United States.

Current law tax incentives for oil and gas production
The importance of maintaining a strong domestic energy industry has been long
recognized and the Internal Revenue Code includes a variety of measures to stimulate domestic
exploration and production. They are generally justified on the ground that they reduce
vulnerability to an oil supply disruption through increases in domestic production, reserves,
exploration activity, and production capacity. The tax incentives contained in present law address
the drop in domestic exploratory drilling that has occurred since the mid-1950s and the continuing
loss of production from mature fields and marginal properties.
Incentives for oil and gas production in the form of tax expenditures are estimated to total
$9.8 billion for fiscal years 2002 through 2006. 2 They include the nonconventional fuels (i.e., oil
produced from shale and tar sands, gas produced from geopressured brine, Devonian shale, coal
seams, tight formations, or biomass, and synthetic fuel produced from coal) production credit
($2.4 billion), the enhanced oil recovery credit ($4.4 billion), the allowance of percentage
depletion for independent producers and royalty owners, including increased percentage depletion
for stripper wells ($2.3 billion), the exception from the passive loss limitation for working
interests in oil and gas properties ($100 million), and the expensing of intangible drilling and
development costs ($640 million). In addition to those tax expenditures, oil and gas activities
have largely been eliminated from the alternative minimum tax. These provisions are described in
detail below.
Percentage depletion

All price references are to the spot price at the Henry Hub and are in nominal dollars.

Analytical Perspectives, Budget of the United States Government, Fiscal Year 2002,
U.S. Government Printing Office, Washington, DC, 2001, p. 63. These estimates are measured
on an "outlay equivalent" basis. They show the amount of outlay that would be required to
provide the taxpayer the same after-tax income as would be received through the tax preference.
This outlay equivalent measure allows a comparison of the cost of the tax expenditure with that of
a direct Federal outlay.
2

-4-

Certain costs incurred prior to drilling an oil- or gas-producing property are recovered
through the depletion deduction. These include costs of acquiring the lease or other interest in
the property, and geological and geophysical costs (in advance of actual drilling). Any taxpayer
having an economic interest in a producing property may use the cost depletion method. Under
this method, the basis recovery for a taxable year is proportional to the exhaustion of the property
during the year. The cost depletion method does not permit cost recovery deductions that exceed
the taxpayer's basis in the property or that are allowable on an accelerated basis. Thus, the
deduction for cost depletion is not generally viewed as a tax incentive.
Independent prpducers and royalty owners (as contrasted to integrated oil companies)3
may qualify for percentage depletion. A qualifying taxpayer determines the depletion deduction
for each oil or gas property under both the percentage depletion method and the cost depletion
method and deducts the larger of the two amounts. Under the percentage depletion method,
generally 15 percent of the taxpayer's gross income from an oil- or gas-producing property is
allowed as a deduction in each taxable year. The amount deducted may not exceed 100 percent
of the net income from that property in any year (the "net-income limitation,,).4 Additionally, the
percentage depletion deduction for all oil and gas properties may not exceed 65 percent of the
taxpayer's overall taxable income (determined before such deduction and adjusted for certain loss
carrybacks and trust distributions).5
A taxpayer may claim percentage depletion with respect to up to 1,000 barrels of average
daily production of domestic crude oil or an equivalent amount of domestic natural gas. For

An independent producer is any producer who is not a "retailer" or "refiner." A retailer
is any person who directly, or through a related person, sells oil or natural gas or any product
derived therefrom (1) through any retail outlet operated by the taxpayer or related person, or (2)
to any person that is obligated to market or distribute such oil or natural gas (or product derived
therefrom) under the name of the taxpayer or the related person, or that has the authority to
occupy any retail outlet owned by the taxpayer or a related person. Bulk sales of crude oil and
natural gas to commercial or industrial users, and bulk sales of aviation fuel to the Department of
Defense, are not treated as retail sales for this purpose. Further, a person is not a retailer within
the meaning of this provision if the combined gross receipts of that person and all related persons
from the retail sale of oil, natural gas, or any product derived therefrom do not exceed $5 million
for the taxable year. A refiner is any person who directly or through a related person engages in
the reftning of crude oil, but only if such person or related person has a reftnery run in excess of
50,000 barrels per day on any day during the taxable year.
3

4 By contrast, for any other mineral qualifying for the percentage depletion deduction, the
deduction may not exceed 50 percent of the taxpayer's taxable income from the depletable
property.
5 Amounts disallowed as a result of this rule may be carried forward and deducted in
subsequent taxable years, subject to the 65-percent-of-taxable-income limitation for those years.

-5producers of both oil and natural gas, this limitation applies on a combined basis. All production
owned by businesses under common control and members of the same family must be aggregated;
each group is then treated as one producer for application of the 1,000-barrellimitation.
Special percentage depletion provisions apply to oil and gas production from marginal
properties. The statutory percentage depletion rate is increased (from the general rate of 15
percent) by one percentage point for each whole dollar that the average price of crude oil (as
determined under the provisions of the nonconventional fuels production credit of section 29) for
the immediately preceding calendar year is less than $20 per barrel. In no event may the rate of
percentage depletion under this provision exceed 25 percent for any taxable year. The incre.ased
rate applies for the taxpayer's taxable year which immediately follows a calendar year for which
the average crude oil price falls below the $20 floor. To illustrate the application of this
provision, the average price of a barrel of crude oil for calendar year 1999 was $15.56; thus, the
percentage depletion rate for production from marginal wells was increased by four percent (to 19
percent) for taxable years beginning in 2000. The 100-percent-of-net-income limitation has been
suspended for marginal wells for taxable years beginning after December 31, 1997, and before
January 1, 2002.
Marginal production is defined for this purpose as domestic crude oil or domestic natural
gas which is produced during any taxable year from a property which (1) is a stripper well
property for the calendar year in which the taxable year begins, or (2) is a property substantially
all of the production from which during such calendar year is heavy oil (i.e., oil that has a
weighted average gravity of20 degrees API or less corrected to 60 degrees Fahrenheit). A
stripper well property is any oil or gas property for which daily average production per producing
oil or gas well is not more than 15 barrel equivalents in the calendar year during which the
taxpayer's taxable year begins. 6 A property qualifies as a stripper well property for a calendar
year only if the wells on such property were producing during that period at their maximum
efficient rate of flow.
If a taxpayer's property consists of a partial interest in one or more oil- or gas-producing
wells, the determination of whether the property is a stripper well property or a heavy oil property
is made with respect to total production from such wells, including the portion of total production
attributable to ownership interests other than the taxpayer's. If the property satisfies the
requirements of a stripper well property, then each owner receives the benefits of this provision
with respect to its allocable share of the production from the property for its taxable year that
begins during the calendar year in which the property so qualifies.

Equivalent barrels is computed as the sum of (1) the number of barrels of crude oil
produced, and (2) the number of cubic feet of natural gas produced divided by 6,000. If a well
produced 10 barrels of crude oil and 12,000 cubic feet of natural gas, its equivalent barrels
produced would equal 12 (i.e., 10 + (12,000/6,000)).
6

-6-

The allowance for percentage depletion on production from marginal oil and gas
properties is subject to the 1,OOO-barrel-per-day limitation discussed above. Unless a taxpayer
elects otherwise, marginal production is given priority over other production for purposes of
utilization of that limitation.
Because percentage depletion, unlike cost depletion, is computed without regard to the
taxpayer's basis in the depletable property, cumulative depletion deductions may be far greater
than the amount expended by the taxpayer to acquire or develop the property. The excess of the
percentage depletion deduction over the deduction for cost depletion is generally viewed as a tax
expenditure.
Intangible drilling and development costs
In general, costs that benefit future periods must be capitalized and recovered over such
periods for income tax purposes, rather than being expensed in the period the costs are incurred.
In addition, the uniform capitalization rules require certain direct and indirect costs allocable to
property to be included in inventory or capitalized as part of the basis of such property. In
general, the uniform capitalization rules apply to real and tangible personal property produced by
the taxpayer or acquired for resale.
Special rules apply to intangible drilling and deVelopment costs ("IDCs"V Under these
special rules, an operator (i.e., a person who holds a working or operating interest in any tract or
parcel of land either as a fee owner or under a lease or any other form of contract granting
working or operating rights) who pays or incurs IDCs in the development of an oil or gas
property located in the United States may elect either to expense or capitalize those costs. The
uniform capitalization rules do not apply to otherwise deductible IDCs.

IDCs include all expenditures made by an operator for wages, fuel, repairs, hauling,
supplies, etc., incident to and necessary for the drilling of wells and the preparation of wells for
the production of oil and gas. In addition, IDCs include the cost to operators of any drilling or
development work (excluding amounts payable only out of production or gross or net proceeds
from production, if the amounts are depletable income to the recipient, and amounts properly
allocable to the cost of depreciable property) done by contractors under any form of contract
(including a turnkey contract). Such work includes labor, fuel, repairs, hauling, and supplies
which are used in the drilling, shooting, and cleaning of wells; in such clearing of ground,
draining, road making, surveying, and geological works as are necessary in preparation for the
drilling of wells; and in the construction of such derricks, tanks, pipelines, and other physical
Structures as are necessary for the drilling of wells and the preparation of wells for the production
of oil and gas. Generally, IDCs do not include expenses for items which have a salvage value
(such as pipes and casings) or items which are part of the acquisition price of an interest in the
property.
7

-7-

If a taxpayer elects to expense IDCs, the amount of the IDCs is deductible as an expense
in the taxable year the cost is paid or incurred. Generally, IDCs that a taxpayer elects to capitalize
may be recovered tlrrough depletion or depreciation, as appropriate; or in the case of a
nonproductive well ("dry hole"), the operator may elect to deduct the costs. In the case of an
integrated oil company (i.e., a company that engages, either directly or through a related
enterprise, in substantial retailing or refIning activities) that has elected to expense IDCs, 30
percent of the IDCs on productive wells must be capitalized and amortized over a 60-month
period. 8
A taxpayer that has elected to deduct IDCs may, nevertheless, elect to capitalize and
amortize certain IDCs over a 60-month period beginning with the month the expenditure was paid
or incurred. This rule applies on an expenditure-by-expenditure basis; that is, for any particular
taxable year, a taxpayer may deduct some portion of its IDCs and capitalize the rest under this
provision. This allows the taxpayer to reduce or eliminate IDC adjustments or preferences under
the alternative minimum tax.
The election to deduct IDCs applies only to those IDCs associated with domestic
properties. 9 For this purpose, the United States includes certain wells drilled offshore. 10
Intangible drilling costs are a major portion of the costs necessary to locate and develop
oil and gas reserves. Because the benefits obtained from these expenditures are of value
throughout the life of the project, these costs would be capitalized and recovered over the period
of production under generally applicable accounting principles. The acceleration of the deduction
for IDCs is viewed as a tax expenditure.
Nonconventional fuels production credit

The IRS has ruled that if an integrated oil company ceases to be an integrated oil
company, it may not immediately write off the unamortized portion of the IDCs capitalized under
this rule, but instead must continue to amortize those IDCs over the 60-month amortization
period.
8

In the case of IDCs paid or incurred with respect to an oil or gas well located outside of
the United States, the costs, at the election of the taxpayer, are either (1) included in adjusted
basis for purposes of computing the amount of any deduction allowable for cost depletion or (2)
capitalized and amortized ratably over a 10-year period beginning with the taxable year such costs
were paid or incurred.
9

The term "United States" for this purpose includes the seabed and subsoil of those
submerged lands that are adjacent to the territorial waters of the United States and over which the
United States has exclusive rights, in accordance with international law, with respect to the
exploration and exploitation of natural resources (i.e., the Continental Shelf area).
10

-8Taxpayers that produce certain qualifying fuels from nonconventional sources are eligible
for a tax credit ("the section 29 credit") equal to $3 per barrel or barrel-of-oil equivalent. I I Fuels
qualifying for the credit must be produced domestically from a well drilled, or a facility treated as
placed in service before January 1, 1993. 12 The section 29 credit generally is available for
qualified fuels sold to unrelated persons before January I, 2003.13
For purposes of the credit, qualified fuels include: (1) oil produced from shale and tar
sands; (2) gas produced from geopressured brine, Devonian shale, coal seams, a tight formation,
or biomass (i.e., any organic material other than oil, natural gas, or coal (or any product thereof);
and (3) liquid, gaseous, or solid synthetic fuels produced from cpal (including lignite), including
such fuels when used as feedstocks. The amount of the credit is determined without regard to any
production attributable to a property from which gas from Devonian shale, coal seams,
geopressured brine, or a tight formation was produced in marketable quantities before 1980.
The amount of the section 29 credit generally is adjusted by an inflation adjustment factor
for the calendar year in which the sale occurs. 14 There is no adjustment for inflation in the case of
the credit for sales of natural gas produced from a tight formation. The credit begins to phase out
if the annual average unregulated wellhead price per barrel of domestic crude oil exceeds $23.50
multiplied by the inflation adjustment factor. 15

II A barrel-of-oil equivalent generally means that amount of the qualifying fuel which has a
Btu (British thermal unit) content of 5.8 million.

A facility that produces gas from biomass or produces liquid, gaseous, or solid synthetic
fuels from coal (including lignite) generally will be treated as being placed in service before
January 1, 1993, if it is placed in service by the taxpayer before July 1, 1998, pursuant to a written
binding contract in effect before January 1, 1997. In the case of a facility that produces coke or
coke gas, however, this provision applies only if the original use of the facility commences with
the taxpayer. Also, the IRS has ruled that production from certain post-1992 "recompletions" of
wells that were originally drilled prior to the expiration date of the credit would qualify for the
.
section 29 credit.
12

13 If a facility that qualifies for the binding contract rule is originally placed in service after
December 31, 1992, production from the facility may qualify for the credit if sold to an unrelated
person before January 1,2008.

The inflation adjustment factor for the 2000 taxable year was 2.0454. Therefore, the
mflatlOn-adjusted amount of the credit for that year was $6.14 per barrel or barrel equivalent.
.

15 For 2000, the inflation adjusted threshold for onset of the phaseout was $48.07 ($23.50
x 2.0454) and the average wellhead price for that year was $26.73.

-9The amount of the section 29 credit allowable with respect to a project is reduced by any
unrecaptured business energy tax credit or enhanced oil recovery credit claimed with respect to
such project.
As with most other credits, the section 29 credit may not be used to offset alternative
minimum tax liability. Any unused section 29 credit generally may not be carried back or forward
to another taxable year; however, a taxpayer receives a credit for prior year minimum tax liability
to the extent that a section 29 credit is disallowed as a result of the operation of the alternative
minimum tax. The credit is limited to what would have been the regular tax liability but for the
alternative minimum tax.
The provision provides a significant tax incentive (currently about $6 per barrel of oil
equivalent or $1 per thousand cubic feet of natural gas). Coalbed methane and gas from tight
formations currently account for most of the credit.
Enhanced oil recovery credit
Taxpayers are permitted to claim a general business credit, which consists of several
different components. One component of the general business credit is the enhanced oil recovery
credit. The general business credit for a taxable year may not exceed the excess (if any) of the
taxpayer's net income tax over the greater of (1) the tentative minimum tax, or (2) 25 percent of
so much of the taxpayer's net regular tax liability as exceeds $25,000. Any unused general
business credit generally may be carried back one taxable year and carried forward 20 taxable
years.
The enhanced oil recovery credit for a taxable year is equal to 15 percent of certain costs
attributable to qualified enhanced oil recovery ("EOR") projects undertaken by the taxpayer in the
United States during the taxable year. To the extent that a credit is allowed for such costs, the
taxpayer must reduce the amount otherwise deductible or required to be capitalized and recovered
through depreciation, depletion, or amortization, as appropriate, with respect to the costs. A
taxpayer may elect not to have the enhanced oil recovery credit apply for a taxable year.
The amount of the enhanced oil recovery credit is reduced in a taxable year following a
calendar year during which the annual average unregulated wellhead price per barrel of domestic
crude oil exceeds $28 (adjusted for inflation since 1990).16 In such a case, the credit would be
reduced ratably over a $6 phaseout range.
For purposes of the credit, qualified enhanced oil recovery costs include the following
costs which are paid or incurred with respect to a qualified EOR project: (1) the cost of tangible
property which is an integral part of the project and with respect to which depreciation or

16 The average per-barrel price of crude oil for this purpose is determined in the same
manner as for purposes of the section 29 credit.

-10-

amortization is allowable; (2) IDCs that the taxpayer may elect to deduct;17 and (3) the cost of
tertiary injectants with respect to which a deduction is allowable, whether or not chargeable to
capital account.
A qualified EOR project means any project that is located within the United States and
involves the application (in accordance with sound engineering principles) of one or more
qualifying tertiary recovery methods which can reasonably be expected to result in more than an
insignificant increase in the amount of crude oil which ultimately will be recovered. The
qualifying tertiary recovery methods generally include the following nine methods: miscible fluid
displacement, steam-drive injection, microemulsion flooding, in situ combustion, pQlymeraugmented water flooding, cyclic-steam injection, alkaline flooding, carbonated water flooding,
and immiscible non-hydrocarbon gas displacement, or any other method approved by the IRS. In
addition, for purposes of the enhanced oil recovery credit, immiscible non-hydrocarbon gas
displacement generally is considered a qualifying tertiary recovery method, even if the gas injected
is not carbon dioxide.
A project is not considered a qualified EOR project unless the project's operator submits
to the IRS a certification from a petroleum engineer that the project meets the requirements set
forth in the preceding paragraph.
The enhanced oil recovery credit is effective for taxable years beginning after December
31, 1990, with respect to costs paid or incurred in EOR projects begun or significantly expanded
after that date.
Conventional oil recovery methods do not recover all of a well's oil. Some of the
remaining oil can be extracted by unconventional methods, but these methods are generally more
costly. At current world oil prices, a large part of the remaining oil in place is uneconomic to
recover by unconventional methods. In this environment, the EOR credit can increase
recoverable reserves. Although recovering oil using EOR methods is more expensive than
recovering it using conventional methods, it may be less expensive than producing oil from new
reservoirs. Although the credit could phase out at higher oil prices, it is fully effective at present
world oil prices.
Alternative minimum tax
A taxpayer is subject to an alternative minimum tax ("AMT") to the extent that its
tentative minimum tax exceeds its regular income tax liability. A corporate taxpayer's tentative
minimum tax generally equals 20 percent of its alternative minimum taxable income in excess of
an exemption amount. (The marginal AMT rate for a noncorporate taxpayer is 26 or 28 percent,
depending on the amount of its alternative minimum taxable income above an exemption amount.)

17 In the case of an integrated oil company, the credit base includes those IDCs which the
taxpayer is required to capitalize.

-11-

Alternative minimum taxable income ("AMTI") is the taxpayer's taxable income increased by
certain tax preferences and adjusted by determining the tax treatment of certain items in a manner
which negates the deferral of income resulting from the regular tax treatment of those items.
As a general rule, percentage depletion deductions claimed in excess of the basis of the
depletable property constitute an item of tax preference in determining the AMT. In addition, the
AMTI of a corporation is increased by an amount equal to 75 percent of the amount by which
adjusted current earnings ("ACE") of the corporation exceed AMTI (as determined before this
adjustment). In general, ACE means AMTI with additional adjustments that generally follow the
rules presently applicable to corpor~tions in computing their earnings and profits. As a general
rule a corporation must use the cost depletion method in computing its ACE adjustment. Thus,
the difference between a corporation's percentage depletion deduction (if any) claimed for regular
tax purposes and its allowable deduction determined under the cost depletion method is factored
into its overall ACE adjustment.
Excess percentage depletion deductions related to crude oil and natural gas production are
not items of tax preference for AMT purposes. In addition, corporations that are independent oil
and gas producers and royalty owners may determine depletion deductions using the percentage
depletion method in computing their ACE adjustments.
The difference between the amount of a taxpayer's IDC deductions and the amount which
would have been currently deductible had IDC's been capitalized and recovered over a 10-year
period may constitute an item of tax preference for the AMT to the extent that this amount
exceeds 65 percent of the taxpayer's net income from oil and gas properties for the taxable year
(the "excess IDC preference"). In addition, for purposes of computing a corporation's ACE
adjustment to the AMT, IDCs are capitalized and amortized over the 60-month period beginning
with the month in which they are paid or incurred. The preference does not apply if the taxpayer
elects to capitalize and amortize IDCs over a 60-month period for regular tax purposes.
IDC's related to oil and gas wells are generally not taken into account in computing the
excess IDC preference of taxpayers that are not integrated oil companies. This treatment does
not apply, however, to the extent it would reduce the amount of the taxpayer's AMTI by more
than 40 percent of the amount that the taxpayer's AMTI would have been if those IDCs had been
taken into account.
In addition, for corporations other than integrated oil companies, there is no ACE
adjustment for IDCs with respect to oil and gas wells. That is, such a taxpayer is permitted to use
its regular tax method of writing off those IDCs for purposes of computing its adjusted current
earnings.
Absent these rules, the incentive effect of the special provisions for oil and gas would be
reduced for fInns subject to the AMT. These rules, however, effectively eliminate AMT concerns
for independent producers.

-12Passive activity loss and credit rules
A taxpayer's deductions from passive trade or business activities, to the extent they
exceed income from all such passive activities of the taxpayer (exclusive of portfolio income),
generally may not be deducted against other income. 18 Thus, for example, an individual taxpayer
may not deduct losses from a passive activity against income from wages. Losses suspended
under this "passive activity loss" limitation are carried forward and treated as deductions from
passive activities in the following year, and thus may offset any income from passive activities
generated in that later year. Losses from a passive activity may be deducted in full when the
taxpayer disposes of its entire interest in that activity to an unrelated party in a transaction in
which all realized gain or loss is recognized.
An activity generally is treated as passive if the taxpayer does not materially participate in
it. A taxpayer is treated as materially participating in "an activity only if the taxpayer is involved in
the operations of the activity on a basis which is regular, continuous, and substantial.
A working interest in an oil or gas property generally is not treated as a passive activity,
whether or not the taxpayer materially participates in the activities related to that property. This
exception from the passive activity rules does not apply if the taxpayer holds the working interest
through an entity which limits the liability of the taxpayer with respect to the interest. In addition,
if a taxpayer has any loss for any taxable year from a working interest in an oil or gas property
which is treated pursuant to this working interest exception as a loss which is not from a passive
activity, then any net income from such property (or any property the basis of which is determined
in whole or in part by reference to the basis of such property) for any succeeding taxable year is
treated as income of the taxpayer which is not from a passive activity.
Similar limitations apply to the utilization of tax credits attributable to passive activities.
Thus, for example, the passive activity rules (and, consequently, the oil and gas working interest
exception to those rules) apply to the nonconventional fuels production credit and the enhanced
oil recovery credit. However, if a taxpayer has net income from a working interest in an oil and
gas property which is treated as not arising from a passive activity, then any tax credits
attributable to the interest in that property would be treated as credits not from a passive activity
(and, thus, not subject to the passive activity credit limitation) to the extent that the amount of the
credits does not exceed the regular tax liability which is allocable to such net income.
As a result of this exception from the passive loss limitations, owners of working interests
in oil and gas properties may use losses from such interests to offset income from other sources.
Tertiary injectants

This provision applies to individuals, estates, trusts, personal service corporations, and
closely held C corporations.
18

-13Taxpayers are allowed to deduct the cost of qualified tertiary injectant expenses for the
taxable year. Qualified tertiary injectant expenses are amounts paid or incurred for any tertiary
injectant (other than recoverable hydrocarbon injectants) which is used as a part of a tertiary
recovery method.
The provision allowing the deduction for qualified tertiary injectant expenses resolves a
disagreement between taxpayers (who considered such costs to be IDCs or operating expenses)
and the IRS (which considered such costs to be subject to capitalization).

Energy Efficiency and Alternatjve Energy Sources
Incentives for energy efficiency and alternative energy sources are also essential elements
of national energy policy. The continuing strength of our economy over the past two years,
despite oil price rises, underscores the dramatic improvements in energy efficiency we have
achieved over the past quarter century, as well as the changing economy. While past oil shortages
have taken a significant toll on the U.S. economy, the recent increases in oil prices have not
affected the economy much. Increased energy efficiency in cars, homes, and manufacturing has
helped insulate the economy from these short-term market fluctuations. In 1974, we consumed
15 barrels of oil for every $10,000 of gross domestic product. Today we consume only 8 barrels
of oil for the same amount (in constant dollars) of economic output.

Current law tax incentives for energy efficiency and alternative fuels
Tax incentives currently provide an important element of support for energy-efficiency
improvements and increased use of renewable and alternative fuels. Current incentives in the
form of tax expenditures are estimated to total $1.2 billion for fiscal years 2002 through 2006.
They include a tax credit for electric vehicles and expensing for clean-fuel vehicles ($20 million), a
tax credit for the production of electricity from wind or biomass and a tax credit for certain solar
energy property ($590 million), and an exclusion from gross income for certain energy
conservation subsidies provided by public utilities to their customers ($580 million). 19
Electric and clean-fuel vehicles and clean-fuel vehicle refueling property
A 10-percent tax credit is provided for the cost of a qualified electric vehicle, up to a
maximum credit of $4,000. A qualified electric vehicle is a motor vehicle that is powered
primarily by an electric motor drawing current from rechargeable batteries, fuel cells, or other
portable sources of electric current, the original use of which commences with the taxpayer, and
that is acquired for use by the taxpayer and not for resale. The full amount of the credit is
available for purchases prior to 2002. The credit begins to phase down in 2002 and does not
apply to vehicles placed in service after 2004.

Analytical Perspectives, Budget a/the United States Government, Fiscal Year 2002,
U.S. Government Printing Office, Washington, DC, 2001, p. 63.
19

-14Certain costs of qualified clean-fuel vehicles and clean-fuel vehicle refueling property may
be deducted when such property is placed in service. Qualified electric vehicles do not qualify for
the clean-fuel vehicle deduction. The deduction begins to phase down in 2002 and does not apply
to property placed in service after 2004.
Energy from wind or biomass
A 1.5-cent-per-kilowatt-hour tax credit is provided for electricity produced from wind,
"closed-loop" biomass (organic material from a plant that is planted exclusively for purposes of
being 1,lsed at a qualified facility to produce electricity), and poultry waste. The electricity must be
sold to an unrelated person and the credit is limited to the first 10 years of production. The credit
applies only to facilities placed in service before January 1, 2002. The credit amount is indexed
for inflation after 1992.
Solar energy
A 10-percent investment tax credit is provided to businesses for qualifying equipment that
uses solar energy to generate electricity, to heat or cool or provide hot water for use in a
structure, or to provide solar process heat.
Energy conservation subsidies
Subsidies provided by public utilities to their customers for the purchase or installation of
energy conservation measures are excluded from the customers' gross income. An energy
conservation measure is any installation or modification primarily designed to reduce consumption
of electricity or natural gas or to improve the management of energy demand with respect to a
dwelling unit.

Administration proposals
The Administration's budget proposals for fiscal year 2002 include tax incentives for
renewable energy resources. The budget also contains proposals to modify the tax treatment of
nuclear decommissioning funds related to electricity production and to extend the suspension of
the net income limitation applicable to certain oil and gas production. The Administration's
proposals are described below. 20
Electricity from wind and biomass
The Administration proposes to extend the credit for electricity produced from wind and
biomass for three years to facilities placed in service before January 1,2005. In addition, eligible

For a more detailed description, see General Explanations of the Administration's
Fiscal Year 2002 Tax ReliefProposals, Department of the Treasury, April 2001.
20

-15biomass sources would be expanded to include certain biomass from forest-related resources,
agricultural sources, and other specified sources. Special rules would apply to biomass facilities
placed in service before January 1, 2002. Electricity produced at such facilities from newly
eligible sources would be eligible for the credit only from January 1, 2002, through December 31,
2004. The credit for such electricity would be computed at a rate equal to 60 percent of the
generally applicable rate. Electricity produced from newly eligible biomass co-fired in coal plants
would also be eligible for the credit only from January 1, 2002, through December 31, 2004. The
credit for such electricity would be computed at a rate equal to 30 percent of the generally
applicable rate.
Residential solar energy systems
The Administration proposes a new tax credit for individuals that purchase solar energy
equipment used to generate electricity (photovoltaic equipment) or heat water (solar water
heating equipment) for use in a dwelling unit that the individual uses as a residence. The credit
would be available only for equipment used exclusively for purposes other than heating swimming
pools. The proposed credit would be equal to 15 percent of the cost of the equipment and its
installation. The credit would be nonrefundable and an individual would be allowed a lifetime
maximum credit of $2,000 per residence for photo voltaic equipment and $2,000 per residence for
solar water heating equipment. The credit would apply only to solar water heating equipment
placed in service after December 31, 2001, and before January 1, 2006, and to photovoltaic
systems placed in service after December 31,2001, and before January 1,2008.
Nuclear decommissioning funds
The Administration proposes to repeal the current law provision that limits deductible
contributions to a nuclear decommissioning fund to the amount included in the taxpayer's cost of
service for ratemaking purposes. Thus, unregulated taxpayers would be allowed a deduction for
amounts contributed to a qualified nuclear decommissioning fund. The Administration also
proposes to permit funding of all decommissioning costs (including pre-1984 costs) through
qualified nuclear decommissioning funds. Contributions to fund pre-1984 costs would be
deductible except to the extent a deduction (other than under the qualified fund rules) or an
exclusion from income has been previously allowed with respect to those costs. The
Administration's proposal would clarify that any transfer of a qualified nuclear decommissioning
fund in connection with the transfer of the power plant with which it is associated would be
nontaxable and no gain or loss will be recognized by the transferor or transferee as a result of the
transfer. In addition, the proposal would pennit taxpayers to make deductible contributions to a
qualified fund after the end of the nuclear power plant's estimated useful life and would provide
. that nuclear decommissioning costs are deductible when paid.
Net income limitation on percentage depletion from marginal wells

-16-

The Administration proposes a one-year extension of the provision suspending the 100percent-of-net-income limitation for marginal oil and gas wells. Under the Administration
proposal, marginal wells would continue to be exempt from the limitation during taxable years
beginning in 2002.
Mr. Chairman, this concludes my prepared testimony. I will be pleased to answer any
questions you or other members of the Subcommittee may have.

OFFICE OF PUBLIC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C .• 20220 - (202) 622-2960

EMBARGOED UNTIL 2:30 P.M.
May 3, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY OFFERS 13-WEEK AND 26-WEEK BILLS
The Treasury will auction two series of TreasurY bills totaling
approximately $19,000 million to refund $22,713 million of publicly held
securities maturing May 10, 2001, and to pay down about $3,713 million.
In addition to the public holdings, Federal Reserve Banks for their own
accounts hold $11,312 million of the maturing bills, which may be refunded at
the highest discount rate of accepted competitive tenders. Amounts awarded
to these accounts will be in addition to the offering amount.
Up to $1,000 million in noncompetitive bids from Foreign and International Monetary Authority (FIMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of each
auction. These noncompetitive bids will have a limit of $200 million per
account and will be accepted in the order of smallest to largest, up to the
aggregate award l~it of $1,000 million.
Treasu~Direct customers have requested that we reinvest their maturing
holdings of approximately $1,058 million into the 13-week bill and $1,125
million into the 26-week bill.

The allocation percentage applied to bids awarded at the highest discount
rate will be rounded up to the next hundredth of a whole percentage point,
e.g., 17.13%.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable ~ook-Entry Treasury Bills, Notes, and Bonds (31 CFR Part 356, as
amended) •
Details about each of the new securities are given in the attached
offering highlights.
000

Attachment

)-353
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERINGS OF BILLS
TO BE ISSUED MAY 10, 2001
May 3, 2001
Offering Amount •••.••••••••.•••.•••••••• $10,000 million
Description of Offering:
Term and type of security ••.•••••••••••• 91-day bill
CUSIP nwnber .•..•••.•••••••.•••••••••••• 912795 HG 9
Auction date •.••••••••••••.••••••••.•.•• May 7, 2001
Issue date ..••••••.•••••.••..••••••••••• May 10, 2001
Maturity date .•.••.••••.•.•••...•••.•..• August 9, 2001
Original issue date •.•••••..••..•••..••• February 8, 2001
Currently outstanding ••..••....•..•.•••• $15,000 million
Minimum bid amount and multiples .•••••.• $1,000

$9,000 million
182-day bill
912795 GT 2
May 7, 2001
May 10, 2001
November 8, 2001
May 10, 2001
$1,000

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids submitted
through the Federal Reserve Banks as agents for FIMA accounts. Accepted in order of size
from smallest to largest with no more than $200 million awarded per account. The total
noncompetitive amount awarded to Federal Reserve Banks as agents for FIMA accounts will
not exceed $1,000 million. A single bid that would cause the limit to be exceeded will
be partially accepted in the amount that brings the aggregate award total to the $1,000
million limit. However, if there are two or more bids of equal amounts that would cause
the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g.,
7.100%, 7.105%.
(2) Net long position for each bidder must be reported when the sum of the total bid amount,
at all discount rates, and the net long position is $1 billion or greater.
(3) Net long posi~ion must be determined as of one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid at a Single Rate •••• 35% of public offering
Maximum Award •••••.••••••••••••••••••.••••• 35% of public offering
Receipt of Tenders:
Noncompetitive tenders •• Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders ••••• Prior to 1:00 p.m. eastern daylight saving time on auction day
Payment Terms: By charge to a funds account at a Federal Reserve Bank on issue date, or payment
of full par amount with tender. Treasu~Direct customers can use the Pay Direct feature which
authorizes a charge to their account of record at their financial institu~ion on issue date.

DEPARTlVIENT

THE

TREASURY

NEWS
omCE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIDNGTON, D.C. - 20220. (202) 622-2960

For Immediate Release
May 4,2001

Contacts:

Rob Nichols/Tara Bradshaw
(202) 622-2960

MEDIA ADVISORY:

TREASURY SECRETARY MEETS WITH SMALL
BUSINESS OWNERS
President Bush Proclaims May 6-12 to be Small Business Week
WASHINGTON, DC -- Treasury Secretary Paul O'Neill will kick off Small Business
Week at a roundtable meeting with two dozen small business men and women, and
Jack Faris, President and CEO of the National Federation of Independent Business, on
Monday, May ih, at 10:00 am in room 3327 of the Treasury Department.
During the meeting, Secretary O'Neill will release new data on how small business
owners and entrepreneurs will benefit from the President's tax relief.
Media without Treasury or White House press credentials planning to attend should
contact Treasury's Office of Public Affairs at (202) 622-2960 with the following
information: name, social security number and date of birth. This information may also
be faxed to (202) 622-1999.
-30-

PO-354

F(Jf' press rele~ Jpteches, public jdled~ and official biographies, call our 24-hour fax line at (202) 622-2040
Q

PUBLIC DEBT NEWS
lepartment of the Treasury • Bureau of the Public Debt • Washington, DC 20239

FOR RELEASE AT 3 :00 PM
May 4, 2001

Contact: Peter Hollenbach
(202) 691-3502

PUBLIC DEBT ANNOUNCES ACTIVITY FOR
SECURITIES IN THE STRIPS PROGRAM FOR APRIL 2001

The Bureau of the Public Debt announced activity for the month of April 2001, of securities within the Separate
Trading of Registered Interest and Principal of Securities program (STRIPS).
Dollar Amounts in Thousands
Principal Outstanding
(Eligible Securities)

$2,136,334,534

Held in Unstripped Fonn

$1,956,775,004

Held in Stripped Fonn

$179,559,530

Reconstituted in April

$19,442,405

The accompanying table gives a breakdown of STRIPS activity by individual loan description. The balances in
this table are subject to audit and subsequent revision. These monthly figures are included in Table V of the
Monthly Statement of The Public Debt, entitled "Holdings of Treasury Securities in Stripped Fonn."
The Strips Table along with the new Monthly Statement of The Public Debt is available on Public Debt's
Internet site at: www.publicdebt.treas.gov.Awide range of information about the public debt and Treasury
securities is also available at the site.
000

www.publicdebt.treas.gov

TABLE V

loan Description

Treasury Bonds:
CUSIP:
912810DM7
D08
DR6
DU9
DN5
DPO
DS4
DT2
DV7
DW5
DX3
DYl
DZ8
EA2
EBO
ECB
ED6
EE4
EF1
EG9
EH7
EJ3
EKO
EL8
EM6
EN4
EP9
E07
ES3
ET1
EV6
EW4
EX2
EYO
EZ7
FA1
FB9
FE3
FFO
FG8
FJ2
FM5
FP8

Interest Rate:
11-5/8
12
10-3/4
9-3/8
11-3/4
11-1/4
10-5/8
9-7/8
9·1/4
7-1/4
7-112
8·3/4
8-7/8
9·1/8
9
8-7/8
8-1/8
8-112
8-3/4
8-3/4
7-7/8
8-1/8
8-1/8
8
7-1/4
7-5/8
7-1/8
6-1/4
7-112
7-5/8
6-7/8
6
6-3/4
6-112
6-5/8
8-3/8
6-1/8
5-112
5-1/4
5-1/4
6-1/8
6-1/4
5-318

-HOLDINGS OF TREASURY SECURITIES IN STRIPPED FORM

Corpus
STRIP
CUSIP

912803AB9
ADS
AG8
AJ2
912800 AA7
912803 AAl
AC7
AE3
AFO
AH6
AK9
Al7
AM5
AN3
AP8
A06
AR4
AS2
ATO
AU7
AV5
AW3
AXl
AY9
Al6
BAO
BB8
BC6
BD4
BE2
BF9
BG7
BH5
BJ1
BK8
Bl6
BM4
BP7
BV4
BW2
CG6
CH4
CK7

Amount Outstanding in Thousands
Maturity Date
Total
Outslandinq

11/15/04
05/15/05
08/15/05
02115/06
11/15/14
02115/15
08/15/15
11115/15
02115/16
05115/16
11/15/16
05115/17
08115/17
05115/18
11/15/18
02115/19
08115/19

02115120
05115/20
08115120
02115121
05115121
08115121
11/15/21
08115/22
11115122
02115123
08115123
11/15124
02115/25
08/15125
02115126
08115126
11115126
02115127
08/15127
11115127
08115128
11/15/28
02115129
08115129
05/15130
02115131

Total Treasury Bonds .... .......................
Treasury Inflation-Indexed Notes:
CUSIP:
Series: Interest Rate:
3-5/8
J
9128273A8
3-3/8
2M3
A
3-5/8
3T7
A
3-7/8
A
4Y5
4-1/4
5W8
A
6R8
A
3-112

912820 BZ9
BVa
Cl9
DN4
EK9
GA9

07/15/02
01115/07
01115/08
01115/09
01/15/10
01/15/11

Total Inflation-Indexed Notes.................
Treasury Inflation-Indexed Bonds:
CUSIP:
Interest Rate:
3-5/8
912810 FD5
3-7/8
FH6
TOlallnflation-lndexed Bonds ................

912803 BN2
CF8

APRil 30 2001

04/15128
04/15129

Portion Held in
Unstriooed Form

Reconstituted
This Month ,.

Portion Held in
Striooed Form

8,301,806
4,260,758
9,269,713
4,755,916
6,005,584
11,325,799
5,060,916
5,856,859
5,886,754
18,823,551
18,824,448
16,286,669
12,339,358
7,072,439
7,614,470
15,306,798
19,280,932
9,888,268
8,197,183
18,166,306
10,247,573
10,473,788
10,173,482
31,177,194
10,237,790
8,313',626
16,979,061
22,659,044
9,864,162
10,869,170
11,715,207
12,837,916
10,303,418
11,298,177
10,210,971
10,195,756
22.326,339
11,776,201
10,947,052
11,350,341
11,178,580
17,043,162
10,886,993

4,751,406
1,902,708
5,868,913
4,626,380
1,953,584
6,001,324
3,200,116
3,079,684
5,568,919
18,665,351
17,427,648
9,005,629
9,953,758
3,023,639
3,450,870
10,231,298
18,062,692
7,950,658
3,550,943
9,012,786
9,465,173
5,824,508
8,999,642
12,607,404
9,542,991
4,138,976
9,986,261
19,008,868
3,708,482
3,767,509
7,576,007
11,382,916
8,108,218
6,854,277
6,777,371
8,861,356
14,811,139
11,257,001
10,564,352
10,999,941
11,072,380
16,999,546
10,886,993

3,550,400
2,358,050
3,400,800
129,536
4,052,000
5,324,475
1,860,800
2,777,175
317,835
158,200
1,396,800
7,281,040
2,385,600
4,048,800
4,163,600
5,075,500
1,218,240
1,937,610
4,646,240
9,153,520
782,400
4,649,280
1,173,840
18,569,790
694,799
4,174,650
6,992,800
3,650,176
6,155,680
7,101,661
4,139,200
1,455,000
2,195,200
4,443,900
3,433,600
1,334,400
7,515,200
519,200
382,700
350,400
106,200
43,616
0

316,800
77,400
734,400
121,288
20,800
811,200
196,160
288,425
186,400
225,600
122,400
1,085,660
523,600
229,600
338,800
1,008,000
203,840
200,000
623,520
878,880
216,000
186,720
351,040
2,433,450
331,200
837,200
588,800
250,592
301,360
524,000
389,760
351,000
589,600
773,600
574,400
272,000
1,003,200
24,400
106,400
800
0
0
0

515,589,530

370,489,617

145,099,913

18,298,295

18,457,721
17,482,681
18,291,471
17,044,348
11,827,803
6,060,806

18,457,721
17,482,681
18,182,668
17,044,348
11,827,803
6,060,806

0
0
108,803
0
0
0

0
0
0
0
0
0

89,164,829

89,056,026

108,803

18,267,286
21,087,662

18,267,286
20,980,738

196,924

0
0

39,354,948

39,248,024

106,924

TABLE V - HOLDINGS OF TREASURY SECURITIES IN STRIPPED FORM, APRIL 30, 2001 - Continued

Corpus
STRIP
CUSIP

Loan Descripbon

Treasury Notes
Series: Interest Rate:
CUSIP
912820 BM
8
912827 A85
B
CX3
5-5/8
T
4E9
FD4
6-112
Y22
J
OW4
5-1/4
5Hl
Y
FE2
6-5/8
Y48
K
OX2
5-3/4
5J7
Z
FF9
6-5/8
Y71
L
OYO
5-112
AB
5L2
BB2
7-7/8
B92
C
FG7
6-112
Z39
M
EB9
5-112
5P3
AC
FH5
6-3/8
N
Z54
EC7
5-5/8
AD
501
FJl
6-114
Z88
P
E05
5-7/8
5R9
AE
BCD
7-112
D25
0
EG8
5-7/8
2C5
0
EJ2
6-1/8
2E1
R
FK8
6-1/4
2G6
C
El7
6-3/8
5X6
R
Fl6
6-1/4
2L5
D
EN3
6-1/2
6A5
S
FM4
6-5/8
2P6
E
EP8
6-112
6B3
T
FN2
6-5/8
2S0
F
E06
6-318
6C1
U
B08
7-112
F49
A
FP7
6-112
2W1
G
ES2
6-5/8
6E7
V
F05
6-1/4
2Y7
H
ETO
6-3/8
6F4
W
FR3
6
K
3C4
EU7
6-1/4
6HO
BE6
6-3/8
G55
B
FS1
6-114
3G5
l
FU6
6-1/8
6K3
Y
CC9
5-7/8
3J9
M
FV4
6
611
Z
CE5
5-3/4
314
N
CH8
5-3/4
303
P
FY8
5-518
6P2 AC
CK1
5-5/8
3S9
0
FZ5
5-1/8
600 AD
CN5
5-112
3V2
C
GB7
4-314
6S6
l
BF3
6-1/4
J78
A
CS4
5-112
3Z3
D
G03
6U1
4-5/8
M
CU9
5-112
4B5
E
GE1
4-1/4
6V9
N
CW5
5-314
4D1
F
GF8
4
6W7
P
OA2
4H2
5-112
G
OC8
4K5
5-318
H
BG1
l83
5-3/4
B
OE4
5-1/4
4N9
J
DJ3
4U3
4-1/4
K
BH9
N81
5-7/8
A
007
4-3/4
5A6
E
BJ5
7-1/4
P89
B
OU8
5-1/4
5F5
F
BK2
7-1/4
088
C
OZ7
6
5MO
G
BlO
7-7/8
R87
0
EE3
5S7
5-7/8
H
BM8
S86
7-112
A
BN6
6-112
T85
B
ER4
6-3/4
6D9
E
BP1
6-112
U83
C
B09
5-7/8
V82
D
FXO
6N7
5-3/4
F
BR7
5-5/8
W81
A
855
6-7/8
X8D
B
Bn
7
Y55
C
BUD
6-112
Z62
D
BW6
6-1/4
2JD
B
BX4
6-518
2U5
C
CA3
6-118
3EO
0
C08
5-112
3X8
B
CY1
5-518
4F6
C
DKO
4-314
4V1
D
DV6
5-112
5G3
B
EA1
5N8
6
C
EMS
6-112
5Z1
B
FT9
5-314
6J6
C
GC5
6T4
5
B

Total Treasury Notes
Grand Total

..........

Amount OutstandIng in Thousands
Matunty Date
Total
Outstandinc

05/15/01
05/15/01
05131/01
05131/01
06130/01
06130/01
07/31/01
07/31/01
08115/01
08/31/01
08/31/01
09/30/01
09/30/01
10131/01
10131/01
11115/01
11/30/01
12131/01
01/31/02
01131/02
02128/02
02128/02
03131/02
03/31/02
04130/02
04130/02
05/15/02
05/31/02
05/31/02
06130/02
06130/02
07131/02
07131/02
08/15/02
08131/02
08131/02
09130/02
09/30/02
10/31/02

11130102
11130102
12131/02

12131102
01131103
01131103
02115103
02128/03

02128103
03131/03
03/31103
04130/03

04130103
05131/03
06130/03
08/15/03
08/15/03
11115103
02115/04
02115/04
05115/04
05/15104
08115/04
08/15104
11115104
11/15104
02115/05
05/15/05
05/15/05
08/15/05
11115/05

11115105
02115106
05/15106

07115106
10/15/06

02115107
05115107
08115/07

02115108
05115/08

11115108
05115109
08/15109

02115110
08115/10
02115/11

Pornon Held in
UnstTlPped Form

PortIon Held in
Stripced Form

ReconstiMed
This Month II

12,398,083
12,873,752
13,721,702
19,885,985
14,282,240
19,001,309
14,136,833
20,541,318
12,339,185
14,000,224
20,118,595
14,518,514
18,797,828
14,639,843
19,196,002
24,226,102
33,504,627
31,166,321
13,453,346
19,381,251
13,799,902
16,563,375
14,301,310
17,237,943
14,474,673
17,390,900
11,714,-397
13,503,890
14,871,823
13,058,694
14,320,609
12,231,057
15,057,900
23,859,015
12,731,742
15,072,214
12,806,814
15,144,335
26,593,892
12,120,580
15,058,528
12,052,433
14,822,027
13,100,640
15,452,604
23,562,691
13,670,354
14,685,095
14,172,892
14,674,853
12,573,248
13,340,169
13,132,243
13,126,779
28,011,028
19,852,263
18,625,785
12,955,077
17,823,228
14,440,372
18,925,383
13,346,467
18,089,806
14,373,760
32,658,145
13,834,754
14,739,504
28,562,370
15,002,580
15,209,920
28,062,797
15,513,587
16,015,475
22,740,446
22,459,675
13,103,678
13,958,186
25,636,803
13,583,412
27,190,961
25,083,125
14,794,790
27,399,894
23,355,709
22,437,594
11,975,972

7,003,483
12,873,752
13,715,702
19,785,985
14,282,240
18,995,709
14,136,833
20,083,318
7,358,985
13,986,624
20,118,595
14,480,114
18,297,028
14,639,843
19,194,402
19,439,222
33,499,827
31,083,121
13,398,338
19,381,251
13,799,902
16,531,775
14,278,910
17,235,543
14,474,673
17,390,900
7,813,437
13,503,890
14,849,423
13,058,694
14,318,609
12,231,057
15,057,900
20,014,273
12,731,742
15,072,214
12,768,414
15,144,335
26,534,692
11,831,780
14,990,688
11,667,793
14,822,027
13,100,640
15,452,604
22,376,195
13,626,354
14,685,095
14,172,092
14,674,853
12,573,248
13,340,169
13,103,843
13,125,179
26,663,828
19,680,263
18,235,385
12,432,277
17,823,228
13,835,572
18,925,383
11,880,067
18,089,806
14,368,960
32,658,145
13,210,754
14,739,104
28,562,370
15,002,580
14,800,320
28,062,797
15,491,107
15,651,475
22,740,446
22,459,675
12,977,414
13,678,986
25,241,603
13,527,412
27,021,681
24,963,925
14,240,790
27,331,794
23,163,309
22,437,594
11,975,972

5,394,600
0
6,000
100,000
0
5,600
0
458,000
4,980,200
13,600
0
38,400
500,800
0
1,600
4,786,880
4,800
83,200
55,008
0
0
31,600
22,400
2,400
0
0
3,900,960
0
22,400
0
2,000
0
0
3,844,742
0
0
38,400
0
59,200
288,800
67,840
384,640
0
0
0
1,186,496
44,000
0
800
0
0
0
28,400
1,600
1,347,200
172,000
390,400
522,800
0
604,800
0
1,466,400
0
4,800
0
624,000
400
0
0
409,600
0
22,480
384,000
0
0
126,264
279,200
395,200
56,000
169,280
119,200
554,000
68,100
192,400
0
0

1,492,225,227

1,457,981 337

34,243,890

1,144,110

2,136,334,534

195Q.175,004

179,559530

1N2,405

38,550
0
0
0
0
0
0
0
77,200
0
0
0

0
0
293,200
0
0
0
0
0
0

0
0
0
57,520
0

a
0
0

a
0
112,000

a
0
0
0
0
0
0
0
0
0
0
0
0
0
0

o
0
0
33,600
36,800
0
6,400
0
16,000
0
225,600
0
0
0
47,840
37,000
0
0
92,800
0
0
4,800
0
0
1,600
15,200
48,000
0
0
0
0
0
0
0
0

DEPARTMENT

_TREASURY
_ _ _ _ _ _..:::178

THE

TREASURY

NEWS

: . . - _ _ _ _ _ __
Q

OFFlCE OF PUBUC AFFAIRS • 1500 PE.r\NSnXANL;\ AVENl'E, ;-";.W .• WA5iHINGTO', D.c:.. 20220.12021622-2960

Contact: Tara Bradshaw
(202) 622-2960

May 4,2001
For Immediate Release

TREASURY, IRS MODIFY RULING PROCESS FOR
THE ALTERNATIVE FUELS CREDIT
The Internal Revenue Service today issued Revenue Procedure 2001-34, which modifies
Revenue Procedure 2001-30, issued on April 20, 2001, which announced the IRS will
resume the private letter ruling process for the section 29 alternative fuels tax credit.
This new Rev. Proc. modifies the circumstances in which the IRS will issue a private
letter ruling regarding whether a solid fuel produced from coal is a qualified fuel under
Section 29 ofthe IRe. The modification expands the range of sizes of coal feedstock and
eliminates one activity as a necessary part of the process that results in a qualified fuel.

"The modification comes in response to industry comments identifying changes
necessary to comport with industry standards. We appreciate the industry's assistance and
input," stated Mark Weinberger, Assistant Secretary for Tax Policy.
A copy of the Rev. Proc. is attached.

PO-356
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Part III
Administrative, Procedural, and Miscellaneous

26 CFR 601.201: Rulings and determination letters.
(Also Part I, §29.)

Rev.Proc.2001-34

SECTION 1. PURPOSE
.01 This revenue procedure modifies Rev. Proc. 2001-30, 2001-19 LR.B. ,which
provides the circumstances under which the Internal Revenue Service will issue private letter
rulings regarding whether a solid fuel produced from coal is a qualified fuel under § 29(c)(l)(C)
of the Internal Revenue Code. The circumstances necessary for the Service to issue a private
letter ruling include the presence of coal feedstock particles no larger than a specific size, and the
performance of specific activities in processing the feedstock in order to effectuate a significant
chemical change .
.02 Rev. Proc. 2001-30 is modified to expand the range of sizes of coal feedstock and to
eliminate one particular activity as a necessary part of a process that results in a qualified fuel.
SECTION 2. MODIFICATIONS
.01 Section 3 of Rev. Proc. 2001-30 is modified by deleting the word "entirely" after the
phrase "The feedstock coal consists", adding the phrase "the majority of which, by weight, are"
after the word "particles", and substituting "3/8" for "1/8" in the first condition.

.02 Section 3 of Rev. Proc. 2001-30 is also modified by deleting the phrase "following
an acid bath" after the word "monomers" in the second condition .
.03 Section 3 of Rev. Proc. 2001-30, as modified, is set forth below as Section 3 of this
revenue procedure.
SECTION 3. PROCEDURE
The Service will issue rulings that a solid fuel (other than coke) produced from coal is a
qualified fuel under § 29( c)(1)( C) if the conditions set forth below are satisfied and evidence is
presented that all, or substantially all, of the coal used as feedstock undergoes a significant
chemical change. The conditions are that:
1. The feedstock coal consists of coal fines or crushed coal comprised of particles the
majority of which, by weight, are no larger than 3/8 inch;
2. The feedstock coal is thoroughly mixed in a mixer: (a) with styrene or other
monomers, (b) with quinoline (C 9H7N) or other organic resin and left to cure for several days, (c)
with ultra heavy hydrocarbons, or (d) with an aluminum and/or magnesium silicate binder
following heating to a minimum temperature of 500 degrees Fahrenheit; and
3. The treated feedstock is subjected to elevated temperature and pressure that results in
briquettes, pellets, or an extruded fuel product, or the taxpayer represents that the omission of
this procedure will not significantly increase the production of the facility over the remainder of
the period during which the § 29 credit is allowable.
SECTION 4. EFFECTIVE DATE
This revenue procedure applies to all ruling requests, including any pending in the
national office and any submitted after the date of publication of this revenue procedure.
SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2001-30 is modified.
DRAFTING INFORMATION
The principal author of this revenue procedure is David McDonnell of the Office of
Associate Chief Counsel (Passthroughs and Special Industries). Other personnel from the IRS
and Treasury participated in its development. For further information regarding this revenue
procedure contact Mr. McDonnell on (202) 622-3120 (not a toll-free call).

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omCE OF PUBLIC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIDNGTON, D.C. - 20220 - (202) 622-2960

Contact: Rob Nichols/Tara Bradshaw
(202) 622-2960

For Immediate Release
May 7,2001

SMALL BUSINESSES GAIN BIG BENEFIT FROM THE
PRESIDENT'S TAX RELIEF PROPOSALS
77% of the tax relief associated with cutting the top rate would
go to small business owners and entrepreneurs

Today, Treasury Secretary Paul O'Neill kicked-off Small Business Week by releasing new
information about how small business owners and entrepreneurs will benefit from the President's
tax relief proposal.
According to the Office of Tax Analysis, when the President's tax relief plan is fully phased in,
small business owners and entrepreneurs receive 77% of the tax relief associated with reducing
the top income tax rate to 33%. Also, small business owners and entrepreneurs make up 63 %
(about .8 million) of the 1.3 million tax returns that will benefit from the new 33% rate.
Business owners are defined to include any taxpayer that reports income from a sole
proprietorship, farm proprietorship, partnership, S-corporation, or rental activities.
"Do you know who benefits from cutting the top tax rate? It's not who you think," said O'Neill.
"Small business owners and entrepreneurs - the engines of growth in our economy - are the
biggest beneficiaries of a cut in the top income tax rate. These are the people who will plow
their tax relief right back into their businesses - increasing wages and hiring more workers."

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PO-357

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,'~'-----------------~<--------------------------------------------

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
?OR IMMEDIATE RELEASE
\pril 30, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:

91-Day Bill
May 03, 2001
August 02, 2001
912795HE4

High Rate:

3.885%

Investment Rate 1/:

3.978%

Price:

99.018

All noncompetitive and successful competitive bidders were awarded
;ecurities at the high rate. Tenders at the high discount rate were
lllotted 28.35%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type

Accepted

Tendered

Competitive
Noncompetitive
FIMA (noncompetitive)

SUBTOTAL

16,903,984
1,399,756
425,000

9,000,003 2/

18,728,740

TOTAL

4,852,035

Federal Reserve
$

23,580,775

7,175,247
1,399,756
425,000

13,852,038

Median rate
3.850%: 50% of the amount of accepted competitive tenders
tendered at or below that rate.
Low rate
3.810%:
5% of the amount
'f accepted competitive tenders was tendered at or below that rate.
~s

,id-to-Cover Ratio

18,728,740 / 9,000,003

2.08

/ Equivalent coupon-issue yield.
/ Awards to TREASURY DIRECT = $1,154,422,000

http://www.publicdebt.treas.gov

0-358

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
April 30, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
182-Day Bill
May 03, 2001
November 01, 2001
912795HU8

Term:
Issue Date:
Maturity Date:
CUSIP Number:
3.860%

High Rate:

Investment Rate 1/:

Price:

3.991%

98.049

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 51.60%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)

Competitive
Noncompetitive
FIMA (noncompetitive)

22,177,112
1,124,205
100,000

4,307,692

Federal Reserve
$

27,709,009

6,775,812
1,124,205
100,000
8,000,017 2/

23,401,317

SUBTOTAL

TOTAL

Accepted

Tendered

Tender Type

12,307,709

Median rate
3.825%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.800%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-Cover Ratio

= 23,401,317 / 8,000,017 = 2.93

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $896,853,000

http://www.publicdebt.treas.gov

PO-359

DEPARTJ\;'lENT

THE

TREASURY

NEWS
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASlllNGTON, D.C .• 20220 • (202) 622-2960

FOR IMMEDIATE RELEASE
May 8, 2001

Contact: Tara Bradshaw
(202) 622-2960

TREASURY STATEMENT ON THE JOINT COMMITTEE ON TAXATION
DISTRIBUTION TABLES FOR THE PRESIDENT'S TAX RELIEF PROPOSALS

The Congressional Joint Committee on Taxation (JeT) released on May 4 tables
showing their estimates of the distributional effect of the President's tax relief proposal
(JCX-32-01). The tables show the effect of the major individual income tax provisions in
the President's proposal in each year, 2002 through 2006. These provisions are fully in
effect by 2006.
The JCT table for 2006, when the President's proposal is fully effective, shows
that the percentage tax cuts will be largest for taxpayers with incomes under $50,000.
While all income groups receive a tax cut under the President's proposal,
taxpayers with incomes of $100,000 or more will pay a larger share of the tax burden
than they do under current law. The share of tax relief provided to these taxpayers is
smaller than their share of current taxes paid.
The Treasury Department released a distributional analysis of the President's
proposal on March 8, 2001. The Treasury Department analysis showed that the
share of individual income taxes paid by taxpayers with income over $100,000
would increase from 70 cents of every dollar in individual income taxes paid under
current law to 74 cents of every dollar under the President's proposal.
"This analysis confirms, yet again, the President's plan provides significant relief
to low and middle income taxpayers," stated Treasury Secretary Paul O'Neill.
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DEPARTlVIENT

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ElVIBORGOED UNIL 9:30 A.M. EDT
Tuesday, lVlay 8, 2001

Contact: Tasia Scolinas
(202) 622-2960

Testimony of Paul H. O'Neill Secretary of the Treasury
Before the Senate Committee on Appropriations

Thank you Chainnan Stevens, Chainnan Wamer, Chairman Shelby, Chainnan
Roberts, Chainnan Gregg and other members of the Committee, it is a privilege to be
here today to discuss Treasury's role in the federal government's counterterrorism efforts.
Combating terrorism engages virtually every part of the Department. Our front line is
our law enforcement bureaus and offices -- the U.S. Customs Service, U.S. Secret
Service, Bureau of Alcohol, Tobacco and Firearms, Internal Revenue Service Criminal
Investigation, Federal Law Enforcement Training Center, Financial Crimes Enforcement
Network, and the Office of Foreign Assets Control. These bureaus and offices have
enforcement and regulatory missions, employ over 33,000 people, and have a combined
budget in excess of $4 billion. With approximately 20,000 special agents and inspectors,
Treasury agencies represent almost 40% of federal law enforcement and have offices
throughout the United States and around the world.
We protect our borders, the President and other world leaders, and our critical
iufrastructure. We respond to and investigate terrorist bombings, arsons, and shootings,
wherever they occur. We attack terrorist fundraising activities by investigating financial
crimes and money laundering. We administer and enforce economic sanctions on foreign
terrorist organizations and countries that sponsor terrorism. We also provide training to
our federal, state, local, and international partners.
TREASURY'S COUNTERTERRORISlVI EFFORTS

Events of the past decade, such as the 1993 bombing of the World Trade Center,
the 1995 bombing ofthe Murrah Federal Building in Oklahoma City, and the 1996 truck
bombing in Saudi Arabia, serve as reminders that United States facilities and personnel
continue to be the target of terrorism. We have seen major advancements in technology
and rapid globalization, making our job of combating terrorism more difficult. The men
and women of the Treasury Department, working with other agencies, seek to meet this
complex and ever-changing threat of terrorism.
PO-36l
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.". Government Printing Office: 1998· 619-559

Working with the Federal Aviation Administration, the FBI, and the airline
industry, Customs uses its border search authority to help protect international air
passengers. Customs currently has specialized outbound inspection teams at 11 of the
largest airports in the nation. These teams use Customs search authority to examine
outbound cargo on passenger aircraft for hazardous materials, concealed or improperly
licensed weapons or munitions, and any other material that could compromise the
security or safety of the aircraft.
In the areas of illegal firearms and explosives trafficking, Customs works with the
Bureau of Alcohol, Tobacco and Firearms. The laws that ATF enforces generally require
permits to import explosives or firearms. Customs and ATF work together to detect
illegal firearms and explosives imports and ensure that those that are lawfully imported
into the United States seamlessly enter regulated domestic commerce.
The Challenge -- Protecting Our Leaders
The U.S. Secret Service, protects our most visible targets -- the President and first
family, the Vice President, former Presidents, visiting foreign heads of state, the White
House complex, and foreign embassies in the United States. Under Presidential Decision
Directive 62 (PDD-62) and 18 U.S.C. § 3056, the Secret Service is also responsible for
coordinating security at designated events, referred to as National Special Security Events
(NSSEs).
The Secret Service has the challenge of identifying and neutralizing potential
threats by individuals and groups in an increasingly sophisticated, mobile, and violenceprone environment. Political and social changes have created regional tensions in many
emerging nations, causing physical threats to political leaders to become more prevalent.
Terrorist organizations continue to increase in the sophistication of their tactics and
techniques, rendering many traditional protective measures ineffective. In addition to
conventional threats, chemical, biological, and radiological weapons have potentially
greater destructive capabilities and some are easily transportable.
In response to this heightened concern, the Secret Service seeks to integrate
technology and highly trained personnel within its protective mission. Using
state-of-the-art countermeasures, the Secret Service executes security operations that
deter, minimize, and respond to these threats. It has Counter Assault Teams, a Counter
Surveillance Unit, and Counter Sniper assets to detect and prevent, and if necessary
respond to, any and all terrorist attacks on the President or Vice President. Readiness is a
top priority and the Secret Service manages the Joint Operations Center to ensure a
coordinated response to any incident at the White House and holds interagency table top
exercises in preparation for terrorist attacks on the White House. To prevent attacks
against those targets under Secret Service protection, it has an extensive program to
obtain, analyze and disseminate information related to individuals or groups who pose a
threat to persons or facilities protected by the Service. It does so in partnership with the
National Security Council (NSC) and a variety of federal agencies, including the FBI, the

CIA, the National Security Agency (NSA), and the National Imagery and Mapping
Agencies (NIMA).
The Challenge -- Protecting Our Critical Infrastructure
Treasury is the lead agency responsible for working with the banking and finance
sector of the economy to protect the nation's financial system infrastructure against cyber
and other threats under Presidential Decision Directive 63 (PDD-63), "Critical
Infrastructure Protection." Treasury and the industry are responsible for a number of
tasks, including assessing the vulnerabilities of the sector to cyber and physical attacks,
recommending a plan to eliminate significant vulnerabilities, and developing an
information sharing system for identifying and preventing major attacks. To do this
Treasury and the industry agreed to create and support what is now known as the Banking
and Finance Sector Coordinating Committee on Critical Infrastructure Protection (the
Coordinating Committee), chaired by Sector Coordinator Steve Katz of Merrill Lynch.
Treasury's work on this program is directed by the Assistant Secretary for Financial
Institutions, who serves as Sector Liaison.
Treasury and the industry have made substantial progress on critical infrastructure
protection. The financial services industry was the first to establish a private sector
information sharing and analysis center. The center, which was launched in October
1999, is designed to detect and analyze actual or potential cyber attacks, and distribute
alerts about, and suggested countermeasures for, such attacks to its members. A crosssection of major commercial banks, investment banks, broker-dealers, insurance
companies, investment companies, thrift institutions and industry utilities participate in
the center.
In addition, the Secret Service conducts financial crimes and counterfeiting
investigations that are designed to ensure the integrity of the critical financial, payment,
and telecommunications infrastructures of the United States. Pursuant to PDD-63, the
Secret Service has an infrastructure protection program, designed to prevent cyber attacks
against critical infrastructure or a protected site or venue.
To meet its PDD-63 responsibilities, the Secret Service created the Electronic
Crimes Special Agent Program (ECSAP). These agents are highly trained and are
qualified as experts in the preservation and analysis of a wide range of electronic
evidence, including computers, telecommunications devices, and other electronic
paraphernalia. They also provide expertise in the investigation of network intrusions and
database thefts. The Secret Service uses these agents and its core of computer
investigative specialists (CIS) to conduct investigations into "cybercrime" and "cyberterrorism."
To protect our Treasury infrastructure, we have established a Treasury Critical
Infrastructure Protection Plan (TCIPP) to meet the goals and objectives ofPDD 63. This
plan details the roles and responsibilities that must be performed at the Treasury
headquarters level and in the bureaus. Major components of this plan include the

identification and assessment of both vulnerability and risk. It also addresses
vulnerability mitigation/elimination and the need to engage all Treasury employees in
CIP awareness and education. All Treasury security disciplines, including information
systems security, personnel security, information security, industrial security, security
operations, as well as emergency preparedness, playa role in safeguarding, protecting
and assuring the viability of our critical infrastructure. Treasury's CIP programs are
administered by the Office of Security under the Deputy Assistant Secretary (Information
Systems) and Chief Information Officer.

Using Our Expertise in Explosives, Arsons, and Firearms
Treasury's Bureau of Alcohol, Tobacco and Firearms (ATF) specializes in and
investigates incidents relating to explosives, arson and firearms. ATF enforces federal
laws relating to firearms, explosives, and arson and it regulates the firearms and
explosives industries. ATF has developed a unique expertise in the use and misuse of
these commodities and provides leadership and direction in contributing to the
Department's counterterrorism efforts. An ATF Agent recovered the serial number on
the axle of the rental truck that lead to the apprehension and conviction of the terrorists
who committed the World Trade Center bombing.
ATF has developed personnel specializing in responding to explosives and arson
incidents. ATF's four National Response Teams (NRT) are the only national teams that
respond to explosives and arson incidents. Since the inception ofNRTs in 1978, these
teams of experts have responded to 491 bombing and arson incidents in the United States.
ATF has also created the International Response Team that assists worldwide in matters
involving major bombing or arson incidents at the request of the State Department.
These teams respond within 24 hours. A major component of each NRT and IRT is the
Explosives Enforcement Officer. These officers render safe improvised explosives
devices, perform underwater recovery of explosives, and make explosive device
determinations. ATF is the only agency capable of disrupting a large vehicle bomb
tnrough the use of their All-purpose Remote Transport System (ARTS). The ARTS is
designed to remotely disrupt car and truck bombs too large to disarm by traditional
methods.
ATF also serves as an important information resource in responding to terrorist
activities. ATF maintains effective liaison with industry groups and can obtain and refer
information rapidly. An example of this is ATF's partnership with the Fertilizer Institute
in the "Be Aware for America" campaign. This campaign educates fertilizer dealers in
agricultural grade ammonium nitrate about procedures to prevent improper sales and to
report suspicious attempted purchases. In addition to conducting inspections of industry
members to make sure records are properly maintained and that inventories of explosives
and firearms are properly stored, ATF traces firearms and explosives used in crime or
recovered at crime scenes. Additionally, ATF has an Arson and Explosives National
Repository database that contains information on over 100,000 arson and explosive
incidents. This repository maintains over 100,000 records of components used in
improvised explosive devices that are available to law enforcement worldwide.

ATF has established a canine training center in Front Royal, Virginia, to train
explosives detecting canine teams. In partnership with the Department of State's AntiTerrorism office, ATF trains these teams for service in countries around the world. In
addition, ATF has trained its own unique cadre of special agent canine handlers whose
canine partners can detect trace amounts of explosives that may be hidden or buried.
ATF also employs the only federally trained and certified fire investigators who
investigate suspicious fires to determine their cause and origin. ATF also trains State and
local accelerant detection canine teams, which are key tools in the investigation at arson
scenes. The Front Royal facility is also used for this purpose. ATF's National
Laboratories provide state-of-the-art forensic services in the areas of explosives and
firearms evidentiary analysis. ATF is in the process of building a Fire Research Center,
an innovative partnership among law enforcement, fire services, public safety agencies,
academia and the private sector. The Fire Research Center will use the most advanced
scientific, technical, educational, and training methods to make ATF and its partners
leaders in fire investigation science to serve and protect the public.
Attacking the Financial Underpinnings of Terrorism

Terrorist organizations often engage in illicit activities to raise money for their
terrorist activities. By investigating money laundering and other financial crimes and
imposing and enforcing economic sanctions, Treasury is attempting to deprive terrorist
organizations of their funding.
Money Laundering and Financial Crime
Suspects in financial crimes investigations have traditionally been thought of as
white-collar criminals. Today we see many criminals for whom financial crime is just
one component in a diversified criminal portfolio. The proceeds of the criminal activities
are not only used to support the lifestyle of the suspect, but frequently to finance other
types of criminal enterprises, including terrorism. Treasury's expertise in investigating
financial crimes and money laundering enable it to attack terrorist financing -- the
support system ofterrorist activity.
An example of the types of crime being committed to raise money "for terrorist
organizations is a recent ATFIFBI investigation. In July 2000, ATF and FBI agents
arrested 18 people in connection with cigarette smuggling and immigration violations.
The current charges, which include providing material support and resources to a
designated foreign terrorist organization, are based on the evidence that some of the
defendants, supplied money and military-style equipment to the Hizballah organization.
In fact, two of the defendants are Lebanon-based Hizballah leaders ..
The tie between financial crime and terrorism is not limited to international
terrorist organizations. Domestically, many extremist paramilitary and militia groups in
the United States that advocate violence against the government also advocate violating --

and often do violate -- the tax laws of the United States. IRS-CI with its expertise in tax
crime plays a role in responding to the threat of domestic terrorism from these extremist
groups. In addition, Treasury's Inspector General for Tax Administration (TIGTA)
investigates threats to IRS personnel and facilities.
Treasury is also uniquely situated to "follow the money" through money
laundering investigations and other support for U.S. counter-terrorist efforts. Customs,
IRS-CI, Secret Service and the Bureau of Alcohol, Tobacco and Firearms are charged
with investigating money laundering in cases where the underlying criminal act lies
within their core jurisdiction. The Financial Crimes Enforcement Network (FinCEN) is
charged with administering the Bank Secrecy Act, which prescribes transaction reporting
and record-keeping requirements for financial institutions designed to insulate those
institutions from money laundering, and to provide a paper trail for investigators.
FinCEN also serves as the central point for collection and analysis of Bank Secrecy Act
data, providing case support to law enforcement investigations. This information is
valuable to investigations of terrorist fundraising, giving FinCEN the ability to "follow
the money" through accessing a variety of databases and assisting investigators in
tracking terrorists through their financial transactions and their assets.
To supplement these traditional law enforcement methods, Treasury is
establishing a Foreign Terrorist Asset Tracking Center (FTAT) within its Office of
Foreign Assets Control (OFAC). The Center will develop government-wide strategies to
counter terrorist financing and to incapacitate their financial holdings within the US, and
to assist other countries to employ similar strategies. Such strategies will bring to bear
the full weight, influence, and authority of the federal government -- regulatory,
diplomatic, defense, intelligence, and enforcement communities. The agencies pledged
to participate in or work with the Center are Customs, IRS, USSS, FinCEN, FBI, INS,
CIA, NSA, as well as the Departments of Justice, State, and Defense. OFAC is now
hiring the Center's permanent staff and is working with participating agencies to identify
detailees and liaisons.
Economic Sanctions
Treasury is responsible for administering and enforcing economic sanctions
against terrorists and terrorist organizations. Since January 1995, OFAC has
administered Presidentially-imposed economic sanctions against Middle East terrorist
organizations under Executive Order 12947. This effort, the Specially Designated
Terrorists ("SDT") program, is used to identify and expose SDTs. It has blocked some
terrorist assets within the United States and is believed to have deterred fundraising in the
U.S. and impeded terrorists' use of the U.S. financial system. In August 1998, Usama
bin Laden and his organization, al-Qaeda, were added by Executive order to the list of
foreign terrorists covered by these sanctions. OF AC continues to work closely with
Justice, State, the FBI, and other federal agencies in implementing the two Middle East
terrorist Executive Orders against identified or potential SDTs.

In April 1996, the Antiterrorism and Effective Death Penalty Act ("Antiterrorism
Act") was enacted, in part to prevent persons within the U.S. or under U.S. jurisdiction
from providing material support or resources to Foreign Terrorist Organizations
("FTOs") throughout the world. Beginning in October 1997, numerous FTOs have been
designated by the Secretary of State in consultation with the Secretary of the Treasury
and the Attorney General. Under the Antiterrorism Act and OF AC' s implementing
regulations, financial institutions subject to U.S. jurisdiction maintain control over all
funds in which an FTO has an interest, block financial transactions involving FTO assets,
and report those actions to OF AC.
In administering sanctions programs, we strive for maximum coordination.
Within Treasury, OFAC coordinates closely with the Office of the Assistant Secretary for
International Affairs regarding foreign and international economic policy issues affecting
OFAC's implementation of sanctions against terrorist supporting countries. We also
coordinate with State and Justice on FTO designations, and work with the financial
community, the FBI, Justice, State, and other federal agencies in implementing the
prohibitions of the Antiterrorism Act.
The Customs Service, working with OF AC, investigates violations of sanctions
programs targeting terrorist supporting countries for criminal prosecution. In addition,
OF AC has the authority to levy civil penalties for violations.
In addition to the economic sanctions programs, Section 901 (j)(2)(A)(iv) of the
Internal Revenue Code denies the foreign tax credit with respect to taxes paid to countries
that "the Secretary of State has, pursuant to section 6(j) of the Export Administration Act
of 1979, as amended, designated as a foreign country which repeatedly provides support
for acts of international terrorism." Last year, State designated Cuba, Iran, Iraq, Libya,
North Korea, Sudan and Syria under this provision.
COORDINATION WITH OTHER AGENCIES
We recognize that to effectively fight terrorism we must work across the federal
government, as well as with our state, local and international partners. We have and will
continue to interact regularly with the Departments of Justice, State, Commerce,
Transportation, Defense, and HHS, as well as the Federal Emergency Management
Agency (FEMA) and members of the Intelligence Community on counterterrorism
matters. Treasury has partnered with Justice, Defense, State, FBI and the CIA in the
development of the Five-Year Counterterrorism and Technology and Crime Plan. The
Plan is updated annually and serves as a baseline strategy for coordination of national
policy and operational capabilities in the fight against terrorism. We coordinate our
activities in a number of ways -- through Presidential directives as well as through joint
efforts such as task forces and other interactions with our law enforcement partners. In
addition, we build relationships through training programs both at home and overseas.

Presidential Directives
There are several Presidential directives that set out agency responsibilities related
to counterterrorism efforts. Among these directives are Presidential Decision Directive
(PDD) 39, responsibilities for responding to terrorism, PDD-62, security for special
events, and PDD-63, responsibilities related to protecting our critical infrastructure.
Treasury and its bureaus undertake the responsibilities assigned to them under the
Presidential directives and, where lead responsibility is assigned to another agency or
department, lend our expertise and assets to support that agency.
We also continue our policy of coordination by appropriate representation to the
National Security Council's Counterterrorism and Security Group (CSG) and the
National Coordinator for Security, Critical Infrastructure and Counterterrorism. We also
participate in the Critical Infrastructure Assurance Office regarding critical infrastructure
Issues.
Task Forces and Other Interactions
Successful anti-terrorism programs require daily operational coordination. Within
the Department, ATF and Customs work closely on investigations of anns trafficking.
Similarly, Customs and OF AC coordinate issues relating to the enforcement of sanctions
programs. FinCEN and IRS-CI are available to support all of our bureaus with financial
background infonnation, which is indispensable in the tracking and understanding of
complicated terrorist funding efforts. Additionally, the Secret Service's protection efforts
are measurably enhanced by the investigative information and staffing resources
available from its Treasury counterparts.
Coordination outside of Treasury is carried out on a routine basis with our federal,
state, and local counterparts. Each of our bureaus and offices possess capabilities that are
available to augment the counterterrorism response of other departments and agencies.
Our enforcement bureaus are partners in the FBI's Joint Terrorism Task Force program.
Operationally, Treasury agents assigned to a JTTF work as full-time members. On
several occasions they have been designated as case agents on investigations requiring
review at the national policy level. As a result of field involvement in this program,
Treasury agents have a much clearer understanding of the extent of domestic and
international terrorist activity. This understanding enhances Treasury capabilities and
enables us to more effectively assess threat levels and to deploy resources to counter
potential national security threats.
The Secret Service, Customs and ATF coordinate continuously not only with the
FBI, but also with FEMA, Defense, State, and the CIA in responding to terrorist acts.
We maintain an active liaison program with the intelligence community and participate in
the FBI Counterterrorism Division, the CIA Counterrorism Center, and the Treasury
Threat Advisory Group. All of these relationships are important, integral partnerships in
the fight against terrorism.

Building Relationships Through State-of-the-Art Training

The reality ofthe globalization of crime and terrorism has motivated our bureaus
to adopt an aggressive training program to enhance our capabilities and build
relationships with agencies at home and abroad. The Federal Law Enforcement Training
Center (FLETC) alone trains the law enforcement personnel from more than 70 federal
agencies, numerous state and local law enforcement, and more than 50 nations, including
high threat areas such as China, Russia, Lithuania, Nigeria, South Africa and Colombia.
The benefits derived from the relationships developed through our training efforts have
enhanced our ability to investigate and suppress terrorist activity around the world.
CONCLUSION

I hope my testimony today has provided a better understanding of the breadth and
depth of Treasury's counterterrorism efforts. I want to thank Congress for its support of
our work. Weare committed to working with all of our partners to prevent, investigate
and prosecute terrorist attacks on the U.S. both at home and abroad. Thank you.

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u.s. International Reserve Position

9/08/01

The Treasury Department today released U.S. reserve assets data for the week ending May 4, 2001. As indicated in this
table, U.S. reserve assets totaled $65,391 million as of May 4,2001, up from $65,046 million as of April 27, 2001.

in US millions)

TOTAL
,. Fmeign Currency Reserves
a. Securities

May 4. 2001
65,391

AQril 27! 2001
65,046

Official U.S. Reserve Assets

Euro

Yen

Euro

TOTAL

5,313

10,649

15,962
0

8,996

4,610

13,606
0
0

Ofwhich. issuer headquartered in the U. S.

b. Total deposits with:.
b.i. Other central banks and BIS

b.J7. Banks headquartered in the U.S.
b.if. Of which, banks located abroad
b.iii. Banks headquartered outside the U.S.

b.iiL Of which, banks located in the U.S.

~. IMF Reserve Position
i.

Special Drawing Rights (SDRs)

'. Gold Stock

i. Other Reserve Assets

Yen

TOTAL

5,325

10,888

16,213
0

9,014

4,713

13,727
0
0

0
0

13,958

13,943

10,474

10.463

11,046

11 Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
(SOMA), valued at current market exchange rates. Foreign currency holdings listed as securities reflect marked-to-market values, and
deposits reflect carrying values.
21 The items, "2. IMF Reserve Position" and "3. Special Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar terms at the official SDRJdoliar exchange rate for the reporting date. The IMF data for April 27 are final. The entries in the table above
for May 4 (shown in italics) reflect any necessary adjustments, including revaluation, by the U.S. Treasury to the prior week's IMF data.

31 Gold stock is valued monthly at $42.2221 per fine troy ounce. Values shown are as of March 31, 2001. The February 28, 2001 value was
$11,046 million.

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U.S. International Reserve Position (cont'd)

II. Predetermined Short-Term Drains on Foreign Currency Assets
April 27, 2001
1. Foreign currency loans and securities

May 4,2001

o
o
o

2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:
2.8. Short positions
2.b. Long positions

3. Other

III. Contingent Short-Term Net Drains on Foreign Currency Assets
April 27, 2001

1. Contingent liabilities in foreign currency

May 4,2001

o
o

1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.8. With other central banks
3.b. With banks and other financial institutions
headquartered in the US.
3.e. With banks and other financial institutions
headquartered outside the US.

4. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calls
4.b. Long positions
4.b.1. Bought calls
4.b.2. Written puts

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE

CONTACT:

Office of Financing
202-691-3550

May 08, 2001

RESULTS OF TREASURY'S AUCTION OF 5-YEAR NOTES
Interest Rate:
Series:
CUSIP No:

4 5/8%
E-2006
9128276X5
High Yield:

Issue Date:
Dated Date:
Maturity Date:
Price:

4.660%

May 15, 2001
May 15, 2001
May 15, 2006

99.845

All noncompetitive and successful competitive bidders were awarded
securities at the high yield. Tenders at the high yield were
allotted 14.06%. All tenders at lower yields were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

25,909,865
356,332
100,000

3,174,893

Federal Reserve
TOTAL

29,541,090

12,543,693
356,332
100,000
13,000,025 1/

26,366,197

SUBTOTAL

Median yield

Accepted

Tendered

4.640%:

16,174,918

50% of the amount of accepted competitive tenders
Low yield
4.614%:
5% of the amount
)f accepted competi ti ve tenders was tendered at or below that rate.

las tendered at or below that rate.

lid-to-Cover Ratio = 26,366,197 / 13,000,025 = 2.03
/ Awards to TREASURY DIRECT = $269,094,000

http://www.publicdebt.treas.gov

PO-363

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
May 09, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 9-3/4-YEAR NOTES
This issue is a reopening of a note originally issued February 15, 2001.
Interest Rate:
Series:
COSIP No:
STRIPS Minimum:

5%
B-2011
9128276T4
$1,000
High Yield:

Issue Date:
Dated Date:
Maturity Date:

5.189%

Price:

May 15, 2001
February 15, 2001
February 15, 2011

98.551

All noncompetitive and successful competitive bidders were awarded
3ecurities at the high yield.
Tenders at the high yield were
~llotted
76.13%. All tenders at lower yields were accepted in full.
Accrued interest of $ 12.29282 per $1,000 must be paid for the period
:rom February 15, 2001 to May 15, 2001.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive

22,947,372
77,102

2,457,250

Federal Reserve
$

25,481,724

8,922,968
77,102
9,000,070 1/

23,024,474

SUBTOTAL

TOTAL

Accepted

Tendered

11,457,320

Median yield
5.175%:
50% of the amount of accepted competitive tenders
as tendered at or below that rate.
Low yield
5.139%:
5% of the amo.unt
f accepted competitive tenders was tendered at or below that rate.
ID-TO-COVER RATIO = 23,024,474 / 9,000,070 = 2.56
FIMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
HE STRIPS MINIMUM IS $1,000.

I Awards to TREASURY DIRECT = $ 39, 530, 000

http://www.publicdebt.treas.gov
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FOR IMMEDIATE RELEASE
May 9,2001

Contact: Tara Bradshaw
(202) 622-2960

TREASURY STATEMENT ON HOUSE PASSAGE OF THE BUDGET RESOLUTION
Treasury Secretary Paul O'Neill made the following statement after House passage of
H.Con.Res. 83, the Budget Resolution Conference Report for Fiscal Year 2002:
Broad-based tax relief, one of the major elements of the President's policy prescriptions
for America, took another important step forward today as the House voted to support a final
budget including $1.35 trillion in tax relief, with retroactive relief this year to give the economy a
much needed second wind.
Americans are paying a higher tax burden today than at any time in our nation's history.
The President has made it a top priority to reduce the tax burden to allow working Americans to
keep more of what they earn. The President also made it a top priority to make the tax code
more fair by reducing the marriage penalty, eliminating the death tax, and increasing the child
credit. Steep tax rates drain the economy's vitality and rob small business owners ofthe cash
flow they need to maintain their employment when the economy is struggling, and to grow in the
more prosperous times to come. In fact, 77% of the tax relief associated with cutting the top rate
would go to small business owners and entrepreneurs--fundamental engines of growth in our
economy.
Now we tum our attention to the Senate. I call on the Senate to act quickly, so that we
can put legislation enacting substantial tax relief for all taxpayers on the President's desk by the
end of this month, and put money back in the pockets of hard-working Americans as quickly as
possible.
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FOR IMMEDIATE RELEASE
Thursday, May 10,2001

CONTACT:

Treasury Public Affairs
202-622-2960

TREASURY SECRETARY O'NEILL STATEMENT ON OECD TAX HAYENS
Treasury Secretary Paul O'Neill made the following statement on OECD tax Havens:
Recently, I have had cause to re-evaluate the United States' participation in the
Organization for Economic Cooperation and Development's working group that targets 'harmful
tax practices.' Following up on the thoughts I shared with my G7 counterparts at recent
meetings, I want to make clear what is important to the United States and what is not.
Although the OEeD has accomplished many great things over the years, I share many of
the serious concerns that have been expressed recently about the direction of the OECD
initiative. I am troubled by the underlying premise that low tax rates are somehow suspect and
by the notion that any country, or group of countries, should interfere in any other country's
decision about how to structure its own tax system. I also am concerned about the potentially
unfair treatment of some non-OECD countries. The United States does not support efforts to
dictate to any country what its own tax rates or tax system should be, and will not participate in
any initiative to harmonize world tax systems. The United States simply has no interest in
stifling the competition that forces governments - like businesses - to create efficiencies.
In fact, the Administration is actively working to lower tax rates for all Americans. After
reducing our tax burden, we will turn our attention toward reforming our system to make it
simpler and more efficient. On these principles the United States remains firm.
When I took my oath of office as Secretary in January, I pledged faithfully to execute the
laws of the United States. In its current form as established by Congress, the U.S. tax code
generally taxes income on a worldwide basis. We have an obligation to enforce our tax laws as
written because failing to do so undermines the confidence of honest taxpaying Americans in the
fairness of our tax system. We cannot tum a blind eye toward tax cheating in any form.

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That means pursuing those who illegally evade taxes by hiding income in offshore
accounts. In today's world of instant information on the Internet, offshore bank accounts are no
longer an obscure perk of the very rich. Just type in "offshore brokerage account" in any Internet
search engine. The number of sites offering easy, affordable, secret offshore brokerage accounts
for investing in U.S. stocks is astonishing.
As one Internet site advertising offshore brokerage accounts in Dominica boasts, "U.S.
stocks, bonds, options, currencies ~d mutual funds are frequently bought through offshore
companies because they are not liable to U.S. capital gains taxes." Consider just how unfair this
is to law abiding U.S. investors who invest in U.S. stocks and pay taxes. The tax evading U.S.
investor, investing in the very same U.S. stocks through a secret offshore account, does not.
Anyone who doubts that the U.S. needs information from offshore tax havens in order to
prosecute tax evaders need look no further than the case of John Mathewson. Mathewson ran a
bank in the Cayman Islands. When shut down in 1995, Mathewson had over 1,000 customers
and, according to Mathewson, 95% of his customers were U.S. citizens. With Mathewson's
cooperation, the IRS obtained tax evasion convictions on, and collected substantial back taxes
from, over 20 of Mathewson's clients. These cases were made possible because of Mathewson's
extraordinary cooperation. Without it - and without any tax information exchange agreement
with the Cayman Islands - this large-scale illegal tax evasion would have gone unpunished.
To enforce our tax laws, we must have a multi-prong strategy. If the United States
believes that a particular U.S. taxpayer is illegally evading the U.S. tax laws through the use of
offshore entities or secret bank accounts, the United States must make every effort on our own to
obtain the necessary information to enforce the U.S. tax laws. In addition, the United States has
negotiated individual treaties or agreements with over 60 countries so it can obtain needed
information in cases of tax evasion. Finally, in appropriate circumstances, organizations like the
OECD can be used to build a framework for exchanging specific and limited information
necessary for the prosecution of illegal activity. We do - and will- guard against over-broad
information exchanges in which foreign governments seek information for improper purposes or
without proper safeguards. We cannot tolerate those who cheat on their U.S. taxes by hiding
behind a cloak of secrecy.
Where we share common goals, we will continue to work with our G7 partners to achieve
these goals. The work of this particular OECD initiative, however, must be refocused on the
core element that is our common goal: the need for countries to be able to obtain specific
information from other countries upon request in order to prevent the illegal evasion of their tax
laws by the dishonest few. In its current form, the project is too broad and it is not in line with
this Administration's tax and economic priorities.
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For Immediate Releases
May 9,2001

Contact: Public Affairs
(202) 622-2960

UNITED STATES
PAUL H. O'NEILL, Governor

It is a pleasure to welcome the Asian Development Bank, member country
delegations, and honored guests to the United States and to the beautiful host
city of Honolulu, Hawaii. Let me join President Bush in thanking Governor
Cayetano and Mayor Harris for their warm hospitality.
I am honored to be chairing the Thirty-Fourth Annual Meeting. The Bush
Administration views the Asian Development Bank as having a critical role in
economic development in the Asia and Pacific region. Since its founding in
1966, the Bank and the region have undergone momentous changes. No one
understands this better than my esteemed colleague, President Tadao Chino,
who was involved in the founding of the Bank and is now leading the institution
st
into the 21 century. I am honored to join President Chino in opening this
meeting.
I would also like to make a few remarks as the Governor for the United
States.
I am very mindful that we all live in a globalized and interconnected world
economy. As Secretary of the Treasury of the United States, the world's largest
economy, let me assure you that I take seriously the responsibility that the United
States perform at an optimal level, for its own people and for the world. While
the U.S. economy has slowed, I have full confidence in its resilience. Economic
fundamentals - productivity growth, the flexibility of our labor and capital
markets, and low inflation - remain strong. In addition, the United States is
working to put in place macroeconomic policies supportive of growth. The
Administration's proposed tax cuts will provide some stimulus now and, more
importantly, increase economic efficiency to underpin long-term economic
growth. The U.S. Federal Reserve has demonstrated resolutely its willingness to
ease monetary conditions as needed.
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Although global growth has slowed over the past year, it is important not
to lose sight of the sound foundation for recovery that is already in place.
Nonetheless, a healthy global economy requires all of us to perform to our full
potential, and, at the moment, all of the major economies are operating below
their long-term potential. It is important for Japan, after ten years of sluggish
growth, to achieve strong, stable growth. We welcome Prime Minister Koizumi's
recent statements indicating his commitment to reform and look forward to
seeing Japan take the steps needed to trigger an enduring recovery.
East Asia's recovery from the financial crisis has been encouraging. Per
capita incomes in most countries are now well above their pre-crisis level. The
risk of further balance of payments crises has declined significantly as most
countries have built up foreign currency reserves, reduced short-term external
debt and adopted more flexible exchange regimes. Yet, like a receding tide, the
decline in global demand, particularly for high technology products, has revealed
more clearly the drag weak banking and corporate sectors have on growth.
In South Asia, the information technology and heavy manufacturing
sectors have grown strongly. The challenge now is to provide a more supportive
environment for private-led growth in other sectors. The development challenges
in Central Asia are also significant. While the energy sector has been a bright
spot, countries are grappling with low growth, widespread poverty, and mounting
debt burdens.
Asia has become increasingly important to the global economy,
accounting for about a third of global trade and receiving a third of foreign
investment in developing countries. Asia has also become increasingly important
to the United States. Trade and investment ties have expanded, with Asia's
share of U.S. trade increasing from about 10% in 1980 to over 20% currently
(excluding trade with Japan), and U.S. foreign direct investment flows into Asia
rising from $1-2 billion in the early 1980s to about $12 billion currently.
I'm an optimist. People around the world want higher living standards and they will get there if they are exposed to the right incentives and
opportunities. The differences between living standards in adjacent countries all
over the world dramatizes how important certain fundamentals are. With the
right policies, there is no good reason why such drastic differences in living
standards need to be permanent.
I firmly believe that we will look back at the Asian crisis as a temporary
setback in one of the most amazing success stories in economic history. The
fundamental factors which contributed to the "Asian Miracle" of the seventies,
eighties and early nineties, are still in place:

•

a commitment to sound macroeconomic policies;

•

free trade and open investment policies which expose companies
to international competition;

•

generally low levels of taxation;

•

high levels of investment in human capital through sustained public
sector commitment to health and basic education;

•

a strong sense of entrepreneurship; and

•

a high propensity to save.

Many of these core values remain as important as ever.
Institutions such as the Asian Development Bank are well placed to help
countries put in place policies to meet the new development challenges of the
st
21 century such as strengthening social safety nets, financial sectors, capital
markets, corporate governance, and commercial legal systems. A key theme
behind my ideas for reform of the multilateral development banks is that they be
more focused on the objective of increased income per capita through higher
productivity growth. In this regard, the Bank can help countries move toward a
second generation of productivity enhancements, building on the lessons learned
and on the policies that have been successful in the past. We welcome the
Bank's new Private Sector Development Strategy, which the Board of Governors
approved last year. While still in its early stages of implementation, it envisions a
Bank that strives to promote private sector investments at every opportunity.
Bank support for human capital development, including cost effective social
safety nets, is an important complement for this work.
While the ADB can make an important contribution to improving
governance in the region, we also need to build on internal initiatives to improve
corporate governance in the ADB and other multilateral development banks,
making them more responsive, open, and accountable to shareholders and
taxpayers. Similarly, while the ADB and other MOBs can playa large role in
helping countries increase the effiCiency of investments, they also need to
increase the efficiency and effectiveness of their own lending through greater
selectivity, better coordination with other lenders, and more effective monitoring
of performance. I look forward to working with my fellow governors and the
management of the Bank to achieve these goals.

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For Release Upon Delivery
May 10,2001

Contact: Public Affairs
(202) 622-2960

Statement of James F. Sloan, Acting Under Secretary for Enforcement
U.S. Department of the Treasury before the Senate Appropriations Committee
Subcommittee on Treasury and General Government

Chainnan Campbell, Senator Dorgan, and Members of the Subcommittee, I am pleased
to be here today on behalf of Secretary O'Neill to introduce the FY 2002 budget request for the
Department of the Treasury's law enforcement bureaus and offices.
Testifying with me today are the heads of each Treasury law enforcement bureau:
Charles W. Winwood, Acting Commissioner of the United States Customs Service (Customs),
Bradley A. Buckles, Director of the Bureau of Alcohol, Tobacco and Firearms (ATF), Brian L.
Stafford, Director of the United States Secret Service (USSS), W. Ralph Basham, Director of the
Federal Law Enforcement Training Center (FLETC), William F. Baity, Deputy Director ofthe
Financial Crimes Enforcement Network FinCEN) and R. Richard Newcomb, Director of the
Office of Foreign Asset Control (OFAC).
In addition to presenting the FY 2002 budget request, I am also here today to discuss the
most significant challenges we face in Treasury law enforcement. However, at the outset of my
testimony, I want to thank the Members of this Subcommittee for their strong and continuing
support for Treasury law enforcement. Because of your support in FY 2001, we experienced the
largest increase in Treasury law enforcement staffing in over a decade.
This Subcommittee is aware of the fiscal challenges we continue to face. The FY 2002
budget request for $4.3 billion and roughly 30,000 FTE provides our Treasury law enforcement
bureaus and offices the support needed to carry forward our challenging missions. Overall, the
President's FY 2002 budget proposal would add roughly 900 full-time equivalent positions to
Treasury enforcement above the FY 2001 total enacted level. For example, this budget will
provide the ATF with an overall increase of340 full-time equivalent agents, inspectors and other
staff, and will be used to enhance our explosives, arson, and firearms enforcement efforts. For
Customs, the FY 2002 budget request includes necessary funds to annualize the costs of 370 fulltime equivalent positions associated with the FY 2001 enactment. These positions will further
aid Customs in carrying out its very important drug and law enforcement missions.

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All of our bureau heads will address their programs in greater detail today. I would now
like to touch on a few of the highlights involving Treasury Enforcement.

TREASURY STRATEGIC GOAL: SUPPORT THE ACHIEVEMENT OF BUSINESS
RESULTS
DEPARTMENTAL OVERSIGHT

In addition to funding, it is'important that our law enforcement bureaus have clear
policies and priorities. The Office of Enforcement continues to focus on providing support,
oversight, and policy guidance to enhance the perfonnance of our enforcement bureaus and
provide strong leadership in the enforcement community.
Performance Results

As the Acting Under Secretary for Enforcement, along with my staff, I am working to
ensure that the Treasury law enforcement bureaus' perfonnance goals and measures confonn to
policy and that the bureaus strive to reach their identified targets. To that end, Treasury law
enforcement bureaus are working hard to achieve the strategic goals and objectives identified in
the Department's FY 2000 through FY 2005 strategic plan. Our law enforcement bureaus have
improved in their overall perfonnance as indicated by a comparison of our FY 1999 and
FY 2000 results of the percentage of perfonnance targets met by Treasury law enforcement
bureaus and major offices.

FY 1999
Actual
64%

FY2000
Actual
77%·

FY 2001
Plan
82%

FY2002
Plan
85%

We will continue to strive to improve as we work toward the achievement of our FY
2001 and FY 2002 performance measure targets. It is important, however, that we not set
goals that we are sure to reach. Instead, even though we may not achieve all of our goals, we
must set targets that challenge us. If the performance measure targets do not "stretch" our
bureaus, we will not improve.

It is my view that the perfonnance measures contained in our FY 2002 bureau
perfonnance plans will appropriately challenge us. However, I also recognize that we still
have a long way to go in developing the best set of perfonnance measures for our law
enforcement bureaus. While this is true for all of our mission areas, such as protection, trade
facilitation, and passenger processing, it is especially true for our traditional law enforcement
mission. We will work within Treasury, with other Federal law enforcement agencies, and
with the Office of Management and Budget COMB) to develop the law enforcement measures
to accomplish our operational priorities and achieve our agency goals more effectively.
INFRASTRUCTURE

For our bureaus to accomplish their missions successfully, they need facilities that are
safe and secure. They also need equipment that is up-to-date and reliable. Weare working to
meet these needs and thereby better serve the American people.
An example of this is the updated Customs Air and Marine Modernization Plan. This
Plan is being cleared through the Department and will be forwarded to OMB and this Committee
very soon. This Plan was prepared in response to a request by this Committee which, in noting
the successes of the Customs Air and Marine Interdiction program, expressed its serious
concerns surrounding the growing 'operational commitments associated with that success.
Among other things, the Plan specifically addresses the Committee's concerns regarding the high
cost of maintaining the fleet due to aircraft age and operational usage. The Air and Marine
Modernization Plan includes a current description and status of air and marine assets and a
strategic plan for replacing assets that have exceeded their useful life. To support this effort, the
FY 2002 budget request includes a $35 million initiative for air and marine enhancements
consistent with the Western Hemisphere Drug Elimination Act.

National Laboratory Center
The ATF National Laboratory Center (NLC) currently is located in a less than
satisfactory commercial building in Rockville, Maryland, and a new government owned facility
is being built as a replacement. In addition to the existing Forensic Science and Alcohol and
Tobacco Laboratories, a new Fire Research Laboratory (FRL) will be part of the facility. In
December 1999, ATF broke ground for its new NLC in Beltsville, Maryland. Once constructed,
the new NLC will give ATF the kind of forensic and analytical science facility it needs to
support firearms, explosives, and fire investigations, as well as to conduct testing that insures the
integrity of regulated alcohol and tobacco products.
The FRL is a new addition to ATF's technical expertise that will directly support
fire/arson investigations and complement ATF's on-going fire/arson investigation initiatives
such as the InterFIRE Fire Investigation Training, the Certified Fire Investigator Program, and
the Accelerant Detection Canine Program. It will be the only laboratory in the world solely
dedicated to supporting fire/arson investigations and the resolution of arson related crimes and
advancing the science of fire evidence analysis. For the first time, investigators will have a
resource that can help them unravel the difficult problems associated with fire ignition and
spread. ATF has established a memorandum of understanding with the National Institute of
Standards and Technology to join forces on research into the measurement and prediction of fire
and its effects, to share training and technology, and to conduct joint research and technical
assistance tasks on matters of fire science.

ATF Headquarters
ATF Headquarters currently is located in a portion of a privately owned office building.
In response to increasing safety concerns and capacity limitations, construction funds were
provided for a new ATF Headquarters Building. The new building also will be the cornerstone
of the redevelopment of the New York and Florida Avenue corridors in Northeast Washington,
DC. We anticipate project completion in the spring of2005. Due to the importance of this

project, including the need to ensure the safety of our employees, senior policy officials are
monitoring this project closely to ensure appropriate funding, and that it adheres to the original
completion schedule.
FLETC Master Plan

The expansion in recent years in the number of employees hired by the 73 law·
enforcement agencies that participate in FLETC has stressed FLETC's ability to meet all the
requests for training. Although F[ETC continues to be able to provide all the basic training
needed, by using a temporary facility in Charleston, South Carolina, increases in bureau hiring
require coordinated increases in funding for FLETC.
Consistent with past practice, FLETC has submitted its five-year construction plan and
updates to Congress. This so-called Master Plan captures how FLETC proposes to expand its
Glynco, Georgia and Artesia, New Mexico facilities to ensure that long range demands for
training can be met. Currently, FLETC is being challenged to expand facility capacities at its
Glynco and Artesia centers to meet expressed U.S. Border Patrol training requirements. A
temporary site is now being used in Charleston to provide a portion of basic training due to
predicted Glynco capacity limitation. As you know, the Congress has requested that FLETC's
expansion be completed in FY 2004, to eliminate the need for Charleston's use. FLETC's current
Master Plan, identifies $83.2 million in construction requirements ($54.9 million over five years
for Artesia and $28.3 million over five years for Glynco). To date, FLETC has received $39
million in appropriations and most of which has been, or will be, obligated by the end ofFY
2001. Initially, the Border Patro1's training facility in Charleston was scheduled to close in FY
2004, with subsequent consolidation of all Border Patrol basic training at FLETC. Such a
consolidation would generate $55 million in cost avoidance for new construction, and another $8
to $12 million annually would be saved by the Border Patrol in per diem cost, above original
projected costs. FLETC and Border Patrol have forged a partnership to continue to make
prudent decisions to achieve the consolidation as close to the original target date as possible.
FLETC's Cheltenham Facility

As part of its efforts to support Treasury's law enforcement bureaus, the Office of
Enforcement identified a need for a firearms requalification range facility in the greater
Washington, D.C. area for Treasury and other law enforcement personnel. To address this need,
in March 2000, an interagency working group was formed to conduct a feasibility study to
determine the possibility of establishing a consolidated training facility in the Washington
metropolitan area. The study attempted to find an available location that would meet the
following criteria: (1) government owned property, (2) sufficient acres to allow growth, (3)
within the D.C. metropolitan area, and (4) suitable buffer areas between neighboring residential
or commercial property. We have identified a site in Cheltenham, Maryland, that meets these
criteria, and thanks to the support ofthis Committee and Congress, we have $30 million to build
the facility. Although there is ongoing litigation about the site, we hope to be able to move
forward soon.

The availability of a FLETC operated dedicated firearms and a vehicle operations
requalification facility will promote optimum quality, quantity, and cost effectiveness for all law
enforcement agencies in the greater Washington, D.C. area. While the original working group
consisted of six Treasury law enforcement agencies -- ATF, USSS, Internal Revenue ServiceCriminal Investigations (IRS-CI), FinCEN, Customs, and FLETC -- we now have over 29
agencies interested in using Cheltenham, including the U.S. Capitol Police.
HUMAN RESOURCES

We recognize, however, that the most modem facilities using the latest technology are
useless if we are not able to recruit and retain high caliber personnel. We have taken a number
of important steps to strengthen our workforce.

Treasury Law Enforcement Study
The FY 2000 and FY 2001 House Appropriations Committee Reports expressed concern
about available Treasury law enforcement resources and infrastructure issues. In response, the
Department of the Treasury, in coordination with the Office of Personnel Management, engaged
a human resources management/consulting firm to prepare a series of issue papers. The issue
papers involve senior executive service staffing; economy of scale/technology; human resource
planning and workforce productivity; quality of work life; external funding; and training. In
addition, I am pleased to inform the Committee that, as identified below, Treasury also
conducted a series of complementary studies. Together, these efforts outlined the issues and
challenges facing Treasury's law enforcement bureaus. More importantly, the contractor has
proposed strategies and next steps to help ensure that they will have the human and technical
resources necessary to meet mission demands now and in the future. For certain, additional
work will be needed to address the overall aspects of this endeavor.
There are many challenges that compel us to focus on these issues including an
increasingly more demanding and complex operating environment, highly sophisticated and
complex criminal activities, growing use of the internet, globalization, and the requirements to
do more and having to do it with less.
The contractor's report contains recommendations for next steps in a number of areas,
some of which are listed here. However, it is important to note that this report does note connote
Administration policy.

Topics
Senior Executive Service Staffing
Levels
Technology and Economy of Scale

Optimizing Staffing in Field Offices

Issues

Next St~s

SES slot allocation; actual number of
SES slots needed to carry out the law
enforcement mission.
Importance of technology in Treasury
Law Enforcement Bureau's work; use
of complex technology by criminals.
Staffing of core occupations;
reviewed each bureau's organization,
workforce, workload and work

Develop proposal for achieving
additional SES slots.
Review technology needs in the
context of the new administration's
goals and bureau strategic plans.
Develop plans for dealing with the
insertion of new technologies.
Develop pilot offices; determine
needed workforce profiles; and assess
the costs.

Workforce Competencies and
Compensation
Quality of Work-Life

Topics
External Funding and Partnerships

Training

processes.
Focus on workforce competencies
and compensation
Issues that positively and negatively
affect employment (e.g. assignment
to hardship posts).

Determine competitive levels of
compensation and benefits.
Invest further study and attention into
critical quality of work-life issues.

Issues

Next Steps

How the Bureaus can partner with
extel1lal organizations, such as
commercial industry or trade
associations, to help meet anticipated
resource requirements.
Identification of training needs that
cut across bureaus; process for
development of joint training;
strategies for integration of programs
into bureau specific curricula.

To further develop the best ideas
through a multi level review process.

Enhance current efforts to facilitate
inter-bureau training and the use of
technology

Further investments may be warranted to capitalize on many of the ideas and strategies
proposed from both the external and internal efforts from this proj ect.

Hiring and Agent Staffing
Retention of employees who have years of experience and in whom we have invested
long hours of training is critical. In that regard, the Department has made progress toward
meeting the challenges of improving our capacity to develop and retain high-caliber employees.
Specifically, we have worked to address workforce retention and workload balancing issues with
the aforementioned comprehensive studies. The analysis confrrmed that agents and other core
occupations are experiencing increased travel, longer working hours, and shortages in
technologically current equipment. However, I am pleased to note that several FY 2001
initiatives are being continued in FY 2002, and with the Committee's support this will enable us
to respond to these challenges effectively.

Senior Executive Service (SES) Allocations
Allocation of SES positions within Treasury law enforcement bureaus is of vital concern
to our present and future leadership planning. This represents one of our highest cross-cutting
human resource priorities. This is one of the topics addressed in the contractor's report, as noted
above.

Demonstration Pay Project
The Demonstration Project was established to enhance the Department of the Treasury's
ability to recruit, develop, and retain highly qualified non-agent scientific and technical law
enforcement personnel. It seeks to do so by implementing changes in personnel management
practices for designated occupations. ATF recently launched its pay demonstration project for
scientific and technical positions. The Demonstration Project emphasizes flexibility in
approaches to recruitment, and establishes a pay-for-performance system designed to provide
incentives to compete with state and local government and the private sector. ATF's

Demonstration Project consists of more than 250 employees within 13 divisions and includes
occupations such as computer science, fingerprint analysis, firearms enforcement, document
analysis, engineering, integrated ballistic information system specialist, firearms and tool
making.
Paybands, a performance appraisal system, performance-based bonuses and pay
increases, and certification and licensure bonuses are some of the interventions being used to
develop a higher performing workforce. By all counts, I am confident that this effort is a good
barometer of the future for all oft~e Federal government.
As required by law, we recently provided the Congress with the Demonstration Project
Interim Evaluation Report. It provides an assessment of the effectiveness of the project. The
interim findings and conclusions state that participating employees are paid more and that they
want to continue with the Project. They recognize the link between pay and individual
performance. The Report also notes that management needs to make improvements to the
performance appraisal system and improve communication to achieve Treasury objectives.
Because the interim recommendations were made after just one year's experience with the human
resources interventions, this project needs to be extended to fully assess its effectiveness. Our
extension request is included in the President's April 9, 2001 budget. We thank the
Subcommittee for its support on this project, as we look forward to completing the research and
making this capacity permanent.

Improving the Office of Enforcement
We also are working to improve the Office of Enforcement. In March, the General
Accounting Office completed its report on the Office of Enforcement, entitled Department of the
Treasury: Information on the Office of Enforcement. In addition to making a number of
constructive observations, the report recommended that the Under Secretary for Enforcement
"strengthen internal control by developing a policies and procedures manual to ensure that the
policies and procedures on the circumstances under which the bureaus interact with Enforcement
are clearly defined, documented and readily available for examination by bureau officials and
others." I want to assure you that we have begun to review our policies and procedures and
develop a plan to comply with this recommendation.
TECHNOLOGY

It is especially important for Treasury law enforcement to define and pursue strategies
that ensure adequate technological resources are available to support our law enforcement
missions and bureaus. Computers and the Internet are an integral part of an ever-increasing
number of criminal activities investigated by Treasury bureaus. We have seen computergenerated and computer-assisted fraud dramatically increase. Criminals, in the furtherance of
their illegal schemes, frequently utilize hardware and software tools developed for the benefit of
businesses and consumers.
Because ofthe competitive nature of Internet-based financial services, the focus is on
speed, "24/7" access, and ease of use; all of which make the job of the "cyber criminal" a little
easier. The Internet also provides the anonymity that criminals desire. Alarmingly, the Internet

contains thousands of sites dedicated to all types of criminal activity. "Hacking" sites describe
the methods for making intrusions into financial, telecommunications, and government systems,
and allow the necessary "tools" to be downloaded directly to the perpetrator.
For just about every new technology that is found to be useful in the conduct of criminal
endeavors Treasury law enforcement will have to make a decision on countering these
technology related thrusts and find ways to master the relevant technologies. Without
continuous technical upgrading and training, the criminal element may acquire an advantage
over law enforcement in the fast giowing areas of cyber-crime and communications
countermeasures. We must meet this threat with technology, knowledge, and law enforcement
personnel who have true mastery of these offensive or defensive tools to thwart, control, or
reduce crime. Technology infusion and managing technology obsolescence, though at times
resource draining, are essential tools for maintaining the decisive edge for the enforcement and
protection mission. As noted earlier, we are planning to conduct a follow-on review of law
enforcement technology needs and technology strategies to support the new administration's
goals.
MEETING OUR STRATEGIC GOALS

Of course, the purpose of focusing on our infrastructure, human resource and technology
needs is to enhance our abilities to meet our law enforcement missions. Treasury's law
enforcement bureaus have a distinguished record of service. Weare committed to building on
this record and achieving even greater performance.

TREASURY STRATEGIC GOAL: COMBAT MONEY LAUNDERING AND OTHER
FINANCIAL CRIMES
Money Laundering and Financial Crimes
The Office of Enforcement and the Treasury enforcement bureaus continue to lead the
U.S. government's efforts in the domestic and global fight against money laundering and related
financial crimes. Treasury continues to author the National Money Laundering Strategy in
conjunction with the Department of Justice. This strategy aims to attack not only the proceeds of
narcotics trafficking, laundered, for example, through the Black Market Peso Exchange system,
but also the illicit proceeds generated by child pornographers, trade fraud, terrorists, arms
traffickers, and those who defraud the elderly.
FinCEN and the Treasury enforcement bureaus continue to work to improve feedback to
the industry regarding the utility of the Suspicious Activity Reports (SARs) filed by financial
institutions. SARs are a critical component of law enforcement's ability to detect and combat
money laundering. Many investigations are made or enhanced through the use of a SAR, and we
are working with industry to help them understand better how law enforcement uses SARs
through "The SAR Activity Review," published under the auspices of the Bank Secrecy Act
Advisory Group. SAR review committee groups are being established in the major metropolitan
areas to prevent duplication of investigative efforts.

Treasury Enforcement leads the U.S. delegation to the Financial Action Task Force
(FATF) and its project to identify Non-Cooperative Countries and Territories (NCCTs). In
addition to contributing actively to the FATF NCCT effort, Treasury has infonned our domestic
financial institutions about the risks posed by the 15 NCCT jurisdictions identified by FATF last
June. FinCEN has issued fonnal advisories to alert U.S. financial institutions to specific
deficiencies in the counter money laundering regimes in these 15 jurisdictions and to encourage
our institutions to apply enhanced scrutiny to transactions involving them. Treasury has worked
both with our allies and with officials from the NCCTs themselves to correct the shortcomings in
law, regulation, and practice that elevate the risk of money laundering activity in these locales.
We are pleased with the progress being made in many of these named jurisdictions and feel that
it is directly attributable to this FATF exercise. We believe that the second round ofNCCT
reviews, scheduled to be completed by June, will have a similarly beneficial result.
Money Service Business (MSB) Regulatory Program

In the United States we are continuing to move forward on several fronts to strengthen
the nation's anti-money laundering program. A little more than a year ago, FinCEN issued a
final rule requiring registration of money services businesses -- money transmitters, check
cashers, money order and traveler's check businesses, and currency exchangers. The new rules
will allow law enforcement authorities for the first time to have a finn idea of the size and
location of the 200,000 or so entry points into the financial system that those businesses can
represent. FinCEN has also issued a final rule requiring suspicious transaction reporting by
money transmitters and money order and traveler's check businesses; that rule is also currently
scheduled to take effect at the beginning of next year.
Our priority is ensuring a smooth and effective implementation of both the registration
and suspicious activity reporting rules, taking into account what we learn during this critical
implementation period. A delay in the effective date of suspicious transaction reporting might be
helpful to assure smooth sequencing of the new obligations, but no final decision has been made
on this point.
During this implementation period, FinCEN is conducting an extensive outreach program
to educate the MSB community about their registration and reporting obligations. On-going
consultations are taking place with MSB industry representatives and a series of focus group
meetings have been held in Chicago, Los Angeles, and New York. In addition, FinCEN is
working closely with the Internal Revenue Service, a key partner with respect to oversight
compliance by the MSB industry, to ensure that an enforcement and compliance infrastructure is
in place by the time the SAR regulation takes effect.
White CollarlHigh Tech Crime
Treasury's enforcement bureaus also protect our children from on-line pornographers,
enhance the safety of worldwide e-commerce, and enforce the intellectual property rights of U.S.
industry from unscrupulous pirates. Treasury's law enforcement agents are recognized leaders
internationally in the fight against high-tech crime in all of its manifestations; routinely provide
important investigative and forensic assistance to their state and local law enforcement

colleagues; and have earned the respect of the private sector industry through their effective
handling of cases. Treasury agents have, for example, prevented a computer hacker from
shutting down an on-line stock trading service and tracked and captured a hacker who caused the
catastrophic shutdown of a medical diagnostic facility's computer network and communication
system. Treasury maintains a Department-wide initiative to ensure that all of its law
enforcement bureaus have a technically skilled and highly equipped set of agents to investigate
these type of cases, and has deployed nearly 200 Computer Investigative Specialists (CISs)
throughout the nation. The CIS program ensures that Treasury agents can handle evidence in
whatever media it is stored. Treasury's enforcement jurisdiction in an increasingly high-tech and
wired world.

Black Market Peso Exchange (BMPE)
Treasury's counter-narcotic efforts have both a domestic and international dimension.
Our initiatives to combat the BMPE, the largest money laundering system in the Western
Hemisphere and the primary conduit for Colombian drug cartels, are a good example ofthis
approach. Anecdotal law enforcement evidence, informant statements, and other evidence
suggests that between $3 - $6 billion is laundered annually using the BMPE system.
Three years ago we established a multi-agency BMPE Working Group which has
developed and implemented an aggressive strategic plan to combat this form of money
laundering. The Money Laundering Coordination Center ([MLCC] created and operated by the
Customs Service has proven instrumental in fighting the BMPE), is designed to synthesize
intelligence from investigations targeting the BMPE. Housed at FinCEN, the MLCC has proven
instrumental in fighting the BMPE. Combating the BMPE is a law enforcement priority.
In addition to these law enforcement efforts, the Department of the Treasury and the
Department of Justice have developed and implemented an aggressive outreach program to make
the U.S. business community knowledgeable of the operations of, and their vulnerability to, the
BMPE system. Treasury and Justice are working with business leaders in their efforts to
develop, adopt, and implement money laundering compliance programs and best practices
guidelines that will aid their companies in avoiding BMPE transactions.
To promote awareness of the BMPE process and its detrimental effects on the global
economy, Treasury has created the International BMPE Exchange Task Force. This Task Force
is comprised of experts from Aruba, Colombia, Panama, United States, and Venezuela who will
examine the operations of the BMPE as a money laundering system and will recommend policy
options and actions that can be taken to effectively detect, deter, and prosecute BMPE money
laundering.

TREASURY STRATEGIC GOAL: PROTECT OUR NATION'S BORDERS AND MAJOR
INTERNATIONAL TRANSPORTATION TERMINALS FROM TRAFFICKERS AND
SMUGGLERS OF ILLICIT DRUGS
Counter-Narcotics

The Southwest Border (SWB) between the U.S. and Mexico continues to provide a
significant challenge to Treasury's law enforcement operational mission. In FY 2000,293
million people, 89 million cars and 4.5 million trucks entered the United States from Mexico.
This immense and growing volume of traffic represents an opportunity for those who would
violate U.S. law, making control of our borders and ports of entry essential. Government
estimates continue to indicate that nearly two-thirds of the cocaine entering the U.S. comes
across the SWB.
Multiple government agenCies are tasked with maintaining the flow of legal migration
and trade while protecting the United States from the smuggling of drugs, illegal aliens, and
other contraband. Customs has primary responsibility for ensuring that all movements of cargo
and passengers that enter the United States comply with Federal law. Customs is also the lead
agency for investigating and preventing drug smuggling into the U.S.
The challenges we face are significant and complex, but not insurmountable. Working
through the Border Coordination Initiative, we have improved our law enforcement capabilities
along the SWB. Under Treasury and Justice enforcement guidance, and with significant
emphasis on interagency cooperation and locally developed innovation, we have improved port
coordination, intelligence gathering and enforcement. We have also enhanced communication,
coordination, and operational effectiveness of federal law enforcement while still facilitating the
movement oflegitimate commerce across the SWB.
Plan Colombia
Since mid-1999, Treasury Enforcement has participated in efforts to assist the
Government of Colombia in efforts to stop narcotics production and trafficking in that country.
The $1.3 billion "Plan Colombia" was passed by Congress to assist that. The Office of
Enforcement has played a major role in the development of the components ofthat Plan and the
contributions in support of its implementation.
The Plan Colombia legislation included funding for Treasury programs, including $68
million for upgrading the radar in the Customs P-3 fleet, $2 million for OFAC sanctions
activities, $1 million for banking supervision assistance, and $500 thousand for tax revenue
enhancement. Funds provided to the State Department for assistance and training programs are
also being used by Treasury bureaus to train the newly-formed Colombian Customs police force,
to support Customs Americas Counter Smuggling Initiative and to provide maritime enforcement
and port security assistance .
. In addition Treasury's enforcement bureaus - ATF, Customs, IRS-CID, USSS, and
FinCEN - under the Office of Enforcement's lead, have developed plans to participate in a
variety of law enforcement efforts such as enhancing the Colombian financial intelligence unit
and thwarting the BMPE and other money laundering, smuggling, and counterfeiting activities.

TREASURY STRATEGIC GOAL: REDUCE VIOLENT CRIME AND THE THREAT OF
TERRORISM
Firearms Violence
11

We remain dedicated to reducing firearms violence through ATF's enforcement of the
firearms laws. The President's budget permits ATF to maintain this enhanced level of effort and
move forward with its comprehensive strategy to reduce violent crime.
As Director Buckles' will discuss in more detail during his testimony, the IVRS sets forth
an aggressive three-part plan to reduce gun violence by coordinating ATF's firearms
enforcement efforts to: (1) identify, investigate, and recommend prosecution of violent criminals
and others who illegally use, possess, or attempt to acquire firearms; (2) deny access to firearms
for criminals and others who cannot legally possess them through fair and careful regulation of
the firearms industry and proactive investigation of illegal traffickers of firearms; and (3) break
the cycle of violence and prevent firearms crimes through community outreach. ATF has
enjoyed significant success in implementing this strategy. For example, in FY 2000, ATF's
efforts led to the conviction of 1,595 armed career criminals, armed drug traffickers, and other
violent or prohibited persons who used, possessed, or attempted to acquire firearms. The
President's budget request for ATF will enable us to build on this success.
Counterterrorism

The President's FY 2002 budget seeks resources that will enable Treasury to continue to
apply its unique expertise and assets to the federal government's efforts to combat terrorism.
Treasury's wide-ranging counterterrorism responsibilities include preventing the unlawful
traffic in firearms and explosives, protecting the President and other officials, enforcing the laws
controlling the movement of assets, and enforcing the laws relating to exports from or imports
into the United States of goods and services. In short, Treasury enforcement bureaus have the
legal authority and the essential expertise to perform missions that are critical to the security of
the United States, including:
•

ATF has primary jurisdiction for the prevention of unlawful trafficking in firearms and
explosives. ATF conducts over 90% of all federal bombing investigations and maintains the
Federal National Repository on Bombing Incidents.

•

Customs is the guardian of our nation's borders. It's counterterrorism mission is twofold:
protect our nation from the introduction of Weapons of Mass Destruction (WMD) and
prevent international terrorists from obtaining WMD materials, technologies, arms, funds to
support their activities. Customs enforces the laws and regulations that directly relate to the
responsibilities entrusted to the Department of the Treasury under Presidential Decision
Directive 39. These violations include the smuggling of contraband into the United States;
the illegal export of licensable technologies and arms; violations of international sanctions,
embargoes and related money laundering statutes. Customs places special emphasis on
violations that involve international terrorists, rogue regimes pursuing WMD development
programs, and countries which support international terrorism.

•

The FLETC offers a variety of programs aimed at assisting federal, state and local authorities
in their efforts to combat terrorism.

•

FinCEN unique ability to "follow the money" strikes at the very heart of terrorist
organizations. Through the use of a wide array of databases, FinCEN is able to reveal
complex financial networks supporting terrorist activities.

•

IRS-CI provides the expertise to deter one of the primary means of funding for terrorist
organizations-tax fraud. The financial expertise of IRS-CI is best utilized in the investigation
of various tax schemes, money laundering and the creation/use of illegal tax-exempt
organizations.

•

OF AC administers United States economic sanctions against foreign governments and
organizations that support terrorism. OFAC's sanctions prohibit any financial transactions or
dealings with terrorist sponsoring countries and foreign terrorist organizations and provide
the blocking of assets ofterrorist countries and entities by Treasury.

•

The United States Secret Service (USSS) protects our nation's leaders, the White House
complex and certain foreign dignitaries. In addition, the USSS is now the lead agency for the
design, planning and implementation of security for events that have a high potential for
attracting terrorist activity. The National Security Council proposes to the Attorney General
and Secretary of the Treasury events to be designated National Special Security Events.
Additionally, the USSS protects our financial infrastructure through its investigations of
counterfeiting, forgery, bank fraud, access device fraud computer intrusion,
telecommunications fraud, false identities and fictitious instruments.

National Threat Assessment Center (NTAC)
The Secret Service NT AC develops and provides threat assessment training and conducts
operational research relevant to public -official, workplace, stalking/domestic, and school-based
violence. The NTAC provides assistance to other federal agencies, as well as other state, local
agencies and organizations interested in developing threat assessment programs.

Foreign Terrorist Asset Tracking
Congress provided funding in FY 2001 for OFAC to develop a Foreign Terrorist Asset
Tracking (FTAT) Center. The FTAT Center will be responsible for developing governmentwide strategies to counter terrorist fundraising and to incapacitate their financial holdings within
the US, and to assist other countries to employ similar strategies. Such strategies will bring to
bear the full weight, influence, and authority of the federal government -- regulatory, diplomatic,
defense, intelligence, and enforcement communities. Several agencies with counterterrorism
resporisibilities have committed to participate in the FTAT Center -- by providing the FTAT
Center with all relevant information, by detailing specialists to analyze the data, and by
appointing special liaisons to cement the constant interaction of the member organizations.
OF AC is now hiring the FT AT Center's permanent staff and is working with participating
agencies to identify detailees and liaisons.

TREASURY STRATEGIC GOAL: PROTECT OUR NATION'S LEADERS AND VISITING
DIGNITARIES
Winter Olympics
The President's FY 2002 budget identified a $51.6 million resource need to support the
FY 2002 Olympic requirements for Treasury law enforcement bureaus. This assumes 1,681 law
enforcement officers will be needed to carry out the security plan. An additional, 300 support
personnel will be provided. Most bfthe costs incurred during FY 2002 will be for travel and
overtime directly related to the games. However, costs will also be incurred to continue the
operation of several coordinating centers, to conduct additional contracted training, for
miscellaneous contractual service, to purchase cold weather clothing and to move employees out
of Salt Lake City at the conclusion of the Olympics. The number of law enforcement officers
from Treasury bureaus is projected at 1,075, with the remainder of606 to come from outside of
Treasury.
The Secret Service is the lead federal agency for designing, planning, and implementing
security for designated National Special Security Events (NSSE). The 2002 Winter Olympics
has been designated an NSSE and will occur February 8-24, 2002, in 15 major sporting event
venues in and around Salt Lake City. In addition to providing a secure environment for the
Olympic athletes and for spectators from all over the world, the Secret Service will also be
responsible for providing security for numerous foreign heads-of-state/government, who attend
Olympic events. The Secret Service will also provide security for the President and Vice
President of the United States while they participate in the opening and closing ceremonies, as
well as, any Olympic competitions they may decide to attend.
In addition to NSSE requirements, Treasury enforcement is a member of the Public
Safety Utah Command. ATF has the responsibility to assist in the following activities: (1)
prevent, detect and respond to arson and explosives activities; (2) provide bomb "render safe"
technicians, explosives detecting canines, tactical special response teams, and tactical emergency
medical technicians; and (3) provide intelligence analysis ofthreat data, as well as firearms and
explosives tracing.
The Customs core mission responsibilities focus on the entry of equipment, cargo, and
individuals participating or attending the games. The primary emphasis will be on the
enforcement of intellectual property right violations of Olympic merchandise and antiterrorism
efforts on the Northern Border.

TREASURY STRATEGIC GOAL: PROVIDE HIGH QUALITY TRAINING FOR LAW
ENFORCEMENT PERSONNEL
To address some of the strain from increased demand for training, we have been
exploring ways to use the latest technology to provide alternative means of delivering training
courses. Recognizing that the FLETC facilities cannot accommodate all of the requests for
training that are likely to arise in the future, we are searching for ways to use the Internet and
video conferencing to provide needed training.

Likewise, the need for advanced training to keep law enforcement officers abreast of the
latest trends in fighting crime is critical. We have been working closely with FLETC to explore
ways to enhance training to address high-tech crime. One example of this approach is Computer
Investigative Specialist (CIS) 2000 training. This course, which includes agents from the Secret
Service, Customs, the IRS-CI, and ATF, uses state-of-the-art training and equipment to teach
agents how to deal with the latest computer and encryption technology that they may encounter
in conducting an investigation. The CIS 2000 agents have achieved many notable successes in
their investigations of counterfeiting, money laundering and various types of fraud as a result of
this course.

TREASURY STRATEGIC GOAL: MAINTAIN U.S. LEADERSHIP ON GLOBAL
ECONOMIC ISSUES
Trade Enforcement and Facilitation
In the area of Regulatory and Trade Enforcement our goals have been to ensure that laws
affecting trade and regulated industries are effectively enforced without unnecessarily burdening
legitimate commerce. An effective means of realizing both goals is through targeting
enforcement actions and extending the capabilities of our finite manpower with automated
information management systems. We have also pursued international standardization of trade
regulation as a means of enhancing enforcement cooperation while reducing the burden on
business. The FY 2002 budget request includes $130 million for continued work on the Customs
Automated Commercial Environment (ACE) and $123 million for life support for the antiquated
Automated Commercial System (ACS). Developing the ACE system is vital to Customs ability
to effectively carry out its trade and other enforcement missions.
CONCLUSION

In this statement I have been able to touch on only some of the important programs of
Treasury's enforcement bureaus. Each bureau head will address our programs in greater detail.
And, of course, I shall be pleased to respond in writing to any questions you want to direct to me
about any of our programs.
In conclusion, Mr. Chairman, again I would like to thank you, Senator Dorgan, and the
other Members ofthis Subcommittee for your support of Treasury's law enforcement programs.
Our law enforcement bureaus have grown, they are better equipped, and they have become more
professional as a result of your oversight and support.
I also would like to thank the staff of this Subcommittee for its professionalism and
patience not only this year, but also in past years. We have wrestled with the problems that
inevitably accompany growth and a rapidly changing set of challenges. I do not want to miss
this opportunity to express my appreciation and gratitude.

DEPARTIVIENT

OF"THE

JI
,

TREASU~¥

•

..------..

.'~;

;
\

NEWS
..--

omCE OF PUBLIC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIDNGTON, D.C. - 20220. (202) 622-2960

EMBORARDED UNTIL 10:00 A.M. ED
Thursday, May 10,2001

Contact: Public Affairs
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STATEMENT OF PETER FISHER NOMINEE FOR
UNDER SECRETARY OF THE TREASURY FOR DOMESTIC FINANCE
TO THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS
UNITED STATES SENATE

Chainnan Gramm, Ranking Member Sarbanes, and members of the Committee on
Banking, Housing and Urban Affairs, thank you for the opportunity to appear before your
committee today. I am honored that President Bush has nominated me to serve as Under
Secretary of the Treasury for Domestic Finance and, if confinned, to have the opportunity to
work with Secretary O'Neill, the Treasury staff, and others in the administration to advance the
President's economic agenda.
If confinned, I also look forward to working closely with this Committee, the Senate, and
with members of the House of Representatives on the broad range of issues addressed by the
Office of Domestic Finance.
The strength and resilience of our nation's system of financial intennediation is itself a
precious asset. In addition to serving as an advisor to Secretary O'Neill on debt management
and :fIscal policy issues and on capital market and financial institution issues, I especially hope to
have the opportunity to work with this Committee to improve upon the efficiency with which our
financial system converts the savings of the American people into productive investment.
My fifteen years of experience with the Federal Reserve Bank of New York has given me
the opportunity to learn first-hand about the forces shaping the increasingly global banking and
capital markets. As manager of the Federal Reserve's monetary operations since 1995, I have
been afforded the unique vantage point of active participation in financial markets from a
position of public responsibility. In this capacity I have worked with members of the Board of
Governors and the Reserve Bank Presidents in the fonnulation and implementation of monetary
policy. I have worked with senior Treasury officials on debt management and capital market
issues and in the implementation of exchange rate policy. In both of these capacities, I have had
the opportunity to learn from the experience of central bankers and finance ministry officials
from around the world.

PO-369
Fnr MO .... "'D1D"""O~

",/lDorlu>'i:

h1Jhlir w~hedules and official biographies, call our 24-hour fax line at (202) 622-2040

~ '/

Mr. Chairman, thank you again for the opportunity to appear before the Committee. I
hope this will be the beginning of a strong working relationship. I would also like to thank
Secretary O'Neill for the confidence he has shown in me by supporting me for this job. I would
be pleased to answer any questions that you and other members of the Committee may have.
-30-

DEPARTMENT

_______
TREASURY

THE

TREASURY

NEWS

~178Q~-------

OFFlCE OF PUBUC AFFAIRS • 1500 PE.r\NSnXANL;\ AVENl'E, ;-";,W,. WA5iHINGTO', D,c:.. 20220.12021622-2960

For Release Upon Delivery
May 10,2001

Contact: Public Affairs

Statement ofR. Richard Newcomb, Director of the Office of Foreign Assets Control
U.S. Department of the Treasury before the Senate Appropriations Committee
Subcommittee on Treasury and General Government

Chairman Campbell, Senator Dorgan, and Members of the Subcommittee, I am pleased to
have the opportunity to speak: to you today about the work ofthe Treasury Department's Office of
Foreign Assets Control, or "OFAC," as we are commonly called. OFAC administers economic
sanctions against foreign countries, entities and individuals to further U.S. foreign policy and
national security objectives. These sanctions programs are nonnally imposed pursuant to a
declaration of national emergency by the President under specific statutory authority, but may also
be imposed directly by the Congress, as in the case oflegislation pertaining to foreign terrorist
organizations and narcotics kingpins.
OFAC currently administers twenty-one economic sanctions programs involving assets
freezes and/or trade embargoes, including programs directed against Angola (UNITA), Burma,
Cuba, Iran, Iraq, Libya, North Korea, Sierra Leone, Sudan, the Taliban in Afghanistan, foreign
terrorists and foreign narcotics traffickers. (See the attached chart for a complete list of OFAC
programs.) In performing its mission, OFAC relies principally on the President's broad powers
under the Trading With the Enemy Act ("TWEA"), the International Emergency Economic Powers
Act ("IEEPA"), and on occasion, the United Nations Participation Act ("VNP A"), to prohibit or
regulate commercial or financial transactions involving specific foreign countries, entities and
individuals. These powers are employed to freeze, or block, foreign assets by prohibiting transfers
of those assets which are located in the United States or in the possession or control of U.S. persons,
as well as to prohibit financial transactions (such as bank lending), imports, exports and related
transactions. These sanctions programs may be either selective, prohibiting a specific class of
economic transactions (such as transactions with the government of the target country), or
comprehensive, prohibiting all unlicensed economic transactions involving the designated country
or its nationals. OFAC's blocking authority has also been employed to protect classes of assets, as
in the case of the 1990 freeze of Kuwaiti assets after Iraq's invasion of Kuwait, or in the case of
assets pertaining to the implementation of agreements between the United States and the Russian
Federation relating to the disposition of highly enriched uranium.

PO-370
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biouraphl'e
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'JJ'
. . . , 1 , (Q

Organizationally, OFAC is composed ofthe following components:
1) Licensing Division -- Makes determinations on requests for specific licenses -processing more than 18,000 such requests during the past twelve-month period-- and provides
guidance to the public with respect to interpretive rulings and transactions authorized by general
license. The influx of requests for licenses and interpretive rulings under the twenty-one separate
programs OFAC administers has increased dramatically. In an effort to meet this demand and
provide responsive and thorough customer service, OFAC is instituting measures to: process
licenses within two weeks absent the need for interagency consultation; hire additional personnel
to respond to phone inquiries; promote transparency of agency action by publishing interpretive
rulings on its website; and issue implementing regulations within sixty days of the issuance of an
Executive order or enactment of legislation with an opportunity for public comment.
2) Compliance Division -- Serves as the primary point of contact for the financial
community, fielding more than 45,000 "hotline" calls per year to provide guidance on in-process
transactions. Last year, the calls resulted in denying access to the U.S. banking system to more than
5,500 items that were contrary to U.S. sanctions and the blocking of more than 2,000 transactions.
As a result of regulatory audits which it conducts, the Compliance Division opened 1,000 cases in
FY 2000 and issued more than 1,000 "administrative demands for information," culminating in 205
referrals to either the Civil Penalties or Enforcement Divisions and the issuance of more than 500
Warning Letters. This OFAC Division also monitors adherence to the terms of licenses and
requirements regarding blocked property; conducts public and private sector awareness programs to
assure familiarity with requirements for compliance with regulations; and maintains and updates
OFAC's public informational material, website, and fax-on-demand service.
3) Blocked AssetslInformation Technology Division -- Maintains OFAC's aggregate
database of blocked assets; coordinates multilateral sanctions implementation with foreign
governments; and develops and implements information technology systems in OFAC.
4) International Programs Division -- Administers the Specially Designated National,
Specially Designated Terrorist, Specially Designated Narcotics Trafficker, and Foreign Terrorist
Organization programs, as well as designations under the Foreign Narcotics Kingpin Designation
Act, including the preparation of two annual Presidential reports to the Congress and an annual
report to the Congress on blocked terrorist assets; and coordinates certain multilateral enforcement
matters with foreign governments.
5) Enforcement Division -- Coordinates overall enforcement of sanctions programs by
making referrals to Customs and other law enforcement agencies for criminal investigations,
opening sixty investigations during 2000; provides technical advice and as~ist~ce to ~ust?ms
agents and inspectors and Assistant U.S. Attorneys concerning suspeCted vI?I~tlOns, WIth SIX . .
criminal prosecutions brought in 2000; and administratively pursues no~-cnmmal cases for c~v~l
penalty consideration, opening 1544 new civil cases for investigation WIth 515 referrals for CIVIl
penalty consideration during 2000 (see attached chart).
6) Civil Penalties Division -- Administers the civil penalties program for vio~ation of
sanctions laws administered by OFAC, processing more than 2,000 cases and collectmg more than
$3.2 million in fines over the course of the past year (see attached chart).

7) Policy Planning and Program Management Division -- Performs policy analysis;
coordinates interoffice and interagency program implementation and regulatory issues; and
currently prepares thirty-five statutorily required Presidential reports and fourteen Notices of
Continuation of emergency authorities per year to the Congress.
Other components of OF AC include the Miami Office, which coordinates certain Cuba
licensing, compliance and enforcement matters, and the Bogota Office, which coordinates the
Colombian narcotics traffickers program and conducts research on specially designated narcotics
traffickers. Offices are also being established in Mexico City and Bangkok in support of OFAC's
implementation of the Foreign Narcotics Kingpin Designation Act. A ninth division within OFAC
is also being organized to establish the Foreign Terrorist Assets Tracking Center. In addition, while
not organizationally part of OFAC, Treasury's Office of the General Counsel devotes a
complement of attorneys to providing OF AC legal support in the administration of its programs.
I would like to focus the remainder of my remarks today on OFAC' s increasing
responsibilities to administer economic sanctions with respect to foreign terrorists, particularly with
regard to the establishment of the Foreign Terrorist Asset Tracking Center, as well as economic
sanctions programs targeting foreign narcotics traffickers.
OFAC's International Programs Division has historically been responsible for compiling
available evidence establishing that certain foreign entities or individuals are owned or controlled by
or acting for or on behalf of a foreign government subject to an economic sanctions program. These
entities and individuals then become "specially designated nationals," and are subject to the same
sanctions as the foreign government to which they are related. In 1995, the President used his
authority under IEEPA to declare national emergencies with respect both to terrorists who threaten
to disrupt the Middle East Peace Process and significant narcotics traffickers centered in Colombia.
These declarations of national emergency marked the first occasion that this statutory authority had
been invoked to directly target organizations and individuals, rather than hostile foreign regimes.
Since the inception of the Colombia program in 1995, OFAC has identified 578 businesses
and individuals as specially designated narcotics traffickers ("SDNTs"), consisting often cartel
leaders of the Cali, North Valle, and North Coast drug cartels, 231 of their businesses and 337 other
individuals. Four of the most notorious Colombian drug kingpins were identified in the Executive
order itself OFAC has added six more Colombian drug cartel leaders since 1998, including four
leaders of Colombia's powerful North Valle drug cartel named in 2000 and 2001. United States
persons are prohibited from engaging in fmancial or business dealings with the ten drug kingpins
and the 568 other SDNTs .
. As a result of the SDNT program against Colombian drug cartels, traffickers' companies
have been forced out of business, are suffering financially, and have been isolated both financially
and commercially. By May 2001, more than sixty SDNT companies, with an estimated annual
aggregate income of more than U.S. $230 million, have been liquidated or are in the process of
liquidation. SDNTs are denied access to banking services in the United States and Colombia and
have been denied access to the benefits of trade and transactions involving U.S. businesses. SDNT
individuals have been denied U.S. visas or had their visas revoked. OFAC will continue to identify
businesses of the Colombian drug cartels and to expand the SDNT list to include additional drug
traffickers and their organizations.

Economic sanctions were imposed by the President pursuant to IEEPA in 1995 against
terrorists who threaten to disrupt the Middle East Peace Process. This action was taken to combat
fundraising in the United States on behalf of foreign terrorist organizations identified in an annex to
the implementing Executive order. In August 1998, a second Executive order was issued expanding
the list of foreign terrorists to include Usama bin Ladin, his organization (Al-Qaeda), and two other
individuals. In addition to the thirteen terrorists and terrorist entities identified by Executive order,
OFAC has authority to designate organizations or individuals, known as "specially designated
terrorists" or "SDTs," that are owned or controlled by, act for or on behalf of, or that provide
material or financial support to these terrorists. As a result of these sanctions, a number of
individuals acting on behalf of the Middle East terrorists have been subjected to sanctions, and
financial assets of some of these groups have been blocked.
We believe that the sanctions have had a deterrent effect on fundraising in the United States
and have impeded terrorists' use of the U.S. financial system. OFAC continues to work closely
with Justice, State, the FBI, and other Federal agencies in implementing the two Middle East
terrorist Executive orders against identified or potential SDTs.

In April 1996, Congress passed the Antiterrorism and Effective Death Penalty Act
("Antiterrorism Act"), in part to prevent U.S persons from providing material support or resources
to Foreign Terrorist Organizations ("FTOs") throughout the world. Currently, twenty-nine FTOs
are subject to OFAC-administered sanctions, having been designated by the Secretary of State in
consultation with the Secretary of the Treasury and the Attorney General. Under the Antiterrorism
Act and OFAC's implementing regulations, U.S. financial institutions must maintain control over
all funds in which an FTO has an interest, block financial transactions involving FTO assets, and
report those actions to OFAC. OFAC is the coordination point with State and Justice on FTO
designations and also has responsibility for coordinating with the financial community, the FBI,
State, and other Federal agencies in implementing the prohibitions of the Antiterrorism Act.
In December 1999, the Congress also passed the Foreign Narcotics Kingpin Designation
Act (the "Kingpin Act"), which is modeled after OFAC' s Colombia narcotics traffickers program.
The Kingpin Act provides a statutory framework for the President to impose sanctions against
foreign drug kingpins and their organizations on a worldwide scale. Like the Colombia program,
the Kingpin Act is designed to deny these significant foreign narcotics traffickers and their
organizations, including their related businesses and operatives, access to the U.S. financial system
and to all trade and transactions involving U.S. companies and individuals. The President named
the first twelve kingpins ("tier one designations") on June 1, 2000. The President plans to make the
next list of kingpins public by June 1, 2001. OFAC also has authority under the Kingpin Act to
make derivative ("tier two") designations of the kingpins' businesses and agents. These tier two
designations are very important to the long-term practical impact and effectiveness of the Kingpin
Act, since they target entities through which the kingpins penetrate legitimate commerce.
OFAC's sanctions programs against foreign narcotics traffickers and foreign terrorists
expose and impede money laundering activities, terrorist fundraising and financial flows. While
these activities continue to be coordinated with traditional law enforcement agencies, we believe
that counter-terrorism activities against foreign terrorists will be greatly enhanced by the
establishment of the Foreign Terrorist Asset Tracking Center (the "Center"). Last year, the Report
from the National Commission on Terrorism (the "Bremer Report") recognized the potential for

more effectively employing the broad sanctions authorities delegated to OFAC and recommended
the development of a joint task force of relevant U.S. government agencies to develop strategies to
counter terrorist fundraising. The Bremer Report also recommended that the Secretary of the
Treasury create a unit within OFAC, dedicated to the issue of terrorist fundraising. The Congress
subsequently provided funding to Treasury for FY 2001 to develop the Center, in coordination with
the relevant USG agencies.
The Center's mission is to gather information from all sources relating to terrorist groups'
sources and methods offundraising'and funds movement. The Center will use this information to
conceptualize, coordinate, and implement strategies within the US government that could ultimately
lead to denying these target groups access to the international financial system; impair their fundraising abilities; expose, isolate, and, where appropriate, block their financial transactions; and work
with other friendly governments to take similar measures. The Center will accomplish this mission
by:
1) gathering information from all sources relating to terrorist groups' sources and methods of
fundraising and funds movement;
2) reviewing data regarding the fundraising activities and funds ofterrorist groups that
threaten the US national security;
3) assessing the sources and methods of fundraising and funds movement of each targeted
for~ign terrorist group, and oftheir operatives and terrorist-owned entities;
4) tracking all information about the nature, operations, goals, and methods of each terrorist
group, related especially to the movement and placement of their assets;
5) sharing all relevant information and analysis, as appropriate, with US regulatory,
diplomatic, defense, intelligence and enforcement communities;
6) conceptualizing and developing implementation strategies to deny targeted terrorist
groups access to the international financial system, and whenever possible, to expose, isolate and
incapacitate their financial holdings within the United States and in other countries;
7) developing strategies to deny these targets the ability to conduct financial transactions
with US entities and individuals and impair their fundraising abilities; and
8) persuading foreign governments to take similar measures .
. Such strategies would bring to bear the full weight and influence of the Federal government
relating to financial matters -- regulatory, diplomatic, defense, intelligence and enforcement
communities -- and involve foreign and domestic actions.
OFAC is currently in the process of establishing the Center and USG agencies with counterterrorism responsibilities have committed to participate in the Center by: 1) providing the Center
with all relevant information; 2) detailing specialists to analyze the data; and 3) appointing special
liaisons to cement the constant interaction of the member organizations. It is anticipated that the
departments and agencies that will participate in or work with the Center are: 1) the Department of

Treasury -- OFAC, Customs, IRS, USSS, ATF, and FinCEN; 2) the Department of Justice, FBI,
INS; 3) the CIA -- Office of Transnational Issues and the DCI's Counter-Terrorism Center;
4) the National Security Agency; 5) the Department of State -- Office of the Counter-terrorism
Coordinator (S/CT); and 6) the Department of Defense.
The role of each agency would depend upon the target, and the circumstances of each
target's fundraising, money movements, and placements modus operandi. Some terrorist groups are
involved in multiple activities to produce income. These activities would also be covered under the
Center's mission.
OFAC is currently hiring staff to implement the Kingpin Act, establish the Foreign
Terrorist Assets Tracking Center and make the other improvements I've discussed. We currently
have seventy-seven staff members on board, twenty-one position offers outstanding, and expect to
hire an additional thirty-six positions -- eight of which involve reimbursable agreements with other
agencies -- by the end ofFY 2001. Crucial to the successful administration of these priorities is
enhanced customer service, particularly with regard to the pending implementation ofthe Trade
Reform and Export Enhancement Act of 2000. Your continuing support of our mission is critical.
Thank you very much for the opportunity to discuss these matters of grave concern to the
Congress as well as the Executive Branch. I look forward to keeping you posted of our progress.

D EPA R T ~I E N T

0 F

THE

T REA SUR Y

NEWS
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASmNGTON, D.C .• 20220. (202) 622-2960

FOR IMMEDIATE RELEASES
April 23, 2001

Contact: Public Affairs
(202) 622-2960

UNITED STATES OF AMERICA Statement by U.S. Head of Delegation
William E. Schuerch, Deputy Assistant Secretary International Development,
Debt and Environment Policy U.S. Department of the Treasury
EBRD Annual Meeting, London, UK
It is an honor to be with you again in London and to celebrate the Tenth
Anniversary of the European Bank for Reconstruction and Development. I want to
extend my sincere gratitude to our hosts, the Right Honorable Clare Short and the UK
Governor and Right Honorable Gordon Brown, to Minister Laurent Fabius, Chairman
of the Board of Governors, and to President Jean Lemierre for their warm hospitality.

Ever since the first proposals to create the EBRD began to circulate in 1989,
the United States has been an enthusiastic and active supporter of this important
institution. It is worth remembering how Secretary Nicholas Brady and his Treasury
team in the first Bush Administration worked constructively alongside our European
friends during 1989 and 1990 to create a whole new kind of institution dedicated to
the problems of transition economies. It was a strong founding conception. Now
more than ten years later a new team at Treasury under the leadership of Secretary
Paul O'Neill and President George W. Bush looks forward to continuing our active
participation. Indeed, in a speech in New York last Thursday, Secretary O'Neill
reiterated the importance of all the international financial institutions in today's
economy.
This tenth anniversary also affords us the pleasure of welcoming the
delegation from EBRD's newest member country, the Federal Republic of
Yugoslavia. We hope that EBRD will be able to support the Federal Republic's
economic and political transition to a free, peaceful and prosperous market
democracy.
PO-371

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As we look back on the Bank's history, we should acknowledge the strong
founding conception, but also a slow and, at times, rocky start. I remember well the
early years when cumulative operating expenses exceeded the loan portfolio and
when Bank officers had too hard a time focusing on transition impact rather than risk
avoidance.
Overall, we should marvel at the progress made by both the Bank and the
region, even as we acknowledge the further progress that might have been achieved
with different regional leadership, policy and program choices. We recognize that
much of the Bank's progress has resulted from the strong leadership provided by
Presidents Jacques de Larosiere and Horst Kohler. President Lemierre and Vice
President Charles Frank continue in that tradition.
Today we can observe both remarkable and disheartening variations in country
performance. That reform works is clear; countries that have achieved the deepest
reform are performing best. But for all of the countries in the region - even the best
performers -- there remains much work to be done.
The countries of Central Europe and the Baltics have, for the most part,
established themselves on a path of growth and development. Having completed
much of their progress through transition, a number of them are now members of the
OECD and moving steadily toward entry into the European Union. Most importantly,
they have greatly improved the lives of their people.
At the other end of the spectrum are a number of countries where there has
been little meaningful reform, where poverty remains high, where political
developments are troubling, and where economic conditions remain bleak.
Between these extremes, the slowing of Russia's growth this year has caused
it to focus on the need for further reforms. We encourage Russia to take key steps to
improve its investment climate by enforcing the rule of law, improving corporate
governance, attacking nonpayments and barter and strengthening the banking system.
For Southeastern Europe, this is a time of potential. The improved political
situation brings renewed possibility of post-conflict recovery and sustainable growth,
provided that authorities focus on putting in place the measures needed to support
private sector development.
The challenge for Bank shareholders, in light of the efforts and results to date,
is to define and delineate the proper continuing role for the EBRD. Our Directors
began this discussion as part of the Capital Resources Review and settled on a
reasonable path for the next five years.

We believe the increasing disparity in country perfonnance suggests that the
Bank needs to intensify its focus on early transition economies. The imperative is to
deploy the institution's resources in a focussed, effective and justifiable manner,
where they can make the greatest difference in furthering the Bank's mission.
The Bank can effectively pursue its shift to early transition economies by
improving the focus on transition objectives and results. The transition impact of a
project should be explicitly described and, as much as possible, quantified. In this
manner, the Bank can accurately and meaningfully incorporate lessons learned into
the design of future projects. We also repeat our belief that the Bank's activities are
not additional when they compete with available private capital. Rather, the Bank
should aggressively seek projects with high potential transition impact, where the
Bank's capital and expertise are truly needed to bring a project to fruition.
Achieving meaningful transition impact for us suggests:
•
•
•
•
•
•

Quality, not volume
Strong conditionality
Lending to small and medium-sized companies
Projects that promote energy efficiency
Municipal infrastructure that improves people's lives and health
Coordination with other IFls, particularly on country strategies and large
enterprise restructuring

These suggestions may not be altogether new, but we urge renewed intensity on
translating them into operational reality.
Finally, I would like to highlight a unique aspect of the Bank. In designing this
institution in 1989 and 1990, founding governments clearly intended it to be of a
character different from that of other international financial institutions. Thus, the
Articles of Agreement state the purpose of the Bank is to "foster the transition
towards open market-oriented economies and to promote private and entrepreneurial
initiative in countries committed to and applying the principles of multi-party
democracy, pluralism and market economics."
There has been great progress in opening the economies of the region to market
principles, and many countries have demonstrated a commitment to multi-party
democracy. However, there has been a notable lack of progress - and even
backsliding - in some member countries in moving toward the establishment of truly
democratic fonns of government. The EBRD's founders were clearly committed to
both the market and political mandates.
This commitment will be tested over the next several years, and in some ways the
challenge to the EBRD may be greater than the financial crisis in Russia two years

ago. The United States will stand strongly behind the founders' intent and we call on
all the Governors to take this responsibility seriously.
Thank you.

D EPA R T l\1 E N T

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omCEOFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASlDNGTON, D.C. - 20220 - (202) 622·2960

EMBARGOED UNTIL 2:30 P.M.
May 10, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY OFFERS 13-WEEK AND 26-WEEK BILLS
The Treasury will auction t\\10 series of Treasury bills totaling
approximately $20,000 million to refund $20,901 million of publicly held hills
roaturing May 17, 2001, and to pay down about $901 million.

In addition to the public holdings, Federal Reserve Banks for their own
accounts hold $9,423 million of the maturing hills, which may be refunded at
the highest discount rate of accepted competitive tenders.
Amounts a'\l.larded
to these accounts will be in addition to the offering amount.
Up to $1,000 million in noncompetitive bids from Foreign and International Monetary Authority (FIMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of each
~uction.
These noncompetitive bids will have a limit of $2QO million per
iccount and will pe accepted in the order of smallest to largest, up to the
~ggrcgatc award limit of $~,OOO million.

TreasuryDirect customers have requested that we reinvest their maturing
holdings of approximately $1,031 million into the 13-week bill and $769
million into the 26-week bill.

The allocation percentage applied to bids awarded at the highest discount
rate will be rounded up to the next hundredth of a whole percentage point,
e.g., 17.13%.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable Book-Entry Treasury Bills, Notes, and Eonds (31 CFR Part 356, as
amended) .
Details about each of the new securities are given in the attached
offering highlights.
000

Attachment

PO-372

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For press releases,

SPCCcJ1CS,

-~.-------------------

public schedllies and official biographies, call our 24-holtr fax line (Ie (202) 622-2040

H:IGHLIGHTS OF 'l'RE...
OFFERINGS OF BILLS
TO BE ISSUED 11AY 17, 2001.

May 1.0, 2001
Offering Amount: . . . . . . . . . . . . . . . . . . . . _.... $11,000 million
Description of Offering:'
Term and type of security ..........•.... 91-day bill
ClISIP nwnber.
. . . . . . . . . . . . . . . . . . . . . 912795 GQ 8
Auction date. . . .
. ..•. '.' .........•.... Hay 14, 2001
Issue date... . . . .
. . . . . . . . . . . . . . . . • . . . . :May l? I 2001
Maturity date...
. . . . . . . . . . . . . . . . • . . . . August 16, 2001
Original issue date . . . . . . . . . . . . . . . . ~ .... February 15, 2001
Currently outstanding . . . . . . . . . . . . . . • . . . . $14 1 474 million
Minimum bid amount and multiples ...•.... $1,000

$9,000 million

182-day bill
912795 HV 6
May 14, 2001
May 17, 2001
November 15, 2001
Ma.y 17, 2001
$1,000

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted i~ full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International l-tonetary Authority (FlMA) bids: Noncompetit.ive bids submitted
through the Federal Reserve Banks as agents for FIl1.~ accounts. Accepted in order of size
from smallest to largest with no more than $200 million avTarded pex account.
The eotal
noncompet.i tive amount d\"arded to Federal Reserve Banks as agents for FllolA accounts will
not exceed $1,000 million.
A single bid that would cauae the limit to be exceeded will
be partially accepted in the amount that brings the aggregate award total to the $1,000
. million limit.
Ho\"ever( if there are tHO or more bids of equal amounts that vlould cause
t.he limit: to be exceeded( each \-{ill be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be eKPressed as a discount rate ,,,ith three decimals in increments of .005%, e. g. I
7.100%( 7. 105'l-0.
(2) Net long pos i tion for each bidder must be reported ~ofhen the sum of the total bid amount I
at all discount rates, and the net long position is $1 billion or greater.
(3) Net long position must be determined as of one half-hour prior to the closing time for
receipt of competitive tenders.
Ha){imum Recognized Bid at a Single Rate ..•. 35% of public offering
HaJ{imum Award . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . 35':" of public offering
Receipt of Tenders:
Noncompetitive tenders .. Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders ..... Prior to 1:00 p.m. eastern daylight saving time on auction day
p~yrnent Terms:
By charge to a funds account at a Federal Reserve Bank on issue date, or payment
of full par amount with tender.
Tre~suryDirect customers can use the Pay Direct feature which
authorizes a charge to their accoun~ of record at their financial institution on issue date.

PUBLIC DEBT NEWS
Jepartment of the Treasury • Bureau of the Public Debt • Washington, DC 20239

FOR IMMEDIATE RELEASE
May 16,2001

Contact: Office of Financing
202-691-3550

TREASURY'S INFLATION-INDEXED SECURITIES
JUNE REFERENCE CPI NUMBERS AND DAILY INDEX RATIOS
Public Debt announced today the reference Consumer Price Index (CPI) numbers and daily
index ratios for the month of June for the following Treasury inflation-indexed securities:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

3-3/8% 10-year notes due January 15,2007
3-5/8% 5-year notes due July 15, 2002
3-5/8% 10-year notes due January 15,2008
3-5/8% 30-year bonds due April 15,2028
3-7/8% 10-year notes due January 15,2009
3-7/8% 30-year bonds due April 15,2029
4-114% 1O-year notes due January 15, 2010
3-1/2% 10-year notes due January 15,2011

This information is based on the non-seasonally adjusted u.S. City Average All Items Consumer Price
Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics of the u.s.
Department of Labor.
In addition to the publication of the reference CPI's (Ref CPI) and index ratios, this release
provirles the non-seasonally adjusted CPI-U for the prior three-month period.
This information is available through the Treasury's Office of Public Affairs automated fax
system by calling 202-622-2040 and requesting document number 373. The information is also available
on the Internet at Public Debt's website (http://www.publicdebUreas.gov).
The information for July is expected to be released on June 15, 200l.
000

Attachment

PO-373
http://www.publicdebt.treas.gov

TREASURY INFLATION-INDEXED SECURITIES
Ref CPI and Index Ratios for
June 2001

Security:
Description:
CUSIP Number:
Dated Date:
Original Issue Date:
Additional Issue Date(s):

3-3/8% 10-Year Notes
Series A-2007
9128272M3
January 15, 1997
February 6, 1997
April 15, 1997

3-5/8% 5-Year Notes
Series J-2002
9128273A8
July 15, 1997
July 15, 1997
October 15, 1997

3-5/8% 10-Year Notes
Series A-2008
9128273T7
January 15, 1998
January 15, 1998
October 15, 1998

3-5/8% 30-Year Bonds
Bonds of April 2028
912810FD5
April 15, 1998
April 15, 1998
July 15, 1998

Maturity Date:
Ref CPI on Dated Date:

January 15, 2007
158.43548

July 15, 2002
160.15484

January 15, 2008
161.55484

April 15,2028
161.74000

Date
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26·
27
28
29
30

2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001

CPI-U (NSA) for:

Ref CPI

Index Ratio

176.20000
176.22333
176.24667
176.27000
176.29333
176.31667
176.34000
176.36333
176.38667
176.41000
176.43333
176.45667
176.48000
176.50333
176.52667
176.55000
176.57333
176.59667
176.62000
176.64333
176.66667
176.69000
176.71333
176.73667
176.76000
176.78333
176.80667
176.83000
176.85333
176.87667

1.11212
1.11227
1.11242
1.11257
1.11271
1.11286
1.11301
1.11316
1.11330
1.11345
1.11360
1.11374
1.11389
1.11404
1.11419
1.11433
1.11448
1.11463
1.11478
1.11492
1.11507
1.11522
1.11536
1.11551
1.11566
1.11581
1.11595
1.11610
1.11625
1.11640

1.10019
1.10033
1.10048
1.10062
1.10077
1.10091
1.10106
1.10121
1.10135
1.10150
1.10164
1.10179
1.10193
1.10208
1.10223
1.10237
1.10252
1.10266
1.10281
1.10295
1.10310
1.10324
1.10339
1.10354
1.10368
1.10383
1.10397
1.10412
1.10426
1.10441

1.09065
1.09080
1.09094
1.09108
1.09123
1.09137
1.09152
1.09166
1.09181
1.09195
1.09210
1.09224
1.09238
1.09253
1.09267
1.09282
1.09296
1.09311
1.09325
1.09340
1.09354
1.09368
1.09383
1.09397
1.09412
1.09426
1.09441
1.09455
1.09470
1.09484

1.08940
1.08955
1.08969
1.08984
1.08998
1.09012
1.09027
1.09041
1.09056
1.09070
1.09085
1.09099
1.09113
1.09128
1.09142
1.09157
1.09171
1.09186
1.09200
1.09214
1.09229
1.09243
1.09258
1.09272
1.09287
1.09301
1.09315
1.09330
1.09344
1.09359

February 2001

175.8

March 2001

176.2

April 2001
-

176.9

TREASURY INFLATION-INDEXED SECURITIES
Ref CPI and Index Ratios for
June 2001

Security:
Description:
CUSIP Number:
Dated Date:
Original Issue Date:
Additional Issue Date(s):

3-7/8% 10-Year Notes
Series A·2009
9128274Y5
January 15, 1999
January 15, 1999
July 15, 1999

Maturity Date:
Ref CPI on Dated Date:

January 15, 2009
164.00000

Date
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June

2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
17
2001
18
2001
19
2001
20
2001
21
2001
22
2001
23
2001
24
2001
25
26. 2001
2001
27
2001
28
2001
29
2001
30

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

CPI·U (NSA) for:

3-7/8% 30·Year Bonds
Bonds of April 2029
912810FH6
April 15, 1999
April 15, 1999
October 15,1999
October 15, 2000
April 15, 2029
164.39333

4-1/4% 10-Year Notes
Series A·201 0
9128275W8
January 15, 2000
January 18, 2000
July 15, 2000

3·1/2% 10-Year Notes
Series A·2011
9128276R8
January 15, 2001
January 16, 2001

January 15, 2010
168.24516

January 15, 2011
174.04516

Ref CPI

Index Ratio

1.07439
1.07453
1.07467
1.07482
1.07496
1.07510
1.07524
1.07539
1.07553
1.07567
1.07581
1.07596
1.07610
1.07624
1.07638
1.07652
1.07667
1.07681
1.07695
1.07709
1.07724
1.07738
1.07752
1.07766
1.07780
1.07795
1.07809
1.07823
1.07837
1.07852

1.07182
1.07196
1.07210
1.07225
1.07239
1.07253
1.07267
1.07281
1.07296
1.07310
1.07324
1.07338
1.07352
1.07366
1.07381
1.07395
1.07409
1.07423
1.07437
1.07452
1.07466
1.07480
1.07494
1.07508
1.07523
1.07537
1.07551
1.07565
1.07579
1.07594

1.04728
1.04742
1.04756
1.04770
1.04784
1.04797
1.04811
1.04825
1.04839
1.04853
1.04867
1.04881
1.04895
1.04908
1.04922
1.04936
1.04950
1.04964
1.04978
1.04992
1.05005
1.05019
1.05033
1.05047
1.05061
1.05075
1.05089
1.05103
1.05116
1.05130

1.01238
1.01251
1.01265
1.01278
1.01292
1.01305
1.01319
1.01332
1.01345
1.01359
1.01372
1.01386
1.01399
1.01412
1.01426
1.01439
1.01453
1.01466
1.01479
1.01493
1.01506
1.01520
1.01533
1.01546
1.01560
1.01573
1.01587
1.01600
1.01613
1.01627

February 2001

175.8

March 2001

176.2

April 2001

176.9

CONTACT:

Office of Financing
202-69l-3550

May

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
9l-Day Bill
May 17, 2001
August 16, 2001
912795GQ8

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.630%

Investment Rate 1/:

3.716%

Price:

99.082

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 78.69%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

21,811,878
1,366,801
300,000

5,145,255

Federal Reserve
$

28,623,934

9,333,261
1,366,801
300,000
11,000,062 2/

23,478,679

SUBTOTAL

TOTAL

Accepted

Tendered

16,145,317

Median rate
3.600%: 50% of the amount of accepted competitive tenders
tendered at or below that rate.
Low rate
3.550%:
5% of the amount
)f accepted competitive tenders was tendered at or below that rate.

~as

hd-to-cover Ratio = 23,478,679 / 11,000,062 = 2.13
./ Equivalent coupon- issue yield.

!/ Awards to TREASURY DIRECT = $1,126,536,000

http://www.publicdebt.treas.gov

PO-374

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of-the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
May 14, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
182 -Day Bill
May 17, 2001
November 15, 2001
91279SHV6

Term:
Issue Date:
Maturity Date:
CUSIP Number:
3.640%

High Rate:

Investment Rate 1/:

3.759%

Price:

98.160

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted
5.09%.
All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Accepted

Tendered

Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

17,769,699
1,043,020
75,000

9,000,041 2/

18,887,719

SUBTOTAL

4,277,630

Federal Reserve
TOTAL

23,165,349

7,882,021
1,043,020
75,000

13,277,671

Median rate
3.590%: 50% of the amount of accepted competitive tenders
tendered at or below that rate.
Low rate
3.550%:
5% of the amount
'f accepted competitive tenders was tendered at or below that rate.
~s

id-to-cover Ratio

18,887,719 /

9,000,041 = 2.10

/ Equivalent coupon-issue yield.
/ Awards to TREASURY DIRECT = $834,560,000

http://www.publicdebttreas.gov

PO-375

DEPARTlVIENT

THE

TREASURY

NEWS
OffiCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASHINGTON, D.C .• 20220 • (202) 622-2960

EMBORGED UNTIL 2:30 P.M. EDT

Contact: Tony Fratto

May 15,2001

(202) 622-2960

TREASURY SECRETARY PAUL H. O'NEILL TESTIMONY BEFORE THE
HOUSE COMMITTEE ON APPROPRIATIONS SUBCOMMITTEE ON
FOREIGN OPERATIONS, EXPORT FINANCING AND RELATED PROGRAMS
Chaimlan Kolbe, Ranking Member Lowey, Members of the Committee, thank
you for the opportunity to testify before you today about the Bush Administration's
FY2002 budget request for Treasury's international programs. I look forward to
working closely with all of you during this Administration to help advance
American interests in a growing and stable global economy.
This year's request totals $1.4 billion. It includes $1.2 billion in funding for our
annual commitments to the Multilateral Development Banks (MDBs), $224 million
toward our commitment to the Heavily Indebted Poor Countries (HIPC) debt relief
initiative, and $6 million for international technical assistance programs.
Let me begin by saying that I believe that the World Bank and the other MDBs
have an important role to play in increasing productivity and thus improving the standard
ofliving of people around the world.
But I also believe that these institutions can do a much better job than they have
done in the past. I want them to be associated with success rather than failure. We who
are in leadership positions must look for ways to change these institutions and then make
the tough decisions that will bring about the needed changes. This is our fiduciary
responsibility to the American people who pay the taxes that go to fund these institutions.
I recognize that refolTIl of these institutions has been a concern of Congress,
including members ofthis Committee, for several years, as reflected in legislation and a
number of infomlative hearings and reports. Thanks to this work, many useful refolTIls
have been proposed and some of these have already been implemented. Nevertheless, I
believe that there is still much to do.
The FY2002 Request
There are three components to the FY2002 request of$1.4 billion for Treasury's
international programs:
PO-376

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1. Funding for the MDBs ($1.2 billion)
As a consequence of our international negotiations in recent years, U.S. annual
commitments to these institutions have been substantially reduced, from $1.9 billion in
FY1996 to $1.2 billion in FY2002.
Consistent with the President's overall budget priorities for FY2002, we have
confined our request for the MDBs to a level sufficient to cover our scheduled annual
commitments. U.S. arrears to the MDBs remain to be addressed at a later time. In order
to maintain U.S. leadership and leverage as we pursue our reform agenda in the
institutions, it is important that we avoid further accumulation of arrears by meeting fully
our annual commitments this year.
Among our requests this year are contributions to the Asian Development Fund and
the International Fund for Agricultural Development under replenishment agreements
completed last year, for which we are also requesting the necessary congressional
authorizations. Replenishment negotiations get underway this year for several
institutions, including the International Development Association, which is the largest
provider of concessional financing to the poorest countries, the African Development
Fund and the Global Environment Facility.
2.

International Debt Relief ($224 million)

For FY2002 our request for debt reduction programs is $224 million. This
amount, in combination with $16 million in uncommitted debt account balances if fully
applied to the RIPC Trust Fund, will complete the total U.S. commitment of $600 million
to the Trust Fund. The Trust Fund helps regional development banks and other
multilateral institutions meet the costs of providing debt reduction to heavily indebted
poor countries committed to economic, social and governance reforms. Twenty-two
countries have begun receiving significant debt relief under this program, and continued
U.S. support is essential to assist the poorest countries to achieve economic growth and
poverty reduction.
There is no FY2002 request for appropriations for debt relief under the Tropical
Forest Conservation Act, but we intend to use $13 million transferred from USAID' s
Development Assistance account to fund additional activities under the TFCA.
3.

Technical Assistance ($6 million)

Our request also includes $6 million for Treasury technical assistance programs,
which form an important part of our effort to support countries engaged in fundamental
reforms. These programs were created in 1990 and 1991 to assist countries in the Former
Soviet Union and Central and Eastern Europe.

Beginning in FY 1999, a direct Congressional appropriation allowed us to expand the
program selectively and effectively. For FY2002, we are requesting funding to support
modest current programs in countries in Africa, Asia, Central and South America and to
expand into other countries committed to sound economic reform policies.
The U.S. MDB Reform Agenda

The World Bank and the other multilateral development banks should have a clear
set of objectives. In my view their number one priority should be to raise the standard of
living of people throughout the world. History tells us that the driving force behind
increases in income per capita is rising productivity-the amount that each worker can
produce.
If you look at per capita income in different parts of the world, the disparities
between countries are clear - and I can tell you that virtually all of those differences can
be explained by differences in productivity. Poor countries are poor-poverty existsbecause productivity is low in these countries. I can also tell you, from my own
experience in business, that the opportunities for increasing productivity are now greater
than at any time in history. The technology and the ideas are there. The challenge is to
spread these ideas and to use them.
I believe that the scope of the World Bank's activities is now too diffuse, and this
reduces its focus on the core objective of raising income per capita. In the case of each
new loan and each new grant we need to ask: how is this decision going to raise income
per capita, or raise productivity? Economic research and historical experience tell us
that more and better education is an essential ingredient for higher productivity growth. I
would like to see the MDBs place greater emphasis on education. President Bush has
made education a top priority for the U.S. economy. It should also be a top priority for
the world economy.
Productivity can also be increased through more capital and better technology.
Entrepreneurial activity in the private sector is what will make these productivity
increases happen. Open markets, free trade, low tax rates and sensible regulation - the
keys to U.S. growth over the past 20 years - are essential to sparking such entrepreneurial
activity and, therefore, productivity. I also believe that greater priority should be given to
strengthening the rule oflaw and promoting good governance. Assessments of borrower
fiduciary policies should be central and done prior to the provision of grants or loans.
Eliminating corruption should also factor more directly in Bank lending decisions.
In addition to these external policy changes, internal MDB governance should
also maximize transparency and ensure compliance with approved policies. We must
achieve stronger internal oversight mechanisms to oversee compliance with internal
policies and broader information disclosure practices to enhance accountability.

When we recommend that these institutions become more focussed, we must also
provide guidance on areas that can be scaled back. I am not of the view that each MDB
must be a full-service "supermarket" for the developing world. Each of them could, for
instance, focus its lending and grants on essential development goals. While we will be
working to give some direction on this front in the coming months, cultural heritage
projects that have a peripheral development impact and large infrastructure projects that
could easily attract private finance are some problematic areas that come to mind. We
also have questions about MDB involvement in sophisticated electronic informationsharing systems that may duplicate work being undertaken by the private sector and that
do not take into account the more basic information and capacity improvement needs of
these countries.
I also believe that the MDBs should focus their resources more on countries that
do not enjoy access to private finance, recognizing that many other countries' financing
needs are more suitably met through the private markets.
I can also see scope for differentiated loan pricing to achieve better prioritization
of lending to middle-income countries and better incentives for these countries to rely on
private markets. And I think we should be providing more performance-based grants to
those poorest and least creditworthy countries committed to sound policies.
We need to know more about what we are getting for the U.S. taxpayers' money.
In this respect, I see greater scope for requiring prior actions before loans are made and
less scope for increasing the share of budget support operations without evidence that it
yields higher development effectiveness and without a clear assessment of its operational
and fiduciary risks.
Conclusion

We are in the early days of this new Administration. Reform of the international
financial institutions is a key priority. I have given you some of my views, and I look
forward to hearing more about yours. I can promise you that we at Treasury will dedicate
ourselves to these reform goals.
Because these institutions are international, reforming them means working
closely with the other shareholders. I met at the end of last month with colleagues from
around the world to review the work of these institutions, and I shared some of my views
with them. I also had useful exchanges with other shareholders at the Asian
Development Bank's annual meeting in Honolulu last week. I am optimistic that we can
work together to make some real changes in the institutions. I ask for your support as we
pursue a reform agenda aimed at producing an MDB system that is more effective in
achieving results that increase economic growth and improve the everyday lives of
people in developing countries.
Thank you very much.

D EPA R T l\1 E N T

0 F

THE

T REA SUR Y

NEWS
omCEOFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE. N.W. - WASlDNGTON. D.C. - 20220 - (202) 622·2960

EMBORGED UNTIL FOMe ANNOUNCEMENT
May 15, 2001

Contact: Public Affairs
(202) 622-2960

STATElVIENT BY TREASURY SECRETARY PAUL H. O'NEILL
The Administration respects the independence of the Federal Reserve in making decisions about
our nation's monetary policy. We share the Federal Reserve's goals of maintaining healthy
economic growth while preserving low inflation.

-30-

PO-377

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D EPA R T l\1 E N T

0 F

THE

T REA SUR Y

NEWS
omCEOFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE. N.W. - WASlDNGTON. D.C. - 20220 - (202) 622·2960

u.s. International Reserve Position

5/l5/0l

The Treasury Department today released U.S. reserve assets data for the week ending May 11,2001. As indicated in this
table, U.S. reserve assets totaled $64,843 million as of May 11,2001, down from $65,446 million as of
May 4,2001.

n US millions)

TOTAL
Foreign Currency Reserves
a. Securities

May 11.2001
64,843

May 4, 2001
65,446

Official U.S. Reserve Assets

Euro
5,325

Yen
10,888

Euro

TOTAL
16,213

5,227

Yen

TOTAL

10,759

15,986

Of which, issuer headquartered in the U.S.

b. Total deposits with:
b.i. Other central banks and BIS
b.ii. Banks headquartered in the U.S.
b.ii. Of which, banks located abroad

b.m. Banks headquartered outside the U.S.
b.iii. Of which, banks located in the U.S.

IMF Reserve Position

Special Drawing Rights (SDRs)
Gold Stock

Other Reserve Assets

9,014

4,713

13,727
0
0

8,845

4,658

0
0

13,854

13,769

10,606

10.541

11,046

2J The items, "2. IMF Reserve Position" and '3. Special Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar terms at the official SDRJdoliar exchange rate for the reporting date. The IMF data for May 4 are final. The entries in the table above
for May 11 (shown in italics) reflect any necessary adjustments, Including revaluation, by the U.S. Treasury to the prior week's IMF data.
3/ Gold stock is valued monthly at $42.2221 per fine troy ounce Values shown are as of March 31, 2001. The February 28, 2001 value was
$11,046 million

PO-378

13,503
0
0

u.s. International Reserve Position (cont'd)
II. Predetermined Short-Term Drains on Foreign Currency Assets
May 4,2001
1. Foreign currency loans and securities

May 11, 2001

o
o
o

2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:
2.a. Short positions

2.b. Long positions

3. Other

III. Contingent Short-Term Net Drains on Foreign Currency Assets
May 11,2001

May 4,2001
1. Contingent liabilities in foreign currency
1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U. S.
3.c. With banks and other financial institutions
headquartered outside the U. S.
4. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calis
4.b. Long positions
4.b.1. Bought calis
4.b.2. Written puts

o
o

D EPA R T l\ lEN T

0 F

THE

T REA SUR'

Y ", ; ,""

'~"~, ."~>

NEWS
omCE OF PUBIlC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

FOR IMMEDIATE
MAY 15,2001

RELEASE

CONTACt: POBLIC AFFAIRS
(202) 622-2960

DEP ARTMENT OF TREASURY UNDER SECRETARY FOR ENFORCEMENT NOMINEE
JlJVlMY GURULE
APPEARS BEFORE SENATE FINANCE COMMITTEE
FOR CONFIRMATION HEARING

The White House nominee for the position of Under Secretary (Enforcement), Jimmy
Gurule, will appear before the Senate Finance Committee on Wednesday, May 16 t \ for his
confirmation hearing. Mr. Gurule has been nominated to serve as Under Secretary to provide
oversight, policy guidance and support to the Treasury Law Enforcement components - the
Bureau of Alcohol, Tobacco and Firearms; the U,S. Customs Service; the Executive Office of
Asset Forfeiture; the Federal Law Enforcement Training Center; the Financial Crimes
Enforcement Network; the Office of Foreign Assets Control; and the U.S. Secret Service.
A member of the Utah Bar since 1980, Mr. Gurule brings a wealth of law enforcement
experience to the Treasury Department. Mr. Gurule began his career as a trial attorney with the
Department of Justice in Washington D.C. He has subsequently held the following positions:
Deputy County Attorney in the Salt Lake City Attorney's Office; Assistant U.S. Attorney and
Deputy Chief of the Major Narcotics Section of the Los Angeles branch of the U.S. Attorney's
Office; and Assistant Attorney General with the Department of Justice's Office of Justice
Programs in Washington D.C.
Mr. Gurule is an internationally known expert in the field of complex criminal litigation
and has lectured extensively on this topic. In addition, he has co-authored numerous texts
including "The Law of Asset Forfeiture" and a casebook entitled "Criminal and Scientific
Evidence: Cases, Materials and Problems". Mr. Gurule has a special expertise in the area of
organized crime and has participated in several conferences and committees committed to
studying this problem. He is a member of the Advisory Board of the National Criminal Justice
Trial Advocacy Competition and a member of the LEXIS-NEXIS Advisory Board for Criminal
Justice Publications.
Mr. Gurule joined the Notre Dame Law School faculty in 1989 and in 1996 became a full
professor. He also served as Associate Dean for Academic Affairs during the 1998-1999 school
year. Jimmy Gurule earned his B.A. from the University of Utah in 1974 and his J.D. from the
University of Utah College of Law in 1980.
PO-379

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",.;r-

Mr. Gurule was recognized for his contribution to law enforcement when he received the
Attorney General's Distinguished Service Award and the Drug Enforcement Administration's
highest award, the Administrator's Award. He was honored in 1991 with the prestigious
Edmund J. Randolph Award and also received the Award for Excellence in Management in
1992. In addition, Mr. Gurule is a prominent member of the Hispanic Legal Community. He was
honored in 1997 as one of twelve Hispanics nationwide named "Pillars of a Just Society." He
serves as a faculty advisor to the Hispanic Law Students Association and is a member of the
Editorial Advisory Board of the Harvard Journal of Hispanic Policy.

DEPARTMENT

TREASURY

_ _ _ _ _ _ _ _""":1

THE

TREASURY

NEWS

: : . . ._ _ _ _ _ _ _•
Q

OFFlCE OF PUBUC AFFAIRS • 1500 PE.r\NSnXANL;\ AVENl'E, ;-";.W .• WA5iHINGTO', D.c:.. 20220.12021622-2960

EMBORGOED UNTIL 1:30 P.M. EDT
May 16,2001

Contact: Tony Fratto
(202) 622-2960

STATEMENT OF PETER FISHER NOMINEE FOR UNDER SECRETARY OF
THE TREASURY FOR DOMESTIC FINANCE BEFORE THE COMMITTEE ON
FINANCE UNITED STATES SENATE

Chainnan Grassley, Ranking Member Baucus, and members of the Committee on
Finance, thank you for the opportunity to appear before you today.
I am honored that President Bush has nominated me to serve as Under Secretary
of the Treasury for Domestic Finance and, if confinned, to have the opportunity to work
with Secretary O'Neill, the Treasury staff, and others in the Administration to advance
the President's economic agenda,
If confinned, I also look forward to working closely with this Committee, the
Senate, and with members of the House of Representatives on the broad range of issues
addressed by the Office of Domestic Finance.
Throughout our history, the operations of the Department of the Treasury have
played an important role in the evolution of our financial system. The strength and
resilience of this system is itself a precious asset. In addition to serving as an advisor to
Secretary O'Neill on capital market and financial institution issues, and on debt
management, fiscal policy and financial management issues, I especially hope to have the
opportunity to work with this Committee to improve upon the efficiency with which the
federal government's obligations are financed over the coming years.
My fifteen years of experience with the Federal Reserve Bank of New York has
given me the opportunity to learn first-hand about the forces shaping the increasingly
global banking and capital markets. As manager of the Federal Reserve's monetary
operations since 1995, I have been afforded the unique vantage point of active
participation in financial markets from a position of public responsibility. In this capacity
I have worked with members of the Federal Reserve Board of Governors and the Reserve
Bank Presidents in the fonnulation and implementation of monetary policy.
PO-380
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I have worked with senior Treasury officials on debt management and capital
market issues and in the implementation of exchange rate policy. In both of these
capacities, I have had the opportunity to learn from the experience of central bankers and
finance ministry officials from around the world.
Mr. Chairman, thank you again for the opportunity to appear before the
Committee. I hope members ofthe Committee will support me, and I promise to work
diligently and with an open mind on all matters that this Committee may wish to raise
with the Office of Domestic Finance. I hope that this will be the beginning of a strong
working relationship.
I would like to thank Secretary 0 'Neill for the confidence he has shown in me by
supporting me for this job. I would be pleased to answer any questions that you and other
members of the Committee may have.

-30-

DEPARTl\,'lENT

THE

TREASURY

NEWS
omCE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220 - (202) 622-2960

EMBORGED UNTIL 1:30 P.M. EDT
May 16,2001

Contact: Tasia Scolinas
(202) 622-2960

STATEMENT OF JIMMY GURULE NOMINEE FOR UNDER SECRETARY OF THE
TREASURY FOR ENFORCEMENT BEFORE THE COMMITTEE ON FINANCE
UNITED STATES SENATE
Thank you Chainnan Grassley, Senator Baucus, and members of the Committee. It is an
honor and privilege to be here today to testify in support of my nomination to serve as the next
Under Secretary of the Treasury for Enforcement.
I would like to thank President Bush for the opportunity to serve my country and the new
Administration. I further would like to thank Secretary Paul O'Neill for his support and
confidence. I am excited about the possibility of serving under his strong leadership at the
Treasury Department.
Before proceeding any further, I would like to take the opportunity to introduce my
family. For the past twenty-one years, I have been blessed with a loving and supportive wife.
Please allow me to introduce my wife, partner, and best friend, Julia Cordova-Gurule. I further
have been blessed with three wonderful children, two to whom were able to accompany me
today - my fourteen-year-old son, Alejandro, and my eleven-year-old daughter, Sophia.
Unfortunately, their older brother, Santiago, who just completed his sophomore year of studies at
the University of Notre Dame, is working and could not make the trip.
I look forward to the challenges, opportunities, and responsibilities that await me if
confirmed as the next Under Secretary for Enforcement. I believe that I am uniquely qualified to
hold this important Treasury post.
I have served as a federal and state prosecutor for approximately ten years. At Notre
Dame Law School, I currently teach Criminal Law, Criminal Procedure,Complex Criminal
Litigation, and International Criminal Law, and have had the opportunity to publish extensively
on a broad range of criminal justice issues. Based on the totality of these experiences, I
understand the critical issues confronting federal law enforcement officers investigating
international drug trafficking, domestic and international money laundering, and complex
criminal enterprises.
My management and administrative experience, gained while serving in the former Bush
Administration at the Department of Justice as Assistant Attorney General for the Office of
Justice Programs, has prepared me to administer the diverse activities of the law enforcement
bureaus and offices that comprise the Office of Enforcement.
PO-381
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The Treasury law enforcement bureaus have a long and distinguished history. Each
bureau contributes unique expertise to enforcing our nation's laws and protecting its citizens.
If confirmed, I will provide strong leadership to the Office of Enforcement, maintain the
public's trust, and work in partnership with Congress to meet the challenges faced by the
Treasury Department and its bureaus.
Thank you Mr. Chairman. I would be happy to answer any questions.

DEPARTl\'IENT

THE

NEWS

TREASURY

EMBARGOED UNTIL 9:00 A.M.
May 16, 2001

TREASURY

PUBLIC CONTACT: Office of Financing
202-691-3550
MEDIA CONTACT: Office of Public Affairs
202-622-2960

TREASURY ANNOUNCES DEBT BUYBACK OPERATION
On May 17, 2001, the Treasury will buy back up to $1,750 million
par of its outstanding issues that mature between November 2022 and November
2027. Treasury reserves the right to accept less than the announced amount.
This debt buyback (redemption) operation will be conducted by Treasury's
Fiscal Agent, the Federal Reserve Bank of New York, using its Open Market
operations system.
Only institutions that the Federal Reserve Bank of New
York has approved to conduct Open Market transactions may submit offers on
behalf of themselves and their customers. Offers at the highest accepted
price for a particular issue may be accepted on a prorated basis, rounded up
to the next $100,000. As a result of this rounding, the Treasury may buy
back an amount slightly larger than the one announced above.
This debt buyback operation is governed by the terms and conditions set
forth in 31 CFR Part 375 and this announcement.
The debt buyback operation regulations are available on the Bureau of
the Public Debt's website at www.publicdebt.treas.gov.
Details about the operation and each of the eligible issues are given
in the attached highlights.
000

Attachment

PO-382

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASTT'QY DEBT BUYBACK OPERATION
May 16, 2001
Par amount to be bought back .. Up to $1,750 million
Operation date . . . . . . . . . . . . . . . . May 17, 2001
Operation close time . . . . . . . . . . 11:00 a.m. eastern daylight saving time
Settlement date . . . . . . . . . . . . . . . May 21, 2001
Minimum par offer amount ..... $100,000
Multiples of par . . . . . . . . . . . . . $100,000
Format for offers ..... Expressed in terms of price per $100 of par with
three decimals.
The first two decimals represent
fractional 32 nds of a dollar.
The third decimal
represents eighths of a 32 nd of a dollar, and must
be a 0, 2, 4, or 6.
Delivery instructions . . . . . . . . . ABA Number 021001208 FRB NYC/CUST
Treasury issues eligible for debt buyback operation (in millions) :

Coupon
Rate (%)
7.625
7.125
6.250
7.500
7.625
6.875
6.000
6.750
6.500
6.625
6.375
6.125

Maturity
Date
11/15/2022
02/15/2023
08/15/2023
11/15/2024
02/15/2025
08/15/2025
02/15/2026
08/15/2026
11/15/2026
02/15/2027
08/15/2027
11/15/2027

CUSIP
Number
912810 EN
912810 EP
912810 EQ
912810 ES
912810 ET
912810 EV
912810 EW
912810 EX
912810 EY
912810 EZ
912810 FA
912810 FB
Total

4
9
7
3
1
6
4
2
0
7
1
9

Par Amount
Outstanding*
8,314
16,979
22,659
9,864
10,869
11,715
12,838
10,303
11,298
10,211
10,196
22,326
157,572

Par Amount Par Amount
Privately
Held as
He1d*
STRIPS**
6,713
4,131
14,344
6,994
21,106
3,470
8,249
6,197
9,325
6,994
9,916
4,221
11,723
1,395
2,372
8,689
4,825
9,574
3,190
9,000
1,437
8,556
7,581
18,978
52,807
136,173

* Par amounts are as of May 15, 2001.
** Par amounts are as of May 14, 2001.
The difference between the par amount outstanding and the par amount
privately held is the par amount of those issues held by the Federal
Reserve System.

DEPARTMENT

TREASURY

_ _ _ _ _ _ _ _""'::1

THE

TREASURY

NEWS

: . ._ _ _ _ _ _ _•
Q

OFFlCE OF PUBUC AFFAIRS • 1500 PE.r\NSnXANL;\ AVENl'E, ;-";.W .• WA5iHINGTO', D.c:.. 20220.12021622-2960

EMBORGED UNTIL 9:30 A.M. EDT
May 17, 2001

Contact: Tasia Scolinas
(202) 622-2960

Testimony of Pamela J. Hicks Acting Deputy Assistant Secretary (Law Enforcement) of the
Treasury Before the House Committee on Government Reform
Subcommittee on National Security, Veterans Affairs, and International Relations

Mr, Chairman, members of the Committee, I am pleased to be here today to discuss
Treasury's role in providing rule-of-Iaw assistance to the 12 Newly Independent States (NIS) of
the former Soviet Union. While Treasury has provided advice on drafting money laundering
and other legislation in these countries, most of Treasury's rule-of-Iaw assistance has been law
enforcement training by our law enforcement bureaus and offices, the U.S. Customs Service,
U.S. Secret Service, Bureau of Alcohol, Tobacco and Firearms, Internal Revenue Service Criminal Investigation (IRS-CI), Federal Law Enforcement Training Center (FLETC), and
Financial Crimes Enforcement Network (FinCEN). We also provide training through our law
enforcement program in Treasury's Office of Technical Assistance. Treasury and its bureaus
work closely with the State and Justice Departments in delivering its training programs.

In providing law enforcement training to a foreign government, Treasury has two main
goals. In the shorter term, we work to build relationships with our law enforcement counterparts
that enable us to work together on particular matters, improving both nations' ability to protect
their citizens from criminal activity. In the longer term, we seek to support broader U.S.
government efforts aimed at assisting the foreign government in establishing and maintaining
fair and effective law enforcement institutions. In my testimony today, I will briefly outline our
efforts to design, coordinate, and evaluate our training programs to meet these goals.
Designing and Coordinating Training

At the outset, it should be noted that international training is an interagency effort.
Treasury and its bureaus provide international law enforcement training as part of a broader plan
for a country or region. In determining what type of training to provide a particular country, we
work closely with the Departments of State and Justice. Each fiscal year, the Department of
State forwards a training solicitation cable with training objectives for law enforcement programs
to all overseas posts and law enforcement agencies. Working with embassies, law enforcement
agencies, including the Treasury and Justice Departments, and host governments, State
prioritizes training requests by objectives and region.
PO-383

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The training provided to selected countries is then determined by the Department of
State, International Narcotics and Law Enforcement Affairs (lNL), with considerable input from
the Departments of Justice and the Treasury. For example, in response to the criminal threat,
Treasury law enforcement may propose that Customs and ATF provide training on international
firearms trafficking for particular countries in Latin America and the Caribbean Basin. Working
as a team, State, Customs and ATF, would then manage and coordinate the training program.
State would oversee the funding and logistics for the program. Customs and ATF are
responsible for the coordination, preparation and presentation of the courses.
Based on this process, Treasury and its bureaus lend their expertise in a wide variety of
law enforcement training to NIS countries both directly and through the International Law
Enforcement Academy (Budapest). These efforts include: firearms trafficking training by ATF
and Customs; excise tax administration training by ATF; forensics, economic fraud, and
counterfeiting training by Secret Service; and training relating to money laundering by IRS-CI,
Customs and FinCEN. However, the majority of training courses that we have provided to the
NIS have been done by Customs on various types of smuggling, including drug trafficking,
weapons of mass destruction, and child pornography.
Case Example - Operation Blue Orchid
Operation Blue Orchid, a recent U.S. Customs effort with the Moscow City Police,
provides a useful illustration of how this system is intended to work. U.S. Customs, through its
CyberSmuggling Center in Fairfax, Virginia, developed leads regarding Internet web sites based
in Russia that depicted the sexual and physical abuse of children. Customs provided these leads
to its Attache in Moscow, who identified the Moscow City Police as an agency with
responsibility for combating Internet child pornography in Moscow. U.S. Customs and Moscow
City Police then worked together to successfully take down two child pornography distribution
networks.
At the same time, Customs was developing its recommendations for training to be funded
by the State Department. Based on the CyberSmuggling Center's analysis of child pornography
internet sites in Russia and its work with the Moscow City Police, Customs recommended and
State agreed to fund training for the Moscow City Police at Customs' CyberSmuggling Center on
Internet child pornography investigative techniques. The training, which was specifically for the
unit within the Moscow City Police that had been working with Customs on child pornography
matters, took place in July 2000.

In the meantime, in May 2000, the Moscow City Police requested the assistance of the
U.S. Customs Attache in Moscow on a new child pornography case relating to the Blue Orchid
web site, which was allegedly operated by two Russians. Customs' CyberSmuggling Center
arranged an undercover buy from the web site, which in December 2000 led the Moscow City

Police to one of the Russians, who police detained along with a 13-year-old boy.
Interviews of this suspect disclosed that he had transported the minor to Moscow for the purpose
of sexual exploitation. Subsequently, Moscow City Police conducted a search of the suspect's
apartment and seized 400 videotapes, video duplication equipment, and sales and shipping
records. The U.S. Customs Attache in Moscow assisted in the search and seizure and provided
technical assistance in the investigation.
The Russian portion of the case culminated on March 2, 2001, with the arrest of an
individual on charges that he molested and sexually abused a fifteen-year-old boy during the
making of two videos. Blue Orchid customers would wire cash, then email the distributor with
instructions on where to send the videotape. Prices ranged from $200-$300 per video. Records
seized from the distributors indicate videotapes were shipped worldwide, but most were sent to
the United States.
As a result of the December 2000 search, the U.S. Customs Attache in Moscow
forwarded information to U.S. Customs field offices in the United States, identifying a number
of suspects who allegedly had ordered child pornography from the Blue Orchid web site.
Additionally, approximately 50 leads were sent to U.S. Customs Attache offices around the
world. Over 20 cases are ongoing within the U.S. as a result ofleads generated from Operation
Blue Orchid.
Blue Orchid demonstrates the potential benefits of working with and supporting Russian
authorities. Through its relationship with the Moscow City Police, Customs identified the unit
responsible for investigating child pornography on the Internet. As part of this working
relationship, we provided training and technical assistance to the relevant Moscow City Police
officers, improving their ability to combat child pornography on the Internet. This training and
cooperation enabled the Moscow City Policy to take down the Blue Orchid Web site, which was
shipping child pornography to the United States. Moreover, information provided by the
Moscow City Police enabled U.S. Customs to pursue violations of U.S. law.

Sustainability and Evaluation of Training
While we are pleased when we have success on a particular case, our goal is to sustain
the progress we make and improve the overall functioning of the foreign law enforcement
institutions. The primary way we seek to accomplish this is through our coordination with other
U.S. agencies, particularly the Departments of State and Justice, and the host nation. We support
the Department of State's efforts to increase the sustainability of the international training
programs. In addition to working with State, we seek to make sure our own efforts support
improvements in foreign law enforcement institutions that are sustainable.

Our training courses, as well as our Attaches stationed overseas, enable us to develop and
improve our contacts with foreign law enforcement officers and agencies. These contacts
provide us with a better understanding of the crime problems in other countries and the local law
enforcement environment. We use this information to help us determine the training needs of a
particular country as well as the likelihood training will be effective. In Blue Orchid, for
example, the Customs Attache in Moscow provided an important link between Customs'
CyberSmuggling Center and the Moscow City Police. We believe that the relationship Customs
developed with the Moscow City Police in working Blue Orchid, including the training and
technical assistance that Customs provided, will lead to additional joint investigations and
continued efforts by the Moscow City Police to combat Internet child pornography.
As successful as Blue Orchid was, however, we recognize that it is not realistic for us to
train every law enforcement officer in Russia and the other NIS countries. We use train-thetrainer courses to help spread our expertise throughout an organization. For example, Customs
has provided train-the-trainer workshops on narcotics interdiction to law enforcement from
Russia, Turkmenistan, Kyrgystan, and Uzbekistan. The purpose of this training is to create a
cadre of instructors within a foreign customs or border control agency who can then teach others
-- both in a classroom and on the job -- about narcotics interdiction techniques. To try to
maximize effectiveness, Customs limits the course to 12 participants who are or plan to become
trainers.
Of course, not all of our efforts have the same result as Blue Orchid. Setbacks and
obstacles are inevitable when dealing with countries still working to build their law enforcement
institutions. Training is not always institutionalized as quickly or as effectively as we might like.
We have supported the State Department's efforts to improve the methods of evaluating training
to ensure that we are as effective as possible. To this end, each law enforcement attendee
prepares class evaluations surveys, which are compiled into After Action Reports. These
Reports, which are given to the law enforcement agency running the training, provide the
participants' views on the most beneficial aspects of the training, possible improvements, their
future use of what was learned, and their intent to share the information learned with coworkers.
Morc:over, a rigorous interagency course review has been developed to evaluate training
conducted through the International Law Enforcement Academies. In addition to these formal
evaluations, we also look at the number of subsequent referrals of information and/or requests
for coordination of an investigation from foreign countries to U.S. law enforcement.
Conclusion

We continue to believe that international law enforcement training serves U.S. interests
by enabling U.S. law enforcement to improve its relationships with overseas counterparts to
better protect American citizens from international crime, by assisting foreign governments in
developing effective law enforcement agencies to stop criminal activity before it reaches the
U.S., and by supporting the creation of stable, democratic societies. We recognize, however, that
such training must be done in a coordinated way that is designed to be sustainable over the long
term. In recent years, we have worked closely with the State and Justice Departments to improve
our international training efforts and we are committed to continuing the progress that has been
made.

I want to thank the Committee for its interest in this important issue and we look forward
to working with you to improve our law enforcement training in the NIS countries. Thank you.

OfFICE OF POBLIC Al'FAIKS -1500 PENNSYLVANIA AVENUE, N.W.- WASHINGTON. D.C.- 20120. (202) 612-2960

mmAllOOED tnitl'::tL 2: 30 P.M.
17, 2001

CONTACT:

Kay

Office of

Fi~&Dcing

202/691-3550

OITERS 13-WEEX AND 26-WEEK BILLS

The Treasury will auction two series of 'l'reasury l:d.lls totaling
approximately $21,000 ~llion to refund $~9,9~2 million
pUblicly held
bills matu=ing Kay 24, 2001, and to raise about $1,088 mi1lion of new cash.

&C4ition to the pub1ic hol~s, Pederal R•• e~ Banks for their own
a.ccounts hold $9,790 million of the maturing bills, which may be :e:fw:aded. at
the highest: eliscount rate of accepted COIIIPet~tive te=ers. Amolmts aW'lll:'ded
to tp.ese "'CCOlmts wi11 be in ac1cU.t:ion to the offering a.mou.nt.
Up to $1,·000 mill.ion :in nc=c0mp8titi'V'e bids from Fo%'eign and XnterDatloms.l Hc~ta.zy AUehority (FDIA) accounts bic!ding through the Pederal
Jteserv'e Bank of Hew York will be included wi thin the offering amount: of each
auct.ion. '!'hase noncompetiti"1e bids will have a limit o~ $200 mil~ion per
accouzlt! a:ld will be accepted in the order of smallest to lal:9'est, 1:Lp to the
ag~ga.te award l.:imit of $1,000 aillion •
.!'.reaSU%'y.D.:Lrect euseo:mers have ~eq\lested. that we reinvest their maturing

holdiDgs of appro~~e~y $1,019 milliOD ~to ~e 13wweek bill aDd $~,072 .
·million iDto the 26-week bill.

The allocation percentage applied to bids awarded at the highes~ discount
rate wil·l be rounded up to the next hundredth of a whole percentage point,
e.g., 17.13%.
This of%ering of Treasury securities is gov~ by the. te:ms a.nC. c:cmditioDS set forth in the ~fo~ Offering Circular for the Sale aDd Xssua of
Ka.:keta.ble Book-Entry Treasury Bills, Notes, and BOnds (31 en Part 356, as
amez1c1,ecl) •

Deea~l. about each of the new securities are gi~ i= the attached
'of£e?:in9' highlights.
000
Attachment
PO-384

FO,p,.'Si T~ktl$'s, spe,ches, public schedules Gnd offieilll biog1'tCphus, caU OUI' 24·hofl,. fta lint at (202) 622·2040
..or

H7GHLXGHTB OF ~RBASURY OWPERXNGS OP B7LLS
TO BE ISSUED MAY 24, 2001

May 17, 2001

Of£ering Amount ••••••••••••••••••••.•••• $11,500 million

$9,500 million

Desoription of Offerini=
Texm and type of Becuri~y ••••••••••••••• 91-4ay bi11
CUSIP number •••••••••••••••.•••••••••••• 912795 HH 7

1a3-day bill

Auction date ••••••••••••

May 21, 2001

• • • • • • • • • • • • • • • •

May 21, 2001

912795 UW 4

:Issue date •••••••••••••••••••••••••••••• May 24, 2001

May 24, 2001

Maturity date ••.••••••• o' •••••••••••••••• August 23, 2001
original issue date ••••••••••••••••••••• Pebruar,y 22, 2001
Currently out.t.nding .•••••••••••••••••• $14,864 million
Minimum bid amount and multlples •••••••• $l,OOO

Novamber 23, 2001
May 24, 2001

$1,000

The following rut •• apply to all securities mentione4 above:
Su~ssion of Bids:
Noncompetitive bidsa Accepted in full
to $1 million at the highest discount rate of accepted
competitive bid••
Foreign and Internation.l Monetary Authority (FIMA) bids: Noncompetitive bids submitted
through the Federal Reserve Bank. as agents for prMA accounts. Accepted in order of size
from smallest to largest with no more than $200 million awarded per accou~~. The total
noncompetitive amount awarded to Federal Reserve Banks as agents for FXMA accounts will
not exceed $1,000 million. A single bid that would cause the limit to be exceeded will
be partially accepted in the amount that brings the aggregate award total to the $1,000
mi11ion l~it~ However, if there are two or more bids of equa1 amounts that would cause
the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bidsl
(1) Must be eHPresse4 a8 a discount rate with three decimals in increments of .005%, e.g.,

7.100%, 7.105%.

(2) Net long position for each bidder must be reported when the sum of the total bid amount,
at all discount rates, and the ne~ long position i . $1 billion or greater.
(3) Net long position must be detexmined as of one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Reeo~i2ed Bid at a Single Rate •••• 35% of public offering
Maxi,1JlUIn Award •••••••••••••••••••••••••••••• 35% of public:: offering
Receipt of Tenders:
Noncompetitive tender ••• Prior to 12100 noon eastern daylight saving time on auction day
Competitive tenders ••••• Prior to 1100 p.m. eastern d~light saving time on aue~ion d~
P~nt ~ermsl
By charge to a funds $ooount At a Federal Reserve Bank on issue date, or payment
of full par amount with tender. Tr.asu~D!rect customers can use the Pay Direot feature which
authorizes a charge to their account of record at ~heir financial institution on issae date.

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

Contact: Peter Hollenbach
(202) 691-3502

FOR IMMEDIATE RELEASE
May 17,2001

FIFTY-TWO STATE FINALISTS VIE FOR NATIONAL HONORS
IN U.S. SAVINGS BONDS POSTER CONTEST
National Winners To Be Announced May 24
Fifty-two students from all over the United States in grades 4 through 6 have reached the finals
of the Tenth Annual U.S. Savings Bonds Poster Contest, conducted by the U.S. Treasury
Department's Bureau of the Public Debt. The 52 are first-place winners selected from the
more than 25,000 posters entered from the SO States, the District of Columbia and Puerto Rico.
In addition to eligibility for the national competition, each first-place state winner already has
received a $1,000 savings bond. (The list offinalists is attached.)

National Competition
The winning posters were judged on originality, poster design, visual appeal, and how well
they conveyed the savings bond theme, "Reach for the Stars - Buy U.S. Savings Bonds."
• On May 24, 2001, the first, second and third place national winners will be announced and
they will receive, respectively, $5,000, $2,000, and $1,000 in savings bonds at the ceremony
in Washington, D.C., at the Capital Children's Museum.
o
Accommodations and transportation to and from Washington, D.C., are provided for the
three national winners and a parent or guardian. While in Washington, winners are invited to
tour the historic Treasury Building and meet Treasury Officials, visit the U.S. Capitol, and
the Bureau of Engraving and Printing where currency is made.
• The United Space Alliance is the national sponsor of the 2001 contest.
• Renaissance Washington DC Hotel is providing the accommodations.
e

Where Winning Posters Can Be Seen:
•
•
•

The first-place national winner's poster will be used nationwide in the 2002 U.S. Savings
Bonds Campaign.
The 52 top posters will be exhibited in Washington, D.C., at the Capital Children's Museum
during May, and at the Bureau of Engraving and Printing, June through September.
Photographs of the winning posters with names of the artists and their schools also will be
displayed in major airports across the country and on our website www.savingsbonds.gov.

000

PO-385

2001 STATE FIRST PLACE WINNERS U.S SAVINGS
BONDS NATIONAL POSTER CONTEST
ALABAMA
Olivia Dean
Trinity Presbyterian School
Montgomery
ALASKA
Cheryl Lockwood
Anthony A. Andrews School
St. Michael
ARIZONA
Jeremy Bowker
Arrowhead Elementary School
Phoenix
ARKANSAS
Kailey Jordan Anderson
Alma Middle School
Alma

DISTRICT OF COLUMBIA
Joi Martin
Marion P.Shadd Elementary
School
Washington
FLORIDA
Kara Weisman
Brookside Middle School
Sarasota
GEORGIA
Lyle Allen
Adairsville Middle School
Adairsville
HAWAII
Jessica Lee
Stevenson Middle School
Honolulu

CALIFORNIA
Audrey Guedelekian
Rose & Alex pilibos
Armenian School
Los Angeles

IDAHO
Eva Stutzman
Buhl Middle School
Buhl

COLORADO
India Holton
Fort Lupton Middle School
Fort Lupton

ILLINOIS
Mario Harris
George W. Curtis School
Chicago

CONNECTICUT
Jasmine McDowell
Harbor School
New London

INDIANA
Tracy Beidelman
Westwood Elementary School
Greenwood

DELAWARE
Alexis DeVincentis
St. Anthony of Padua
Wilmington

IOWA
Emily M. Mellott
East Middle School
sioux City

KANSAS
Stephanie Given
Nieman Elementary School
Shawnee
KENTUCKY
Nathina Purvis
Bremen Elementary School
Bremen

MISSOURI
Emilie Bell
Ozark East Elementary
School
Ozark
MONTANA
Lorissa Lynn Johnson
Home School
Florence

LOUISIANA
Kayla Sigur
Little Woods Elementary
School
New Orleans

NEBRASKA
Jessica Marie Petersen
Elkhorn Valley school
Tilden

MAINE
Conor Gillies
Yarmouth Elementary School
Yarmouth

NEVADA
Elizabeth Wiesner
The Meadows School
Las Vegas

MARYLAND
Matt Gianfrancesco
Whetstone Elementary School
Gaithersburg

NEW HAMPSHIRE
Jason Shuster-Leland
Home School
Bethlehem

MASSACHUSETTS
Sean Maze
Parker Middle School
Taunton

NEW JERSEY
Oliver Schaufelberger
Round Valley Middle School
Lebanon

MICHIGAN
Keith Dufendach
Crestwood Elementary School
Rockford

NEW MEXICO
Catherine Wolfe
Des Moines Elementary
School
Des Moines

MINNESOTA
Daniel Woizeschke
Winfair Elementary School
Windom
MISSISSIPPI
Anna Alexander
Alexander Academy Home
School
Little Rock

NEW YORK
Andrew Morejon
Daniel Webster Magnet
School
New Rochelle

NORTH CAROLINA
Andrew Emery
Emery Academy
Horse Shoe
NORTH DAKOTA
Hannah Due
Dakota Christian Home
School
Grand Forks
OHIO
Katie Cantrell
Wooster Township Elementary
School
Wooster
OKLAHOMA
Marina Kravtsova
Tuttle Intermediate School
Tuttle
OREGON
Beau Plummer
Fairview Elementary School
Klamath Falls
PENNSYLVANIA
Andrew Spangenberg
Home School
Quakertown
PUERTO RICO
Joseph Angel Rodriguez
Quinones
Llanos del Sur Escuela
Co to Laurel
RHODE ISLAND
Kelley Frances Kelahan
St. Mary's Academy Bayview
E. Providence

SOUTH CAROLINA
Nicole Sainz
Pocalla Springs Elementary
School
Sumter
SOUTH DAKOTA
Brandon Weyer
Sturgis Williams Middle
School
Sturgis
TENNESSEE
Randall Cooper
Harding Academy - Highland
Memphis
TEXAS
Vanessa Mendez
Senator Eddie Lucio Middle
School
Brownsville
UTAH
Allison Babb
Legacy Elementary School
American Fork
VERMONT
Hope Guisinger
Charleston Elementary
School
W. Charleston
VIRGINIA
Katy Joyce
Richlands Elementary School
Richlands
WASHINGTON
Garrett Hunt
Pioneer Valley School
Spanaway

WEST VIRGINIA
David Black
Milton Elementary School
Milton
WISCONSIN
Claire Bluhm
Meyer Middle School
River Falls
WYOMING
Michael J. Shaw
Indian Paintbrush
Elementary School
Laramie

DEPARTMENT

THE

rOR IMMED:IATE RELEASE

TREASURY

PUBL:IC CONTACT: Office of Financing
202-691-3550
MED:IA CONTACT: Office of Public Affairs
202-622-2960

lay 17, 2001

TREASURY DEBT BUYBACK OPERAT:ION RESULTS

Today, Treasury completed a debt buyback (redemption) operation for $1,750 million
lar of its outstanding issues. A total of 12 issues maturing between November 2022 and
~vember 2027 were eligible for this operation. The settlement date for this operation will
Ie May 21, 2001. Summary results of this operation are presented below.
(amounts in millions)

Iffers Received (Par Amount):
Iffers Accepted (Par Amount) :
'otal Price Paid for :Issues
(Less Accrued :Interest):

$5,775
1,750

1,970

~er

of :Issues Eligible:
For Operation:
For Which Offers were Accepted:

'eighted Average Yield
of all Accepted Offers (%):
eighted Average Maturity
for all Accepted Securities (in years):

12
9

5.977

24.2

etails for each issue accompany this release.

:)-386

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

TREASURY
OFFICE 01' PUBLIC

~FFAUlS 11

NEWS

1500 e'ENNSy .... y.\NIA AVENUE. N.W. - WAS1UNGTON, f).e •• ZUl::U -1,lUll

rOR IMMEDIATE RELEASE
~y 17, 2001

6Zl-l~.HII}

PUBLIC CONTACT: Office of Financing
202-691-3550
MEDIA CONTACT: Office of Public Affairs
202-622-2960

TREASURY DEBT BUYBACK OPERATION RESULTS

Today, Treasury completed a debt buyback (redemption) operation for $1,750 million
>ar of its outstanding issues. A total of 12 issues maturing between November 2022 and
rovember 2027 were eligible for this operation. The settlement date for this operation will
>e May 21, 2001. Summary results of this operation are presented below.
(amounts in millions)

>ffers Received (Par Amount):
>ffers Accepted (Par Amount):
'otal Price Paid for Issues
(Less Accrued Interest):

$5,775
1,750

1,970

~er

of Issues Eligible:
For operation:
For Which Offers were Accepted:

'eighted Average Yield
of all Accepted Offers (%):
eighted Average Maturity
for all Accepted Securities (in years):

12
9

5.977

24.2

etails for each issue accompany this release.

)-386

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

May 17, 2001
TREASURY DEBT BUYBACK OPERATION RESULTS

(amounts in millions, prices in decimals)
Table I

Coupon
RS!. t.e (%)

Mat.urity
~

Par
Amount
Offered

7.625
7.125
6.250
7.500
7.625
6.875
6.000
6.750
6.500
6.625
6.375
6.125

11/15/2022
02/15/2023
08/15/2023
11/15/2024
02/15/2025
08/15/2025
02/15/2026
08/15/2026
11/15/2026
02/15/2027
08/15/2027
11/15/2027

570
751
583
435
425
341
454
601
705
145
320
445

Par
Amount
AcceIl t § d

Highest
Accepted
rl.
~

Weighted
Average
Accepted
Prl.ce

380
80
0
160
235
20
0
285
130
0
180
280

119.703
113.703
N/A
119.031
120.750
111. 359
N/A
110.062
106.859
N/A
105.421
102.140

119.668
113.699
N/A
119.019
120.703
111.359
N/A
109.997
106.819
N/A
105.380
102.091

Par Amount
Private Iv Held*
6,333
14,264
21,106
8,089
9,090
9,896
11,723
8,404
9,444
9,000
8,376
18,698

Table II

Coupon
Rate (%)

Maturity
Date

CUSIP
Number

Lowest
Accepted
Yield

Weighted
Average
Accepted
Yield

7.625
7.125
6.250
7.500
7.625
6.87!i
6.000
6.750
6.500
6.625
6.375
6.125

11/15/2022
02/15/2023
08/15/2023
11/15/2024
02/15/2025
08/15/2025
02/15/2026
08/15/2026
11/15/2026
02/15/2027
08/15/2027
11/15/2027

912810EN4
912810EP9
912810EQ7
912810ES3
912810ETI
912810EV6
912810EW4
912810EX2
912810EYO
912810EZ7
912810FA1
912810FB9

5.983
5.988
N/A
5.981
5.977
5.981
N/A
5.972
5.973
N/A
5.963
5.963

5.986
5.989
N/A
5.982
5.980
5.981
N/A
5.977
5.976
N/A
5.966
5.967

Total Par Amount Offered:
Total Par Amount Accepted:

5,775
1,750

Note: Due to rounding, details may not add to totals.
*Amount outstanding after operation. Calculated using amounts reported on announcement.

DEPARTMENT

THE

TREASURY

NEWS

TREASURY

OFFICE OF PUBLIC AF.FAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C.- 20220. (202) 622-2960

EMBARGOED UNTIL 2:30 P.M.
May 17, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY OFFERS 13-WEEK AND 26-WEEK BILLS
The Treasury will auction two series of Treasury bills totaling
approximately $21,000 million to refund $19,912 million of publicly held
bills maturing May 24, 2001, and to raise about $1,088 million of new cash.
In addition to the public holdings, Federal Reserve Banks for their own
accounts hold $9,790 million of the maturing bills, which may be refunded at
the highest discount rate of accepted competitive tenders. Amounts awarded
to these accounts will be in addition to the offering amount.
Up to $1,000 million in noncompetitive bids from Foreign and International Monetary Authority (FIMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of each
auction. These noncompetitive bids will have a limit of $200 million per
account and will be accepted in the order of smallest to largest, up to the
aggregate award limit of $1,000 million.

TreasuryDirect customers have requested that we reinvest their maturing
holdings of approximately $1,019 million into the 13-week bill and $1,072
million into the 26-week bill.
The allocation percentage applied to bids awarded at the highest discount
rate will be rounded up to the next hundredth of a whole percentage point,
e.g., 17.13%.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable Book-Entry Treasury Bills, Notes, and Bonds (31 CFR Part 356, as
amended) •
Details about each of the new securities are given in the attached
offering highlights.
000

Attaclunent

PO-387
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERINGS OF BILLS
TO BE ISSUED MAY 24, 2001

May 17, 2001
Offering Amount ...•....•..•...•..•.•...• $11,500 million
Description of Offering:
Term and type of security ..•..••.•.•••.•
CUSIP nulllber ..•.•.••.•..•..•..•..•.••..•
Auction date ..•...•............•...•.•.•
Issue date ..•.••••••••••..•..•.•••.••..•
Maturity date ••.•.•.•••.••..•..•...•..••
Original issue date .•.•.•••..•..••..••.•
Currently outstanding ..•...••••..•••.•••
Minimum bid amount and multiples .•.•.•..

91-day bill
912795 HH 7
May 21, 2001
May 24, 2001
August 23, 2001
February 22, 2001
$14,864 million
$1,000

$9,500 million
183-day bill
912795 HW 4
May 21, 2001
May 24, 2001
November 23, 2001
May 24, 2001
$1,000

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids submitted
through the Federal Reserve Banks as agents for FIMA accounts. Accepted in order of size
from smallest to largest with no more than $200 million awarded per account. The total
noncompetitive amount awarded to Federal Reserve Banks as agents for FlMA accounts will
not exceed $1,000 million. A single bid that would cause the limit to be exceeded will
be partially accepted in the amount that brings the aggregate award total to the $1,000
million limit. However, if there are two or more bids of equal amounts that would cause
the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g.,
7.100%, 7.105%.
(2) Net long position for each bidder must be reported when the sum of the total bid amount,
at all discount rates, and the net long position is $1 billion or greater.
(3) Net long position must be determined as of one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid at a Single Rate •.•. 35% of public offering
Maximum Award .•.......•...•••...••.•..••... 35% of public offering
Receipt of Tenders:
Noncompetitive tenders •. Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders ..... Prior to 1:00 p.m. eastern daylight saving time on auction day
Payment Terms: By charge to a funds account at a Federal Reserve Bank on issue date, or payment
of full par amount with tender.
TreasuryDirect customers can use the Pay Direct feature which
authorizes a charge to their account of record at their financial institution on issue date.

DEPARTMENT

THE

TREASURY

NEWS

TREASURY

OFFICE OF PUBLIC AFFAIRS e1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.e 20220. (202) 622-2960

EMBARGOED UNTIL 2:30 P.M.
May 17, 2001

CONTACT:

Office of Financing
202/691-3550

The allocation percentage applied to bids awarded at the highest discount
rate will be rounded up to the next hundredth of a whole percentage point,
e.g., 17.13%.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable Book-Entry Treasury Bills, Notes, and Bonds (31 CFR Part 356, as
amended) •
Details about each of the new securities are given in the attached
offering highlights.
000

Attachment

PO-387
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERINGS OF BILLS
TO BE ISSUED MAY 24, 2001

May 17, 2001
Offering Amount .••...••...•..•.•....••.. $11,500 million
Description of Offering:
Ter.m and type of security .••...•....••.•
CUSIP nwnher •..••.......•.•.............
Auction date .......•.•..•.•••.••.•..•..•
Issue date ......•••.••••..•..•.••..••.•.
Maturity date ..••..•.•....•.....•..•...•
Original issue date ..••..••...••....•••.
Currently outstanding ••••.••..••.•..•...
Minimum bid amount and multiples •.....••

91-day bill
912795 HH 7
May 21, 2001
May 24, 2001
August 23, 2001
February 22, 2001
$14,864 million
$1,000

$9,500 million
183-day bill
912795 HW 4
May 21, 2001
May 24, 2001
November 23, 2001
May 24, 2001
$1,000

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids submitted
through the Federal Reserve Banks as agents for FIMA accounts. Accepted in order of size
from smallest to largest with no more than $200 million awarded per account. The total
noncompetitive amount awarded to Federal Reserve Banks as agents for FIMA accounts will
not exceed $1,000 million. A single bid that would cause the limit to be exceeded will
be partially accepted in the amount that brings the aggregate award total to the $1,000
million limit. However, if there are two or more bids of equal amounts that would cause
the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g.,
7.100%, 7.105%.
(2) Net long position for each bidder must be reported when the sum of the total bid amount,
at all discount rates, and the net long position is $1 billion or greater.
(3) Net long position must be deter.mined as of one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid at a Single Rate .... 35% of public offering
Maximum Award .......•..................•... 35% of public offering
Receipt of Tenders:
Noncompetitive tenders .. Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders ..... Prior to 1:00 p.m. eastern daylight saving time on auction day
Payment Ter.ms: By charge to a funds account at a Federal Reserve Bank on issue date, or payment
of full par amount with tender.
TreasuryDirect customers can use the Pay Direct feature which
authorizes a charge to their account of record at their financial institution on issue date.

EPA R T 1\1 E N T

() F

THE

T REA SUR Y

NEWS
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASIDNGTON, D.C .• 20220. (202) 622-2960

For Immediate Release
May 21,2001

Contact: Tara Bradshaw
(202) 622-2960

TREASURY, IRS RELEASE GUIDANCE ON
EXTRATERRITORIAL INCOME REGIME
Treasury and the Internal Revenue Service today have issued a Revenue Procedure
providing guidance with respect to the recently enacted FSC Repeal and Extraterritorial Income
Exclusion Act of2000. Revenue Procedure 2001-37 contains guidance on certain taxpayer
elections under the new extraterritorial income exclusion regime. Specific issues covered
include the application of the extraterritorial income exclusion regime to foreign corporations
and the election to apply the new regime to transactions during the transition period. The
Treasury and IRS are continuing to work on further guidance with respect to the operation of the
new regIme.

-30-

PO-389

For press release.I, speeches, public schedules and official biographie.\, call our 24-hour/ax line at (202) 622-2040

Part III
Administrative, Procedural, and Miscellaneous

26 CFR 601.105: Examination of returns and claims for refund; determination of correct tax
liability.
(Also Part I, Sections 942, 943.)

Rev.Proc.2001-37

SECTION 1. PURPOSE
This revenue procedure provides guidance to taxpayers regarding certain elections made
pursuant to the FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (the "Act"). Pub.
L. No. 106-519, 114 Stat. 2423 (Nov. 15,2000). Specifically, this revenue procedure includes

guidance with respect to the election to exclude gross receipts from foreign trading gross receipts
under § 942(a)(3) of the Internal Revenue Code ("Code"), the election (and revocation of such
election) by a foreign corporation to be treated as a domestic corporation under § 943(e)(1), and
the election (and revocation of such election) by a taxpayer to apply the extraterritorial income
exclusion (the "ETI exclusion") in lieu of the foreign sales corporation ("FSC") provisions to
certain transactions under § 5(c)(2) ofthe Act.
SEC. 2. BACKGROUND

.01 On November 15,2000, the Act was signed into law, repealing the FSC provisions of

§§ 921 through 927 effective October 1, 2000, and amending the definition of gross income to
exclude certain extraterritorial income .
.02 The amendments to the Code made by the Act apply to all transactions entered into after
September 30,2000. Section 943(b)(I) defines the term "transaction" as "any sale, exchange, or
other disposition ... any lease or rental, and ... any furnishing of services."
.03 Section 5(c)(1) of the Act provides a transition rule for FSCs in existence on September 30,
2000, whereby the FSC provisions remain applicable to FSC transactions for a limited transition
period .
.04 The Act contains several taxpayer elections. First, a taxpayer may elect to exclude the
gross receipts from a transaction or transactions from its "foreign trading gross receipts" in any
taxable year under § 942(a)(3). Second, certain foreign corporations may elect to be treated as
domestic corporations under § 943(e)(1). Third, a taxpayer may elect under § 5(c)(2) of the Act
to apply the ETI exclusion provisions in lieu of the FSC provisions to certain transactions
otherwise covered by the transition rules.
SEC. 3. FORM 8873 ("EXTRATERRITORIAL INCOME EXCLUSION")
A taxpayer that reports extraterritorial income on its income tax return calculates its ETI
exclusion with respect to that income on Form 8873 ("Extraterritorial Income Exclusion"). Such
taxpayer must attach a completed Form 8873 to its income tax return.
SEC. 4. ELECTION TO EXCLUDE CERTAIN GROSS RECEIPTS FROM FOREIGN
TRADING GROSS RECEIPTS
A taxpayer may elect to exclude gross receipts from its "foreign trading gross receipts" in any
taxable year under § 942(a)(3). A taxpayer makes a § 942(a)(3) election on a transaction-by-

transaction basis. A taxpayer makes such election by checking the box on line 1 in Part I of
Form 8873 and attaching the completed form to its income tax return. In the case of a
partnership, each partner may make this election with respect to any transaction for which the
partnership maintains separate accounts. A taxpayer that excludes some, but not all, of its gross
receipts from foreign trading gross receipts must attach to its Form 8873 a tabular schedule that
identifies the gross receipts that are excluded from foreign trading gross receipts.
SEC. 5. ELECTION BY A FOREIGN CORPORATION TO BE TREATED AS A DOMESTIC
CORPORATION
.01 Generally. Section 943(e)(1) allows an "applicable foreign corporation" to elect to be
treated as a domestic corporation for all purposes of the Code if that corporation waives all
benefits granted to it by the United States under any treaty. Making the election is a prerequisite
to the ETI exclusion under § 943(a)(2) with respect to property manufactured, produced, grown,
or extracted outside the United States by a foreign corporation. A corporation that makes a

§ 943(e)(1) election may not elect to be an S corporation under § 1362(a) .
.02 Who may elect. Pursuant to § 943(e)(2), an applicable foreign corporation is any foreign
corporation if either:

(1) it manufactures, produces, grows, or extracts property in the ordinary course of the
corporation's trade or business, or
(2) substantially all of its gross receipts are foreign trading gross receipts .
.03 Period of election. A § 943(e)(1) election applies to the taxable year for which made and to
all subsequent years unless revoked by the taxpayer pursuant to § 943(e)(3)(A) or terminated
pursuant to § 943(e)(3)(B). A § 943(e)(1) election may be filed after September 30, 2000, but
cannot be effective for any taxable year beginning before October 1,2000.

.04 Method of election. A corporation makes a § 943(e)(1) election by checking the box on
line 3 in Part I of Form 8873 and attaching the completed form to a timely filed Form 1120
("U.S. Corporation Income Tax Return") (including extensions) for the first taxable year of the
election .
.05 Where return is filed. A foreign corporation that makes a § 943(e)(1) election but does not
become a member of a consolidated group under § 1501 as a result of such election shall file its
Form 1120 at the applicable Service Center address listed in the "Where To File" section of the
instructions for Form 1120. Ifa foreign corporation makes a § 943(e)(1) election and becomes a
member of a consolidated group under § 1501 as a result of such election, the common parent of
such group shall include the corporation that made the § 943(e)(1) election in its consolidated
return (Form 1120) for the group .
.06 Revocation of election. A corporation may revoke a § 943(e)(1) election by filing a
statement that the election is revoked. The revocation statement shall be entitled "Revocation of
Election under Section 943( e)( 1) to be Treated as a Domestic Corporation - Filed Pursuant to

[citation of this revenue procedure]" and shall include the corporation's name, address,
employer identification number, and contact phone number, and a statement that the taxpayer
revokes its election under § 943( e)(1). The revocation statement shall be signed by any person
authorized to sign a corporate return under § 6062. The corporation shall file such revocation
statement with the same Service Center ("Attn: Entity Control") with which the corporation files
its income tax return as determined under § 5.05 of this revenue procedure. Once properly filed,
the revocation of a § 943( e)(1) election is automatic and applies to taxable years beginning on or
after the date the revocation statement is filed.

.07 Tennination of election. If a corporation that made a § 943( e)(1) election in any taxable
year meets neither of the requirements described in § 5.02 of this revenue procedure for any
subsequent taxable year, the election will not apply to taxable years beginning after such
subsequent taxable year .
.08 Effect of tennination or revocation. If a corporation that made a § 943( e)(1) election
revokes the election or the election is terminated, that corporation (and any successor
corporation) may not make another § 943(e)(1) election for five taxable years beginning with the
first taxable year for which the original election is not in effect as a result of the revocation or
termination .
.09 Effect of election by FSCs. A FSC that elects to be treated as a domestic corporation under
§ 943(e)(1) is not treated as a FSC for any year for which such election applies and for all

subsequent years .
. 10 Effect of election for purposes of section 367.
(1) Except as provided in § 5.10(2) of this revenue procedure, a foreign corporation that
makes a § 943( e)( 1) election is treated, for purposes of § 367, as transferring, on the first day of
the first taxable year to which the election applies, all of its assets to a domestic corporation in
connection with an exchange described in § 354.
(2) In the case of a foreign corporation described in § 5(c)(3) of the Act that makes a
§ 943(e)(1) election, earnings and profits ("E&P") accumulated in taxable years ending before

October 1, 2000, are not included in the gross income of its shareholders by reason of such
election. This rule does not apply to E&P acquired by the foreign corporation in a transaction
after September 30,2000, that is subject to § 381, unless the E&P would have qualified for the
exclusion under § 5(c)(3) of the Act in the hands of the transferor or distributor. Rules similar to

rules under § 953(d)(4)(B)(ii) through (iv) shall apply to E&P not included in gross income
under § 5(c)(3) of the Act.
.11 Effect of revocation or termination for purpose of section 367. If a corporation's

§ 943( e)( 1) election ceases to apply because it is revoked or terminated, then, for purposes of
§ 367, such corporation shall be treated as a domestic corporation transferring all of its assets to a
foreign corporation in connection with an exchange to which § 354 applies on the first day of the
first taxable year to which the election ceases to apply.
SEC. 6. TRANSITION RULES; ELECTION TO APPLY EXTRATERRITORIAL INCOME
EXCLUSION PROVISIONS IN LIEU OF FSC PROVISIONS
.01 FSC elections. After September 30,2000, no corporation may elect to be a FSC under
§ 922(a)(2). For purposes of the transition rule, a FSC election is deemed to occur upon the
formation of an otherwise eligible electing corporation, provided that the corporation makes the
election within 90 days of formation pursuant to the requirements of § 1.921-1 T(b)( 1) of the
Income Tax Regulations .
.02 Termination of inactive FSCs. If a FSC has no foreign trade income (as defined in former
§ 92J(b)) for any period of five consecutive taxable years beginning after December 31, 200 1,
such FSC will no longer be treated as a FSC for any taxable year beginning after such five-year
period .
.03 Transition period for existing FSCs. In general, the Act repeals the FSC provisions for
transactions entered into after September 30,2000. However, § 5(c)(1) of the Act provides that
the FSC provisions continue to apply for a limited time period with respect to certain transactions
entered into in the ordinary course of business involving a FSC in existence on September 30,

2000. Specifically, the FSC provisions continue to apply to transactions involving a FSC and
occurnng:

(1) before January 1, 2002, or
(2) after December 31, 2001, pursuant to a binding contract which is in effect on September
30, 2000, and thereafter, and which is between the FSC (or a person related to the FSC) and a
person other than a related person .
.04 Election to apply extraterritorial income provisions. In the case of transactions occurring
after September 30,2000, for which the FSC provisions continue to apply pursuant to § 5(c)(1)
of the Act, a taxpayer may elect under § 5(c)(2) of the Act to apply the ETI exclusion provisions
in lieu of the FSC provisions. A taxpayer makes a § 5(c)(2) election on a transaction-bytransaction basis. Such election with respect to a transaction is effective for the taxable year for
which made and all subsequent taxable years .
.05 Method of election. A § 5(c)(2) election is made by checking the box on line 2 in Part I of
Fonn 8873 on which the taxpayer detennines its ETI exclusion and attaching the completed fonn
to the taxpayer's timely filed income tax return (including extensions) for the first taxable year of
the election. As set forth in Fonn 8873 and the accompanying instructions, the taxpayer shall
attach to Fonn 8873 a tabular schedule that identifies the transactions for which the taxpayer has
elected ETI exclusion treatment pursuant to § 5(c)(2) of the Act.
.06 Method of revocation. A taxpayer may revoke a § 5(c)(2) election with respect to a
transaction only with the consent of the Secretary of the Treasury. To request consent for a
§ 5(c)(2) revocation, the taxpayer shall file a statement entitled "Revocation of Election under
Section 5(c )(2) of the FSC Repeal and Extraterritorial Income Exclusion Act of 2000 - Filed
Pursuant to [citation of this revenue procedure]" requesting revocation of the § 5(c)(2)

election. Until regulations are issued, such statement shall include the name, address, taxpayer
identification number, and contact phone number of the taxpayer, the Service Center with which
the taxpayer filed its last income tax return, the first taxable year of the taxpayer for which the
revocation is to be effective, and reasons justifying the granting of consent for the § 5(c)(2)
revocation. In addition, the statement shall indicate the transactions to which the request for
consent to revoke the § 5(c )(2) election applies. The statement shall be signed by, or on behalf
of, the taxpayer requesting consent by an individual with authority to bind the taxpayer in such
matters. The taxpayer shall file such statement with Internal Revenue Service, 1111 Constitution
Ave. NW, LMSB Mint Bldg., Room M3-333 LM:PFT:I, Washington, DC 20224. A § 5(c)(2)
revocation applies to taxable years beginning after the year in which such revocation is
requested.
SEC. 7. EFFECTIVE DATE
This revenue procedure is effective October 1, 2000.
SEC. 8. DRAFTING INFORMATION
The principal author of this revenue procedure is Christopher 1. Bello of the Office of
Associate Chief Counsel (International). For further information regarding this revenue
procedure, contact Mr. Bello at (202) 874-1490 (not a toll-free call).
SEC. 9. PAPERWORK REDUCTION ACT
The collections of information contained in this revenue procedure have been reviewed and
approved by the Office of Management and Budget in accordance with the Paperwork Reduction
Act (44 U.S.C. 3507) under control number 1545-1731.

An agency may not conduct or sponsor, and a person is not required to respond to, a

collection of infonnation unless the collection of infonnation displays a valid OMB control
number.
The collections ofinfonnation in this revenue procedure are in §§ 3,4,5, and 6. The
collections in §§ 4, 5 and 6 are required for a taxpayer that elects to exclude some, but not all, of
its gross receipts from foreign trading gross receipts for purposes of the ETI exclusion
provisions; for a corporation subject to an election to be treated as a domestic corporation to
revoke such election; for a taxpayer that elects to apply the ETI exclusion provisions to its
transactions in lieu of the FSC provisions; and for a taxpayer subject to an election to apply the
ETI exclusion provisions, in lieu of the FSC provisions, to revoke such election. The likely
respondents are businesses.
The estimated total annual reporting burden in §§ 5.06 and 6.06 with respect to the revocation
of the above elections is 19 hours. The estimated annual burden per respondent is 20 minutes.
The estimated number of respondents is 56. The estimated annual frequency of responses is
once.
The estimated average annual burden per respondent required in §§ 3,4, 5.04, and 6.05 is
reflected in the burden ofFonn 8873.
Books or records relating to a collection of infonnation must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally tax
returns and tax return infonnation are confidential, as required by 26 U.S.C. 6103.

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
May 21, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
183-Day Bill
May 24, 2001
November 23, 2001
912795HW4

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.640%

Investment Rate 1/:

3.759%

Price:

98.150

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 82.00%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

Tendered
$

SUBTOTAL

20,480,334
1,344,381
100,000

21,924,715

Federal Reserve
TOTAL

Accepted

9,500,215 2/
4,556,047

4,556,047
$

26,480,762

8,055,834
1,344,381
100,000

14,056,262

Median rate
3.615%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.600%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-Cover Ratio = 21,924,715 / 9,500,215

= 2.31

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $1,127,196,000

http://www .publicdebt. treas.gov

PO-390

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt· Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
May 21, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
91-Day Bill
May 24, 2001
August 23, 2001
912795HH7

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.540%

Investment Rate 1/:

Price:

3.622%

99.105

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 37.95%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive
FlMA (noncompetitive)

SUBTOTAL

24,077,191
1,328,706
305,000

5,233,562

5,233,562
$

30,944,459

9,866,397
1,328,706
305,000
11,500,103 2/

25,710,897

Federal Reserve
TOTAL

Accepted

Tendered

16,733,665

Median rate
3.525%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.500%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-cover Ratio = 25,710,897 / 11,500,103 = 2.24
1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $1,119,547,000

htip://www.publicdebt.treas.gov

PO-391

DEPARTlVIENT

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NEWS
OFFICE OFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIllNGTON, D.C. - 20220 - (202) 622.2960

EMBARGOED UNTIL 2:00 P.M.
Tuesday, May 22, 200t

Contact: Tony Fratto
(202) 622-2960

STATEMENT BY TREASURY SECRETARY PAUL H. O'NEILL
HOUSE COMMITTEE ON FINANCIAL SERVICES

Chairman Oxley, Ranking Member LaFalce, members of this Committee, I welcome this
opportunity to present my views on reform of the International Monetary Fund (IMP), the World
Bank, and the other multilateral development banks (MDBs). I also look forward to hearing
your views, to answering your questions, and to discussing these important issues with you.
I believe that we now have a great opportunity to explore ways to reform the international
financial institutions, and we must make the tough decisions that will bring about these needed
reforms. This is our fiduciary responsibility to the American people who pay the taxes that go to
fund these institutions.
I believe that the international financial institutions have an important role to play in the
world economy. They can deal with critical problems facing the international financial system,
and they can improve the standard of living of people around the world. But I also believe that
they can do a much better job than they have done in the past. I want them to be more often
associated with success than with failure.
I recognize that reform of these institutions has been a concern of many people and that
informative congressional hearings and reports have been completed. Thanks to this work,
useful reforms have been proposed. Some of these have been implemented. But there is still
much to do.

The International Monetary Fund
I believe that the core objectives of the IMF are to (1) promote sound monetary, fiscal,
exchange rate and financial sector policies, (2) carefully monitor economic conditions, and (3)
deal with critical problems in the international financial system as soon as they are detected. By
achieving these objectives, the IMF can provide greater stability to the international financial
system and facilitate the unimpeded exchange of goods, services, and ideas so essential for
economic growth. My experience in government and business tells me that the more the IMP
focuses on these core objectives, the more effective it will be. And I think there can be more
focus.
PO-392
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·u.s.

Government Printing Office 1998 - 619-559

Crisis prevention is essential. Crises strike when there is a failure to detect financial
stresses or imbalances, or when there is a failure to make the necessary decisions to reduce the
stresses and imbalances that have been detected. In reviewing past crises, it seems to me that
some economists and financial analysts saw economic conditions deteriorating and that not
enough was done at the time to keep crises from gathering steam. The primary responsibility for
avoiding crises lies with individual countries' own policy choices. Nonetheless, we in the
international community also need to make better efforts to prevent crises - both through better
monitoring and through better decision making - so that the IMF devotes less taxpayer money to
resolving crises. Further work is needed to identify the most relevant indicators. I hope that the
creation of a new capital markets section at the IMF will in fact improve crisis prevention
capabilities.
A necessary element of crisis prevention is the pursuit of sound policies and the
development of robust financial sectors in each country. The adoption of standards and codes
representing the accepted international best practices in financial systems - such as bank capital
and supervisory standards and accounting principles - is critical.
Transparency is essential. Even the most telling information is of little use if it does not
reach those who rely on it. Ensuring that these assessments capture the most relevant factors and
reach the private sector quickly in an easily digested format is essential both to enable markets to
make informed judgments and to give countries strong incentives to pursue sound policies.
Holding back such information only means that the surprises are bigger when the information
fmally gets out. Big surprises lead to big changes in prices and can trigger crises.
I strongly support the efforts that many in Congress, as well as other critics of the IMP,
have made to increase transparency at the IMF. The IMP is now making transparency a priority,
and we are beginning to see changes. Directly through its own website and other publications,
and indirectly by asking member countries to increase disclosure, the IMF has helped to increase
the information available on countries' economic policies and prospects.
Accountability is essential. Steps need to be taken to increase accountability to IMF
shareholders and to the taxpayers. I hope that the creation of the new independent evaluation
office at the IMF will in fact increase accountability.
It is also essential that the IMF not create expectations that reduce the incentives for
countries and for individuals to take policy actions that are essential to prevent crises. Whenever
possible, policy actions should be taken prior to the start ofIMF programs. Expectations of
continued or additional financial support in the case of poor policy decisions in a country reduce
the incentives to make good economic decisions. Moreover, expectations that countries can and
will use IMF financial support to meet payments on debt instruments held by the private sector
reduce the due diligence that is required to make sound financial decisions. These perverse
incentives associated with expectations of large and long-duration IMF funding are compounded
if funding is provided at interest rates well below market interest rates.

The actions taken in November to change IMF lending policy are a good step toward
refonn. By raising the rate of interest charged for large loans and shortening the expected
period of time that loans will be outstanding, the IMF can create stronger incentives for countries
and private investors to make the right decisions. I hope to see such policies actually used in
practice by the IMF. The new Contingent Credit Line (CCL) will also carry higher interest rates,
and I like its emphasis on prior actions or pre-qualifications, which will reduce the likelihood of
financial crises and contagion. Again I hope to see this new type of loan used in practice.
It is also essential for the IMF to focus its work on areas in which it has expertise and
responsibility. In the past I believe that the IMF got involved in a much too wide set of policies
in borrowing countries. It went well beyond relevant macroeconomic refonns within its
expertise, and this of course increases the likelihood of giving poor advice. The long list of
conditions attached to the IMP loan to Indonesia in the late 1990s is an important example. The
IMP is now reviewing the conditions it attaches to its programs; I support the effort to sharpen
the focus of these conditions. It is essential that the conditions, including prior actions, maintain
the integrity and accountability of the Fund.

The Multilateral Development Banks
Like the IMF, the World Bank and the other multilateral development banks should also
have a clear set of objectives. In my view their number one priority should be to raise the
standard ofliving of people throughout the world. History tells us that the driving force behind
increases in income per capita is rising productivity - the amount that each worker can produce.
If you look at per capita income in different parts of the world, the disparities between
countries are clear. Virtually all of those differences can be explained by differences in
productivity. Poor countries are poor - poverty exists - because productivity is low in these
countries. Ifwe are really going to reduce poverty, there is simply no alternative to increasing
productivity in poor countries. I can tell you from my own experience in business that the
opportunities for increasing productivity are now greater than at any time in history. The
technology and the ideas are there. The challenge is to spread these ideas and to use them.
I believe that the scope of the World Bank has been too diffuse, and this reduces its focus
on the core objective of raising income per capita. In the case of each new loan, each new grant
we need to ask: how is this decision going to raise income per capita, or raise productivity?
Economic research and historical experience tell us that more and better education is an essential
ingredient for higher productivity growth. I would like to see the MDBs place greater emphasis
on education. President Bush has made education a top priority for the U.S. economy. It should
also be a top priority for the world economy.
Productivity can also be increased through more capital and better technology.
Entrepreneurial activity in the private sector is what will make these productivity increases
happen. Open markets, free trade, low tax rates and sensible regulation - the keys to U.S.
growth over the past 20 years - are essential to sparking such entrepreneurial activity and,

therefore, productivity. I also believe that greater priority should be given to strengthening the
rule of law and promoting good governance. Assessments of borrower fiduciary policies should
be central and done prior to any grants or loans. Eliminating corruption should factor more
directly in Bank lending decisions.
In addition to these external changes, internal MDB governance should also ensure
compliance with approved policies and maximize transparency. We must achieve stronger
internal oversight mechanisms to oversee compliance with internal policies and broader
infonnation disclosure practices to enhance accountability.
When we recommend that these institutions become more focussed, we must also provide
guidance on areas that can be scaled back. I am not of the view that each MDB must be a fullservice "supermarket" for the developing world. Each of them could, for instance, focus their
lending and grants on essential development goals. While we will be working to give some
direction on this front in the coming months, cultural heritage projects that have a peripheral
development impact and large infrastructure projects that could easily attract private finance are
some areas that come to mind. We also have questions about MDB involvement in sophisticated
electronic information sharing systems that may duplicate work being undertaken by the private
sector and that do not take into account the more basic information and capacity improvement
needs of these countries.
I also believe that the MDBs should focus their resources more on countries that do not
enjoy access to private finance, recognizing that many other countries' financing needs are more
suitably met through the private markets.
I can also see scope for differentiated loan pricing to achieve better prioritization of
lending to middle income countries and better incentives for these countries to rely on private
markets. In some cases, we should provide more grants. Grants should be tied to performance.
Grants are also more transparent than loans that are not likely to be repaid. If it is a grant we
should call it a grant and not a loan.
I also believe that the multilateral development banks can improve their coordination.
More work is needed to bring greater consistency where more than one institution is operating in
a particular country. The MDBs need to do a better job of sharing ideas and lessons learned
about what works and what does not work.
I will also press for results-based perfonnance indicators. We need to know more about
what we are getting for our money. I see greater scope for prior actions in loans. We should
certainly not increase budget support without evidence that it yields higher development
effectiveness and without a clear assessment of its operational and fiduciary risks.

Conclusion
Reform of the international financial institutions is a key priority for the Bush
Administration. I have given you some of my views, and I look forward to hearing more about
yours. I can promise you that we will dedicate ourselves to these refonn goals.

Because these institutions are international, reforming them means working closely with
the other shareholders. We at Treasury are now in close contact with our colleagues from around
the world to review the work of the IMF and World Bank. I am optimistic that there will be real
reforms.

D EPA R T )\1 E N T

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omCEoF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE. N.W. - WASlDNGTON. D.C. - 20220 - (202) 622.2960

u.s. International Reserve Position OS/22/01
The Treasury Department today released U.S. reserve assets data for the week ending May 18, 2001. As indicated in this
table, U.S. reserve assets totaled $64,559 million as of May 18, 2001, down from $64,868 million as of
May 11, 2001.

(in US millions)

I. Official U.S. Reserve Assets

TOTAL
1. Foreign Currency Reserves

a. Securities
Of which, issuer headquarlered in the U. S.
b. Total deposits with:
b.i. Other central banks and BIS
bji. Banks headquartered in the U.S.
b.ii. Of which, banks located abroad
b.iit; Banks headquartered outside the U.S.
b.iii. Of which, banks located in the U.S.

2. IMFReserve Position

3. Special Drawing Rights (SDRs)
4. Gold Stock
5. Other Reserve Assets

May 181 2001
64.559

May 111 2001
64,868
Euro
5,227

Yen
10,759

TOTAL

Euro

15,986

Yen

TOTAL

5,234

10,657

15,891
0

8,868

4,614

13,482

8,845

4,658

13,503
0
0

0
0

13,708

13.599

10,626

10,541

11,046

11 Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
(SOMA), valued at current market exchange rates. Foreign currency holdings listed as securities reflect marked-to-market values, and
deposits reflect carrying values.
2J The items, "2. IMF Reserve Position" and "3. Special Drawing Rights (SDRs)," are based on data provided by the IMF and are valued in
dollar terms at the official SDRJdollar exchange rate for the reporting date. The lMF data for May 11 are final. The entries in the table above
for May 18 (shown in italics) reflect any necessary adjustments, including revaluation, by the U.S. Treasury to the prior week's IMF data.
31 Gold stock is valued monthly at $42.2221 per fine troy ounce. Values shown are as of April 30, 2001. The March 31,2001 value was
$11,046 million.

PO-393

046

U.S. International Reserve Position (cont'd)

II. Predetermined Short-Term Drains on Foreign Currency Assets
Mav 11, 2001

May 18, 2001

1. Foreign currency loans and securities
2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:

c
c

o
o
o

2.a. Short positions
2.b. Long positions

3. Other

III. Contingent Short-Term Net Drains on Foreign Currency Assets
Mav 11,2001
1. Contingent liabilities in foreign currency

May 18, 2001

1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3,a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U. S.
3,c. With banks and other financial institutions
headquartered outside the U. S .
. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.a. Short positions
4.a.1. Bought puts
4.a.2. Written calls
4.b. Long positions
4.b.1. Bought calls
4.b.2. Written puts

D EPA R T ]\II E N T

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OFFICE OF PUBLIC AFFAIRS '1500 PENNSYLVANIA AVENUE, N.W.' WASHINGTON, D.C.' 20220. (202) 622·2960

~GOED

UNTIL 9:00 A.M.
May 23, 2001

PUBLIC CONTACT: Office of Financing
202-691-3550
MEDIA CONTACT: Office of Public Affairs
202-622-2960

TREASURY ANNOUNCES DEBT BUYBACK OPERATION
On May 24, 2001, the Treasury will buy back up to $750 million par of its
outstanding callable issues with final maturity between February 2010 and
November 2014. Treasury reserves the right to accept less than the announced
amount.
This debt buyback (redemption) operation will be conducted by Treasury's
Fiscal Agent, the Federal Reserve Bank of New York, using its Open Market
operations system. Only institutions that the Federal Reserve Bank of New
York has approved to conduct Open Market transactions may submit offers on
behalf of themselves and their customers. Offers at the highest accepted
price for a particular issue may be accepted on a prorated basis, rounded up
to the next $100,000. As a result of this rounding, the Treasury may buy
back an amount slightly larger than the one announced above.
This debt buyback operation is governed by the ter.ms and conditions set
forth in 31 CFR Part 375 and this announcement.
The debt buyback operation regulations are available on the Bureau of
the Public Debt's website at www.publicdebt.treas.gov.
Details about the operation and each of the eligible issues are given
in the attached highlights.
000

Attachment
PO-394

For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

H~GHL~GHTS

OF TREASURY DEBT BUYBACK OPERATION
May 23, 2001

Par amount to be bought back •• up to $750 million
Operation date •••••••••••••••• May 24, 2001
Operation close time •••••••••• 11:00 a.m. eastern daylight saving time
Settlement date ••••••••••••••• May 29, 2001
Minimum par offer amount ••••• $100,000
Multiples of par ••••••••••••• $100,000
For.mat for offers ••••• Expressed in ter.ms of price per $100 of par with
three decimals. The first two decimals represent
fractional 32 nds of a dollar. The third decimal
represents eighths of a 3200 of a dollar, and must
be" a 0, 2, 4, or 6.
Delivery instructions ••••••••• ABA NUmber 021001208 FRB NYC/CUST
Treasury issues eligible for debt buyback operation (in millions):

Coupon
Rate (%)
11.750
10.000
12.750
13.875
14.000
10.375
12.000
13.250
12.500
11.750

Maturity
Date
02/15/05-10
05/15/05-10
11/15/05-10
05/15/06-11
11/15/06-11
11/15/07-12
08/15/08-13
05/15/09-14
08/15/09-14
11/15/09-14

CUS~P

NUmber

912810 CM
912810 CP
912810 CS
912810 CV
912810 Cy
912810 DB
912810 DF
912810 DJ
912810 DL
912810 DN
Total

8
1
5
8
2
1
2
4
9
5**

Par Amount
Outstanding*
2,365
2,987
4,321
3,730
4,324
10,452
13,459
4,481
4,781
6,006
56,906

Par Amount
Privately
Held*
1,507
1,811
3,061
2,656
3,348
8,533
10,418
3,611
3,875
4,811
43,631

* Par amounts are as of May 22, 2001.
** This is the only callable security eligible for the STR~PS Program.
As of May 21, 2001, the par amount held as STR~PS is $4,006 million.
The difference between the par amount outstanding and the par amount
privately held is the par amount of those issues held by the Federal
Reserve System and Federal Government accounts.

DEPART.\IENT

OfF

THE

TREASURY

NEWS

or PVRLlC A.FFAIRS -lS00 PENNSYLVANIA AVENUE, N.W•• WASHINGTON, D.C ••

OFFICE

IMBARGOED
)lay'

TREASURY

~%L

2:30 P.K.

CON'l'AC'l':

20210. (202) 6'lZ.Z"j)

Office of Pinancing

23, 2001.

~02/691-3SS0

'l'REASmtY 'l'O AUCT%Oli $10,000 mt.L:tOR OF 2-'IZAR NO'1'BS

T.he T:easur,y ~l~ auctiOD $10,000 ~ll~on of 2-year n~es to refund $27,987
million of PQblicly held notes maturing May 31, 2001, and to pay down &bout $17,S87
million.
In a4diticm to the public holdings, I'ecieral Reserve Banks hoid $5,621 m:i.l.lioD
of the maturing DOt.es fo%: ~ei%: CMZI accouut.s, which =all" be z:oefu=Qed by- .:is8uiDg'
~ aaaitio~ amount of ~e DeW security.
~

to $1,000 million in DOncampetitive

bi~

from Foreign and

~ter.gational

lICDetary AU~rity (PIKA) aC::COW1ts DiddiDg throusrh the Feaeral :Rese=r:ve Bmlk of New

York will be included wi UiD the offer.ing amount of the. auc'Cion. These
DODcampetieive ~ids will have a l~t of $2QO ~llion per account aDd will be
accepted in ~ order of smallest t.o largest, up to the aggregate award limit of

$1,000 million.
Trea~Dirsct

of approximately $719

custamsrs requested that we reinvest
~llion ~'Co the 2-year no'Ce.

The auction will be conducted
tiva a:4 DCCCompet.itive awards will
tenders. The allocation percentage
:be row::l.dsd up to ~e next: bUDdredt.h

the~r

maturing holdings

in eha single-pr:ice auc:tio= fo:=at.
All ccapeeibe at the 1:Iii'hest. yield of' accepted competitive .
applied to bids awarded at the highest yield.~ll
of a wbole percentage point., e.g' r 17.13%.

'!he no'Ces ])eing offered today are el'igible fer the S'rlUPS program.
T.hia offering of Trea8~ securit.ies is gOYerDed ~ the 'Cer.ms aDd cocCitions
lee foreh in ehe ~fo~ Offering Circular for 'Che sale and ~ssue of MArketable BCokEzl.t:ry Treasury' B;ills, Notes, and :&oDds (31 en Part 350, as amended).
»etails abcue ehe new

secur~ey

are

g~veD in

the attaChed

offeri~g ~gh1ights.

000

PO-395

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HIGHLIGHTS OF TREASORY OFPER.!!lG 'l'O THE PUBLIC OF
2-YEAR HOTES TO BE rSSOBD HAY 31, 2001

Hay 23, 20

Offering JbDQunt ••••••••••••••••••••••••••••••• $10,000 million
fUblic Offering ••••••••••••••••••••••••••••••• Offerins amouDt les8 the amount
awarded for FXMA accounts
Descript~oa of OfferiDg:
Te:m and ~ype of securi~y ••••••••••••••••••••• 2-year DOtes
Series •••••••••.•.••••.•••••••••.••••••••.•••• Q-2003
:Ill:IDIber ••••••••••••••••••••••••••••••• ~ •• 912827 6Y 3
Auet.ion date •••••••••••••••••••••••••••••••••• May 30. 2001
Issua da~e •••••••••••••••••••••••••••••••••••• May 31, 2001
Dated date .•..•.•.•....••...• ~ ....•.....•.•.. . Kay 31, 2001
Mat.urit.y date .•.•.•.•••••••••••.•••..••••••••• Ka.y 31, 2003

c:os;rp

IAterest rate ••••••••••••••••••••••••••••••••• Deeer.mined·based OA the highest
accepted competitive bid
yield ••••••••••••••••••••••.••••••••••••••••• Dete:miAed a~ auc:ioA
Interest ~t dates ••••••••••••••••••••••• NOvember· 30 and May 31
~ bie amount aDd multiples •••••••••••••• $1,000
Ac:c%'Ued interest payable by iDvestor •••••••••• Nolle
Premium or discount ••••••••••••••••••••••••••• Deeer.mined at. auct10D

BrRIPS %nfor.maeiou:
Kini ml1m amount reQ.Uired ••••••••••.•••••••••••• $1 .. 000
Corpus COSXP DUmber •••••••••••••.••••••.••••• 912820 GE 4
Due date{s) aDd COS%P DUmDer(s)

for additiona1

T~(s)

•••.•.•...••••..•.••.• ·Hoe applicable

.Sul::=issioJ1 of Bids:
Ncmcc;:apetitive ~ids:
Accep~eQ ~J1 full up to $S ~lliOD at the highest accepted yield.
Poreig.c a=d ~te:=AtioDal Monetary Authority (FZMA) ~ids: Honcampetitive bids
sUbmitted through tAe Pederal Reserve BaDks as agen:s for ~~ accOUDts.
Accepeed in order of size frgm smallest to'largest ~th no more ~ $200
million awarded per account. TAe total DQDcompetitive amount· awarded to Federal
Reserve Banks as agents for ~~ accounts will Dot exceed $1,000 ~llioD. A
siDQle ~d that wou14 cause the ~~t to De exceeded ~ll be Partial~ accepted
in cbs amo~c that hrings the aggregate award total to ~h. $1,000 ~llian limit.
However, if there a:-e two or more bids of equal amounts that would cause the
lim!: :0 :be exceeded., each will be prorated to avoid exceecting the l.ilDi t •
Competitive bids:
(1) MIlst be expressed as a. yield with three Qacim&ls, e.g., 7 ~ 123%.
(2) Net logg position for each bidder DUst be reported wbenthe sum of the total
bid amount, at all yields, and the net long positiOA is $2 b~llion or greater.
(3) Ret lOAg position =ast ~e dete:rmined as of one half-bour prior to the
closiDg time for receipt of competitive teDders.

MAx;m~ Recog.cized Bid at a Single yield •••••••...• 35%0£ ·public offering
XAYjm~ Award •••••••••.••••••••••.•.••••••••••.•••• 35% of ~ic offeri~g

ieeei~t

of Tenders:

BoDcompe~itive

tenders:
Prior to ~2:00 DOen eastern daylight saving tiDe On auction day.
Competitive tenders:
Prior ~o 1:00 p.m. eastern daylight saving time OD auctioD day •

.:p"~:Q'I:O

-re;z:ma a

B:!( ClI:IUIL~O

1;'.0

.or »&yment of £ull par amount

:UDCI. &Ce_~

wi~h

Q.~

1F'e4_;r:..~

1'te5e~ B~ ou ~s$Ue ca.~e,

tender. 1'reaSuryDirect customers can use the Pa,y
'»irect feature which authori~es a charge ~o their aceoune of record at their
fiDancia~ ins~itution on issue date.

DEPARTMENT

THE

TREASURY

NEWS

TREASURY

_ _ _ _ _ _ _-..2178

: : . . . _ _ _ _ _ __
Q

OFFlCE OF PUBUC AFFAIRS • 1500 PE.r\NSnXANL;\ AVENl'E, ;-";.W .• WA5iHINGTO', D.c:.. 20220.12021622-2960

Contact: Tara Bradshaw
(202) 622-2960

For Immediate Release
May 23,2001

O'NEILL STATEMENT ON SENATE PASSAGE OF THE
PRESIDENT'S TAX RELIEF BILL
Treasury Secretary Paul O'Neill statement on the Senate passage of the tax bill:
"Today's Senate vote confirms strong bipartisan support for the tax relief
principles the President has embraced: cutting income tax rates, increasing the child
credit, reducing the marriage penalty and eliminating the death tax. I'm glad members in
the Senate decided to put politics aside and allow this bipartisan legislation to move
forward. It's now clear that working Americans are going to receive significant tax relief.
I look forward to working with the conferees to finish this important work quickly, so we
can start sending tax dollars back to the people who sent it in as quickly as possible."

-30-

PO-396

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PUBLIC DEBT NEWS·
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

FOR IMMEDIATE RELEASE
May 23,2001

Contact: Peter Hollenbach
(202) 691-3502

TREASURY TO HONOR WINNERS OF SAVINGS BOND POSTER CONTEST·,
TOP POSTER WILL BE 2002 CAMPAIGN POSTER
Van Zeck, Commissioner of the Public Debt, will present the three national winners in the
10th Annual Savings Bonds Poster Contest with awards during a ceremony at the Capital Children's Museum
in Washington, D.C. on May 24,2001 at 10 a.m. The winning posters were selected from the winners of poster
contests held in each State, the District of Columbia, and Puerto Rico earlier this year.
The three winning posters are the work of a fourth grader from New Rochelle, New York, a fifth- grader from
Rockford, Michigan and the first place winner, a six-grader from Brownsville, Texas. Their posters, and those
ofthe other 49 finalists, will be displayed in lighted dioramas in more than 70 airports around the country this
fall. Also, the posters will be exhibited in Washington D.C., at the Capital Children's Museum and the Bureau
of Engraving and Printing on 14th St, S.W., from June through October.
The first place winner, Vanessa Mendez, a sixth-grader at Senator Eddie A. Lucio Jr. Middle School,
Brownsville, Texas will receive a $5,000 U.S. Savings Bond and her poster will be used to promote the sale of
bonds nationwide in 2002. When asked what she is going to do with her award, Vanessa said, "I plan to save it
for my education."
The second and third place winners, Keith Dufendach, a fifth grader at Crestwood Elementary School,
Rockford, Michigan and Andrew Morejon a fourth-grader who attends Daniel Webster Magnet School, New
Rochelle, New York will receive $2,000 and $1,000 in savings bonds, respectively.
"The poster contest provides children with a vehicle for artistic expression while learning about the value of
saving," said Van Zeck, Commissioner of the Public Debt. "We hope learning about U.S. Savings Bonds will
spark younger Americans' interest in the broader world of saving and investing."
Russ Turner, President and CEO, United Space Alliance, Houston, Texas sponsored this year's contest. Mr.
Turner also chaired the 2000 U.S. Savings Bonds Volunteer Committee. The trip to Washington, D.C., for this
year's winners is also being made possible by the following sponsors which donated their services: the
Renaissance Washington DC Hotel, Planet Hollywood, and the Hard Rock Cafe.
The Bureau of the Public Debt administers the U.S. Savings Bonds program as part of its overall
responsibilities for Treasury's debt finance operations.
000

www.publicdebt.treas.gov

PO-397

DEPARTlVIENT

THE

TREASURY

NEWS
OFF1CE OFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960

Embargoed until 9:30AM
May 24, 2001

Contact Rob Nichols
202-622-2910.

STATEMENT BY TREASURY SECRETARY PAUL H. O'NEILL
SENATE COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS
Mr. Chairman, Senator Kennedy, Members of the Committee, thank you for
inviting me to testify today on the subject of patient safety.
I am pleased to join Secretary Thompson here today. Obviously, his role at HHS
is to lead the Federal government's contribution to address this critical issue. I am
appearing today not so much in my capacity as Treasury Secretary, but as someone who
has seen firsthand what is possible when all of those involved in paying for and
delivering health care in a region come together to seek systematic and far-reaching
improvements in quality. I want to share with you what I learned from this experience
working to reform the local health care delivery system on the ground level out in
Pittsburgh when I was at Alcoa.

The Tip of the Iceberg of Systemic Problems
I believe that through local efforts to systematically improve the way health care
is practiced, we can substantially enhance the value of health and medical care in this
country. Ifwe could capture the potential that exists to do it right the first time, I believe
we can simultaneously increase quality and reduce cost in health and medical care
potentially as much as 30 to 50 percent.
The scope of the problem has been documented well in the last two reports that
have been issued by the Institute of Medicine. In particular, their first report called
attention to the fact that as many as 100,000 people a year are dying as a result of medical
mistakes, and highlighted the level of mistake-making that takes place in the daily
delivery of care - not because doctors and nurses are being sloppy or careless, but
because they are not working within systems designed for quality care and patient safety.
I believe that this is just the tip of an iceberg of the systemic problems that have
accumulated over the years. These problems have been further exacerbated by changes
to tort laws, administered prices, and other regulations that are often driven by the notion
that health care providers are less than honorable people. As a result, doctors often feel
that they are considered the enemy.
PO-39B
_

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The system of malpractice liability makes it very difficult for medical
professionals to tell each other when they've made a mistake - and therefore to learn from
it - because if they do so, they risk losing their right to provide medical care.
I believe we need to look at the things we can do in Washington to create an
environment in which locally led initiatives to improve health care quality can succeed.
And hearings like this one and other efforts to use the "bully pulpit" can help these local
efforts spread from one area to another.
We should remove barriers to quality in the current reimbursement systems. Ideally,
payment systems in government-run health care programs, such as Medicare, should
reward quality and productivity improvements. At a minimum, they should not reward
complications. But I'm also convinced that, no matter how hard we may try, continuing
to focus on well-intentioned but ever more complex modifications to reimbursement
formulas, coupled with more and more complex regulations, will not fundamentally
reorient the system toward creating value and quality health care for the patients. Ifwe're
going to see substantial and lasting improvement, the real work is going to be done on the
ground in places ranging from Deaconess Hospital in Boston to the Intermountain Health
Care System in Salt Lake City, where they're working on these important ideas. Indeed,
a recent study at Intermountain found they had reduced costs in an intensive care unit by
at least 30 percent while increasing care quality as a result of adopting a systems-based
approach. That's why I am so optimistic about even broader approaches to systemic
reform like the one I helped start in Pittsburgh.

The Pittsburgh Regional Healthcare Initiative
Three years ago, I became involved with a community effort called the Pittsburgh
Regional Healthcare Initiative (PRHI). Created in 1997 and supported by local business
and medical communities, as well as more recently by the Department of Health and
Human Services, PRHI has launched a process aimed at radically improving regional
health system performance.
PRHI consists of hundreds of clinicians, 36 hospitals, 4 health plans, the region's
major healthcare purchasers and other key healthcare stakeholders. Health care
purchasers and providers have agreed that faulty systems are responsible for producing
the wrong outcomes at unacceptably high levels, and imposing unnecessary costs. To
address this problem, PRHI has employed quality management principles pioneered at
Toyota and refined at Alcoa.
They have adopted the central goal of achieving "perfect patient care" by
identifying and solving problems at the point of patient care using a systems approach.
PRHI is pursuing this through several strategies. One is to improve safety by eliminating
medication errors and hospital acquired infections. Another is to undertake pilot efforts
to measure and eliminate complications and re-admissions in five major areas of clinical
practice (cardiac procedures, hip knee replacement, repeat c-sections, depression, and
diabetes). These projects are now at various stages of maturity.

Early Findings
Based on the early experience at PRHI, I would urge the Committee to consider
how public policies can support - or at least not impede - efforts like those at PRHI to
improve patient safety and health care quality. PRHI's early findings include the
following points.
Solutions are found in proven strategies for improving complex systems. The
world's leading example of highest quality/lowest cost manufacturing - Toyota - has
demonstrated the power of these principles for years. I adopted them myself at Alcoa.
Properly applied, these tools drive a fundamental reordering and simplification of work
processes, rather than transitory improvements. These ideas have potentially powerful
application in health care - particularly because they let doctors and nurses do something
about the frustrating things that are keeping them away from their patients, and let them
get back to delivering the kind of quality care to people that made them want to enter the
profession. This approach is distinctly different from top-down or "magic bullet"
approaches to quality improvement that have so disillusioned many in health care and
other industries. And when you see what can happen when you let the people in the
hospital pharmacy design and implement the solutions to prevent medication errors
before they occur, you realize the power of this approach.
Focus on the patient. Great organizations are entirely focused on delivering what
their customers need. But, healthcare delivery systems are not yet managed according to
patient need and quality outcome. That's why we need to focus on patient care at the
point of delivery.
Goals should be placed at the theoretical limit of perfonnance - perfect patient
In the case of patient safety problems, the goal should be perfect patient care-zero
adverse incidents resulting from medical errors. Progress comes in increments, but to set
incremental goals - even seemingly ambitious goals (such as reducing medication errors
50%) risks complacency with improvements that may be merely transitory and not
sustainable. Setting zero errors as a goal encourages breakthrough thinking, orients work
cultures towards continuous improvement, and keeps people pushing toward the goal.

Collaboration not coercion. Patient safety is not something that can be "done" by
anyone group or institution to another. Only by a commitment to learning and working
together at the point of patient care delivery is fundamental progress possible. This
involves changes in the environment of medical practice to support and reward systemic
initiatives like PRHI.
It's the people who do the work who make change. Raising the performance of
healthcare systems requires the people "on the ground" who perform care to make and
sustain change. The national debate about financing mechanisms, "patients' rights" and
patient satisfaction obscures the basic imperative: seeing that every patient gets what he
or she needs at the right time, the first time.

The creation of systems capable of producing superior results every time cannot
be ordered from Washington or the hospital CEO's office. It requires an alignment of
incentives, values, goals and skills among workers "on the ground" - from the
receptionist to the physician - which is not commonly taught or supported in health
systems. It includes giving people tools to do it right the first time. For example, one
PHRI hospital is experimenting with a voice recognition prescription system to eliminate
medication errors right at the front end.
Measurement and reporting systems must be in place to facilitate learning. If you
can't measure it, you can't improve it. If you don't measure it, you're not serious about
improving it. Yet, when it comes to patient safety and health care quality, the necessary
data often don't exist. That's why PRHI has started by gathering baseline data on
medication errors, complications, infection rates, and death rates. Only then could PRHI
begin to learn from mistakes and make real changes.

It must be safe to learn from errors. This is a fundamental requirement for
improvement. Punishment, ridicule and legal exposure drive reporting underground so
learning does not occur. Properly constructed quality and safety initiatives should be
protected from liability. They are not now.
The real cost of waste and errors first has to be captured in order to be eliminated.
It's impossible to quantify and correct the waste in the healthcare delivery system until
accounting systems can link measures of resource use to clinical processes and patient
outcomes. Activity-Based Cost (ABC) accounting is an emerging standard among the
highest-performing American industrial producers and has proven its ability to
dramatically improve the performance of complex organizations. By contrast, healthcare
cost accounting today continues to merely aggregate resource flows, to focus primarily
on maximizing overall reimbursement for the hospital, and to link to few if any, measures
of clinical outcomes. The goal PRHI has is to give managers the data they need to direct
resources to improve patient care. PRHI is now working to develop ABC
d~monstrations.

While many of these reforms are still in their infancy, PRHI believes it can
generate a 33% to 50% improvement in the value of health care delivered in
Southwestern Pennsylvania within three years in a working model that should offer
insights to the rest of the country.
Thank you again for inviting me to appear this morning.

NEWS

TREASURY
FOR DOIEDIATE RELEASE
May 24, 2001

PUBLIC CONTACT: Office of Financing
202-691-3550
MEDIA CONTACT:
Office of Public Affairs
202-622-2960

TREASURY DEBT BUYBACK OPERATION RESULTS

Today, Treasury completed a debt buyback (redemption) operation for $750 million
par of its outstanding callable issues. A total of 10 callable issues with final maturity
between February 2010 and November 2014 were eligible for this operation. The settlement date
for this operation will be May 29, 2001. Summary results of this operation are
presented below.
(amounts in millions)

Offers Received (Par Amount) :
Offers Accepted (Par Amount) :
Total Price Paid for Issues
(Less Accrued Interest) :
Number of Issues Eligible:
For Operation:
For Which Offers were Accepted:
Weighted Average Yield to Call
of all Accepted Offers (%):
Weighted Average Maturity to Call
for all AccApted Securities (in years) :

$6,733
750

1,021

10
4

5.043

4.9

Details for each issue accompany this release.

PO-399

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May 24, 200]
TREASURY DEBT BUYBACK OPERATION RESULTS

(amounts in millions, prices in decimals)
Table I

coupon

Maturity

R~ te (%)

Par
Amount
Offered

11. 750
10.000
12.750
13.875
14.000
10.375
12.000
13.250
12.500
11.750

02/15/05-10
05/15/05-10
11/15/05-10
05/15/06-11
11/15/06-11
11/15/07-12
08/15/08-13
05/15/09-14
08/15/09-14
11/15/09-14

110
432
380
235
435
1,098
2,081
447
1,010
505

Weighted
Average
Accepted

Par
Amount
Acce];!ted

Highest
Accepted
~

50
0
240
185
275
0
0
0
0
0

123.062
N/A
130.593
138.437
142.062
N/A
N/A
N/A
N/A
N/A

123.062
N/A
130.556
138.327
142.013
N/A
N/A
N/A
N/A
N/A

P .

Table II

Coupon
Rate (%)

Maturity
Date

CUSIP
Number

Lowest
Accepted
Yield
to Call

11. 750
10.000
12.750
13.875
14.000
10.375
12.000
13.250
12.500
11.750

02/15/05-10
05/15/05-10
11/15/05-10
05/15/06-11
11/15/06-11
11/15/07-12
08/15/08-13
05/15/09-14
08/15/09-14
11/15/09-14

912810CM8
912810CP1
912810CS5
912810CV8
912810CY2
912810DB1
912810DF2
912810DJ4
912810DL9
912810DN5

4.882
N/A
5.012
5.025
5.083
N/A
N/A
N/A
N/A
N/A

Total Par Amount Offered:
Total Par Amount Accepted:

Weighted
Average
Accepted
Yield
to Call

Par Amount
Privately
He1d*

4.882
N/A
5.020
5.046
5.091
N/A
N/A
N/A
N/A
N/A

1,457
1,811
2,821
2,471
3,073
8,533
10,418
3,611
3,875
4,811

6,733
750

Note: Due to rounding, details may not add to totals.
*Amount outstanding after operation. Calculated using amounts reported on announcement.

()}'FICE OF PUBLIC AFFAIRS elSOO PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220 e (202) 622-2960

EMBARGOED UNTIL 2:30 P.M.
May 24, 2001

CONTACT:

Office of Financing
202/691-3550

TREASURY OFFERS 13-WEEK AND 26-WEEK BILLS
The Treasury will auction two series of Treasury bills totaling
approximately $22,000 million to refund $29,519 million of publicly held
bills maturing May 31, 2001, and to pay down about $7,519 million.
In addition to the public holdings, Federal Reserve Banks for their own
accounts hold $8,343 million of the maturing bills, which may be refunded at
the highest discount rate of accepted competitive tenders. Amounts awarded
to these accounts will be in addition to the offering amount.
Up to $1,000 million in noncompetitive bids from Foreign and International Monetary Authority (FIMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of each
auction. These noncompetitive bids will have a limit of $200 million per
account and will be accepted in the order of smallest to largest, up to the
aggregate award limit of $1,000 million.
Treasu~Direct customers have requested that we reinvest their maturing
holdings of approximately $1,000 million into the 13-week bill and $859
million into the 26-week bill.

The allocation percentage applied to bids awarded at the highest discount
rate will be rounded up to the next hundredth of a whole percentage point,
e.g., 17.13%.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable Book-Entry Treasury Bills, Notes, and Bonds (31 CF~ Part 356, as
amended) •
Details about each of the new securities are given in the attached
offering highlights.
000

PO-400

Attachment

_For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERINGS OF BILLS
TO BE ISSUED MAY 31, 2001
May 24, 2001
Offering Amount .•.•........•.•.......•. $12,000 million
$10,000 million
Public Offering ...•.•......•.••...•.••. Offering amount less the amount awarded for FIMA accounts
Description of Offering:
Term and type of security ..••......•.•. 91-day bill
CUSIP nUIllber .......•.•..•..••••......•. 912795 HL 8
Auction date . . . . . . . . . . . . . . . • . . . . . . . . . . . May 29, 2001
Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 31, 2001

Maturity date ..•.•...........•.........
Original issue date ........•...........
Currently outstanding ......•...........
Minimum bid amount and multiples ~ ......

August 30, 2001
August 31, 2000
$25,014 million
$1,000

182-day bill
912795 lIM 6
May 29, 2001
May 31, 2001
November 29, 2001
November 30, 2000
$12,517 million
$1,000

The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International Monetary Authority (FIMA) bids: Noncompetitive bids submitted through the
Federal Reserve Banks as agents for FIMA accounts. Accepted in order of size from smallest to largest
with no more than $200 million awarded per account. The total noncompetitive amount awarded to Federal
Reserve Banks as agents for FIMA accounts will not exceed $1,000 million. A single bid that would
cause the limit to be exceeded will be partially accepted in the amount that brings the aggregate award
total to the $1,000 million limit. However, if there are two or more bids of equal amounts that would
cause the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g., 7.100%,
7.105%.
(2) Net long position for each bidder must be reported when the sum of the total bid amount, at all
discount rates, and the net long position is $1 billion or greater.
(3) Net long position must be determined as of one half-hour prior to the closing time for receipt of
competitive tenders.
Maximum Recognized Bid at a Single Rate .••• 35% of public offering
Maximum Award .•.••.•..•.....•.•..•..•.•.... 35% of public offering
Receipt of Tenders:
Noncompetitive tenders ..• Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders ...... Prior to 1:00' p.m. eastern daylight saving time on auction day
Pa~ent Terms:
By charge to a funds account at a Federal Reserve Bank on issue date, or payment of full
par amount with tender. TreasuryDirect customers can use the Pay Direct feature which authorizes a charge
to their account of record at their financial institution on issue date.

DEPARTMENT

THE

TREASURY

TREASURY~.J\N

E W S

1789

Ol<"FICE OF PUBLIC AFFAIRS -BOO PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C.- 20220 _ (202) 622-2960

EMBARGOED UNTIL 2:30 P.M.
MaY 24, 2001

Contact:

Office of Financing
202/691-3550

TREASURY TO AUCTION CASH MANAGEMENT BILLS
The Treasury will auction approximately $20,000 million of 14-day and
$35,000 million of 14-day Treasury cash management bills. The noncompetitive
and competitive closing time will be 11:30 a.m. eastern daylight saving time
for both auctions.
Tenders will not be accepted for bills to be maintained on the bookentry records of the Department of the Treasury (Treasu~Direct).
Up to $1,000 million in noncompetitive bids from Foreign and International Monetary Authority (FIMA) accounts bidding through the Federal
Reserve Bank of New York will be included within the offering amount of
each auction. These noncompetitive bids will have a limit of $200 million
per account and will be accepted in the order of smallest to largest, up
to the aggregate award limit of $1,000 million.

The auctions being announced today will be conducted in the single-price
auction format. All competitive and noncompetitive awards will be at the
highest discount rate of accepted competitive tenders. The allocation
percentage applied to bids at the highest discount rate will be rounded up to
the next hundredth of a whole percentage point, e.g., 17.13%.
~:

Competitive bids in cash management bill auctions must be
expressed as a discount rate with two decimals, e.g., 7.10%.
This offering of Treasury securities is governed by the terms and conditions set forth in the Uniform Offering Circular for the Sale and Issue of
Marketable Book-Entry Treasury Bills, Notes, and Bonds (31 CFR Part 356, as
amended) •
Details about the new securities are given in the attached offering
highlights.
000

PO-40 1
Attachment

For press releases, speeches, public schedules and official biographies, call our 24·hour fax line at (202) 622-2040

HIGHLIGHTS OF TREASURY OFFERINGS OF CASH MANAGEMENT BILLS

May 24, 2001
Offering Amount ••.••••••..••••• $20,000 million
$35,000 million
fublic Offering ••••••••••.•••• Offering amount less the amount awarded for FlMA accounts
Description of Offering:
'rerm and type of security •••••• 14-day bill
14-day bill
CUSIP number ••••••••••••••••••• 912795 GL 9
912795 KJ 9
~ction date ••••.•••••••••••••• May 30, 2001
May 31, 2001
Receipt of Tenders (eastern daylight saving time):
Noncompetitive tenders ••••••• Prior to 11:30 a.m. on auction day
Prior to 11:30 a.m. on auction day
Competitive tenders •••.••.••• Prior to 11:30 a.m. on auction day
Prior to 11:30 a.m. on auction day
:Issue date . . . . . . . . . . . . . . . . . . . . . May 31, 2001
June 1, 2001
Maturity date ••••••••••.••••.•• June 14, 2001
June 15, 2001
Original issue date •••••••••••• December 14, 2000
June 1, 2001
Currently outstanding •••••••••• $29,677 million
Minimum bid amount
and multiples ••••••.••••••••• $1,000
$1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Foreign and International Monetary Authority (FlMA) bids: Noncompetitive bids submitted through the Federal
Reserve Banks as agents for FlMA accounts. Accepted in order of size from smallest to largest with no
more than $200 million awarded per account. The total noncompetitive amount awarded to Federal Reserve
Banks as agents for FlMA accounts will not exceed $1,000 million. A single bid that would cause the
limit to be exceeded will be partially accepted in the amount that brings the aggregate award total to
the $1,000 million limit. However, if there are two or more bids of equal amounts that would cause the
limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids •••••••• (1) Must be expressed as a discount rate with two decimals, e.g., 7.10%.
(2) . Net long position for each bidder must be reported when the sum of
the total bid amount, at all discount rates, and the net long
position is $1 billion or greater.
(3) Net long position must be determined as of one half-hour prior to the
closing time for receipt of competitive tenders.
Maximum Recognized Bid
at a Single Rate ••••.••• 35% of public offering
Maximum Award •..••••.•••.• 35% of public offering
Payment Terms ••••••••.•••. By charge to a funds account at a Federal Reserve Bank on issue date, or
payment of full Dar amount with tAnnA~

D EPA R T l\1 E N T

0 F

THE

T REA SUR Y

NEWS
omCEOFPUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE. N.W. - WASlDNGTON. D.C. - 20220 - (202) 622·2960

u.s. International Reserve Position

5/29/01

The Treasury Department today released U.S. reserve assets dab. for the week ending May 25,2001. As indicated in this
table, U.S. reserve J.ssets totaled $64-,920 million J.S oEMay 25, 2001, down from $64,971 million J.S of

May 18,2001.

(in US millions)

TOTAL

1. Foreign Currency Reserves
a. Securities

Euro

Yen

3. Special Drawing Rights (SDRs)
4.. Gold Stock 3

Yen

TOTAL

10,657

15,891
0

5,115

10,915

16,029
0

8.868

4,614

13,482
0
0

8,677

4,725

13,402
0
0

b. Total deposits with:

2. lMFReserve ~osition

Euro

TOTAL

5,234

Ofwhich, issuer headquartered in the u.:::;.

b.i. Other central banks and BIS
b.iLBanks headquartered in the U.S.
b.ii. Of which, banks located abroad
b.iI/; Banks headquartered outside the U.S.
b.iji. Of which, banks located in the U.S.

May: 25 1 2001
64,920

May: 18 l 2001
64,971

I.. Official U.S. Reserve Assets

0
0

14,011

13.948

10,541

10,495

11,046

5. Other Reserve Assets

1/ Includes holdings of the Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve's System Open Market Account
(SOMA), valued at current market exchange rates, Foreign currency holdings listed as securities reflect marked-to-market values, and
deposits reflect carrying values.

21 The items, "2. IMF Reserve Position" and'3. Special DraWing Rights (SDRs)," are based on data provided by the IMF and are valued In
dollar terms at the offiCial SDRJdoliar exchange rate for the reporting date. The IMF data for May 18 are final. The entnes in the table above
for May 25 (shown in Italics) reflect any necessary adjustments, Including revaluation, by the U.S. Treasury to the prior week's IMF data.
3/ Gold stock IS valued monthly at $42.2221 per fine troy ounce Values shown are as of April 30,2001
$11,046 million.

PO-402

The March 31,2001 value was

u.s. International Reserve Position (cont'd)
II. Predetermined Short-Term Drains on Foreign Currency Assets
May 18, 2001

1. Foreign currency loans and securities

May 25,2001

o
o

o
o
o

2. Aggregate short and long positions in forwards and
futures in foreign currencies vis-a-vis the U.S. dollar:
2.8. Short positions
2.b. Long positions

3. Other

III. Contingent Short-Term Net Drains on Foreign Currency Assets
May 18, 2001

1. Contingent liabilities in foreign currency
1.a. Collateral guarantees on debt due within 1 year
1.b. Other contingent liabilities
2. Foreign currency securities with embedded options
3. Undrawn, unconditional credit lines
3.a. With other central banks
3.b. With banks and other financial institutions
headquartered in the U. S.
3.e. With banks and other financial institutions
headquartered outside the U. S.
4. Aggregate short and long positions of options in foreign
currencies vis-a-vis the U.S. dollar
4.8. Short positions
4.a.1, Bought puts
4.a.2. Written calls
4.b. Long positions
4.b.1. Bought calls
4.b.2. Written puts

May 25,2001

o
o

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONT1.,.CT:

FOR IMMEDIATE RELEASE

Office of Financing
202-691-3550

May 29, 2001

RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
91-Day Bill
May 31, 2001
August 30, 2001
912795HL8

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.605%

Investment Rate 1/:

3.688%

Price:

99.089

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 11.75%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Accepted

Tendered

Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

22,112,665
1,325,828
170,600

12,000,093 2/

23,609,093

SUBTOTAL

TOTAL

4,494,765

Federal Reserve
$

28,103,858

10,503,665
1,325,828
170,600

16,494,858

Median rate
3.590%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.545%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-cover Ratio

23,609,093 / 12,000,093

1.97

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $1,084,348,000

http://www.publicdebt.treas.gov
PO-403

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
CONTACT:

FOR IMMEDIATE RELEASE
May 29, 2001

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
182-Day Bill
May 31, 2001
November 29, 2001
912795HM6

Term:
Issue Date:
Maturity Date:
CUSIP Number:
3.550%

High Rate:

Investment Rate 1/:

3.666%

Price:

98.205

All noncompetitive and successful competitive bidders were awarded
securities at the high rate.
Tenders at the high discount rate were
allotted 66.55%.
All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type
Competitive
Noncompetitive
FIMA (noncompetitive)

21,595,472
1,187,352
256,500

3,848,195

Federal Reserve

26,887,519

8,556,587
1,187,352
256,500
10,000,439 2/

23,039,324

SUBTOTAL

TOTAL

Accepted

Tendered

13,848,634

Median rate
3.530%: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.500%:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
Bid-to-cover Ratio

= 23,039,324 / 10,000,439 = 2.30

1/ Equivalent coupon-issue yield.
2/ Awards to TREASURY DIRECT = $916,411,000

PO-404

http://www .publicdebt. treas.gov

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
May 30, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 14-DAY BILLS
14-Day Bill
May 31, 2001
June 14, 2001
912795GL9

Term:
Issue Date:
Maturity Date:
CUSIP Number:
High Rate:

3.95 %

Investment Rate 1/:

4.02 %

Price:

99.846

All noncompetitive and successful competitive bidders were awarded
securities at the high rate. Tenders at the high discount rate were
allotted 64.03%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Tender Type

Accepted

Tendered

Competitive
Noncompetitive

59,815,000

20,000,740

TOTAL

59,815,000

20,000,740

Median rate
3.94 %: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.90 %:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
BID-TO-COVER RATIO = 59,815,000 / 20,000,740 = 2.99
NO FIMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
1/ Equivalent coupon-issue yield.

http://www.publicdebt.treas.gov

PO-406

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
May 30, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 2-YEAR NOTES
Interest Rate:
Series:
CUSIP No:

4 1/4%Q-2003
9128276Y3

High Yield:

Issue Date:
Dated Date:
Maturity Date:

4.327%

Price:

May 31, 2001
May 31, 2001
May 31, 2003

99.854

All noncompetitive and successful competitive bidders were awarded
securities at the high yield.
Tenders at the high yield were
allotted 45.57%-. All tenders at lower yields were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Accepted

Tendered

Tender Type
Competitive
Noncompetitive

24,745,055
1,137,034

10,000,009 1/

25,882,089

SUBTOTAL

3,333,333

Federal Reserve
TOTAL

29,215,422

8,862,975
1,137,034

13,333,342

Median yield
4.305%-:
50%- of the amount of accepted competitive tenders
was tendered at or below that rate.
Low yield
4.250%-:
5%- of the amount
of accepted competitive tenders was tendered at or below that rate.
BID-TO-COVER RATIO

25,882,089 / 10,000,009

2.59

NO FlMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
THE STRIPS MINIMUM IS $1,000.

1/ Awards to TREASURY DIRECT = $866,851,000

htip://www.publicdebt.treas.gov
PO-407

D EPA R T ~i E N T

0 F

TREASURY

T H 1£

T REA SUR Y

NEWS

OffICE OF P01U..IC AFrAIRS • gOG PENNSYLVANIA AVENUE. N.W•• WASHINGTON. D.C.- ZOl20. (202) '2l-2"O

CONTACT:

SIt1BAllGOED tnnn 2 ~ 3 0 P.14.
MaY 31, 2001

Office of

Pi~cing

202/691-3550

will auction two series of Treasury bills totaling
approxtma~ely $23,000 mi11ion to refund $20,029 millian of publicly held
bille maturiDg JUDe 7, 2001, and to raise about $2,971 million of new cash.

T.be

~reasury

IJ). a4diticm to the public hOld.ings, Pederal Reserve :Banks for ~ir cwn
aCCCUl1ts hole! $10,778 mi11ion of the maturing bills, which DAY be ref'''=ed at

the highest discount rata of accepted competitive tenders. Amounts awarc1e4
to ~se aC:COUDts will ])a in addition to tl1.e offering amQ'Wlt.
lJ'p to $1,000 m.i11ion in nonccmpetitive bids frcm Fcrugn and ~te:r
naticma.J. I!!toDetaxy Autbcrity (J':tHA) ac:c:cnmts ):)i&Ung tl:I:'ough the Pe4az:o&l
baazove a~ of Hew Yoz-k will Q. inclu4ed with.i:D. the offe:-1= CIOUZLC of each
auction. Dese DCmCCIDP8titive bias will have a limit o£ $200 milliOll pe:
'accouut aDd will :be accept:.ad in the order· of smallest to l.a.rSJest, up ~o t.he
aggregate award 1~~ of $1 1 000 million.

2'reasur,yD.ireCf: customers have

hcldiDga of approximately $988

requested that

~llian

we re.invest. their maturi%lg

into the 13-week

~~11

aAd $1,065

a11licn into Che 2Ei-week bill..
~

al.location perc:entage a.pplied to bias awa.rc1ea. at: the l:Ligl:&.eat CliscCAlllt

rate will be rouDded up
e.g., 17.13%.

the next h11Z1Qred.tb of a whole perc:entaga point,

securities is governed by the. teQlS and conditions set. forth in t.he azufo:m Offering CircW.&r for the Sue and :tSBue of
Marketable Book-EDtr,y ~sur,y Bil.15, Notes, aDd BODgs (31 ~ ~art 350, as
am eude4) •
"l'lU1S o£~~ 0% ~ea&UrY

Details about each of the nsw seeurities are given in the attached
Offer~ng b:i.g~ights.

PO-408

.!OI' press T~I~l/.ses. speec1us~ public schedules and officilll biographies, caU OUT 24-hour ita line III (202) 622-2040

H7GHLXGBTS OF TREASURY OFFBRXNGS OF BXLLS

TO DB

XBS~&D JONB

7, 2001
Ictq-

31 , 2001

$10,500 million
•••••••••••••••••••••••• $12,500 million
Public Offe%lng ••••••••••••••••••••••• ~ Offering amount 1 ••• the amount awa~ded for FIMA accounts

Offer~~ ~ount

»esaription of OfferinRI
~e~ and type of .ecurity •••••••••••••• 91-4ay bill
CUBIP nwnber ••••••••••••••••••••••••.•• 912195 lIN 4
Auction dat •••••••••••••••••••••••••••• June 4, 2001
Issue data •••••••••••••••••••••••••••• , June ", 2001
H&turitr date •••••••••••••••••••••••••• September 6,3001
Original issue date •••••••••••••••••••• March 8, 2001

182-4ay bill
912795 GU 9
June 4, 2001
June 7, 2001
Dacamber 6, 2001
June 7, 2001

Curxently outstanding ••••••••••••••••••• 15,3~8 million
Minimum bid amount ana multiples ••••••• $01 ,000

$1,000

The following rules apply to all securities mentioned above.
Submisslon of Bids;
Noncampetltive bids: Accepted in full up to $1 million at the highest discount rate of accepted
competitive bids.
Po reign and Xnternational Monetary Authority (FENA) bidsl Noncompetitive bids 8ubmitte4 through the
'ederal Reserve Banks as agents for F~MA accounts. Accepted in order of size fram smal1ast to largest
with no .ore than $200 million awarded per account. Tha total noncampetitive amount awarded to Federal
Reserve ~nks as agents for FXMA accounts will not exceed $1,000 million. A single bid that wou1d
cause the limit to be exceeded will be partially accept~a in the amount that brings the agg~.gat. award
total to the $1,000 million l~it. However, if there are two or more bids of equal amounts that would
cause the limit to be exoeeded, eAch will be prorated to avoid exceeding the limit.
competitive bidst
(1) MUst be expressed as a discount rate with three decimal. in increments of .005%. e.g., 7.100%,
1 .. 105%.
(2) Net long position tor each bidder must be reported when the sum of the"total bid amount, at all
discount xates, and the net long position 1s $1 billion or greater.
(3) Net l.ong positiOl'l muat be detOermined as of one half-hour prior to the closing time foX' receipt of
competitive tenders.
MaHi1llUll\ Recognize4 oBid at a Binq1e Rate •••• 35% of pub1ic offering
~K1mumAward •••••••••••••••••••••••••••••• 35% of publiC offering
Receipt of 'rendera.
Noncompetitive tenders ••• Prior to 12aOO noon eastern 4aylight saving ~ime on auction d~
C~,titive t.nders •••••• prior to laOO p.m. eastern daylight saving time on auotion day
Payment Terms 10 By charge to a fUn49 .ccount at a Fede1;al oaeoserve Bank on issue date, or payment of full
o
paor amount with t:en4er.
2'reasur,yDirect custCirtlara can USCiJ \:be PaY' Qirect fe~ture which authorizes a charge
to their account of record At their fipaneia1 institution 00 issue date.
0

PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239

TREASURY SECURITY AUCTION RESULTS
BUREAU OF THE PUBLIC DEBT - WASHINGTON DC
FOR IMMEDIATE RELEASE
May 31, 2001

CONTACT:

Office of Financing
202-691-3550

RESULTS OF TREASURY'S AUCTION OF 14-DAY BILLS
Term:
Issue Date:
Maturity Date:
CUSIP Number:

14-Day Bill
June 01, 2001
June 15, 2001
912795KJ9
3.97 %

High Rate:

Investment Rate 1/:

4.02 %

Price:

99.846

All noncompetitive and successful competitive bidders were awarded
securities at the high rate. Tenders at the high discount rate were
allotted 85.00%. All tenders at lower rates were accepted in full.
AMOUNTS TENDERED AND ACCEPTED (in thousands)
Accepted

Tendered

Tender Type
Competitive
Noncompetitive

68,950,000

35,000,000

TOTAL

68,950,000

35,000,000

Median rate
3.95 %: 50% of the amount of accepted competitive tenders
was tendered at or below that rate.
Low rate
3.90 %:
5% of the amount
of accepted competitive tenders was tendered at or below that rate.
BID-TO-COVER RATIO = 68,950,000 / 35,000,000 = 1.97
NO FIMA NONCOMPETITIVE BIDS WERE TENDERED IN TODAY'S AUCTION.
1/ Equivalent coupon-issue yield.

http://www .publicdebt.treas.gov

PO-409

Full text of Press Releases of the United States Department of the Treasury : Volume 386

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