FROM THE OFFICE OF PUBLIC AFFAIRS

Mr. Chairman, Senator Moynihan, Members of the Senate Finance Committee:

I am deeply honored to appear before this Committee as the President's nominee to serve as Assistant Secretary of the Treasury for Tax Policy. I am grateful to President Clinton and Secretary Summers for the opportunity to serve my country in this capacity, and to Chairman Roth for holding this hearing. I have here with me today my wife, Alisa, my three children, Nick, Max and Lita, my father, Harold Talisman, and my brother, Rick Talisman.

This Committee has served as a fixed point that I have returned to throughout my career in government, so it is a special privilege to stand before you today. Over the years, I have learned a great deal from working with the Committee and its staff, first as Legislative Counsel to the Joint Committee on Taxation, second as Minority Chief Tax Counsel and finally in my tenure at Treasury. To borrow a favorite expression of former Secretary Rubin, the Members and staff of this Committee have always shared a "great seriousness of purpose," and it is rewarding to participate in its important work.

I want to express my special gratitude to Senator Moynihan. Without the opportunity he offered me to serve the Committee and the lessons that he taught me, I do not believe I would be before the Committee today.

There is a final group I would like to thank, the staff of the Office of Tax Policy, with whom I have worked for the last three years. The office has important responsibilities - helping to develop and analyze tax policies and programs, providing official estimates for budget, fiscal policy and cash management decisions, developing regulatory guidance with the IRS, and negotiating tax treaties and representing the United States in other international tax policy matters. The staff carries out these responsibilities with exceptional commitment to public service and I am proud to be associated with them.

Partly because of some tough decisions made by Members of this Committee, the Nation now faces the enviable challenge of making tax policy in a time of surplus. I believe that we all share the common goal of wanting our tax system to work as fairly and simply as possible, while ensuring our continued economic growth. If confirmed, I look forward to working with this Committee as we try to make the most of our historic opportunities.

It is a great privilege to be here today and I look forward to answering your questions.