Agenda - Council - 12/20/1983 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I During the last days of the First Session ot the 98th Congress, the Full House rejected the rule under which the 7ax Reform Act of ]983 was to be considered. Reiection of the rule resulted in the bill not being considered on its merits, but the negative vote is said to be due mostly to objections to the cap. The. bill will probably be resurrected early next year, but some other IDB features may be considered. The full impact of the House's failure to consider the 1983 Tax Act is currently unknown. Since Mortgage Revenue Bonds expire on December 31, 1983, no MRB's can be issued after the end of the year until after new legislation is passed. More questionable, however, is the fate of most other' tax-exempt bonds issued next year in view of the January 1, 1984 effective date of most of the bill's provisions. While Congress will probably change the effective dates in the bill, there is no guarantee it will do so. Thc Senate Finance Committee is also considering restrictions on the use of private purpose IDB's as part of its deficit reduction package. This proposal, however, which has as its centerpiece depreciation restrictions as opposed to a volume cap, was not voted on or officially approved by the Finance Committee before the end of the Session. I hope that this information will be of use to you. Congress will be going back into Session on January 23, 1984, and will probably make consideration of the Tax Reform Act of 1983 a priority issue. As further developments occur, I will keep you informed. If you have any questions on the IDB provisions, or any other issue before Congress, please let me know. Yours very truly, Bill Frenzel Member of Congress BF:dbr