WASHINGTON - A House Ways and Means subcommittee is scheduled to hold a hearing next Tuesday on nearly two dozen proposals to ease tax law curbs on municipal bonds, moving a step closer to drafting a second tax bill later this year.
The hearing by the Subcommittee on Select Revenue Measures is the latest in a series on more than 100 tax-related items proposed by members of the Ways and Means committee.
Committee Chairman Dan Rostenkowski, D-Ill., had asked the panel to compile a list of items and hold hearings on them, in preparation for the possible drafting of a bill containing many of the provisions.
Rostenkowski promised committee members that he would try to draft a second tax bill after he persuaded them not to add extraneous amendments to President Clinton's budget and tax package, which the committee approved May 13 and the full House passed May 27.
The bond proposals to be discussed at Tuesday's hearing include four so-called rifle shots, which would benefit specific tax-exempt bond projects in California, Connecticut, Tennessee, and Wisconsin.
The list also includes more general proposals the municipal bond community has advocated for years. One would increase the supply of bank-eligible bonds by easing restrictions on bank deductibility. Another would eliminate the $150 million limit on the amount of bonds that individual 501(c)(3) organizations other than hospitals may have outstanding at one time.
