WASHINGTON -- Citing revenue constraints, Rep. Dan Rostenkowski has dropped two major tax-exempt bond provisions from simplification legislation that the House Ways and Means Committee may vote on next week.

The Illinois Democrat, who chairs the Ways and Means panel, eliminated a provision that would increase to $10 million from $5 million the exemption from the arbitrage rebate requirement. Also gone from the bill is a provision repealing the requirement that no more than 5% of the proceeds of an issue go toward uses that are "disproportionate and unrelated" to the purpose of the issue.

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