WASHINGTON -- Nearly a dozen proposals for easing tax-exempt bond curbs were included in long-awaited simplification legislation that top tax leaders introduced late Wednesday -- including one unexpected provision that would increase the small-issuer exemption from the arbitrage rebate requirement.

In another unexpected twist, the bond provisions were divided between two bills. Several minor ones are in legislation offered jointly by House Ways and Means Committee Chairman Dan Rostenkowski, D-Ill., and Senate Finance Committee Chairman Lloyd Bentsen, D-Tex., but the major provisions ended up in a separate measure sponsored only by Mr. Rostenkowski.

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