The Congressional Budget Office has issued a periodic report on revenue raising options.
As usual, eliminating private activity bonds, including nonprofit tax-exempt bonds, is listed, raising $30 billion over ten years (see below). Please consider this in the context that incoming Ways and Means Chairman Paul Ryan has made it clear that tax reform is on the table in the new Congress. Mr. Ryan’s own tax legislation would eliminate tax-exempt bonds.
Our work is cut out for us next year. We remain vigilant this year.
In other news, two members, Kind of Wisconsin and Luetkemeyer of Missouri, have co-sponsored our bank deductibility bill, HR 5199. Thanks to our Wisconsin and Missouri authorities.
Option 57
Eliminate the Tax Exemption for New Qualified Private Activity Bonds
Source: Staff of the Joint Committee on Taxation.
Note: This option would take effect in January 2015. Estimates are relative to CBO’s April 2014 baseline projections.
The U.S. tax code permits state and local governments to finance certain projects by issuing bonds whose interest payments are generally exempt from federal income taxes. For the most part, proceeds from tax-exempt bonds finance public projects, such as the construction of schools and highways. In some cases, however, state and local governments issue tax-exempt bonds—which are known as qualified private activity bonds—to fund private projects that provide at least some public benefits. Eligible projects include the construction or repair of infrastructure and certain activities, such as building schools and hospitals, undertaken by nonprofit organizations. This option would eliminate the tax exemption for new qualified private activity bonds.
(Billions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2015-2019
2015-2024
Change in Revenues 0.1 0.5 1.0 1.6 2.3 3.2 4.1 5.0 5.9 6.5 5.5 30.2
Please contact me with any questions or comments.
As usual, eliminating private activity bonds, including nonprofit tax-exempt bonds, is listed, raising $30 billion over ten years (see below). Please consider this in the context that incoming Ways and Means Chairman Paul Ryan has made it clear that tax reform is on the table in the new Congress. Mr. Ryan’s own tax legislation would eliminate tax-exempt bonds.
Our work is cut out for us next year. We remain vigilant this year.
In other news, two members, Kind of Wisconsin and Luetkemeyer of Missouri, have co-sponsored our bank deductibility bill, HR 5199. Thanks to our Wisconsin and Missouri authorities.
Option 57
Eliminate the Tax Exemption for New Qualified Private Activity Bonds
Source: Staff of the Joint Committee on Taxation.
Note: This option would take effect in January 2015. Estimates are relative to CBO’s April 2014 baseline projections.
The U.S. tax code permits state and local governments to finance certain projects by issuing bonds whose interest payments are generally exempt from federal income taxes. For the most part, proceeds from tax-exempt bonds finance public projects, such as the construction of schools and highways. In some cases, however, state and local governments issue tax-exempt bonds—which are known as qualified private activity bonds—to fund private projects that provide at least some public benefits. Eligible projects include the construction or repair of infrastructure and certain activities, such as building schools and hospitals, undertaken by nonprofit organizations. This option would eliminate the tax exemption for new qualified private activity bonds.
(Billions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2015-2019
2015-2024
Change in Revenues 0.1 0.5 1.0 1.6 2.3 3.2 4.1 5.0 5.9 6.5 5.5 30.2
Please contact me with any questions or comments.
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