Treatment of state-local taxes and tax-exempt bonds under tax reform proposals

Zimmerman, Dennis (Author)

1985

Library of Congress. Congressional Research Service

This report compares the potential economic effects of several tax reform and deficit reduction proposals on the State-local sector, through their treatment of deductibility of State-local taxes from Federal taxable income and the exemption of interest on State-local bonds. The proposals considered are the Treasury, Kemp-Kasten, Bradley-Gephardt, DeConcini, and Quayle tax reform plans, and the floor and ceiling deductibility proposals for deficit reduction. Among the more important conclusions are that these proposals would differ in their potential effects on the State-local sector's own tax revenues and the distribution of the sector's revenue losses across States. Also, the effect on the State-local bond market from the Treasury, Bradley-Gephardt, and Kemp-Kasten proposals would differ from the effect of the DeConcini and Quayle proposals.

Dennis Zimmerman, Specialist in Public Finance, Economics Division

CRS 85-503 E

"January 18, 1985."

SuDoc# 14. 18/3

eng

1985-01-01T00:00:00Z

36 pages

book

text