a. Repeal tax-exempt status of credit unions b. Tax treatment of recoveries of bad debts of a. Intercorporate dividends received deduction ... b. Modify computation of earnings and profits for intercorporate dividends and basis ad- justments (Woods Investment Company) c. Limit consolidated return pass-through g. Limit sales of losses using preferred stock.... h. Limitations on net operating loss carryfor- Page d. Partnership-level income computation a. Determine recovery period of property by ref- INTRODUCTION This pamphlet,1 prepared by the staff of the Joint Committee on Taxation in conjunction with the staff of the House Committee on Ways and Means, provides a brief description of various possible options to increase revenues. The pamphlet was prepared at the request of Committee on Ways and Means Chairman Rostenkowski for the use of the Committee on Ways and Means in its consideration of revenue proposals in connection with the fiscal year 1988 Budget Resolution. Committee hearings have been scheduled for July 7, 8, and 9, 1987, on options for achieving the revenue reconciliation targets under the fiscal year 1988 Budget Resolution. These hearings will not include further testimony on either the particular Administration fiscal year 1988 budget proposals or any other proposals on which the Committee (or its subcommittees) have already held hearings. The first part of the pamphlet describes the revenue proposals contained in the President's Fiscal Year 1988 Budget (submitted to Congress on January 5, 1987). The second part of the pamphlet describes certain other possible revenue options. For each item, there is a summary description of present law, the President's budget proposal (where applicable), possible proposals, arguments for and against the proposals, and estimated revenue effects (if available by the publication date). The third part provides a table of the estimated revenue effects of the proposals included in parts one and two (if available). The revenue options in this pamphlet are not proposals or recommendations of the staff of the Joint Committee on Taxation or of the staff of the Committee on Ways and Means, but rather options that the Committee on Ways and Means may wish to consider in connection with legislation relating to revenue reconciliation targets under the fiscal year 1988 Budget Resolution. The possible proposals described in the pamphlet include those submitted by Members of the Committee at the request of Chairman Rostenkowski. 'This pamphlet may be cited as follows: Joint Committee on Taxation, Description of Possible Options to Increase Revenues Prepared for the Committee on Ways and Means (JCS-17-87), June 25, 1987. |