Statement of Administration Policy: Miscellaneous Tax Measures

(House Floor)

This Statement addresses nine tax measures to be considered by the House on July 27th. If any of these bills are presented to the President without acceptable pay-as-you-go offsets (either in the bill or from available balances of acceptable pay-as-you-go offsets), his senior advisors will recommend a veto.

H.R. 5636 - Charitable Remainder Trusts (Gibbons (D) Florida)

The Administration has no objection to enactment of this bill.

H.R. 5636 has a negligible revenue effect.

H.R. 5638 - Principal Residence Loss (Archer (R) Texas)

The Administration supports enactment of H.R. 5638 if it is modified to satisfy the pay-as-you-go requirements of the Omnibus Budget Reconciliation Act (OBRA) of 1990.

Estimates For Pay-As-You-Go
($ in millions)

H.R. 1168 - Flight Training Deductibility (Sundquist (R) Tennessee)

The Administration opposes this bill because it provides retroactive relief to a limited number of taxpayers with respect to matters resolved in the early 1980's.

H.R. 1168 has a negligible revenue effect.

H.R. 5637 - Rehabilitation Credit Modification (Pickle (D) Texas)

The Administration has no objection to enactment of H.R. 5637.

Estimates For Pay-As-You-Go
($ in millions)

H.R. 5639 - United Nations Bonds (Rangel (D) New York)

The Administration has no objection to enactment of H.R. 5639.

H.R. 5639 has a negligible revenue effect.

H.R. 5640 - Disaster Relief Simplification (Stark (D) California)

The Administration has no objection to enactment of H.R. 5640.

H.R. 5640 has a negligible revenue effect.

H.R. 5645 - Sponsorship Payments Exclusion (Jenkins (D) Georgia)

The Administration opposes this bill because it does not meet the pay-as-you-go requirement of OBRA and because unrelated business tax (UBIT) issues should be resolved administratively by the IRS.

Estimates For Pay-As-You-Go
($ in millions)

H.R. 5651 - CIA Pension Benefits (Kennelly (D) Connecticut)

The Administration opposes retroactive extension of benefits to former spouses divorced prior to the inception of the former spouse benefit law. The bill is also not acceptably offset for the pay-as-you-go requirements of OBRA.

Estimates For Pay-As-You-Go
($ in millions)

H.R. 5653 - High-Speed Rail Bonds (Coyne (D) Pennsylvania)

The Administration has no objection to the high-speed rail bonds provisions of H.R. 5653, as long as they are publically owned. However, the Administration does not support enactment of H.R. 5653 because the pay-as-you-go offset may impose significant burdens on State and local governments.

Estimates For Pay-As-You-Go
($ in millions)

Pay-As-You-Go Scoring
The bills addressed in this Statement affect receipts and direct spending and therefore are subject to the pay-as-you-go requirement of OBRA. The table below includes the estimated total effect of all of these bills. A budget point of order applies in both the House and Senate against any bill that is not fully offset under CBO scoring. If, contrary to the Administration's recommendation, any such point of order that applies against one of these bills was waived, the effects of enactment of this legislation would be included in a look-back pay-as-you-go sequester report at the end of the congressional session.

OMB's preliminary scoring estimates of these bills are presented below. Final scoring of them may deviate from these estimates. If any of the bills is enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending will be issued in monthly reports transmitted to the Congress.

Estimates For Pay-As-You-Go
($ in millions)