May 25, 1993
TO: TAX COMMITTEE NO. 29-93
ACCOUNTING/TREASURERS COMMITTEE NO. 22-93
RE: JUNE 2 MEETING ON CLINTON MARKET DISCOUNT PROPOSAL
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As you know, the Clinton Administration has proposed to
treat disposition gain representing accrued market discount on
tax-exempt bonds purchased after April 30, 1993 as ordinary
income rather than capital gain. (See Institute Memorandum to
Tax Members No. 13-93 and Accounting/Treasurers Members No.
14-93, dated May 4, 1993.)
The meeting which had tentatively been scheduled for May 25
to discuss this issue has now been rescheduled and will be held
at the Institute on Wednesday, June 2, at 10:00 a.m. At the
meeting, we will consider (1) the effect of this provision on
tax-exempt bond funds, (2) possible modifications to this
provision, (3) policy arguments in support of any proposed
modification and (4) the importance of this issue relative to
other items on the Institute's tax legislative agenda.
If you plan to attend the meeting on June 2, please call
Theresa Brice at (202) 955-3525 by Friday, May 28. Lunch will be
served after the meeting has concluded.
Keith D. Lawson
Associate Counsel - Tax