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Senate, Kemp to square off over urban aid tax bill.

The Senate intends to resume action and pass the Senate version of the urban aid tax bill when Congress returns next month, according to Senate Finance Committee staff. At a special briefing at NLC last week that committee's staff said, the bill will be pushed ahead despite a renewed veto threat from HUD Secretary Jack Kemp.

The Senate's urban aid tax bill includes key provisions to provide cities with new tax exempt bond authority and bank lending incentives for affordable credit to businesses in all distressed cities and towns.

The Chief of Staff for the House Ways and Means Committee indicated that Chairman Dan Rostenkowski (D-Ill.) felt confident that the White House would honor its commitment to an urban aid bill notwithstanding Kemp's adament opposition.

When the Senate returns next month it still faces upwards of 100 amendments to its version of the bill, although the staff believe the critical, "make or break," amendments have all been successfully resolved. One of the key amendments pending is an NLC-opposed one by Senate Minority Leader Robert Dole (R-Kans.) to cut, from 15 months to 12, the reauthorization of municipal authority to issue mortgage revenue and small issue industrial development bonds and other extenders.

Committee staff suggested Rostenkowski would make permanent extension of the priority municipal tax programs one of his highest objectives when the House and Senate meet in September to reach accord on differences between their respective versions. The staff also indicated Rostenkowsld was pleased by the leadership of the Senate in expanding the urban aid provisions and that he would carefully consider the NLC-supported new bond authority for all distressed communities.

The Senate staff predicted the Senate would pass the Senate version and send it to conference with the House before mid-September without major changes.

Kemp on Monday renewed his attack on the Senate tax bill, HR 11. He has charged that the $5.5 billion dedicated to 125 enterprise zones and to leverage $9 billion in tax exempt economic development bonds for all distressed cities would help too small a number of cities and offers insufficient investment incentives for businesses to move into economically distressed areas.

The administration bill would provide only $2.5 billion in tax breaks to businesses in distressed areas. It provides no assistance to severely distressed cities that are not selected by Kemp to be urban enterprise zones.
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Title Annotation:Jack Kemp
Author:Shafroth, Frank
Publication:Nation's Cities Weekly
Date:Aug 24, 1992
Words:393
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