Description of H.R. 2972 (Drug War Bond Act of 1989) : Scheduled for a Hearing Before the House Committee On Ways And Means On April 25, 1990 Jcx-11-90

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The Treasury Department has joint authority with the General Services Administration to accept gifts for the purpose of reducing the national debt (31 U.S.C. 3113) and for defense purposes (50 U.S.C. 1151). In addition, numerous statutes authorize various Federal agencies (e.g., the Departments of Treasury, Commerce, Transportation, Housing and Urban Development, Agriculture, and State) to accept gifts for assisting in the conduct of agency activities.
The Comptroller General has ruled that age
...ncies may not accept gifts and bequests for assisting them in carrying out governmental functions in the absence of specific statutory authorization (36 Comp. Gen. 268).
Prior law treatment of interest on D.S. bonds Before February 19, 1941, interest earned on U.S. debt was exempt from all taxation (except estate and inheritance taxes) with respect to principal, interest, and discount at time of issue. Gain from the sale or other disposition of Treasury bills also was exempt from all taxation. The exemption applied to taxation by the United States, any State, or any U.S.


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