The Nation - News from June 15, 1986

U.S. mayors began their convention in San Juan, Puerto Rico, by voicing relief at the treatment congressional tax plans give their cities, but declining federal funds for urban housing, poverty and development programs remained a major worry. City officials find the tax bill before the Senate far more palatable. Their main objection to earlier versions was elimination of the deductibility of state and local taxes. The Senate bill also would treat tax-exempt municipal bonds more liberally. John Gunther, executive director of the U.S. Conference of Mayors, said he was optimistic that deductibility for sales taxes also would be restored in any final bill to emerge from Congress.