Letter from Sen. Terry Sanford to Dr. and Mrs. Keats Sparrow






January 13, 1988

Dr. and Mrs. Keats Sparrow

307 Queen Anne's Road

Greenville, North Carolina 27858

Dear Dr. and Mrs. Sparrow:


Thank you for your letter regarding the proposal in the original House reconciliation bill that would have disallowed the future amortization of intangible assets, such as customer lists.

While it is important to study all options when searching for revenue sources to help balance our budget, we should not indiscriminately tax any or all of the sources of income we are able to discern. It is important to weigh the revenue potential of any suggested tax against its potential economic cost. Often this cost can far exceed the revenue potential of any given tax.

In the case of this provision, I was concerned that the arguments supporting the provision might be flawed. I therefore sided with the IRS here; I think it is a mistake to disallow the depreciation of the intangible assets of a company when such assets are arguably depreciable.

I spoke to Senator Bentsen and to the Senate Finance and Budget Committee staffs on this matter during the conference on reconciliation and fortunately the provision was removed from the final version of the reconciliation bill which passed on December 21, 1987.

Thank you again for writing me regarding this tax provision.

With best wishes always



Sincerely, Terry Sanford
United States Senator
TS/mjm


Title
Letter from Sen. Terry Sanford to Dr. and Mrs. Keats Sparrow
Description
Letter from Senator Terry Sanford (D-NC) to East Carolina University Professor W. Keats Sparrow, dated 13 January 1988, in response to a letter from Prof. Sparrow on provisions of a tax bill.
Date
January 13, 1988
Original Format
letters
Extent
215cm x 285cm
Local Identifier
0013-b1-fd
Subject(s)
Spatial
Location of Original
East Carolina Manuscript Collection
Rights
This item has been made available for use in research, teaching, and private study. Researchers are responsible for using these materials in accordance with Title 17 of the United States Code and any other applicable statutes. If you are the creator or copyright holder of this item and would like it removed, please contact us at als_digitalcollections@ecu.edu.
http://rightsstatements.org/vocab/InC-EDU/1.0/

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