[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3785 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3785

 To amend the Bretton Woods Agreements Act to direct the Secretary of 
      the Treasury to instruct the United States Director of the 
International Monetary Fund to present to the Fund's Executive Board a 
 proposal to amend the Fund's bylaws to eliminate the Fund's policy of 
    providing de facto tax-free salaries to certain Fund employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 30, 1998

    Mr. Royce (for himself, Mr. Armey, Mr. Paxon, Mr. Campbell, Mr. 
 Metcalf, Mr. Herger, Mr. Sessions, Mr. Nethercutt, Mr. Rogan, and Mr. 
   Sanford) introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Bretton Woods Agreements Act to direct the Secretary of 
      the Treasury to instruct the United States Director of the 
International Monetary Fund to present to the Fund's Executive Board a 
 proposal to amend the Fund's bylaws to eliminate the Fund's policy of 
    providing de facto tax-free salaries to certain Fund employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS.

    The Congress finds as follows:
            (1) The quota of the United States in the International 
        Monetary Fund is funded through United States tax dollars and 
        the United States contribution amounts to $36,200,000,000, or 
        $517.47 for each American family.
            (2) The International Monetary Fund typically makes demands 
        concerning the fiscal policies of member nations accessing its 
        credit, and these demands often include tax increases.
            (3) International Monetary Fund employees should not be 
        insulated from the tax policies of their home governments.
            (4) Employees of the International Monetary Fund are 
        eligible to receive an income tax allowance.
            (5) The International Monetary Fund states that the tax 
        allowance renders the after-tax incomes of benefiting employees 
        comparable to the incomes of Fund employees whose incomes are 
        not taxed by their home governments.
            (6) The bylaws of the International Monetary Fund state 
        that its Executive Board determines the tax allowance to be 
        reasonably related to the taxes paid by employees on salaries 
        and emoluments paid by the Fund.
            (7) The bylaws of the International Monetary Fund may be 
        amended by the Board of Governors at any meeting or by vote 
        without meeting.

SEC. 2. PROPOSAL TO ELIMINATE INCOME TAX ALLOWANCE.

    The Bretton Woods Agreements Act (22 U.S.C. 286-286mm) is amended 
by adding at the end the following:

``SEC. 61. ELIMINATION OF INCOME TAX ALLOWANCE.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Director of the Fund to present to the Fund's Executive 
Board, and work for the adoption of, a proposal to amend the Fund's 
bylaws to disallow the Fund from issuing a tax allowance to the 
Governors, the Executive Directors, their alternates, the Managing 
Director, or any other officer, employee, or staff member of the 
Fund.''.
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