The decrease in net interest margin in the first quarter of 2018 was due primarily to the effect of the tax rate change on the yield for our tax exempt securities
, and expense attributed to subordinated debt acquired with the Community First merger.
(5.) 65 Congressional Record 10373, 10409 (1918), House Hearings on Tax Exempt Securities, 67th Cong., 102, 211,231,232 (1922), Conference Committee, 73rd Cong., 5420-21, 5857 (1933) and Hearings on Proposed Legislation Relating to Tax Exempt Securities, 76th Cong.
Woods, Taxation of Tax Exempt Securities 25 A.B.A.J.
(7.) See Hearings of the Committee on Ways and Means House of Representatives 75th Congress (I939) and Hearings on Proposed Legislation Relating to Tax Exempt Securities, 76th Congress (1939).
In other words, in a given situation, is the taxpayer's indebtedness related to his tax exempt securities? Rev.
That is, indebtedness coupled with either tax exempt securities or portfolio stock will not necessarily bear the same result, either limiting or not limiting a taxpayer's deduction, in otherwise similar circumstances.
Now note what the result would be in circumstances that are similar except that the taxpayer temporarily invests the debt proceeds in portfolio stock instead of tax exempt securities. Here the IRS concludes in Rev.
88-66 is explained in General Counsel's Memorandum 39749, in terms of why there is a difference between temporarily investing debt proceeds in portfolio stock versus tax exempt securities. Under the statutory language in Sec.