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April 05
Preserving Tax-Exempt Status of Muni-Bonds Remains a Top Priority

As Congress prepares to return next week from a two-week recess, making a case for the importance of maintaining the tax-exempt status of municipal bonds remains a high priority.  With the anticipated release of the President’s FY2014 Budget on April 10, proposals like the 28 percent cap on tax expenditures – which could include the tax-exemption for municipal bond interest – remain a concern for county government.

Senators and Representatives need to hear the message that tax-exempt municipal bonds are a critical tool for county government to finance public capital improvements and public infrastructure projects that are essential to creating jobs, sustaining economic growth and improving the quality of life in local communities across the country. 

Some progress, however, is being made among Members of Congress even though the work is far from over.  At a recent national conference for state treasurers, House Majority Leader Eric Cantor (R-Va.) expressed his support for maintaining the tax-exemption for municipal bonds and stated that any changes now would hinder needed improvements to our existing infrastructure.  Additionally, this week Sen. Begich (D-Alaska) is expected to send a letter to the President that was circulated among Democratic Senators expressing concern over the impact any changes to tax-exempt municipal bonds would have on state and local governments and infrastructure development.

Finally, Reps. Terry (R-Neb.) and Neal (D-Mass.) continue to seek cosponsors to their resolution on municipal bonds in the U.S. House of Representatives.  The resolution (H.Res.112) celebrates the history of municipal bonds and recognizes their contribution to economic growth. 16 Representatives have already joined to date.  If your members would like to sign on, have their staff contact either A.T. Johnston in Rep. Terry’s office (at.johnston@mail.house.gov or 202.225.4155) or Kara Getz in Rep. Neal’s office (kara.getz@mail.house.gov or 202.225.5601).

To access NACo’s page for municipal bond resources, click here.

Contact: Mike Belarmino 202.942.4254 

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