On June 27, Senate Finance Committee Chairman Max Baucus
(D-Mont.) and Ranking Member Orrin Hatch (R-Utah) announced plans to move
forward on a framework for tax reform. The plan will essentially start
with a blank slate; all special tax provisions will be removed from the tax
code. Senators will have until July 26 to make their case for which
provisions should be inserted back in.
Both Sens. Baucus and Hatch, however, have not revealed how
much revenue they expect to generate by taking this approach and whether any
potential revenue will be used to keep tax rates down, reduce the deficit or
achieve a combination of both.
Counties are urged
to contact their Senators in the coming weeks to stress the importance of
provisions such as the tax exemption for municipal bond interest, which impacts
county governments’ ability to provide for needs such as infrastructure
investment. For NACo resources on municipal bonds, click here. NACo also recently released a report discussing the substantial impact any
changes to the tax exempt status of municipal bonds would have on counties and
taxpayers in general. To read that report, click here.
Contact: Mike Belarmino email@example.com