Blog

WSJ: Plan to Cap Tax Breaks Is Gaining Steam

Although we can’t know the exact details of what will be include in the President’s Budget at this time, many believe it will not change in a significant way from what has been proposed in the past. This means there is a good possibility for the plan to include a limit on the value of itemized deductions and other income-tax breaks at 28% for higher income households.

NLC: Limit on Tax-Exemption Would Mean Fewer Local Projects

The number and scope of investment projects will decrease for state and local governments if a federal limit is placed on tax-exemption for municipal bonds, the National League of Cities warned in a survey released Thursday.

Bond Buyer: Senators Urge Obama Not to Touch Muni Bonds

Fourteen Democrats in the Senate are strongly urging President Obama not to cap or eliminate tax exemption for municipal bonds, warding it would have a negative impact on both federal and local budgets and ultimately be “inappropriate and shortsighted.”

Issue Brief For Policymakers: Do Not Damage Municipal Bond Financing

This two-page overview, “Do Not Damage Municipal Bond Financing: A System Working Well to Build America’s Future,” explains the threats and costs to state and local government infrastructure financing should the tax exemption for municipal bonds be limited, or if municipal bonds are replaced with federally subsidized direct-pay bonds.

Bond Buyer: Tax Committee Members, Experts Question Tax Exemption for PABs

Mayor Steve Benjamin’s statement to the Ways and Means Committee on behalf of MBFA is highlighted in this article.

House Ways and Means Committee members on both sides of the aisle and experts agreed on Tuesday that they should re-examine the tax laws for tax-exempt private-activity bonds.

New York Times Rebuttal: Private Activity Bonds Support Job Creation & Economic Development

–Flawed, Inaccurate New York Times Article Debunked–

Toby Rittner, President & CEO, Council of Development Finance Agencies

The New York Times article, A Stealth Tax Subsidy for Business Faces New Scrutiny, is riddled with inaccuracies and misinterpretations of one of the nation’s most important economic development tools: qualified private activity bonds (PABs). The story, sensational and misleading throughout, highlights perceived misuses and infers abuses of the U.S. tax code, all the while ignoring the essential public purpose that these bonds serve. PABs are exactly as they sound, a bond instrument, supported and endorsed by the United States Congress since 1914, that catalyze private investment in projects and industries that may otherwise not receive conventional financing. PABs are one of the oldest tax policies on record and were included in our Nation’s first formal tax code.

MBFA Submits Statement for the Record to House Ways and Means Committee for Hearing on Tax Reform

MBFA’s statement focuses on the vital importance of maintaining the tax exempt status of municipal bonds and the potential impact on the municipal market, investors, and issuers if the tax exemption for municipal bonds is altered, replaced or eliminated.

Bond Buyer: Bipartisan Bond Resolution Introduced in House to Gain Support for Munis

Reps. Richard Neal, D-Mass., and Lee Terry, R-Neb., both former public officials, have introduced a resolution on the importance of municipal bonds to state and local governments that they hope will garner a lot of attention and support among House members.

MBFA Applauds Introduction of Resolution Recognizing Important Role of Municipal Bonds

Download MBFA’s Full Statement Here Download the Resolution Here Encourage your Congressman to Cosponsor the Resolution – learn how here

Encourage Your Congressman to Cosponsor House Resolution 112 In Support of Muni Bonds

Ask your Member of Congress to Support House Resolution 112 recognizing that for 100 years, municipal bonds have been free from federal taxation, giving state and local governments the ability to build roads, runways, schools, affordable housing, utilities and other critical infrastructure.

Local Leaders Issue Report: Protecting Bonds to Save Infrastructure and Jobs

A report identifying the importance of municipal bonds used in our communities to maintain existing infrastructure, expand economic development projects and to create jobs in our communities.

Bond Buyer: Threat to Tax-Exemption Front and Center at Muni Summit

The tax exemption on municipal bond interest will not survive tax reform efforts in Washington, D.C., without a grass-roots effort from issuers, according to market experts at the fifth National Municipal Bond Summit.

The Bond Buyer Commentary: Congress Should Leave Muni Tax Exemption Alone

This year marks the 100th anniversary of the passage of the Federal Income Tax, and the exemption against taxing income from municipal bond investments. This month also marks the 25th anniversary of the creation of the Anthony Commission On Public Finance. Why should you care?

Forbes: Obama Infrastructure Plan Could Lead To Bonds

It’s no secret that state and local governments are at very fragile financial crossroads in trying to finance capital projects on the heels of the recession. Measures that increase local borrowing costs will likely be frowned upon by the financial markets.

Repealing Tax-Exemption: Impact on Small and Medium-Sized Communities

Bernardi Securities has published a white paper that demonstrates the potentially detrimental effects on taxpayers and residents if municipalities are forced to issue taxable debt.

Statement from MBFA in Response to the President’s State of the Union Address

We strongly encourage the Administration and Congress to work cooperatively to preserve the tax-exempt status for municipal bonds.

The Bond Buyer: MBFA Warns of Impacts From 28% Cap

The Municipal Bonds for America coalition warned Friday that a retroactively applied 28% cap on the value of tax exemption would fundamentally alter 100 years of precedent, raise borrowing costs for issuers, limit infrastructure development and constrain economic development, while doing little to help solve the nation’s fiscal crisis.

MBFA Releases Analysis: 28% Cap Limits Future Economic Growth

An analysis released today by the Municipal Bonds for America coalition concludes that a proposal favored by the Obama Administration and some in Congress to establish a 28% limit on the value of deductions and exemptions would do little to help solve the nation’s fiscal crises while raising borrowing costs for state and local governments, limiting infrastructure development and constraining the type of economic or job growth that is essential to addressing the federal government’s fiscal crisis.

The Hill: Bond Dealers See ‘Here and Now Threat’ to Century-Old Tax Break

Despite coming through the “fiscal cliff” negotiations unscathed, municipal bond tax exemptions are still in danger of being limited.

The Bond Buyer: LaHood Assures Mayors He’ll Help Protect Tax-Exempt Financing

U.S. Transportation Secretary Ray LaHood told municipal leaders meeting in Washington Friday that he would help protect the tax-exempt status of municipal bonds.