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Reuters: Limits on U.S. municipal bond exemption would hurt economy -mayors

Reuters news article about the U.S. Conference of Mayors study on limiting municipal bonds.

US Metro Economies: Job Impact of Proposals to Limit the Municipal Bond Market

The National League of Cities and U.S. Conference of Mayors published a report detailing the job impacts that limiting the municipal bond market would bring. To download full report, click here.

NACo Publishes Report on “Municipal Bonds Build America: A County Perspective on Changing the Tax-Exempt Status of Municipal Bond Interest”

For a full summary by the National Association of Counties on this report, please click here. Download full report here.

MBFA Urges Support for Dear Colleague Letter Supporting Tax Exemption for Municipal Bonds

Reps. Ruppersberger and Hultgren have co-authored a letter to Speaker Boehner and Minority Leader Pelosi urging them to reject any proposal that seeks to limit the value of the tax-exemption for municipal bonds.

2013 Report for America’s Infrastructure

The ASCE recently released it’s 2013 Report for America’s Infrastructure. Please click here for more information.

Bond Buyer Commentary: Bonding the Nation Back Together

In the last week, even as the bells began their mournful knell on Patriot’s Day in Boston and just before a scene of absolute devastation ripped apart the community of West, Texas, Rep. Devin Nunes, R-Calif., and Messieurs Erskine Bowles and Alan Simpson separately proposed threats to state and local tax-exempt municipal bonds.

NALHFA Statement to the Tax Reform Working Groups

To view statement, click here.

The Bond Buyer: NAST Tells Congress: Don’t Tax Municipal Bonds

Forty-two state treasurers urged tax writing members of Congress to maintain the tax-exempt status of municipal bonds.

MBFA Submits Statement to the Tax Reform Working Groups

Today the MBFA submitted a statement to the House Ways and Means tax reform working groups on Debt, Equity and Capital (Reps. Marchant (R-TX) and McDermott (D-WA)); Financial Services (Reps. Smith (R-NE) and Larson (D-CT)); and Charitable and Exempt Organizations (Reps. Reichert (R-WA) and Lewis (D-GA)). Click here to view the statement.

The Bond Buyer: Obama’s Budget Again Includes 28% Cap, Buffett Rule

President Obama’s fiscal year 2014 budget again proposed a 28% cap on municipal bond interest and other tax expenditures for the top 2% of families, despite strong efforts by muni market participants to lobby against it.

The Street – Obama’s Muni-market Tinkering Could Ding Everyone

The municipal bond market was dealt a harsh blow. On Wednesday, President Obama released his fiscal 2014 budget proposal. It had about $800 billion in new taxes over the next 10 years, says TheStreet’s Joe Deaux. The plan also includes measures to place a 28% cap on the amount of interest bond investors can deduct from their taxable incomes.

Barron’s: Munis Chafe At Obama Budget’s Taxation, Tobacco Proposals

Parts of the muni market aren’t too happy with parts of President Obama’s budget proposal that call for reducing the tax exemption on muni-bond interest and raising taxes on cigarette sales.

Bond Buyer Commentary: DuPage County, Ill., Shows the Power of Tax-Exemption

DuPage County, Ill., has a rich history of financial stability that has helped us stay afloat during these turbulent economic times. We’ve cut the budget by more than $13 million over the past two years, trimmed costly employee benefits, and reformed several independent taxing bodies in an effort to yield greater savings for our taxpayers.

MBFA’s Reaction to President Obama’s FY 2014 Budget Plan

The MBFA is disappointed with the proposed FY 2014 budget plan that limits the value of interest earned on municipal bonds to 28 percent. Read more here.

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.