385 Organizations Sign Letter to Save the Muni-Exemption

On February 21, 2017, the Municipal Bonds for America (MBFA) Coalition sent a new letter to the House and Senate Leaders, including House Ways and Means and Senate Finance Committee leaders, urging them to retain the current law status on municipal bonds as a part of their ongoing debate on comprehensive tax reform. The letter is signed by 385 organizations from across the United States, representing almost all 50 states. This letter brings continued attention to the value that municipal bonds provide as the strongest and most proven method of financing ongoing infrastructure needs for state and local governments and ultimately, the constituents of all Congressional representatives.

Specifically, the letter highlights:

•State and local governments have financed infrastructure and other community related projects using tax-exempt municipal bonds for over a century

•Reducing or eliminating the tax exemption for municipal bonds could raise infrastructure costs by 10 to 12 percent, with these costs being passed directly to taxpayers

•Preserving the current law status of municipal bonds is essential in rebuilding our nations economy and infrastructure

The letter will remain open for signatures at the MBFA website here.  As we continue to grow support and receive additional signatures on the letter, we will update the website with new numbers.

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.

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. Continue reading

MBFA Sends Letters to President Obama & Leadership on Capitol Hill: Maintain Tax Exemption for Municipal Bonds

Today, the Municipal Bonds for America (MBFA) coalition sent a letter to President Obama and House and Senate Leadership urging them to maintain the tax exempt status of municipal bonds. MBFA specifically warns leadership of the negative consequence of limiting the value of the tax exemption and urges them to ensure it does not become part of any deal to address the fiscal cliff. Continue reading

Model Resolutions for State and Local Governments

MBFA member Steven Benjamin, Mayor of Columbia, South Carolina, has shared an approved resolution opposing any limits from Congress on the use of tax-exempt bonds by state and local governments.  Please click on the link below to access the resolution.

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In addition, MBFA member RTA has shared an approved resolution opposing any limits from Congress on the use of tax-exempt bonds. Please click on the link below to access the resolution.

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Sequestration Memo

A summary prepared by Nixon Peabody on the potential ramifications of sequestration on BABs and other direct pay bonds & implications for tax reform.

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Letter from Joint Committee on Taxation

A Joint Committee on Taxation memorandum to the Senate Finance Committee analyzes the revenue effects and tradeoffs from, collectively, (1) repeal of the alternative minimum tax, (2) repeal of the overall limitation on itemized deductions for certain taxpayers, (3) repealing all itemized deductions; (4) taxing capital gains and dividends as ordinary income, and (5) repealing the interest exclusion on State and local bonds issued after December 31, 2012.

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