Steve Benjamin, Mayor of Columbia, SC, and Chairman of the Municipal Bonds for America (MBFA) Coalition, submitted a letter showing support for Sen. Cardin’s amendment, which would strike the repeal of advance refunding bonds in the Tax Cuts and Jobs Act. The MBFA is appreciative of the attention that is being paid to this very important issue that would impact state and local governments across the country and is pushing for further support for the amendment during the mark-up proceedings this week.Mayor Benjamin to Sen. Cardin 11.14.17
The Municipal Bonds for America (MBFA) Coalition submitted a letter to Senate Finance Chairman Orrin Hatch (R-UT) and other members of the Senate Finance Committee to show its appreciation for protecting the underlying tax exempt status on municipal bonds, including private activity bonds (PABs). However, the Coalition strongly objected to the inclusion to deny tax exemption to advance refunding bonds.MBFA Letter to Hatch and Senate Finance
- Impose an undue financial burden on U.S. taxpayers
- Add undue complexity to the Federal Tax law
- Exceed the statutory authority of the IRS
On Monday, July 17th, the MBFA Coalition submitted its comment letter and policy recommendations in response to Senate Finance Chairman Orrin Hatch’s (R-UT) request for expert and stakeholder input on tax reform. The MBFA’s letter was endorsed by local Utah leaders including Mayor Ben McAdams (Salt Lake County) and Amy Rowland (Utah Director – National Development Council).
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.
The MBFA Coalition submitted a letter to House Speaker Paul Ryan (R-WI) and Rep. Kevin Brady (R-TX), Chairman of the House Ways & Means Committee in response to the release of the “Blueprint” on tax reform to maintain the tax exemption for municipal bonds. You can view a copy of the letter here.
The Municipal Bonds for America (MBFA) Coalition sent a letter to Senators Dean Heller (R-NV) and Michael Bennet (D-CO), the co-chairs of the Senate Finance Committee Community Development & Infrastructure tax reform working group. The working groups are in the process of gathering information to make recommendations on their group’s topic regarding tax reform to the full Senate Finance Committee. The MBFA wrote in strong support of the current law tax exemption for municipal bonds, discussing the benefits of bonds for state and local governments, community investment, and taxpayers.
An article in The Bond Buyer on the MBFA’s letter is available here.
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.
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.
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.
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.
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.
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.
An MBFA letter to top tax committee leadership in Congress defending the tax exemption on municipal bonds.