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
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.
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.
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.
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.
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.