Category: In the News

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.”

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.

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.

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.

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.

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.

CNBC: Muni Bonds May Still Not Be Safe From Congress

CNBC’s article states muni bonds are still in danger in congressional negotiations.

Forbes.com: Hands Off Munis for Revenue!

Forbes article highlights the MBFA and its work on the fight to protect the municipal bond tax exemption.

Investment News: Muni bond tax exemption remains a political football

Investment News reports on the muni tax exemption in the upcoming debt ceiling debate.

Bloomberg Bonds: Municipal Bonds May Get Swept Into Fiscal Changes, Deficit Reduction, Practitioners Say

Bloomberg Bonds writes about the ongoing debate over municipal bond tax exemptions.

The Bond Buyer: Threat of 28% Cap Hurting Munis Now

The Bond Buyer reports the threat of the 28% cap on the value of municipal tax exemption has caused municipal bonds to become more expensive for issuers.