As the debate over how to reduce the deficit continues, tax expenditures—including the federal exemption for municipal bonds—are going to be on the table. Please contact your congressional delegation and let them know how important this exemption is for communities.
Several deficit reduction proposals, including Simpson-Bowles, either cap or eliminate the tax exempt status of municipal bonds. If any of these provisions become law, they will cause either a significant decrease in infrastructure investment in our communities or taxpayers will pay billions of dollars more for higher interest costs on municipal bonds.
Please reach out to your Members of Congress and the public to help us preserve the federal tax exemption for municipal bonds during the negotiations to address the fiscal cliff or the deficit. For contact information, click here.
Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or [email protected].