Speaker Boehner and the President had another meeting late last week, after a few days off and some intense rhetoric regarding their solutions on the fiscal cliff, the combination of the expiration of Bush-era tax credits and significant automatic budget cuts set to go into effect January 1. There have been increasing doubts that a deal will be made before the deadline. One of the growing concerns for municipalities is losing the federal exemption on municipal bonds, as was a target by this recent attached article in the Wall Street Journal. There are discussions on either capping it (a paper on which from the National League of Cities is attached) and eliminating it altogether. At this point, it is unclear which direction it will head. Please contact your Congressional leaders and let them know how important this issue is as they resolve the fiscal cliff.
Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or firstname.lastname@example.org.