Opposition Growing To Proposals To Cap Or Eliminate Tax-exempt Status Of Municipal Bonds
WASHINGTON, April 9, 2013 /PRNewswire/ -- Municipal Bonds for America (MBFA) today unveiled a list of more than thirty influential organizations that have joined MBFA's growing national coalition in opposing efforts to cap or eliminate the tax-exempt status of municipal bonds.
Opposition to capping or eliminating the tax-exempt status of municipal bonds continues to grow as local leaders review the impact a change in tax-exempt status would have on critical infrastructure such as schools, roads, bridges, water and sewer systems, airports, and affordable housing.
The new list unveiled today by Municipal Bonds for America includes several leading national organizations, including the Associated General Contractors, Association of Metropolitan Water Agencies, Council of Development Financial Agencies, Education Finance Council, National Association of Local Housing Finance Agencies, National League of Cities, and the National School Boards Association.
Statewide groups joining the effort include Business Oregon, California Special Districts Association, Colorado Municipal League, Florida League of Cities, Kentucky School Boards Association, the League of Minnesota Cities, South Carolina Jobs Economic Development Authority, and Texas Association of Local Housing Finance Agencies."Municipal bonds are the primary method used by public entities like the Regional Transportation Authority to finance vital capital improvements," said Joseph G. Costello, Regional Transportation Authority Executive Director. "Eliminating or capping the deduction would increase the borrowing cost of local infrastructure improvements, which in turn would lead to higher taxes for residents and less funding for much needed infrastructure projects." "Curtailing or eliminating the municipal bond tax exemption would raise costs for financially-strapped communities and ultimately local taxpayers," said Russell Truell, CFO at City of Franklin, TN. "Shifting this burden would result in less investment in infrastructure at a time when jobs continue to be scarce and the state of our public works is deteriorating." Organizations joining effort to oppose proposals to cap or eliminate elimination of the municipal bond tax exemption: Airports Council International - North AmericaAmerican Public Gas Association The Associated General Contractors Association of Metropolitan Water Agencies Bay Area Toll AuthorityBusiness Oregon California Special Districts Association Chester County Economic Development Council Chicago Regional Transportation Authority Cleveland-Cuyahoga County Port Authority Colorado Municipal League Council of Development Financial Agencies CPS Energy CSDA Finance Corporation Education Finance Council Escambia County Housing Finance Authority Florida League of Cities International City/County Management Association (ICMA) International Economic Development Council Investment Company Institute Kentucky School Boards Association Large Public Power Council The League of Minnesota Cities National Association of Local Housing Finance Agencies National League of Cities National School Boards Association South Carolina Jobs Economic Development Authority (SCJEDA) Texas Assn. of Local Housing Finance Agencies Below is a list of individuals who helped launch Municipal Bonds for America and currently serve on the coalition's Executive Committee:
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