Washington - House Reps. Lee Terry (R-NE) and Richard Neal (D-MA) introduced a resolution last week recognizing the significance of tax-exempt municipal bonds to local governments and communities.
Commemorating the 100-year precedent of the federal tax exemption of municipal bonds, the resolution reinforces the importance of these bonds to cities across the country. Communities use municipal bonds to support job creation and investment; they are the primary mechanism for funding local infrastructure projects.
"Our representatives should stand up for our cities and their residents by co-sponsoring this resolution. Without municipal bonds, local taxpayers will pay more to finance schools, hospitals, roads, water and sewage systems, transit systems and other critical infrastructure," said NLC President Marie Lopez Rogers, mayor, Avondale, AZ. "We thank Reps. Terry and Neal for their leadership on this issue. Washington should leave municipal bonds alone, and we will continue to fight to protect their tax-exempt status to Congress and the Administration."
Three-quarters of infrastructure projects in the United States are financed by municipal bonds. If the federal income tax exemption is eliminated or capped, communities will pay more to finance projects, leading to less infrastructure investment and fewer jobs.
A copy of the resolution can be found here.
The National League of Cities is dedicated to helping city leaders build better communities. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans.