By Lars Etzkorn
Please ask your members of the House to sign a letter authored by Representatives Ruppersberger (D-MD) and Hultgren (R-IL) urging Speaker Boehner (R-OH) and Minority Leader Pelosi (D-CA) to reject any proposal limiting the value of the tax-exemption for municipal bonds. Staff for Representatives Ruppersberger and Hultgren asked NLC to highlight the "Dear Colleague" letter circulated last week to all House members.
In addition, please remind your Representatives to co-sponsor H.Res. 112, a resolution introduced by Representatives Neal (D-MA) and Terry (R-NE) that recognizes the importance of tax-exempt municipal bonds. The resolution currently has 65 cosponsors.
For the last 100 years, the federal government has not taxed the interest paid on bonds issued by local governments. These tax-exempt bonds, used to fund local infrastructure projects such as roads, bridges, police stations, and water treatment facilities, create jobs and drive our local economies. Eliminating the tax exemption on municipal bonds would increase borrowing costs and make it more difficult for local governments to provide vital repairs and improvements to infrastructure. Tax exempt bonds should not be replaced and should be excluded from any cap on deductions.
For additional information, please visit our municipal bond resource page.