The National League of Cities (NLC) issues the following release from executive director Clarence Anthony in regards to today's House Ways & Means Committee hearing on Tax Reform Affecting State and Local Governments:
"We thank Chairman Camp (R-MI) for holding today's hearing. It was a much needed opportunity for the committee to hear firsthand about the uses of tax-exempt municipal bonds and the local impacts if the bond exemption were capped or eliminated.
"Local officials across the country remain concerned that some on the committee are fixated on misinformation about who buys tax-exempt bonds rather than examining the important role that municipal bonds have on our local communities and the added costs all taxpayers will be forced to bear if a change to the exemption is made.
"We urge the committee to listen to those former local elected officials now in Congress, like Congressman Marchant (R-TX) who stood up for keeping the tax exemption and understands that these bond proposals will result in local tax hikes to make up the difference. It was fitting that Congressman Marchant cited his local government experience as a former City Councilman and Mayor towards informing his position on the issue.
"The truth is that municipal bonds finance local infrastructure projects to the benefit of local residents and local businesses. Local businesses are contracted to build the project, local residents are employed in doing the work and local businesses and residents ultimately benefit from the finished project in the form of increased efficiency and competitiveness. "
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.