Municipal Bond Tax Exemption Still Vulnerable; Action Needed
Earlier this week, leadership of NLC, the National Association of Counties, and the U.S. Conference of Mayors met in Washington, D.C. and pledged that their organizations will work together to convince Congress and the Administration not to limit the tax exemption for municipal bonds in any tax reform or deficit reduction efforts this year.
The meeting was timely in that the House and Senate reached agreement this week on legislation to allow the U.S. Treasury Department to continue borrowing to meet the nation's financial obligations and to avoid any potential default on the nation's debt until the summer and will now turn their attention back to deficit reduction efforts.
This coordinated effort is needed now more than ever based on meetings NLC's lobbyists have had over the last several weeks with numerous congressional offices. It is clear from these meetings that members of Congress continue to view limiting the tax exemption as a viable option for reducing the deficit and are misinformed or not aware of the harm doing so will have on local tax payers and communities. It also is clear that, if the exemption is important to local officials, they need to contact their congressional delegations to let them know.
Details: To view copies of letters that members of Congress have received from local officials and the state municipal leagues, click here. When you send your letter to Congress, be sure to send a copy to NLC, so we can add it to our website.