Wyden-Gregg Tax Reform Bill Would Eliminate Tax-Exempt Municipal Bonds
Feb 25, 2010
On Tuesday, February 23, 2010, Senators Ron Wyden (D-OR) and Judd Gregg (R-NH) introduced the Bipartisan Tax Fairness and Simplification Act of 2010, a comprehensive approach to tax reform and simplification. The bill would reduce the number of individual tax brackets from six to three (set at 15%, 25%, and 35 %), eliminate the Alternative Minimum Tax (AMT), and triple the standard deduction.
The bill would also eliminate the tax exemption for municipal bonds issued in 2011 and beyond, instead implementing a tax credit for individual (but not corporate) bondholders of 25% of the interest paid. The bill would also eliminate advance refunding of qualified 501(c)(3) and governmental bonds.