We support sensible policies that enable our state and local governments to tap into the $4 trillion municipal market and finance critical infrastructure that builds strong, healthy, economically vibrant communities.
Above All Else…
We support the existing tax treatment for qualified municipal bonds. Congress and the administration should reject efforts to eliminate or reduce the tax exemption of municipal bond interest. Holders do not pay federal income taxes on interest paid on qualified municipal bonds, which reduces the interest costs for state and local borrowers. Any effort to reduce or eliminate the tax exemption would result in increased borrowing costs, forcing state and local governments to either cut back infrastructure investment or raise taxes.
Four Ways to Support Municipal Finance
Municipal bonds have a proven track record as an effective tool for state and local governments to finance critical infrastructure, but there are several ways in which federal policymakers can further expand and strengthen these tools: