New Hersey State of Muncicipalities FacebookTwitter Linkedin with NJSLOM       





   

August 7, 2013

RE: Your help is needed to protect municipal bonds

Dear Mayor:        

During the August congressional recess, when your members of Congress are home in their districts, please take the opportunity to urge them to oppose any changes to the federal income tax exemption for interest earned on municipal bonds. That exemption is essential to infrastructure investments, jobs and the economy. 

The National League of Cities (NLC) has been leading the fight to preserve this tool in Washington. For a wealth of information and resource materials that you can use to make an impact, visit the NLC website at  http://www.nlc.org/influence-federal-policy/advocacy/legislative-advocacy/protect-municipal-bonds.

To see the harm that changes to the tax exemption to the municipal bonds will have on your community, NLC has an online tool that calculates the added costs to local taxpayers if the existing tax exemption is capped or eliminated.  To use the online calculator, visit http://www.nlc.org/influence-federal-policy/advocacy/legislative-advocacy/protect-municipal-bonds/municipal-bonds-interest-calculator.

If proposals to eliminate or limit the tax exemption become law, local governments will pay more to finance projects, leading to less infrastructure investment, fewer jobs, and greater burdens on those who will have to pay higher taxes and fees.  This would be bad for the economy and our communities, and members of Congress need to hear that directly from you.    

In early September, when the congressional session resumes, proposals involving fiscal policy – including tax reform, deficit reduction, FY 2014 appropriations, and the federal debt – will be front and center.  It is highly likely that Congress may consider calling for capping or eliminating the federal tax exemption for municipal bonds, the threat to the exemption remains real.  
Your efforts during August will be invaluable to help get the issue “off the table.”

Very truly yours,

Janice S. Mironov. President,
New Jersey League of Municipalities,
Mayor, East Windsor Township

Suzanne M. Walters, First Vice President,
New Jersey League of Municipalities,
Mayor, Stone Harbor

 

 

 

 

Privacy Statement | NJLM FAQ
New Jersey State League of Municipalities • 222 West State Street • Trenton, NJ 08608 • (609) 695-3481
  FAX: (609) 695-0151