AGC has joined Municipal Bonds for America, a new coalition designed to educate lawmakers about the municipal bond market and the impact that the tax-exemption that which enables state and local governments to finance vital infrastructure at the lowest cost to their taxpayers. AGC joins a growing membership comprised of bond issuers, regional bond dealers, and state and local government organizations all dedicated to making sure municipal bonds maintain their current status.
With the ongoing negotiations over the fiscal cliff and larger tax reform options on the horizon, removing or capping the tax exemption for municipal bonds has been proposed as a potential change to the tax code. And with federal investment in many municipal areas like water and sewer continuing to decline, the burden for reducing the ever growing need for these infrastructure improvements and maintenance is falling to state and local governments. These government entities are relying upon municipal bonds to finance this construction. The 2012 election showed a higher than average success rate on smaller than average pool of construction-related ballot initiatives, most of which were bond questions. AGC is concerned about the effect raising the cost of this finance tool will have on construction demand, particularly with the public construction market outlook just beginning to improve. AGC will continue to fight for keeping the tax-exempt status on municipal bonds, and will take an active role in this new coalition to ensure the continued availability of the crucial construction finance tool.
Learn more about the coalition here: http://www.munibondsforamerica.org/
For more information, please contact Scott Berry at (703) 837-5321 or berrys@agc.org.
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