Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
BONDS PROMOTE FISCAL RESPONSIBILITY Some policymakers and outside interest groups seeking to pay for new federal spending or cuts in federalincometaxrateshavecalledforataxonmunicipalbondinterest.Somewouldrationalizethis unprecedented move by arguing that the current tax-exemption for bond interest has led to runaway stateandlocalspendingonunwiseorunnecessaryprojects.Nothingcouldbefurtherfromthetruth. Bondsholdstateandlocalgovernmentsaccountable. • Generally,municipalbondsmustbeapprovedbyvoterreferendumoranaffirmativevoteofa governmentalbody(acitycouncil,countycouncil,utilityboard,orthelike). • The federal tax exemption for bond interest reduces borrowing costs, but it is state and local residentswhorepayprincipalandinterest. Historyshowsthatstateandlocalgovernmentshaveusedbondsresponsibly. • Overthelastdecade,whilefederaldebthasnearlydoubled(bothinrealdollarsandasa percentofGDP),stateandlocaldebthasremainedflatinrealdollarsanddeclinedasa percentageofGDP.1 *** 1 BoardofGovernorsoftheFederalReserve,FlowofFundsAccountsoftheUnitedStates,(Sept.16,2016). MunicipalBondsforAmerica(MBFA)isanon-partisanstakeholdercoalitionofmunicipalbondissuers,Stateandlocalgovernment officials,andregionalbrokerdealersworkingtogethertoexplainthemanybenefitsofmunicipalbonds,highlightingthefederaltaxexemptionwhichenablesfinancingofvitalinfrastructureprojectsatthelowestcosttoresidentswhilemaintainingtheintegrityand valueofthemunicipalbondmarketandprovidingthehighestqualityinvestmentsformunicipalbondinvestors. February 22, 2017 Municipal Bonds for America Coalition – www.munibondsforamerica.org