The nonpartisan Joint Committee on Taxation has prepared a memorandum for all members of the Senate Finance Committee [available here]. The memorandum analyzes the revenue effects and tradeoffs from:
- Repeal of the alternative minimum tax,
- Repeal of the overall limitation on itemized deductions for certain taxpayers,
- Repealing all itemized deductions;
- Taxing capital gains and dividends as ordinary income, and
- Repealing the interest exclusion on State and local bonds issued after December 31, 2012.
It is important to note that the memo does not predict what course of action Congress will take. Furthermore, the analysis does not and can not account for the loss to all citizens of the benefits of affordably financed infrastructure that underpins the economy.
BDA will address these types of analyses by continuing to educate Members of Congress about the benefits of the tax exemption on municipal bonds, including through the newly launched “Municipal Bonds for America” coalition with the issuer community.