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Statement from MBFA Chair, Mayor Steve Benjamin, on the House tax bill

“I am deeply concerned that the House tax bill would eliminate private active bonds. If this proposal becomes law, it would severely impact state and local efforts to build affordable housing, promote home ownership, finance higher education, build critical infrastructure, and foster economic development. I am also alarmed that the bill would eliminate advance refundings of municipal bonds.  This ill-advised provision would rob state and local governments of the opportunity to save tax payer’s money by taking advantage of lower interest rates and invest in much needed infrastructure. On a more positive note, MBFA appreciates that the proposal would maintain the general exemption for municipal bond interest. In the coming weeks, we look forward to working with Chairman Brady and other House Members to craft a bill that recognizes the central role that state and local governments play in building the infrastructure that is the foundation of our economy. Private activity bonds are a valuable tool in these efforts that maximizes community decision making and minimizes micromanagement by the federal government.”