- Imminent Threat to Municipal Bond Tax-Exemption: The House Committee on Ways and Means is considering a full repeal of tax-exempt interest for municipal bonds.
- Urgent Call for Advocacy: Public entities and state and local leaders have a limited window in January and February 2025 to advocate for the preservation of the municipal bond tax-exemption. The report emphasizes that education and advocacy efforts are currently way behind in tempo compared to the legislative process.
- Significant Financial Impact: Eliminating the municipal bond tax-exemption could raise borrowing costs by $824 billion over the next ten years, translating to an additional financial burden of approximately $6,554.67 per American household. This change would hinder the ability of state and local governments to fund critical infrastructure projects, impacting public services and economic growth.
by Tom Kozlik, HilltopSecurities
January 24, 2025