MACo’s President Washington County Commissioner John Barr received a letter from Congressman John P. Sarbanes recently about the nation’s infrastructure and the way it is built and financed.
Congressman Sarbanes writes,
I firmly believe we should be putting Americans to work rebuilding our nation’s critical infrastructure – roads and bridges, public transportation, and public schools.
Municipal bonds are a financing instrument used to build local roads, schools, and other infrastructure. A long-standing tax-exemption on these special bonds increases county purchasing power, allowing more progress on local projects.
As Congress considers broad tax reform, counties have concerns that the tax-exemption might be reduced or eliminated. As President of MACo, Commissioner Barr had contacted the Congressman to ask for his support in protecting the tax-exemption on municipal bonds.
On protecting the tax exemption on municipal bonds used to build infrastructure, the Congressman stated that he would keep MACo’s comments in mind and plan to study carefully any tax reform proposals that come before the full House of Representatives.
The Congressman writes,
Infrastructure spending literally builds stronger communities and a more secure America and I understand the important role tax-exempt municipal bonds play in financing many local and state infrastructure projects.
For more information, see Congressman Sarbanes’ response to MACo and see our previous post, MACo, State Treasurers Ask Congress to Protect Municipal Bonds