Archive for the ‘Tax Exempt Bonds’ Category

Camp Tax Reform Would Create New Challenges for States

House Ways and Means Chair Dave Camp’s recent tax reform plan would raise the cost of doing business for many state and local governments. Camp would repeal the deductibility of state and local taxes, including both property taxes and income taxes. He’d abolish tax-exempt private activity bonds. And he’d impose a 10 percent surtax on municipal […]

Who Benefits from Muni Bonds? It’s More Complicated Than You Think

Who benefits the most from the tax subsidy for municipal bonds? The easy answer is: Rich people who buy most of the tax-free paper. That’s true, according to a new analysis by my colleagues at the Tax Policy Center, but the story isn’t quite that simple. If you look more closely, it turns out that […]

No City is an Island: What the Stockton City Bankruptcy Means (and Doesn’t)

A few years ago, it was fashionable to compare California, Illinois, or whatever U.S. state was struggling financially to the troubled island nation of Greece.  Now, with Stockton, California the largest U.S. municipality to enter bankruptcy, it may be tempting to make another Mediterranean comparison – this time to the troubled island nation of Cyprus. […]

Build America Bonds, the Medicaid Expansion, and Trust Between the States and the Feds

States trying to decide whether to expand their Medicaid programs to cover more low-income uninsured might want to take a look at the fate of a more obscure federal program—cash subsidies to state and local governments that sell certain kinds of bonds, especially Build America  Bonds. If they do, they’ll see what happens to a […]

Should Congress Curb Tax-Exempt Municipal Bonds?

As politicians and their allies look for ways to finance tax rate cuts, a surprising option is getting a great deal of attention among conservatives: The tax exemption for municipal bonds. Mitt Romney’s economic adviser Glenn Hubbard, The Wall Street Journal editorial page, and the American Enterprise Institute’s Matt Jensen are among those who in recent weeks […]

Using Tax Exempt Bonds to Demolish Homes: Another View

Last week, I blogged about a plan to use tax-exempt bonds to finance the demolition of vacant homes in distressed Midwestern neighborhoods.  Rolf Pendall, director of the Urban Institute’s  Metropolitan Housing and Communities Policy Center, has a different perspective: I agree entirely that a piecemeal approach to the current crisis isn’t appropriate and that the […]

Should Muni Bonds Pay To Demolish Buildings?

Two Ohio Members of Congress have introduced a bill to allow states to issue tax-exempt bonds to demolish buildings. Not to build them, but to destroy them. Score this one as a bad solution to a real problem. The lawmakers, Republican Steve LaTourette and Democrat Marcia Fudge, want to allow state governments to issue up to $4 […]