Municipal Bond Forum
Essential nature of munis recognized by many
Q
Based on your recent article, “A Lifeline After Sandy” and efforts in Congress to change or abolish the muni bond tax exemption, doesn’t it make sense for you to start a petition or letter to Congress signed by all of your muni bond clients? More than 50% of bond investors make less than $200,000 a year and any change will drastically hurt many retirees living off the income.
A
James A. Klotz responds:
Municipal bonds are critical in funding a wide range of public projects across the country. As you would expect, numerous groups are urging Congress to resist efforts that would adversely affect the market. Here’s an excerpt from one recent statement co-signed by the National Governors Association, National Conference of State Legislatures, National League of Cities and 17 other groups in the wake of Hurricane Sandy: “As the country looks for ways to rebuild from this storm and the overall $4 trillion infrastructure deficit, we urge Congress to strengthen, not weaken, the tax-exempt bond market because of its essential role in financing our nation’s infrastructure needs.” Many others echo those same sentiments.
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