Overview
The Bond Buyer quoted Micah Green in an article titled “Republican Presidential Candidates' Tax Proposals Would Hurt Munis.” The article, published November 4, discusses how municipal bonds would be hurt under the Republican presidential candidates’ tax reform proposals because the plans would lower or eliminate individual and corporate income tax rates, to the detriment of munis.
Mr. Green, who co-chairs Steptoe’s Government Affairs & Public Policy Group, tells The Bond Buyer that it's very important for muni issuers to clearly articulate that the ultimate beneficiaries of tax-exempt bonds are the taxpayers who benefit from lower borrowing costs. The market can't be in favor of higher tax rates, he says.
"The municipal marketplace has to be conscious of the political drivers of tax reform to lower marginal tax rates and yet do so in a manner that ensures states and localities can still get lower borrowing rates as a result of the tax exemption on municipal bonds," he says.
The full article can be read at The Bond Buyer (subscription required).
