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WASHINGTON – Ahead of a Senate Finance Committee hearing exploring tax tools for local economic development, the American Securities Association (ASA) sent a letter to Committee leadership urging Congress to preserve the tax-exempt status of municipal bonds.
“The tax-exempt status of municipal bonds has been a cornerstone of infrastructure financing, benefiting both rural and urban areas across our nation for over a century,” said ASA President and CEO Chris Iacovella. “ASA looks forward to working with policymakers to preserve this long-standing tax treatment which is a driver of economic growth and an improved quality of life for all Americans in every state.”
In the letter, ASA outlined how tax-exempt municipal bonds lower borrowing costs, empower local economics to fund projects that address their specific needs, attract a diverse group of investors, and facilitate economic stimulus.
ASA also urged Congress to restore tax-exemption for advance refunding bonds to provide state and local governments with greater flexibility to capitalize on favorable interest rate environments, and modernize the small borrower’s exception for bank-qualified bonds to increase affordable financing options for smaller communities.
To read ASA’s full letter to the Committee, click here.
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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.
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